Monthly Archives: August 2014

The Poverty Plan

Grover Norquist is right about the need for lower taxes for the rich, more high-tech immigration, and less entitlement spending. Grover Norquist gets 70,000 signatures on no-tax pledge at Burning Man in exchange for one joint. Burning Man is where the educated and well connected go to petition for lower taxes and less regulation, with the help of Grover Norquist. The tech millionaires and billionaires attending Burning Man agree that Obama wants to spread wealth, instead of creating it, by soaking the most creative and productive members of society. Norquist’s pledge to reduce taxes for the rich to zero is considered pretty hip online, because millions of people agree taxes on the rich are too high, and Mr. Norquist is pretty cool and hip himself. Sometimes, in a free market, you need to privatize the profits and socialize the losses; pick winners and losers. The rich get richer because they deserve it for being smarter and better than everyone else. This is a truism that is popular online, where being rich & smart is considered to be the most important thing in the world.

Like the abortion plan, if we want long-term solutions to reduce crime and poverty, we need programs in place to prevent/discourage the reproduction of individuals that are a drain on society, instead of wasting more tax payer dollars on them. As shown below, America isn’t at risk of defaulting due to the insatiable demand for near-zero yielding US debt, but that doesn’t mean we should let entitlement spending for unproductive individuals spiral out of control. We shouldn’t feel empathy for the poor, in the same way we don’t empathize with with rodents and other pests. The poor need to be dealt with as such. Of course, not all poor are the same. Some are redeemable, but most aren’t, the victim of bad genes for which no government program can reverse. When they procreate, these genes that are major contributing factor for criminality, low IQ, and government dependence are spread, compounding the problem.

Our poverty plan is means tested not just by employment and net worth, but by IQ. Applicants that demonstrate exceptional intelligence as indicated by a high IQ score or commensurate score on suitable proxy such as the SAT and GRE or by obtaining a sufficiently advanced degree will be eligible for a basic income, with very few preconditions. Such individuals would even be eligible to keep their basic income if they have other incomes. This is because high-IQ individuals have more potential to create economic value than individuals with low IQs, and the basic income would have a higher ROI for tax payers than if it were given to low-IQ individuals.

Everyone else that wants to be eligible for benefits must undergo sterilization if they have children or otherwise agree to birth control and surveillance. Violations would be punishable by the revocation of benefits and possible jail time. Unlike the benefits for high-IQ individuals, these benefits would be just enough for sustenance and no more; employment terminates benefits.

As even more evidence we’re in a smartist era where the intellectuals or cognitive elite will inherit the earth, this discussion on Reddit about Cambodian high school cheating got a staggering 350 comments in just five hours, well before the likes of iSteve or any other blogger got to it. What makes the smartest generation special, as opposed to any earlier generation, is how well-informed they are and how they don’t regurgitate the worn, trite arguments used by the less-informed babyboomer and gen x liberals. The smartest generation values critical thinking and circuitous reasoning, as opposed to banal bumper-sticker mantras and incantations. Deprived of the rigorousness of the contemporary American public education and the world wide web, if you posed such a discussion to the babyboomers when they were in their 20′s the vast majority would be oblivious. The ‘old left’, including the babyboomers, often complain about this generation, the millennials, being uneducated, but it’s actually their generation that is less educated. One of the most up-voted comments gave a harsh indictment against the Khmer Rouge, blaming it for Cambodia falling behind.

The Khmer Rouge killed 1.7 million people, including just about all of the educated ones, and left the country in ruins. Even though they were ousted in 1979, the country was in civil war until the 90s. It has come a long way in the last 20 years, but has to come back from nothing while being plagued by corruption and poverty.

So much for the liberal bias. The smarter you get, the more you learn, and the more critical of liberalism you become. Liberalism gains power through the ignorance and malleability of its subjects; ignorance fosters liberalism.

