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Is capitalism dying in the U.S.? February 19, 2017

Posted by hslu in Economics, Election, Politics.
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The Screwed Generation Turns Socialist

http://flip.it/VJHyDg

Where are you?

A very interesting article about the changing wheels of American politics.

Sad but unfortunately true  December 11, 2016

Posted by hslu in Economics.
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How true. Just look at the gap between Goldman Sachs’s managing partners and the 99%.

Hello, socialism, here comes NY September 11, 2015

Posted by hslu in Economics, jobs.
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$15/hour minimum wage will push these people out of government’s welfare programs and…..

Surprise!

They will certainly make less than what they made before because they won’t qualify for food stamps, medicaid, free breakfast for their kids, free school lunch, rental assistance, home energy and utility bills assistance, transportation assistance, moving expenses, health and safety assistance, child care assistance and outright up-to-60-month cash assistance.

In the mean time, politicians will take credit for doing the ‘right thing’ for the 99%. They have to do it if they want to win their next elections. This is the essense of democracy.

Since the guys on the low end of the totem pole got a raise, whether they deserve it or not, the others will demand a raise too.

The restaurant owners have no choice but to raise the prices on their menu because they are not running a welfare program. But will their customers come back for more?

Some will not. Some will buy less. Some will go to neighboring states. As a result, some restaurants will close down and the guys who now make $15/hr will lose their jobs.

In the end, whom are they going to blame for going back to unemployment line?

What these people should do is to invest in themselves, work harder, stop vacation, don’t buy the 52 and use government subsidies to get a decent education or learn a skill. Move themselves up the ladder in the society and bring their families along with them. As such, they get their self esteem back and give their kids a ray of hope and a brighter future.

Americans did it to themselves July 26, 2013

Posted by hslu in Congress, Economics, Euro, Global Affair, jobs, Obama, Politics.
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The 2008 financial crisis was the product of capitalism which was heavily promoted by the United States over the last several decades.

Look at the damage it did to the citizens of the world. In short, capitalism is a failed economic system because of the boom and busy cycles it has repeated over the past decades. Capitalism is also partly responsible for many uprisings all over the world because of the inherent inequality created by the system. Does Obama‘s 99% sound familiar?

Look at the lousy condition America is in right now. Obama has openly rallied the 99% against the 1%. This is 階級鬥爭 pure and simple and it has been very effective! What else can you say about the high approval rating he still enjoys in light of the continuing 14+% true unemployment rate for 3+ years?

He has successfully shifted the blame to the top 1% (by extension, the capitalism) and by doing so made the middle class his friend instead of his enemy. Of course, the bottom 47% was long in his pocket to begin with.

But he has left the country in a hole (debt and social welfare) much deeper than Americans can dig themselves out of.

The middle class in the US will suffer the most because the rich 1 to 5% (who’s counting, anyway) will shift their wealth around and minimize their federal taxes. They may give up their US citizenship all together if necessary.

The American poor will continue take handouts from the government like they have always been doing like nothing has happened. If anything, their benefits will even increase now that Democrats have been in power for 5 years with 3 more to go.

That leaves the once all mighty American middle class who has carried this country for so long.

They are no doubt exhausted. Their once good-paying jobs have gone to other countries which have learned the in’s and out’s of the capitalism so well. The old-style middle class Americans are not qualified for the high tech jobs that command $100+ K salary because they don’t have the skills. These jobs are reserved for the kids of many highly educated Asian, Russian and European immigrants who have helped built the America the way it was before the 2008 financial crisis. What’s left are jobs in service industries, nursing, waiter and waitress jobs, and the ones which can’t be out-sourced. the sad truth is that as a class, they get paid about 1/2 of what they used to make. Their kids fared even worse because of the sorry state of the American public education system from the high school and on down.

Unfortunately, the so-called new middle class will be the last ones left standing who will be responsible for paying down the rising debt and the costs of the bloated social programs created by Obama and his cohorts.

Don’t feel sorry for Obama. He will continues to enjoy his paid vacations (security details included) and pension thanks for the 53% who pay federal income taxes. The senators and Congressmen will collect their fat pensions and enjoy their health care system reserves solely for them.

Americans did it to themselves. They did it under capitalism. They have no one else to blame now that capitalism is crumbling down around them.

They will naturally merge into a socialism structure, a failed economic system if you ask me.

The dim light at the end of the tunnel will be a lower standard of living for everyone, the new middle class included.

If you don’t believe me, just look at France, England, Italy, Spain, Greece, and… Should I continue?

http://www.cnbc.com/id/100596232

 

America is changing into Socialism fast April 7, 2013

Posted by hslu in Economics, Obama, Politics, Taxes.
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Americans have been giving the right for the pursuit of happiness.

