I’ve written about Glenn Beck’s painful demise many times over the years, even giving my readers an early heads-up that his days at Fox News were numbered. “Hell hath no fury like a woman scorned,” wrote 16th century playwright William Congreve. And he was right, because when it comes to Beck, I feel like a scorned woman. I really loved the guy in his early days at Fox, then suddenly he turned on me, along with the rest of his viewers.
In his first year at FNC, I was awed by Beck’s raw talent and no-holds-barred disrobement of the radical left. The fact that he was the most hated man in America was de facto proof that he was a fearless truth-teller, because the people of the lie — those millions of chronically dishonest folks in both the radical-left and conservative-establishment wings of the Demopublican Party — harbor venomous contempt for anyone who dares to expose their lies.
But after Beck’s first year at Fox, it was all downhill. The first time the thought crossed my mind that perhaps he wasn’t authentic was when he held a rally in Washington D.C. and a half million people showed up. I was there, and I can honestly say that I didn’t know what the point of the rally was, but the half million people in attendance were clearly mesmerized.
It wasn’t until much later I realized that the only purpose of the D.C. event was to provide a forum for Beck’s followers to assure him how much they loved him. Really, there was absolutely no agenda other than “We love Glenn Beck!”
Once that chink in Beck’s armor was exposed, the second chink came when he started restricting the guests on his show to clergymen and no-name religious scholars like David Barton, whom he stunningly, and often, referred to as “the most important man in America.” It was such a ludicrous statement that it made me wonder if Beck was once again getting cozy with Jack Daniels.
But it got even worse when, in his dwindling days at Fox, Beck sat on the edge of his desk for the entire hour of each show and gave what appeared to be an extemporaneous monologue. I was amazed at his ability to talk for an hour without notes, but, even so, it became very boring after a week or two. Increasingly, he appeared to be a beleaguered and lost soul.
Finally, as I had predicted to my readers, Beck parted ways with Fox News and started a new media company that he said would make his enemies wish he were back at Fox where he was on the air only an hour a day. Unfortunately for him, it hasn’t worked out quite that way.
As Beck began to realize he had become yesterday’s news, he started popping up on “The O’Reilly Factor” and “The Kelly File.” His slobbering all over Bill O’Reilly and Megyn Kelly was difficult to watch. (Fortunately, I no longer watch Malevolent Megyn at all.)
Beck’s attempts at getting attention are nothing short of embarrassing. When he was still at Fox, he somberly announced that his doctor had told him he was on the verge of possibly losing his eyesight. It’s nice to know that that didn’t happen. Then, after he left Fox, he supposedly had a mysterious, life-ending illness, but that apparently disappeared as well.
Finally, there was what he described as “the most deadly decision of [my] career” — announcing that, in a show of compassion, he was going to send truckloads of food and supplies to the Central American refugee kids who flooded the southern border of the U.S. in 2014.
Beck’s personality reminds me of Jim Jones of Jonestown fame. Perhaps becoming a cult leader is his ultimate destiny, because he desperately needs people to follow him, listen to him, and adore him. He is a man in search of true believers who will follow him to the ends of the earth.
On to the next chapter: Just when Beck was almost out of ideas on how to get attention and regain his stardom, along came an unlikely new politician by the name of Donald Trump. It was almost too good to be true. Beck saw what he thought was a golden opportunity to make himself into a hero by focusing his attention on bashing the media’s newest version of the Antichrist.
It’s now become his fulltime job. He demonizes Trump all day, every day, and has literally pleaded with his audiences to vote for anyone but The Donald. He even joined an angry bunch of establishment losers (people for whom he had always expressed considerable contempt) by signing on to the National Review’sdesperation piece to stop Trump.
As one would expect, he has repeatedly warned his listeners and readers that Trump’s rise to power parallels that of Adolf Hitler’s. And speaking of Hitler, in a recent article on his blog, Beck even said that he would vote for Hitlary Clinton if it came down to her or Trump. He then took it over the edge by saying, “I’m warning you now, you will say after two years of Donald Trump, ‘I’d give my right arm for Barack Obama.’”
In truth, of course, Beck’s mental disorder has nothing to do with Donald Trump and everything to do with his psychopathic need for attention. The only other theory I can come up with is that he is — as childish as it may seem — insanely jealous of Trump for all the attention he’s been getting.