The News Cycle and Why Social Networking Threatens the Liberal Media

We’re still in an insufferably slow news cycle, with the biggest stories of the past year being Russia invading Crimea, which occurred six months ago, and America narrowly avoiding default on its debt back on October 2013. Ukraine and Isis, while important, are ongoing and aren’t the kind of breaking news that holds the country in suspense and fosters debate and discussion among average people. The only folks discussing the Middle East and Russian politics are pundits; everyone else is too busy with stuff that is more important, like watching TV. This is one reason why stocks have done so well. As the left looks for any hint of crisis to blow out of proportion, consumers -both in American and overseas- are still consuming. Profits and earnings keep being blowout quarter after quarter. Inflation and interest rates not budging. Smart people keep innovating, making billions in the process as valuations for companies like Uber and Snapchat explode. You have the micromanaged world of blogging politics where every hiccup is breaking news and then you have the rest of the world – people who don’t care about soporific news cycle and would rather go do something fun and productive. This is a form of rational ignorance, because we as individuals have no effect on the outcome of anything that is going on.

Perhaps one reason the news cycle is so sanguine is because we’re in a plateau of permanent prosperity and peace. The class wars and economic crisis the left sought never came. Many of us are oblivious to how good things are right now both economically and technologically, because in an effort to fan the flames of crisis, the liberal media is more interested in telling the story or narrative that it wants to hear, rather than reporting the truth. Subsequently, millions of people are mislead and would be better off ignoring the news altogether, because now their minds are full of fear and propaganda. Steven Pinker is right about the world becoming more peaceful, but you wouldn’t knowing it reading about the latest crisis the news.

The good news is sites like Reddit, Buzzfeed and 4chan that have the most intelligent and incisive contributors on the internet are exposing the lies of liberal media. For example, there is this story from thewire.com about how the National Guard are turning to food banks because Rick Perry hasn’t paid them yet.

The story was promptly debunked on Reddit:

Typical false reporting by a so-called “journalist.”

According to the Austin Statesman, a NG coordinator called the food bank to inquire what they had available, just in case. 50 people in the deployment are on the list of people in need, but none of the 50 had visited the food bank as of yesterday.

For your edification, National Guardsman are provided a single meal while on duty PLUS $32 per diem for the other 2 meals.

http://www.statesman.com/news/news/breaking-news/texas-national-guard-troops-use-border-food-banks/nhCDC/

TL;DR – Political nonsense. Story writer told a story.

They’re 100′s of examples like this and it’s more evidence America, in particular the smartest generation, is becoming smarter and more conservative. If the liberal media is going to try to pull the wool over the eyes of the American people, it won’t work online, or any medium that allows engagement. By spreading FUD about privacy and the NSA to scare people from using social media sties, it’s evident left hates Facebook and other social media because it’s exposing their lies.

Another Correct Prediction

It’s time for a humble brag to remind myself and maybe the one or two people who read this blog how good I am at predicting stuff. For months, I had been writing that Snapchat is worth at least $10 billion and sure enough:

Snapchat Valued at $10 Billion

Most people are clouded by a lack of imagination or obtuseness, resulting in being wrong most of the time. The idea that an app that generates no revenue can be worth billions of dollars is inconceivable, and yet such a high valuation not irrational given Snapchat’s enormous growth and monetization potential from its millions of users and billions of daily ‘snap views’. The left said Facebook was a bubble in 2007 when Microsoft bought 1.5% of the company, valuing it at $15 billion. Now, just seven years later, Facebook is worth $175 billion and generates billions of dollars a quarter in revenue. So much for that ‘obvious’ bubble. The only thing worse than a liberal’s prediction is the president he voted for.

To predict well, you have to open your mind to things that upon first glance may seem illogical, but upon closer inspection are not so crazy. You have to cast aside your cynicism and instinctive tendencies to immediately dismiss what you dislike or don’t understand. Many of failed prognosticators try to draw historic parallels (America is in decline like Rome the most common one), and while there many convincing similarities, often there are subtleties between past and present that result in wildly diverging outcomes, which many people fail to pick up, but not me.

For many years, the left has said web 2.0 is just like the 90′s dotcom bubble and will have a similar implosion, and yet, eight years later, it’s still going strong with no hints of collapse. Whether it’s the double dip recession that never came, Bay Area real estate and web 2.0 being a bubble or stock prices and college tuition being too high, the left has cried crisis so many times that no one listens to them anymore. The original 90′s tehc bubble lasted just 7 years from 1993 to 2000. Valuations were obscene, with many companies having scant revenue and little growth as well. Millions of dollars were being funneled into companies that had next to no potential.