Under Obama, you are still having this right but you first have to pay other people’s 99-weeks unemployment benefits, health care benefits, food stamps and other social welfare benefits.

In other words, in Obama’s mind, the rich and the middle class have to first help others pursuit their happiness before working on your own.

After you have done that, you are on your own to do whatever you still can.

With American’s current fiscal structure, “you” means our children and their children. They have a huge debt to pay.

We suffer as well in the form of lower benefits.

Blacks in general do not like capitalism because as a race they can’t compete. They like socialism because they don’t have to a lot to get by. Obama is doing all he can to fulfill the dreams of the his fellow citizens.

With Obama, America has crossed the point of no return to perpetual socialism. America is doomed to become Greece when, not if, the US dollar lose its reserve currency status.

The path to the poor house has been laid for America because the Republican Party has lost the war to Democrats forever. The trend of demographic in the US doesn’t support the conservative ideas once championed by the Republican Party. If amnesty for illegal immigrants proposed by Obama and the Democrats becomes reality, the Republican Party will lose another 10 million votes. The once Conservative party is doomed forever. It will be lucky if it can hold on to the House.

Tea Party is doing as much as it can, but they are fighting a losing battle. If they are a force to be taken seriously, Obama won’t be re-elected in 2012. The Tea Party just didn’t have the headcount to inflict any serious blow to the Democrat Party.

You and I should be prepared for the unavoidable and the unthinkable future. Socialism is here to stay for as long as eyes can see. Hold-on to your money because Obama and Democrats are coming to get it.

Communism is dead. Socialism is in Turmoil. Is Capitalism next? December 3, 2010

Posted by hslu in Economics, Global Affair, jobs, Politics, Taxes.
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The root cause is human’s selfishness.

Communism is Dead.

Why should I work harder if guys next to me who don’t  don’t work as hard get paid the same as I do?

If you do not believe me, just ask anyone from China before capitalism was allowed to flourish starting in 1985.

Socialism in Turmoil.

Why should part of my hard earned money goes to some one who sits on his or her butt with hands out all the time?

If you do not believe just ask any tax payer from Germany who is asked to bail out people in Greece and Ireland. Unfortunately the United States is moving to become a socialist country.

Capitalism is Dying.

Capitalism is struggling to win supporters in the US if it is allowed to police itself like it did before the mortgage crisis. Capitalism also caused the bust of Internet bubble in 2000 and the subsequent recession that followed. In short, capitalism is the root cause of the boom and bust cycle that we have endured since the early 1920’s.

In the end, the rich got richer and the poor became even poorer before the cycle repeats itself.

If you do not believe me just ask anyone who has been on the unemployment line for the past 99 weeks.

 

 

 

 

 

What PIGS and American Auto Union have in common? May 23, 2010

Posted by hslu in China, Economics, Global Affair, jobs, Politics.
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What happens in Europe now has already happened in American Auto Union

The left-leaning governments across Western Europe including France and PIGS countries have built a generous socialized system for over half a century. Workers in public and private sectors alike enjoyed month long paid vacations, retired near 50 years old, protected by national health care systems and lived on welfare benefits on the backs of younger workers. The socialism model has created two or three generations of lazy workers who sipped coffee and read newspapers on the jobs, went home early in the afternoon and retired early to enjoy their fat pensions. The comfortable living style was made possible because European countries spent very little on national defense because it was paid for by the United States during Cold War. The laid back mind set created a socialized system which was ill-prepared to compete with capitalism embraced by Americans and lately by millions of Chinese.

Now let me ask you a question: have you seen this drama unfolding before?

The question is yes; in American’s Auto Unions of GM, Ford and Chrysler. These companies went belly up because the union workers got lazy and couldn’t compete with workers from Japan and lately Korea. Union’s bloated salaries, fat pensions and generous health benefits did them in. Their laid back business model couldn’t produce cars wanted by the consumers. As a result, these companies went belly up and required billions of tax dollars to bail them out. Now that these companies’ loans have been restructured, number of workers reduced, workers’ salaries modified and health benefit slashed, we’ll see how good their cars are. They will enjoy a period of growing market shares thanks to troubles at Toyota. But the real test is in the market place where consumers will always choose by their feet. It will take five to 10 years to see how big a dent GM and Ford will be able to make in Toyota’s reputation.