It probably brings back painful memories of his own glory days in the spotlight — before those nasty mental demons gained control of his mind. It appears Beck is trying to piggyback onto Trump’s fame in an effort to get noticed. Unfortunately, it’s not working, and he’s only succeeding in making himself look ever more pathetic.
I would hate to see anything bad happen to this once-great talent, but I truly believe that if those closest to Glenn Beck don’t get him some serious psychiatric help soon (Where is Keith Ablow when you need him?), he could end up as a face-in-the-gutter alcoholic once again — or, worse, he might even do harm to himself or others.
Having said all this, in fairness, Glenn Beck isn’t alone when it comes to Trump Derangement Syndrome. The fact is that his views are shared by millions of Trump haters throughout the world.
Putting Beck’s mental issues aside for a moment, the Trump phenomenon is not all that complicated. Thanks to the radical left — and the establishment right that carries the left’s water — people’s anger over their loss of freedom and the intentional destruction of their country has reached the pitchfork stage.
Even so, the D.C. Crime Syndicate remains in denial, and its members are hysterical at the thought that they are in the process of losing their stranglehold — not just over Washington, but over all of America as well. They see Trump as a threat to both their power and their monopoly on legalized theft.
But the truth be known, Trump haters like Beck give Trump far too much credit. There’s no question he’s a narcissist. There’s no question he’s an egomaniac. There’s no question he’s rude, crude, and nasty. No one disputes any of these unflattering Trump qualities.
What Trump haters don’t get, however, is that these are the very qualities that millions of people actually want in a new president, so he can take down the Washington establishment. The best way to think of Trump is as a wrecking ball that has a good chance of destroying the D.C. Crime Syndicate.
Simply put, the Trump phenomenon is nothing more than long-overdue blowbackfrom everyday Americans — yet, amazingly, the delusional establishment still has no clue. What Trump actually does if he becomes president is almost secondary to those who support him. Right now, people just want the Washington power structure dismantled, and they figure that once that’s accomplished, they can sort things out later if Trump’s less than endearing qualities prove to be a problem.
In the meantime, in the event you’ve never read Glenn’s Beck’s The Blaze on the Internet, you should do so for a couple of days. His obsession over DT will take your breath away. I tell you, the man has a serious mental disorder, and I mean that literally. Sad … very, very sad.
Glenn Beck isn’t great at business or money management. Word on the street is The Blaze is about dead. They could really use a random billionaire bailout right about now. Cenk Uygur and John Iadarola, hosts of The Young Turks, break it down. Tell us what you think in the comment section below. http://tytnetwork.com/join
“Sources inside Glenn Beck’s once-mighty multimedia production company say that Beck is falling apart as his media empire collapses around him.
An employee of Beck’s flagship website TheBlaze.com told Huffington Post in an article published Wednesday that the few remaining staff are “looking for an exit” because they expect the site to be shuttered soon for good.
Huffington Post’s Michelle Fields said that TheBlaze.com is “suffering from a lack of editorial direction, staff attrition and internal discord” and that the mood among employees is “somber” as they’ve watched a 25-member editorial team get whittled down to six people — with more cuts expected.
“The few people who are still left are looking for an exit because they know The Blaze is over,” the source told Fields. “They haven’t told us straight up that they’re done with us, but all the signs point to it, and they’re not replacing people who are laid off or get out.”
Other employees report that their healthcare benefits were reduced over the summer and that in September, all of their travel and phone stipends were cut off. In June, the company closed its vast New York City newsroom and the remaining employees are working from home.”*
Glenn Beck Goes Bananas After Ted Cruz Endorses Trump
Glenn Beck’s ‘The Blaze’ Is Burning Down
Published on Aug 1, 2016
The Blaze is in a lot of trouble. Cenk Uygur, host of The Young Turks, breaks it down. Tell us what you think in the comment section below.
“Conservative television and radio host Glenn Beck has filed a lawsuit in Texas against the man who used to run his entertainment and news network, TheBlaze, according to sources close to Mr. Beck. The petition, obtained by LawNewz.com, was filed on behalf of Mercury Radio Arts, which serves as Beck’s production and operating company over TheBlaze. The complaint accuses Chris Balfe of breach of contract, general mismanagement, breach of fiduciary duty, and fraud. Balfe served as the COO of Mercury Radio Arts and was CEO of TheBlaze until he left in December 2014 to start his own company, Red Seat Ventures. Balfe had worked for Beck for more than 10 years, and was credited with helping to grow Beck’s business.