Now compare that to the web 2.0 boom where there is more money chasing fewer, higher quality companies. Tiny, low-quality companies get little to no VC funding and have to grovel for a pittance on kickstarter or ycombinator. The future of web 2.0 is higher valuations for all of the leading companies, with absolutely no collapse. Here are my predictions of valuations for the leading companies within the next 2-3 years:

Snapchat: $30-50 billion. Buyout or IPO

Uber: $60-140 billion. IPO

Pinterest: $15 billion. Buyout

Air B&B: $40-60 billion (as valuable as Priceline). IPO

Tinder: $10 billion. Buyout

All of these valuations will be attained. Uber and Air B&B seem awfully high, but these are not just websites but rapidly growing disruptive businesses.

Anti-Democracy

America at the national level never was, never has been and never will be a direct democracy. Even propositions are often overturned by judges. America is a republic in that people vote for electors to represent their wants and needs, who then in turn represent and serve the elite, which is actually how things should be, because the elite are often economic stake holders who have a financial interest in the country succeeding, while most people are low information voters who will just vote to enlarge the welfare state for their own personal benefit. More money in politics and less voting means better policy, even if such policy is unpopular with the masses. That has especially characterized national politics since the 80′s in that your vote doesn’t matter, but it’s for your own good that it doesn’t. Voting should be restricted to only property owners and tax payers, like before the Civil War when states were allowed to create their own voting laws. Eligibility should also be granted to individuals that have an IQ above a certain threshold and or a degree or profession deemed valuable, regardless of income or net worth.

Like the ‘right to vote’, the left also believes that every American has a ‘right to work’, a position which has also unfortunately been adopted by factions of the right as part of the post-2008 neocon backlash. Liberals and some republicans gripe about how there are not enough jobs being created, spreading lies borne of ignorance that the low labor force participation is bad for the economy when, in fact, Wall St. wants fewer jobs, and the economy is better off with more productivity at the expense of redundant, overpaid, useless jobs. Unlike republicans, the left opposes technology that will improve living standards and America’s competitiveness if it will put people out of work.

Just like we don’t have democracy, we also have an illusion of free will, in as far as social mobility is concerned. Considering the large and growing role IQ plays in society from wages to crime and entitlement spending, biological determinism can’t just relegated to the far-fetched worlds of science fiction, it’s reality. This is why we’re in the smartist era. Intellectualism is everywhere and more prized than ever, because smart people keep making all the money in this economic boom through stocks, high salaries, venture capitalism, private equity, on Wall St., etc. In a leftist world of political correctness by vapid talking heads and subservient politicians, intellectualism is where the smartest generation finds the truth, whether it’s the universities, on the trading floor, in the free market, on Reddit and 4chan. Welfare liberals are on the NYT and Huffingtonpost, clinging to their obsolete, dying world views. They want America to regress to a time when there were more overpaid jobs and IQ was less important. They call themselves progressives, yet they resist technological and economic progress because it will cost jobs and lower real wages, even if such progress is how America becomes a better nation than the rest of the world. Here’s an example where we need the best minds in America to find a solution:

Fortune Magazine – a pragmatic, pro-capitalist and pro-technology publication – poses an HBD related question, if driverless cars save lives, where will we get organs?

Liberals are squeamish at the idea that not all born life is sacred. Some solutions brought up during the discussion are artificial organs and stem cells. Organ harvesting from non-brain dead individuals and non-sentient individuals conceived for the purpose of providing organs are more controversial solutions doable with existing technology. Instead of the policy we have today where anyone needing an organ is eligible, another option is to restrict eligibility only to individuals that are deemed worthy enough by some set of criteria such as IQ, importance or net worth. Also, it’s guaranteed some driverless cars will glitch and there will be organs from that, but nowhere near as many today’s bad drivers and their victims already provide.

The indefatigability of the ‘unparticipatory’ economic boom

To understand why our economy is so strong, we need to better understand how the modern American economy works. Thanks to the liberal media talking points and an ignorance of modern economics, many people assume a fast growing GDP and robust job creation are the necessary conditions of a strong economy, but this isn’t necessarily true. Profits & earnings, living standards, government & multinational borrowing rates, exports, technological innovation, low valuations, rising stock prices, and fed policy are more reliable economic indicators that are more applicable to the world today. These cannot be easily captured by GDP and employment alone. So even if the labor force participation is at historic lows, people are whining about ‘tough times’, and GDP is anemic – by the aforementioned indicators – the economy is still strong. We’re in an economic boom, but as we said a few days ago, not everyone can or will participate in it – except those who bring value to society.