Now let’s go back to the sorry states European countries found them in.  Since socialism is no longer working, western European countries have to adapt drastic measures to cut government spending, reduce public workers salaries, increase their work hours, reduce their health benefits, raise retirement ages and reduce pensions of younger workers. The governments have to borrow billions to avoid bankruptcy in the short term and tighten their bellies to pay for the debts. The leaders of these governments have to take steps to change the structural disadvantage of their country in order to compete with developing countries in the world market. The reform will be difficult to take but it is a necessary pill if these countries want to avoid high unemployment rate or rising deficits. If they don’t, they will gradually become dying states and suffer lower living standards for decades to come.

Who would you say was responsible for the crisis in these European countries?

My answer is China.

China’s rising from Communism and embracing Capitalism opened the door of opportunity for trillions of dollars in the world market. Huge sums of capital left these European countries in droves and went to where they were treated the best, China, since 1993. As a result, thousands of plants all over the world were forced to shut their doors which took jobs away from the less competitive countries and transferred them to China instead.

During the process of global wealth transformation, countries which have other means to generate revenues, such as oil exporters in the OPEC and countries with natural resources, were less affected because of the rising commodity prices.

It will be interesting to see how long China can maintain its growth pattern with protectionism popping up all over the world led by the United States.

I suspect that this is not the end of the chapter yet.

Chinese like to say 三十年河東, 三十年河西 ”san1 shi2 nian2 he2 dong1 san1 shi2 nian2 he2 xi1.” The drama just got interesting and 好戲還在後面呢 “hao3 xi4 hai2 zai4 hou4 mian4 ne3.”

Please enjoy the show. I know I’ll have a good time watching this show unfolding.

Taxes, Taxes and more Taxes. April 9, 2010

Posted by hslu in Economics, Health Insurance, Politics, Taxes.
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I just started on my 2009 income tax return and didn’t like what I saw.

First of all, I don’t have any deductions to reduce my Adjustable Gross Income:

I don’t have rental property to take depreciation. I have no farm losses. Nor do I have business losses. No capital losses because all my losses were in my IRA Account. And they weren’t deductible. I do not have Health Savings Account. Nor do I have a Flexible Spending Account.

My medical expenses from kidney stone didn’t qualify me for any medical deduction because it wasn’t high enough to meet the threshold of 7.5% of my AGI.

The only major deduction is the interests we paid on my mortgage. What we used to have: interests paid on credit cards and car loans, were taken away from us a long time ago. Accelerated depreciation on rental properties changed to straight line appreciation. Sales taxes deduction was taken away too.

The income tax is not the least I am disgusted about because some of the money was long gone before we even saw it: the so-called payroll taxes:

In all, I paid:

Social security tax                            6.2%

Medicare tax                                     1.45%

Federal Income tax                         10%

State Income Tax                             4%

Property tax                                       8.5%

Sales Tax                                              5% of take home minus savings

Gasoline Tax                                      0.07% or $700, based on

*  18.4 cent/gal on Federal

*  38 cents/gal on Virginia State

Car (property) tax                            0.02%

Total: about 47% of our incomes. Gone! They didn’t even show up in our pockets. They were taken away by the governments: federal, State and local.

What kind of country is this? We worked our butts off and government takes it away. The middle income people are the suckers of all people in the US: the rich guys ($20 million+) don’t feel the pain from tax bites because they have more than what they need. They also have account in oversea banks. They have accountants to keep their taxes as low as possible.They invested in non-taxable securities or things allow them to take legal depreciation.

The lower 50% of all US population don’t pay income taxes. Well, may be 2%. The two income families, or the so-called middle class, work all year long, sent their kids to private school if them can afford it, pushed themselves into the higher tax bracket and promptly let the government collect half of their pay without even a thank you note from their representatives.

Now you see what wealth re-distribution means. And Democrats are very good at this. They like big governments. They like entitlement programs. They like people rely on them for their livelihoods. They bring the country to mediocrity. As such, they are more powerful because more people rely on them for their food stamps, health care and social security checks. They are re-elected time and time again.

And don’t say that I didn’t warn you:

  • Marginal tax rate will have to go higher to pay for all the entitle programs: social security, Medicare, Medicaid and health insurance.
  • VAT or Value Added Taxes, is coming whether we like it or not.It will start at a low number, say 3 – 5% in order to get it passed through the Congress. Then it will go higher, to as much as 20%, like in some of the socialism countries: France, Italy, Canada, Sweden, etc. Do you know that there is no way that the U.S. government can balance its budget without a massive increase of taxes? Repayment of the national debt is a pipe dream. It will not happen in our life time.
  • Death taxes will be reinstated.
  • Capital gain will be treated as income instead of taxing at 15% now.

The grin outlook lead me to ask: Is there any way to reduce my taxes? How about a smaller government? How about everybody get their butts off the chairs, go to school, make yourself marketable, start working and make a living for a change.