“I am embarrassed and saddened it has come to this. It is an ongoing legal matter so you will not hear me speak of this often but as always, I want you to hear it from me,” Beck wrote on his website on Monday.
Beck’s lawsuit comes amid reports of internal financial turmoil at TheBlaze. The complaint alleges between 2009 and 2014, Balfe’s compensation totaled in excess of $13 million.”
Glenn Beck: ‘I Think People Think That I’m … Nuts’
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How Glenn Beck Overcame His Serious Health Issues: “It Was A Miracle”
Glenn Beck Describes His Pivot Point, And The Support of His Wife
Glenn Beck’s Secret Brain Trouble, How He ‘Fixed’ It Is Most Troubling Of All
Glenn Beck’s Mystery Illness Diagnosed By Quack Doctor
The Young Turks Are Falling Apart
“Up/Down” Bipolar Disorder Documentary FULL MOVIE (2011)
Tomi Lahren | Final Thoughts 11/28/16
Aerosmith – Crazy
Paul Simon – Still Crazy After All These Years
I met my old lover
On the street last night
She seemed so glad to see me
I just smiled
And we talked about some old times
And we drank ourselves some beers
Still crazy after all these years
Oh Still crazy after all these years
I’m not the kind of man
Who tends to socialize
I seem to lean on
Old familiar ways
And I ain’t no fool for love songs
That whisper in my ears
Still crazy after all these years
Oh still crazy after all these years
Four in the morning
Longing my life away
I’ll never worry
Why should I?
It’s all gonna fade
Now I sit by my window
And I watch the cars
I fear I’ll do some damage
One fine day
But I would not be convicted
By a jury of my peers
Still crazy after all these years
Oh still crazy
Still crazy after all these years
Report: Glenn Beck’s The Blaze ‘Falling Apart’
by BREITBART NEWS13 Oct 20162,704
The Huffington Post reportson the continuing problems engulfing The Blaze founder Glenn Beck’s troubled media empire.
Glenn Beck’s website The Blaze is coming apart, suffering from a lack of editorial direction, staff attrition and internal discord, according to sources inside the news outlet.
The site, which Beck launched in 2010 to serve as the conservative counterpart to The Huffington Post, has dropped from 25 employees on its editorial side to just six. A source inside The Blaze, who requested anonymity for fear of retribution, told HuffPost that the mood among the rapidly diminishing news team is somber.
“The few people who are still left are looking for an exit because they know The Blaze is over,” the source said. “They haven’t told us straight up that they’re done with us, but all the signs point to it, and they’re not replacing people who are laid off or get out.”
Blazingly Mad Glenn Beck Sues His Fired CEO Christopher Balfe
The suit—in which Beck’s privately held company, Mercury Radio Arts, is the plaintiff and seeks a jury trial—alleges fraud, breach of contract, dereliction of duty, and various other misdeeds.
08.01.16 5:45 PM ET
In what one former associate of Glenn Beck described as “the last gasp of a dying empire,” the volatile right-wing radio, streaming video, and cable television personality is suing his longtime former chief executive, Christopher Balfe, whom Beck fired in December 2014.
The suit—in which Beck’s privately held company, Mercury Radio Arts, is the plaintiff and seeks a jury trial—alleges fraud, breach of contract, dereliction of duty, and various other misdeeds.
“I feel terrible for Glenn and I hope he finds the help that he needs,” Balfe, who worked closely with Beck for nearly two decades before their split, said Monday in a statement to The Daily Beast.
“The lawsuit speaks for itself,” said a spokesman for Beck—the only comment provided.
Beck, meanwhile, told listeners and viewers Monday of his syndicated radio program, which is video-streamed on his paid-subscription site TheBlaze.com: “I am—[Beck’s wife] Tania and I—are both really saddened by this and saddened that it has come to this.”
The 16-page complaint was filed quietly Friday in Dallas County, Texas, District Court, and apparently leaked Sunday night as an “exclusive” to the Lawnewz.com website, with another account splashed on GlennBeck.com.
“There are articles that have come out today on apparently lawsuit websites. I’m not going to give them publicity,” Beck told his fans. “And you’ll see more articles, I would assume, over the next few days. It’s an ongoing legal matter. And you’re not going to hear me talking much about it.”