Some are slow to pick up on this concept of an ‘unparticipatory’ economy, which perhaps includes Aaron Clarey who writes that the 50′s were a period unprecedented economic health:

Practically all economic measures showed the economy firing on all cylinders and everybody, and I mean EVERYBODY (blacks included) benefited from this great general economic climate.

What happens when the economy is deemed to be firing on all cylinders and everybody has a job and feels happy? Well, interest rates go up. They keep going up. Eventually the economy enters a recession. Asset prices crash, and many people are unhappy. Now compare that to today where the economy is doing well by certain indicators like listed above, but everyone feels unhappy, and many people don’t have jobs. The indicators that the fed uses to regulate policy (employment, lending, home building, etc) are still weak, and that’s one important reason (there are others) of why we’re in such a prolonged boom period and one that will continue, because the fed will never raise interest rates again. The best economic boom is one where certain cylinders are firing and others are turned off. That’s where we are today and will be for a long time.

During the 20 year period which most would consider the halcyon days of America (1940′s-1960′s) economic growth was nearly twice what it is today. Unemployment a half. Underemployment, non existent. And debt decreasing.

This is similar to how liberals hold the 90′s as economically sacrosanct. Both are wrong in that these decades were characterized by falling corporate profits, rising valuations, speculative lending to main street, high inflation, and lots of corporate waste such as too many jobs. What happens when everyone thinks the economy is doing great is they expect more from employers and being that the unemployment rate is very low and the job market is uncompetitive, employers have little leverage and have to acquiesce and raise real wages. Speculative spending for projects such as skyscrapers surges, further eroding profits. Now compare that to today where employers have the uncontested upper-hand and have the luxury to hire only the best and brightest. This is great for profits, not so great for job seekers. And let’s not forget the economy entered a recession on the Clinton surplus. Since 2008, corporations have gotten much, much better at making profits as shown below:

During the 1940-1960′s, profits didn’t grow. So much for that ‘boom’. Also profit margins were very volatile:

In the 50′s, profit margins were about 10% less than today.

Rather than having too much haphazard growth like in earlier decades, we have steadier, smoother growth thanks to financial innovation and globalization, which means longer periods of expansion and much fewer busts, or what some call the great moderation. We’re turned the boom/bust cycle into a perpetual boom.

Although the 50′s and 90′s did have a lot of technological innovation, all decades do, and especially this one as indicated by all the huge gains being made in physics, social media, finance, web 2.0, e-commerce, media, drones, and so on. Snapchat and Uber didn’t need ‘full employment’ and 6% GDP growth to be hugely popular.

Conservative Minimalism

The ice bucket challenge is perhaps the best argument yet against democracy. Just think some of these people can vote and may even be driving. A person who partakes in the ice bucket challenge probably has the mental impairment of someone who is intoxicated or on drugs, except it’s permanent.

As stocks keep going up and interest rates never go up again, the celebration of wealth and intelligence has become the new religion of America, but one group, the conservative hipsters, are leery of the wealth part.

On the online magazines and podcasts, we’re seeing the meteoric rise of the conservative hipster – a conservative that lives a liberal lifestyle of minimalism, with a street-wise ruggedness and an emphasis on personal self-sustainability. Examples of conservative hipsters include Gavin McInnes, Jim Goud and Aaron Clarey. Because conservative hipsters disavow materialism and live an unconventional, peripatetic lifestyle, they can forge friendships and mutual respect among some liberals that mainstream conservatives are unable to do. Because these hipster conservatives are fiercely independent and opinionated, conventional employment can be difficult; consequently, they often find themselves jumping from one gig to the next, with lots of writing to kill the time. Others may have had success at a professional line of work and decided, out of boredom or frustration with the establishment, to voluntarily downgrade their lifestyle to preach conservative minimalism. To be able to resist the temptation of materialistic wealth in pursuit of intellectual endeavors greatly adds to your credibility among the smartest generation and society, in general. Closely related to the paleoconservative.

Another Record High For Stocks

In yet another setback for the crisis-seeing left, stocks close at another record high. All this media fuss over ISIS, Iraq, and Ukraine has absolutely no impact on S&P 500 profits & earnings which is why Wall St. is ignoring it. Just noise that investors should tune-out. Google and Facebook don’t care. Whatever happens in the Middle East isn’t going to stop people from clicking Google ads or uploading picture to Facebook. Fox News, one of the few examples of fair and balanced media, is right about this still being the Bush/Bernanke bull market.