Another question I have is: Is there any way to get some of my taxes back from the government? Perhaps we can:

  • Get a rental property and take depreciation and losses.
  • Buy a farm, raise a couple of pigs and claim losses.
  • Live longer and claim social security taxes till we are 100 years old. The younger generations have promised to pay for it whether they like it or not. According to the current law, they have no choice but to pay for it. If they don;t have money, the government will print more money and pay for it. You know who will pay for it later.
  • Open ROTH IRA accounts to avoid taxes. There is no guarantee that it will last forever. The Congress made it happen. It can take it away too.

Since it is coming whether I like it or not, I might as well enjoy it while I still can. Socialism here I come.Some one will pay for it anyway. I will try my best to reduce my tax burden as much as I can. Legally.

Democracy failed in the U.S. April 6, 2010

Posted by hslu in Economics, Energy, Health Insurance, Obama, Politics.
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I am sad. I am worried. I am disgusted.

The United States has just made a giant leap toward socialism with the passage of health care reform bill. The Democrat Party under Pelosi, Reid and Obama bribed its congressmen and congresswomen behind closed doors to get this bill passed against the wills of the majority of its people. This time democracy failed the majority of American people.

To the Democrats, this is a big victory because it will continue their dominance of the republicans Party for the foreseeable future even though they might lose the next mid-term election. To the Democrats, this is the beginning of their continuing push for a single payer system. To the Democrats, this is wealth re-distribution. To the Democrats, this is class warfare. To the Democrats, this is control of people’s lives. To the Democrats, this is power grab of the highest degree. To the Democrats, this is big government getting bigger. To the Democrats, this is, under the disguise of passion, the creation of a class of people who will permanently reply on government to provide health care for their entire lives. To the Democrats, this is the creation of a growing class of people who will votes Democrats to keep the health benefits coming forever. To the Democrats, this is the beginning of having a final say on how much doctors can make and how they will treat their patients. To the Democrats, this is the ultimate control of how much insurance companies, drug makers and medical device companies can make.

This time, the pendulum swings too far to the left and the country will suffer when time comes. This time, democracy deviated way too far from the middle ground, the 半 “ban4,” and the boomers and future generations will pay for this mistake.

You see, 因果 “yin1 guo3” never fails. The seeds, 因 “yin1,” have been planted. The consequence, or the 果 “guo3,”will come. The worst won’t show up until generations later.

Roosevelt’s New Deal after Great Depression gave us social security which will require injections of new funds to pay for the pending retirement of baby boomers. The younger generation workers will have to pay higher social security taxes. They will have to work longer and face small benefits. They and their children also have to pay for the unfunded liability of untold trillions of dollars in their entire working lives.

LBJ’s Great Society after Democrats’ landslide victory in 1964 gave us Medicare, Medicaid and welfare. Fifty years later, Medicare and Medicaid are running out of money. Seniors just saw their benefits cut by $500 billion with the passage of the health care reform bill. Welfare gave us a permanent underclass (mostly blacks) stretching out two or three generations who were totally unproductive in the society. These people, satisfied with government checks and food stamps, stayed at home and live in poverty with their kids. Unfortunately their kids learned from their parents and they also relied on government for their livelihoods because they have no marketable skills in this changing society. And that’s why they are solidly behind Democrats for the past 50 years. One of the major themes of LBJ’s initiative was to eliminate poverty. It sounded noble. It sounded great. It sounded passionate. It had the best intentions. The only problem with the good intention was that it didn’t eliminate poverty by a long shot. Behind the beautiful words was Democrats’ push to expand the government and expand its voter base. That’s why the Democrats have dominated the Congress for almost 40 years since the 1960’s.

With super majority in both houses now, the Democrat Party has pushed through the health reform bill but that’s not the end of its goals yet. The Democrat still has eight months to push their agenda on immigration reform (ultimately granting permanent residences to illegal immigrants) which is coming before you know it. The bill will no doubt pass in the House along party line. It is not important whether they can succeed in the Senate. It is important to create an image among Latino voters that they are on their side. With Latinos being the largest minority group in the U.S., the Democrats will have another block of voters solidly behind them in the elections to come.

Cap and Trade bill is also coming. It aims to squeeze billions of dollars from businesses such as utilities, coal and oil companies to the federal government. It will be redistributed again and the consumers will suffer the consequence.

I hate politicians. I hate politics.

Socialism has its benefits. But this? March 9, 2010

Posted by hslu in Economics.
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Is this what America slowly becoming to?

Wow! Is this really happening in the United States?

America is going down hill quick if more people think like this guy does.

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