Then, despite his insistence on not giving publicity to stories about the lawsuit, Beck recited the web addresses of the articles in question.
He is, of course, well known for changing his mind—campaigning hard during the Republican primaries for former presidential candidate Ted Cruz, for instance, mere months after announcing with spectacular fanfare that he was leaving politics for good.
Beck’s lawsuit is sharply at odds with previous expressions of gratitude he made three months after Balfe, along with fellow ex-Beck executive Joel Cheatwood, left Mercury Radio Arts, where Balfe was chief operating officer, and its subsidiary The Blaze, where Balfe was CEO.
“Chris and Joel helped me build one of the industry’s first truly independent multi-media companies,” Beck declared in March 2015, after Balfe and Cheatwood, who had steered Beck’s cable television career at HLN and Fox News, announced their formation of a new digital media company, Red Seat Ventures, and took several more top Beck executives with them. “I am sad to see them go but they left our company with an incredible foundation.”
Balfe retained minority ownership in The Blaze after he left, according to the lawsuit, and two sources familiar with the arrangement told The Daily Beast that his deferred compensation agreement featured monthly payments to satisfy around a million dollars that Balfe is owed under the agreement for both his ownership stake and his pro-rated share of company revenues.
But in recent weeks, say these sources, The Blaze has experienced cash-flow problems and has been having trouble paying vendors, while the website’s online traffic has plunged from around 26 million monthly global unique visitors in January 2015, the month after Balfe was dismissed, to around 10 million currently, according to the measuring service Quantcast.
Several more key executives have departed in the past year, along with Beck’s longtime television agent, George Hiltzik, as well George’s son Matthew Hiltzik, who recently resigned as the outside publicist for Beck and his companies; New York PR maven Davidson Goldin now has that account.
In another blow to The Blaze’s financial stability, the cable television distributor Cablevision recently stopped carrying Beck’s programming—representing an annual loss to The Blaze estimated at more than $2 million in subscriber fees and advertising sales, according to the sources.
These sources described Beck’s lawsuit as a pre-emptive strike.
They said that in June, after failing to receive his regular check, Balfe notified Beck’s company that if he wasn’t paid quickly, he would be exploring his options to obtain the money due him.
This none-too-veiled threat prompted Beck to file his own lawsuit claiming, instead, that Balfe actually owes him money—a portion of the $13 million Beck claims Balfe was paid as an executive between 2009 and 2014.
“This is a shockingly excessive amount that far exceeds appropriate compensation for companies of Mercury and TheBlaze’s size and financial performance,” the lawsuit contends.
But back in March of last year, when Balfe and Cheatwood were launching Red Seat Ventures, the 52-year-old Beck gushed: “I am truly grateful that we remain friends and am very excited to see what they do next.”
Their friendship didn’t survive, however, after Beck hired a little-known tech entrepreneur named Jonathan Schreiber, a diehard “superfan” of Beck’s syndicated radio program, who arrived in September 2014 from Israel via Miami, networked his way into Beck’s inner circle, gained the boss’s confidence and began accumulating power in the operations of both Mercury Radio Arts and The Blaze.
According to company employees, as The Daily Beast reported last February, Beck seemed to have become infatuated with Schreiber, who first showed up at The Blaze’s now-defunct Manhattan studios, and later had been regularly spotted in Beck’s expansive, glass-walled office at the rambling company headquarters in the Dallas suburb of Las Colinas—sometimes hugging his idol after a heart-to-heart.
Schreiber’s Orthodox Judaism apparently was in sync with Beck’s ardent religiosity as a Mormon convert, although staffers said Schreiber—who became president of Beck’s parent company—had an off-putting, arrogant manner with underlings, who gave him the nickname “Voldemort.”
Back in February, as Beck increasingly complained about Balfe and others who had helped orchestrate his career, Schreiber defended his own leadership to The Daily Beast.
“Glenn Beck, brilliant media mogul, realized he was unhappy in the direction his company was going so he brought in new blood,” he said in an email. “The goal being to put the company in the right direction. Through that process we separated with many people. Some will be missed, some less so.”
He added: “I am very proud of my work here, I am very proud of the culture we have created AND PROUD OF [his capital letters] the people WE have been able to bring in to the fold… No one likes to admit that they are not here because of themselves, it must be Voldemort.”