But the left also insists that this rally is due to QE, but this is also wrong, because small business and consumer lending is still at levels well-below the pre-recession peak:

By depressing rates, the main function of QE is to discourage the hoarding of cash by make riskier asset classes such as stocks, municipal bonds and real estate more compelling by comparison. By that measure, QE was a huge success, creating a up to a trillion dollars of wealth in the form of rising asset prices. The economy, especially large caps and web 2.0, is doing just fine even if the banks are lending much less. This is actually good news because, as we saw in 2007 and in 1987, an influx of bad loans tends to precede market tops. That’s why I’m a fan of the Fed, because unlike the typical useless democratic politician and their pursuit of wealth spreading and regulation, the Fed creates an economic environment conducive to the creation wealth. That’s why the floor of the NYSE gave thunderous ovation to Bernanke when he stopped by. 4chan is right about the fed doing a good job and ,like myself, want to control entitlement spending for the parasitic class. This is why we’re in a smartist era because economic policy is making smart people richer for the economic value they create.

A bet against the stock market is a bet against the brightest minds of America. It’s a bet against consumer spending, exports, profits & earnings, IQ, web 2.0, smart people, and technological & economic innovation. You can be a loser like the liberals on Businessinsider and Huffingtonpost who insist the market is too high and the economy is weak because not enough jobs are being created, or you can be a winner who buys the dips and makes money. This is the biological determinism/Social Darwinism bull market. From web 2.0 to Bay Area real estate and private equity, high IQ people are making dynastic wealth with no end in sight. This is how America should be – a nation that rewards success and exceptionalism under a meritocracy and a free market. In fact, it’s not a matter of ‘should’; it’s already that way.

All over social media such as Reddit, 4chan and Buzzfeed, everyone is on board the biological determinism point of view because it’s the correct one. The theory that millions of people are unable to participate strong economic recovery because they aren’t smart enough is already starting to gain traction in academic circles. If you’re in debt and cannot find a good paying job because you majored in something worthless, it’s your fault. People who are getting displaced due to surging rents are losers and should have gotten a better paying job. Don’t blame landlords; blame your lack of intelligence for being in the economic predicament you’re in. Whether it’s Wall St., Washington, Ivy League elitism, the Federal Reserve, web 2.0 or the rich, millions of people looking for someone to blame but themselves. In the ownership society we find ourselves in today, there are makers and takers, and Obammi is obviously allied with the later.

Tesla, Uber, Snapchat, Facebook, Tinder, Air B&B, and Pinterest – the valuations of these companies keep going up. This is the high-IQ American meritocracy as epitomized by the ‘new rich’, where anyone with some coding and a good idea can become a millionaire overnight and a billioniare in a couple years.

Given their immense influence and wealth, Elon Musk and Mark Zuckerberg are unofficial ‘presidents of the United States’, with the Silicon Valley and Wall St. as the 4th branch of government. In an era where transparency is the new currency, social media is the new department of the treasury. While Obama, the empty suit and habitual golfer, losses his influence as his approval rating keeps making new lows, these titans of technology and business are shaping policy to their own financial gain through tax inversions and expatriated profits that the wealth spreader in chief is powerless to stop. I would even go so far as to say we’re in a technocratic rapture that will culminate with eternal salvation for some once the ‘singularity’ is achieved. Transhumanism means the most productive, useful members of society won’t have to accede to the unenlightened. But depending on estimates, the singularity won’t occur for at least a several decades. In the meanwhile, free market capitalism will continue to eat the world, creating new industries and destroying obsolete ones.

Why We Need More Testing

This story about kindergarten testing went viral. Not surprisingly, there were many anti-testing comments, especially on the more liberal leaning sites. In the smartist era and in the meritocracy, we need more testing , not less, to help help identify gifted and slow students. Whether it’s an IQ test or a proxy such as the SAT, testing is the best way to assess individual general cognitive functioning for large groups of people, as well as identity exceptionally talented individuals.

How are we supposed to cultivate the next generation of scientists and tech superstars, many of whom attend public schools, if we let political correctness get in the way of good policy? The left has trouble accepting that cognitively, some people are superior to to others, and these differences can manifest in all sorts of aspects of society from income, to entitlement spending and crime.

