So much of what is happening these days seems to be set in a fantasy world. I was struck by this when I looked at some of the opinions put forth today in the media. Here is a sample:
1) Rich Lowry wrote in the New York Post about president Obama's plan for universal pre-school. Obama said that there was "study after study" that shows that pre-school leads to greater high school graduation rates. Indeed, he cited the experience of two states to support that conclusion. Lowry, in turn, points out that Obama's own government did an exhaustive study of the one large pre-school program in America, Head Start. That study showed conclusively that by the time children reached third grade, there was no discernible difference between kids who went to pre-school and those who did not. Further, when reporters checked with officials of the two states cited by Obama as proving higher high school graduation rates, they found that the state officials had no idea what Obama was talking about (apparently, neither did Obama.) In fact, neither of the two states has had their program in place long enough to determine the effect on high school graduation rates. After all, it takes twelve years for kids to go from pre-school to high school graduation, even in Obama's America. So the president's claims are mere fantasy.
2) In the Washington Post, there is a long discussion today about how the new high taxes in California have not stopped the economic recovery there. In support, the WaPo columnist tells us that unemployment fell more rapidly in California last year than in the rest of the country. Also, home prices rose more quickly last year in California than elsewhere in the country. We also get told about some start up companies that have located in the Golden State.
It is almost too ridiculous to have to point out that the tax increases were just passed by the voters in November. The declines in unemployment and the rise in home prices took place before the taxes went up. There is, as of yet, no reliable indications of the effect that the tax increase will have on the California economy. But this is not the main point. Only a fool would think that state income taxes would rise and that there would be an immediate slow down of the economy. These things take time. Just look, for example, at the hedge fund industry. Over the last few years, more and more hedge funds have moved to Florida from the New York area. Florida has no state income tax. Florida has no city income tax. Florida property taxes are much lower. Even so, it is not as if the entire hedge fund industry got up one day and moved south; it takes years for the accumulated effect of the tax differences to kick in. Just look at Fairfield County in Connecticut. From 1960 until the late 1980's, large numbers of corporations moved their headquarters to Fairfield County just to escape the taxation of New York. Once Connecticut adopted a state income tax, that corporate migration stopped. Indeed, over the last ten years, Connecticut is one of only three states that lost jobs.
3) In USA Today, Bill McKibben has a column explaining how a move by Obama to bar the Keystone Pipeline will reduce greenhouse gas emissions. He repeats purported facts that are just not real. For example, he announces that any jobs created will just be temporary, lasting two years at most. Really? What about the jobs created at refineries in Texas that will handle the oil shipped in the pipeline? What about the jobs created at the transportation hubs where the finished products will be shipped? What about the jobs created at industries that will get lower cost fuel which will enable them to compete? These jobs cannot be wished away by the environmentalists. McKibben even states that if Obama blocks the pipeline, the oil in Canada will never be used. We are supposed to believe that Canada has literally trillions of dollars worth of oil and that it is going to let the American president block Canada from developing this asset. This is akin to McKibbel announcing that he is now twenty years younger than yesterday. He can say it as often as he wants, but it does not become true through repitition.
So much of what appears in the media is phony political posturing that I wonder how people will ever learn the truth.
1) Rich Lowry wrote in the New York Post about president Obama's plan for universal pre-school. Obama said that there was "study after study" that shows that pre-school leads to greater high school graduation rates. Indeed, he cited the experience of two states to support that conclusion. Lowry, in turn, points out that Obama's own government did an exhaustive study of the one large pre-school program in America, Head Start. That study showed conclusively that by the time children reached third grade, there was no discernible difference between kids who went to pre-school and those who did not. Further, when reporters checked with officials of the two states cited by Obama as proving higher high school graduation rates, they found that the state officials had no idea what Obama was talking about (apparently, neither did Obama.) In fact, neither of the two states has had their program in place long enough to determine the effect on high school graduation rates. After all, it takes twelve years for kids to go from pre-school to high school graduation, even in Obama's America. So the president's claims are mere fantasy.
2) In the Washington Post, there is a long discussion today about how the new high taxes in California have not stopped the economic recovery there. In support, the WaPo columnist tells us that unemployment fell more rapidly in California last year than in the rest of the country. Also, home prices rose more quickly last year in California than elsewhere in the country. We also get told about some start up companies that have located in the Golden State.
It is almost too ridiculous to have to point out that the tax increases were just passed by the voters in November. The declines in unemployment and the rise in home prices took place before the taxes went up. There is, as of yet, no reliable indications of the effect that the tax increase will have on the California economy. But this is not the main point. Only a fool would think that state income taxes would rise and that there would be an immediate slow down of the economy. These things take time. Just look, for example, at the hedge fund industry. Over the last few years, more and more hedge funds have moved to Florida from the New York area. Florida has no state income tax. Florida has no city income tax. Florida property taxes are much lower. Even so, it is not as if the entire hedge fund industry got up one day and moved south; it takes years for the accumulated effect of the tax differences to kick in. Just look at Fairfield County in Connecticut. From 1960 until the late 1980's, large numbers of corporations moved their headquarters to Fairfield County just to escape the taxation of New York. Once Connecticut adopted a state income tax, that corporate migration stopped. Indeed, over the last ten years, Connecticut is one of only three states that lost jobs.
3) In USA Today, Bill McKibben has a column explaining how a move by Obama to bar the Keystone Pipeline will reduce greenhouse gas emissions. He repeats purported facts that are just not real. For example, he announces that any jobs created will just be temporary, lasting two years at most. Really? What about the jobs created at refineries in Texas that will handle the oil shipped in the pipeline? What about the jobs created at the transportation hubs where the finished products will be shipped? What about the jobs created at industries that will get lower cost fuel which will enable them to compete? These jobs cannot be wished away by the environmentalists. McKibben even states that if Obama blocks the pipeline, the oil in Canada will never be used. We are supposed to believe that Canada has literally trillions of dollars worth of oil and that it is going to let the American president block Canada from developing this asset. This is akin to McKibbel announcing that he is now twenty years younger than yesterday. He can say it as often as he wants, but it does not become true through repitition.
So much of what appears in the media is phony political posturing that I wonder how people will ever learn the truth.
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