In a special video posted to his website today, Glenn Beck addressed news reports of the latest mass layoffs at his troubled media empire.
According to a report yesterday in the Daily Beast, Beck laid off 40 employees of his Blaze media organization “in order to satisfy the requirements of a multimillion-dollar bank loan taken out recently to keep Beck’s revenue-challenged enterprise running.”
As the Daily Beast noted, “This latest round of mass firings comes as no surprise to insiders at The Blaze and Mercury Radio Arts, which laid off dozens of employees last May on a day referred to internally as ‘Black Monday,’ around the same time that Beck was purchasing a private jetliner and a $200,000 Maybach sedan.”
In the video released today, Beck is seen seated at a replica of the Resolute desk in his mock Oval Office set delivering the opening monologue of his radio show.
Below is the transcript of his remarks.
I wanted to start there today because there’s a story that maybe you have read that came out yesterday that is talking about how yesterday my company, TheBlaze, laid off 40 people. And my media empire is crumbling. And part of it is because I’m traveling around with Ted Cruz.
Well, I want you to know, yes, I’ve lost a lot of money traveling around with Ted Cruz. I’ve lost about half a million dollars. That’s my choice. I believe in something.
Did that cause the 40 people to lose their job? No.
I want to talk to you today because we’re in a community together, and I trust you. And I tried to be trustworthy. And when I make a mistake, I own up to it. And I’m a trusting guy.
I think anybody on the show will tell you my biggest problem is I trust everybody, until they prove otherwise. And I try to live my life in a transparent way. And I try to surround myself with others that I believe are trustworthy.
And then I went on to build my own company with an authentic voice, a trustworthy company. And one of my main principles — and you heard me saying Isaiah it a million times: We take on no debt. Root ourselves in principles and people. Live within our own means.
And I trusted the people that ran my company, that they wanted the same things. And in the beginning, maybe they did want the same things. But a couple of years ago, I realized there were problems in my own company, and that even though the managers were all saying the right things to me, those things were never getting done. And you know this to be true. Because I would talk about things that we were going to do on TheBlaze and everything else, and then they never seemed to materialize. And I was losing credibility with you, but behind the scenes, I was a holy terror for about a year because I couldn’t find out what was going on.
Without saying anything bad about anybody because we just have different principles, the people I had moved down to Dallas and the rest was in New York and Los Angeles and Washington, DC — and we were working now towards being, I guess, a normal, status quo kind of media company, a big media company, and I didn’t ever want that.
But because our team was split from Dallas, Los Angeles — I think we had people at one time in Chicago, Washington, and New York — I didn’t know who really got the vision and who didn’t, who got it and who didn’t.
It was almost two years ago when we had a museum here at the studios in Dallas. And we invited you to come and just see the museum. And I bet there were 10,000 people here that came through — and I loved it. And everybody kept telling me, go home. Go home. Go home. And I wouldn’t go home. None of us did. Nobody on the show went home.
We were there and we spent that whole weekend with you because we love you. We love you.
But I noticed one thing about my company. Not one single person from the management team actually showed up that entire weekend. And I realized, they didn’t love the audience like I did. They weren’t connecting to the message like you did and I did. I’m not sure they were part of the culture of the principles. And I knew I had to get a hold of my company again, and that would mean making really hard choices.
First one was, are you going to stick to your principles? You going to be honest with yourself? Stand for what you believe in, or are you going to give into the status quo and go along to get along? Because these people were my friends, they were my partners, and I don’t know at the time, I thought maybe they were right. But I knew they weren’t in my gut.
And my gut and my spirit said, “Stick by what you know, even if it’s hard and even in the end if you lose.”
I had to start firing people, people that I counted as my friends, best friends, partners. And the process that I began was the hardest process of my life. Yeah, almost as hard as picking myself up off of that carpet when I was facing suicide, that carpet that smelled like soup. But this time I had something I didn’t have before: I had you. I knew you existed. I knew that you believed in the same principles I believe and that we — no, that I had made a promise to you. Our lives, our fortunes, and our sacred honor.
And so I kept going. This has been a really hard five years for me, but the last 18 months have been unbelievable. One thing I had to do was get everyone in my house under one roof so I could look everyone in the eye. Culture matters at a company.