Perhaps one reason why so many people are failing to participate in this strong economic recovery is because they simply aren’t smart enough. Their skills are obsolete, and they cannot adapt to change fast enough, so they get permanently left behind. The emphasis on profits & earnings and the hyper-competitiveness of the post-2008 economy has created a macro environment where the best and the brightest are thriving, while everyone else is treading water in a state of just barely getting by.

More testing raises the stakes for everyone, meaning that the overall population becomes better educated and competitive, in order to do well on the tests.

Many smart students find coursework boring and get poor grades, but excel at standardized tests, because they already know the material.

There was a fascinating tedx talk awhile ago about how standardized tests, contrary to being useless as often ascribed by the left, can predict lifetime outcomes such as wages, being published in a journal, level of academic attainment, and so on.

A common retort is that cognitive testing is inaccurate for young people, because their minds are still developing. Yes, except that smarter people develop faster, and these differences between individuals are reflected in the IQ score. A higher score means faster development. Furthermore, IQ can be measured reliably from the age of 3 and typically remains stable throughout life.

The Daily View: Abortion Debate, Economic Recovery, Political Dysfunction, American Exceptionalism

I have a 6th sense. Out of a list of hundreds of articles, I can tell you, with great accuracy, which ones will go viral. It comes from years of experience blogging and posting on websites. Many people have no clue what other people want to read. The quadrantsphere (education, race, economics and IQ) has never failed me. These are topics that affect everyone. We all like to rant about IQ and the SAT (how IQ & SAT matters/doesn’t), share our theories (often wrong) about race and our experiences (often bad) about school, and from the difficulty of finding work to the stories of the national debt, we experience economics on a daily basis.

TIL When nonpregnant people are asked if they would have a termination if their fetus tested positive for down syndrome 23–33% said yes. When women who screened positive are asked, 89–97% say yes

It’s nice to see leftist political sacred cows slaughtered in this raging debate on Reddit about abortion and Down’s Syndrome. Thank Richard Dawkins for kicking off this much needed open, honest discussion about prenatal care. We already have debates about prolonging end of life care for the elderly, which is not nearly as taboo, so why can’t we discuss end of life options for the early stages of life?

Richard Dawkins is right. Even though I ideologically lean republican, a compelling argument can be made for compulsory abortion in instances of genetic anomalies that would severely compromise cognitive functioning, quality of life, and life expectancy. If not stillborn, they are a burden on tax payers and the family.

We’re definitely in a technological and intellectual Renaissance in America. So many cool technologies and discoveries, especially in the past few years alone. And many more to come.The biotechnology revolution will settle the nature vs. nurture debate once and for all, that all traits are heritable. Because of this, biotechnology will help solve society’s ills through eugenics, new treatments for deadly diseases like cancer, designer babies, and prenatal screening.

Profits Without Prosperity: Post Great Recession, corporate profits and market have recovered booming. The rest of America has not

Is it wrong for corporations to horde cash? With few exceptions (like the 2008 bank bailouts or Tesla) corporations do a better job allocating cash than governments and charities. To quote Milton Friedman:

There are four ways to spend money. You can spend your own money on yourself. When you do that, why you really watch out for what you’re doing, and you try to get the most for your money. Then you can spend your own money on somebody else. For example, I buy a birthday present for someone. Well then, I’m not so careful about the content of the present, but I’m very careful about the cost. Then, I can spend somebody else’s money on myself. And if I spend somebody else’s money on myself, then I’m going to have a good lunch! Finally, I can spend somebody else’s money on somebody else. And if I spend somebody else’s money on somebody else, I’m not concerned about how much it costs, and I’m not concerned about what I get. And that’s government. And that’s close to 40 percent of our national income.

Sometimes in an economic recovery, not everyone can participate at once, or even at all. Those who create vaue, have high IQs, and take risks are reaping the lion’s share of this economic boom – think web 2.0, private equity, Bay Area real estate, Snapchat, Whatsapp, Uber, etc. The recovery is so uneven because, to be honest, many people are dull and employers no longer have much use for them. Redundant, useless, or overpaid jobs are being automated, outsourced, or simply eliminated. That’s just the reality of the hyper-competitive, meritocratic economic environment we find ourselves in today.

