Daily Archives: September 12, 2011

Poll: Vast majority believe businesses and consumers are over-regulated « Hot Air

But the American people perceive the regulatory environment somewhat differently than does the president. Three quarters — 74 percent — of voters throughout the country believe that businesses and consumers are over-regulated, according to a Public Notice poll released today. And they strongly suspect that much of that over-regulation has been implemented recently: 67 percent believe that regulations have increased over the past few years.

In fact, they’re right. The rate at which regulatory burdens are growing has accelerated under the Obama administration, according to a Heritage Foundation backgrounder. During its first 26 months, the Obama administration imposed 75 new major regulations with reported costs to the private sector exceeding $40 billion. During the same period, six major rulemaking proceedings reduced regulatory burdens by an estimated $1.5 billion — for a net increase of more than $38 billion.

via Poll: Vast majority believe businesses and consumers are over-regulated « Hot Air.

Yes, It Is a Ponzi Scheme | Michael D. Tanner | Cato Institute: Commentary

Texas governor Rick Perry is being criticized for calling Social Security a “Ponzi scheme.” Even Mitt Romney is reportedly preparing to attack him for holding such a radical view. But if anything, Perry was being too kind.

The original Ponzi scheme was the brainchild of Charles Ponzi. Starting in 1916, the poor but enterprising Italian immigrant convinced people to allow him to invest their money. However, Ponzi never actually made any investments. He simply took the money he was given by later investors and gave it to his early investors, providing those early investors with a handsome profit. He then used these satisfied early investors as advertisements to get more investors. Unfortunately, in order to keep paying previous investors, Ponzi had to continue finding more and more new investors. Eventually, he couldn’t expand the number of new investors fast enough, and the scheme collapsed. Ponzi was convicted of fraud and sent to prison.

Social Security, on the other hand, forces people to invest in it through a mandatory payroll tax. A small portion of that money is used to buy special-issue Treasury bonds that the government will eventually have to repay, but the vast majority of the money you pay in Social Security taxes is not invested in anything. Instead, the money you pay into the system is used to pay benefits to those%

via Yes, It Is a Ponzi Scheme | Michael D. Tanner | Cato Institute: Commentary.