I stopped telling you about the things that were coming on TheBlaze. It’s called the Phoenix project. We’ve been working on it now for about nine months. I haven’t talked to you about it, nor will I until we launch it. I’m tired of telling you the things that I think we’re going to do. I bet you are too. We’re just going to do them. Because I failed you too many times.
The reason the articles like the one that came out yesterday are coming out, part of it is political. Part of it is because Frank Sinatra was right, some people get a kick out of stomping on your dreams. They really do.
Some is, I guess, it’s news when somebody loses their job. Unfortunately, my media company isn’t the only place in America laying people off. My media company is not the only one that’s looking at their balance sheet and saying, “We can’t go into debt, or we’re going to lose all of the jobs.”
They said in this article yesterday — this has been claimed before that my business is failing. I will tell you, two years ago, it was. It was absolutely on fire. Because when I started to go into the books — I was a bad steward. And when I started going into the books and see what had been done to my company that didn’t ever take on debt, I was first told that we were, I think, $4 million in debt. And then it became $7 million in debt. And then when I got the final accounting, 18 months ago, my company that doesn’t take on debt was $13 million in debt.
If I’m going to tell you you shouldn’t have debt, how could I have a company that was $13 million in the hole? I made really hard decisions. And in 18 months, my company that is dying and struggling paid our debt down from 13 million to two.
A couple of months ago, we had a great sponsor of ours, about a 7-million-dollar-a-year sponsor go broke. I feel for that company because everybody that worked for that company, much larger than mine, went out of business. And they left us with a lot of debt.
You see, economies, it’s — it’s like Jenga. One person pulls one big thing out, and the whole thing could fall. But it definitely weakens. And the more pieces of stress or the more pieces that come out of Jenga, the weaker your house becomes. Somebody — Delco goes out of business because GM is no longer making their cars in Ohio, and so that hurts Delco. And then that hurts the grocery store down the street and the restaurants in the town.
We’re in this together. I’m not going to tell you that I’m not running a fail company because the proof is in the pudding. I will just tell you the old managers got us into $13 million of debt. And in less than 18 months, we’ve shaved that off by over $10 million. That doesn’t seem like a failing business. That seems like a business that is thriving and is doing its best to set its principles right.
But I want you to know, when you read TheBlaze, because I’m not happy with it — and I’ve quietly said that recently, over the last year or so. Not happy with it. But it’s changing. We just hired one of the guys who put together American Idol, Oreo cookies. We just hired a guy who was one of the main guys at Good Morning America and CNN. We just hired an HR person from Viacom. I’m rebuilding. And it will be a lot better for me honestly — honestly, it would be a lot better if I would have just filed Chapter 11. But I actually like Harry Truman too much. I don’t believe — Chapter 11, sometimes you have to do. Chapter 7, sometimes you have to do.
But I wanted to pay every single person back because it’s not their fault. It was my fault for not watching what people were doing underneath me.
One last thought and then I’ll move off: When I first put TheBlaze on the air, it was GBTV. And I won a hammer. It’s the Tribeca Disruptive Innovation Award. It’s a disrupter’s award. It goes to some of the best disrupters in the world. I couldn’t believe I was in the room when I won this award. That year, I earned that award because we broke television and we’re the first one to make it an app and put it online.
I haven’t earned this hammer a day since. But I will tell you this: Sometimes it takes a hammer to break what is broken so you can rebuild it. And in today’s world and economy, if you ever get fat and sassy, if you ever start to put profits over people, if you ever decide, “I really don’t need — I really don’t — I don’t care what the people say. Yeah, yeah, they’re customers. They’ll just keep coming.” No, they won’t. You have to innovate every day. You have to actually love your customer every day. You have to actually care about them and wonder, “How can I make their life better or easier?” And when you do that and you understand that by doing that you’re disrupting the entire system and you’ll go places that will scare the living daylights out of you, but you proceed without fear, that’s when you will win.
I’m not going to tell you we’re going to win. I’m just going to tell you, watch us. Watch us over the next year.
Head of Glenn Beck’s Media Empire Quits as The Blaze Burns Down
Kraig Kitchin will stay with the company, but resigned from the top job after friction with fellow Beck executive Jonathan Schreiber. A ‘mass exodus’ of staff may follow.
01.29.16 5:56 PM ET
In what knowledgeable observers say is a sign of increasing turmoil in Glenn Beck’s troubled media empire, Beck’s longtime mentor and corporate executive, Kraig Kitchin, has quit as CEO of The Blaze.
