Tuesday, December 2, 2014


Today the socialist-communist party of the Spanish, Podemos, led by Pablo Iglesias, published the main points of their neo-communist manifesto. Iglesias and his Podemos cohorts have managed to surge in popularity

The plan reads like a 16-point plan of expressed stupidity, a plan that is blind to the nature of mankind and of progress.

There is so much fallacy wrapped up in the proposals as to reveal the childish minds of those who thought up the silliness.

Points of Reality

  1. There is no such thing as "the public." Thus, there is no such thing as public service.
  2. Credit and finance are useful to individuals, not to any abstraction.
  3. A wage is price. Blocking price discovery distorts. It leads to abundance in one area and dearth in another.
  4. To be solvent, a payer of annuities must know the terms (the time limit and the sum limit).
  5. All income is the same.  If income taxation exists, the rules must be the same, whether for an individual or for a firm. The lack of depreciation schedules for individuals reveals that both capital outlays and income gained gets subsidized for firms.
  6. Mortgage-backed securities amount to a subsidy to bankers' risk. Political subsidy of mortgages distorts prices. Politicians should be prohibited from underwriting mortgages.
  7. It's insanity for legislators to incur debt to fund salaries and welfare. Worse, it's immoral to force others to pay taxes to fund interest on debt that pays for bureaucrat salaries and welfare. Politicians should be prohibited from incurring debt except to fund revenue-enhancing infrastructure like ports, roads, bridges and tunnels.
  8. No woman needs to marry and subjugate herself to a man. It's mere rhetoric and parroted stupidity to claim housework is unpaid labor. To whom is the housewife selling her skills through time (labor) in a purchase and sale? Who is buying from the housewife in a purchase and sale?
  9. Anytime, employees are free to pool their wage profits and credit into capital and start their own competitive firms.
  10. Legislative debt problems arise from bad borrowing and spending practices by politicians. Countries don't need debt restructuring. Citizens everywhere need political restructuring, which would strip power and authority from politicians across a wide swath of activities.
  11. "But it's for the children" is one of the dirtiest and oldest political tricks from the book of political tricks.
  12. Citizens already have minimum incomes that comes from subsidized rent, food and the like. Often, those minimum incomes are quite high.

    Rather than institution of a minimum income, which never would be enough according to its proponents, a maximum payout of welfare should be imposed both on a yearly basis and a lifetime basis. Never should welfare take the form of cash or bank credits.

    Food should be dispensed from soup kitchens imposing a strict diet upon recipients. Meal times should be curbed with doors abruptly locked at closing time.

    For those needing shelter, bunk houses should be built. Children should be segregated from adults.

    No able-bodied individual ought to receive welfare without also receiving skills training and psychological training.

    Welfare, which is another way of saying minimum income, ought to be a tough-love experience used to help anyone fix himself or herself upon a new path of betterment.
  13. If politicians levy taxes on the sale of property, which is the right of ownership and never what is owned, on cars, on clothes, on concert tickets, there is no legit reason to not also tax the sale of property in stocks or bonds.


    Though most think of property as things possessed, property always has meant the right of ownership and never the thing owned. Only when property gets created, can trade arise between two persons.

    The name for property put to making stuff is called capital. The name for property put to purchase and sale for cash and credit is wealth. The name for property that can be sold to satisfy debts is asset. The name for property pledged against a debt is collateral.

    As I explained in The Theory of Trading Property for Profit,

    Stocks and bonds are known as corporate securities. Legally, stocks evidence property (ownership) while bonds establish liability on property.

    That said, corporate organization through securities does what instruments of property transformation do and that is to upgrade property making it merchantable.

    Improved land for purpose, purpose-built buildings, and specialized machinery stand fit only for purposes as designed. As highly specialized property as capital, such property loses its merchantable qualities through specialization.

    However, when split into fractional property of partial rights as represented by stocks and bonds, such property becomes highly merchantable.

    As a credit instrument, a bond give evidence upon a promise to pay principle and interest from future profit. A stock gives evidence of ownership but promising nothing with respect to profit.

    The holder of a bond becomes a creditor to those who issued that bond. The holder of a stock becomes part of the company who issue it and thus a fractional debtor for all liabilities of the company, including bonds.

    Since stocks and bonds are mere property, and if politicians levy taxes on the buying and selling of other property in purchases and sales, then no legit excuse exists to not also levy taxes on the buying and selling of stocks and bonds.
  14. For a bonus, quickly learn about the reality of taxes in IF YOU DRIVE A CAR, I'LL TAX THE STREET. IF YOU TRY TO SIT, I'LL TAX YOUR SEAT. MR. WILSON. MR. HEATH.

No comments:

Post a Comment