Here’s an interesting video about how millions of jobs may be rendered obsolete due to automation:

Before the financial problem of 2008, there was a labor glut, and using the crisis as excuse to thin the herd, multinationals are reporting record high profits, earnings, and productivity – a trend that will continue for a very, very long time to come. Dow 20,000 soon. Also, consumer keep spending and exports keep being blowout quarter after quarter. There was no de-leveraging nor a new era of frugality. The ‘new normal’ that Jar Jar Binks opined about in 2010 is the same as the old normal, but more extreme as in extremely high healthcare an education costs with no end in sight , extremely high gas prices, extremely high stock market, extreme profits & earnings, extreme wealth inequality, extreme police.. etc. Nothing changed, as this blog correctly predicted, and baring some major event like nuclear war or a massive asteroid impact, nothing ever will.

Sources of Political Dysfunction: America in Decay

Sorry liberals, but congressional dysfunction, low public approval of congress, and partisan intransigence does NOT mean America is in a state of decay, whatsoever. Historically, the economy and stock market has done better under a divided house. The best government gives no constituency exactly what it wants; instead, it leaves the free market to its own devices, keeps taxes and regulation low, and only intercedes during crisis like in 911 or in 2008. That’s the best way to govern, by governing as little as possible, except in exigent circumstances. If no one happy, no one has too much power. An example of how too much power and consensus is bad is Nazi Germany, or even FDR’s efforts to pack the supreme court so his policies would far outlive him.

But is America in decline? Again, absolutely not, as measured by record low borrowing costs for multinationals and the U.S. government, record profits & earnings, political and national stability, the booming web 2.0 scene, surging high-end real estate, and institutions such as MIT, Caltech and the Ivy League being the envy of the world.

From marginal revolution Which economies are most likely to be shrinking?

As I explain in the piece, the most likely economies to undergo sustained negative growth today are Italy, France, Croatia, Greece, Portugal, and possibly Taiwan. We should be more optimistic about the United States, but still a similar logic is applying to some parts of our middle class.

Tyler is right. It’s time to be optimistic about the future of America. Europe & Russia are pretty much in a borderline recession. Other countries have high inflation. America is in that sweet spot of tame inflation and steady growth.

America , unlike those other inferior countries, will never have a period of sustained economic decline or a decline in global influence. It’s why we’re exceptional. Thank good fed policy, multinationals, the tireless consumer, Washington for doing a good job during crisis, free market capitalism, the meritocracy ,etc. The left, in their war on success, wishes this weren’t so.

The Abortion Plan

Surprised the HBD blogosphere has not picked up on this Richard Dawkins’ Abortion Comment Sparks ‘Feeding Frenzy’ On Social Media

Liberals are attacking Richard Dawkins for merely stating what many already already know to be true: people with Down’s Syndrome (or any profound disability) are a drain on society, and perhaps the most moral and cost-efficient thing to do is ‘abort and try again’, in Dawkin’s own words. America has an entitlement spending problem, and our economy and society would be better with more people that contribute a net positive than individuals who drain public resources. This is only controversial because many people choose to think with their heart instead of their brain.

We (Grey Enlightenment) propose a plan to reduce entitlement spending, which is to require all pregnant women below a certain income threshold to undergo screening within the first trimester for conditions such as Downs Syndrome and other mutations that would severely compromise cognitive functioning and create burden for tax payers. Such fetuses would be aborted and the abortee would be given some remittance for cooperating with the program. Those who have the financial means to care for the disabled child would have the option set aside enough money before pregnancy for lifetime care, so they are paying for it, not tax payers.

To quote the super-smart, pragmatic, republican-libertarian and economist Aaron Clarey, ‘not all lives are precious.’

Pragmatic conservatism, utilitarianism, mixed libertarianism *, and neoliberalism are among the fastest growing political movements, because it proponents use logic and reason to construct policy that has a high return on investment and maximum utility, rather than illogical partisan orthodoxy that creates waste. This appeals to the smartest generation who are tired of the bullshit from the two-party establishment, the media, and pseudo intellectuals.

* Mixed libertarianism combines free markets with intervention such as bailouts for too big to fail and limited crony capitalism, along with the federal reserve. Profits should always be privatized with some losses socialized for too big to fail. This is in contrast to pure libertarians that oppose the fed and or any form of market intervention.