Kitchin’s replacement, Stewart Padveen, a digital startup entrepreneur who joined Beck’s company last summer, will be the fourth leader of The Blaze since late 2014.
Kitchin, 54, who took over operations of Beck’s conservative-leaning subscription digital and cable television enterprise last June—after two previous CEOs abruptly left in the space of six months—is resigning along with two other senior executives: Jeremy Price, director of advertising sales, and Liz Julis, director of marketing.
Both are based in New York, 1,500 miles removed from corporate headquarters in the Dallas suburb of Irving, Texas.
Several other key employees, including at least two senior producers based in The Blaze’s shrinking New York operation, are expected to follow them out the door.
A source close to the situation predicted a “mass exodus” from the New York studios, which are housed in a largely unoccupied 35,000 square-foot space at Midtown Manhattan’s Bryant Park, previously rented by Yahoo, under a 10-year lease costing Beck’s privately held company an estimated $2 million a year.
Kitchin—who co-founded Premiere Radio Networks three decades ago and has worked with personalities as diverse as Rush Limbaugh, Ryan Seacrest, Whoopi Goldberg, and Beck—tried to put the best face on his resignation in a company-wide email sent out Thursday night.
He described his apparently self-imposed demotion as a result of outside business obligations.
“Our organization—The Blaze—deserves and needs an exclusively focused leader and that’s something I cannot provide, given existing commitments I choose to honor,” Kitchin wrote, adding that “I’m not leaving this company. I’ll stay with The Blaze, working every day as the Interim Head of Sales with a focus on finding the right person for that position, assisting in the transition, on advertiser growth, program development, and industry relations.”
But according to multiple sources, Kitchin’s announcement comes out of frustration after continual friction with top Beck executive Jonathan Schreiber, the recently named president of Beck’s 14-year-old production company, Mercury Radio Arts.
According to multiple sources, Kitchin—who commuted from his home in Los Angeles to Dallas and New York—took the CEO job on an interim basis with the condition that Schreiber would agree not to interfere in The Blaze, an agreement that Kitchin realized was continually being breached. According to people familiar with the situation, Schreiber’s alleged meddling in Kitchin’s operation ultimately became intolerable.
Schreiber didn’t respond to an email from The Daily Beast, and Kitchin declined to comment.
Named president in April 2015 of Mercury Radio Arts—of which The Blaze is a subsidiary, all of it majority-owned by Beck—Schreiber is said to have a penchant for interfering in areas beyond his expertise, namely the staffing and content of The Blaze’s news and opinion site and its television production operation.
The Blaze cable channel reaches an estimated 13 million households which subscribe to DISH, Verizon Fios, and other paid television carriers.
Schreiber’s alleged intrusion is said to have also figured in the departure in June of then-Blaze chief executive Betsy Morgan, an experienced digital media executive who previously ran CBS News’s digital operations, helped grow The Huffington Post, and built TheBlaze.com into a news and aggregation site that—in November 2014—attracted 29 million unique visitors per month.
But by November 2015—according to figures from the Web traffic measuring service Quantcast—monthly traffic for TheBlaze.com had dropped to 16.4 million unique visitors, and traffic for the associated website GlennBeck.com, had plunged from 4.4 million to 1.4 million uniques.
Morgan—ironically, according to sources—had recommended Schreiber to Beck and helped secure his initial position with the company, shouldering a vague responsibility for “strategy and special projects.”
A religious man who practices Orthodox Judaism, Schreiber quickly hit it off with Beck, a devout Mormon convert.
Morgan had replaced Beck’s longtime CEO Chris Balfe, who abruptly exited the company in December 2014, along with fellow exec Joel Cheatwood, as Schreiber was gaining more prominence and influence.
Balfe, who along with Cheatwood retains a minority ownership stake in The Blaze, left after more than a decade of helping Beck build his brand and become a media personality, and was instrumental in the soft launch of The Blaze six years ago while Beck was still hosting his short-lived but wildly popular 5 p.m. program on the Fox News Channel.
Stewart Padveen, Schreiber’s personal friend and “mentor” (as Schreiber describes him in a LinkedIn endorsement), will assume control of The Blaze effective Monday.
Padveen, who lives in Los Angeles, wrote in a staff email that he plans to visit Dallas “next week to kick off this process,” with a later trip planned to New York.
“2015 was a tough year for sure, but thanks to many of you, it was a profitable one,” Padveen wrote concerning this latest corporate shakeup.
“We all owe a debt of gratitude to Kraig for guiding us through some rough times. We still have some history to redress, but if we continue down the path of making solid business decisions, we can get past the past and into the future.”
Besides a period of staff layoffs and turnover that continues to this day, and despite claims of profitability, that “history” apparently includes taking on more debt than the company’s principal owner was comfortable with.
At a staff meeting in New York last February, Beck exhorted his employees to pinch pennies and said the company’s debt was too high at $3 million—a figure sources said later grew to $5 million or more.
“I know much of what has happened since December of 2014, but also much of it has been structural and behind the curtain,” Beck wrote in his own email, in which he thanked Kitchin for his service. “We were a company that was swimming in debt. With the hard work of Kraig, Jonathan, and now Misty [Kawecki, the chief financial officer] we will be debt free by summer. This is miraculous and takes all of the downward pressure off of us.”
Schreiber, a digital startup entrepreneur in his early forties, is a controversial and mysterious figure within Mercury Radio Arts. According to colleagues, he has referred to himself as a “diehard Glenn Beck fan” who, after years of living in Israel, relocated to New York, talked his way into Beck’s confidence, and showed up as a “trusted advisor,” as Beck has called him, in the fall of 2014.
“I want to thank Kraig for everything he has done to help bring the Blaze to the place it is,” Schreiber wrote in his own email, “and welcome Stewart to help bring the Blaze to the places it can go.”
In what a couple of Beck veterans considered ominous corporate-speak, Schreiber added: “All of us, leadership in BOTH companies, have worked together to help ensure that every person will be put into the right role at the right company with clear responsibilities and direction. This will continue to be a process and not an event.”
Rules for Radicals: A Pragmatic Primer for Realistic Radicals is the last book published in 1971 by activist and writer Saul D. Alinsky shortly before his death. His goal for theRules for Radicals was to create a guide for future community organizers to use in uniting low-income communities, or “Have-Nots”, in order for them to gain social, political, legal andeconomic power. Within it, Alinsky compiled the lessons he had learned throughout his experiences of community organizing from 1939–1971 and targeted these lessons at the current, new generation of radicals.
Though published for the new generation of counterculture-era organizers in 1971, Alinsky’s principles have been successfully applied by numerous government, labor, community, and congregation-based organizations, and the main themes of his organizational methods that were elucidated upon in Rules for Radicals have been recurring elements in political campaigns in recent years.
Inspiration for Rules for Radicals
The inspiration for Rules for Radicals was drawn from Alinsky’s personal experience as a community organizer. It was also taken from the lessons he learned from his University of Chicago professor, Robert Park, who saw communities as “reflections of the larger processes of an urban society”. The methods Alinsky developed and practiced were described in his book as a guide on future community organizing for the new generation of radicals emerging from the 1960s.
Alinsky believed in collective action as a result of the work he did with the C.I.O and the Institute for Juvenile Research in Chicago where he first began to develop his own, distinct method of community organizing. Additionally, his late work with the Citizens Action Program (CAP) provided some of his most whole and conclusive practices in organizing through the empowerment of the poor, though not well-known. Alinsky saw community structure and the impoverished and the importance of their empowerment as elements of community activism and used both as tools to create powerful, active organizations. He also used shared social problems as external antagonists to “heighten local awareness of similarities among residents and their shared differences with outsiders”. Ironically, this was one of Alinsky’s most powerful tools in community organizing; to bring a collective together, he would bring to light an issue that would stir up conflict with some agency to unite the group. This provided an organization with a specific “villain” to confront and made direct action easier to implement. These tactics as a result of decades of organizing efforts, along with many other lessons, were poured into Rules for Radicals to create the guidebook for community organization.
Rules for Radicals has various themes. Among them is his use of symbol construction to strengthen the unity within an organization. He would draw on loyalty to a particular church or religious affiliation to create a structured organization with which to operate. The reason being that symbols by which communities could identify themselves created structured organizations that were easier to mobilize in implementing direct action. Once the community was united behind a common symbol, Alinsky would find a common enemy for the community to be united against.
The use of common enemy against a community was another theme of Rules for Radicals, with nonviolent conflict as a uniting element in communities.
Alinsky would find an external antagonist to turn into a “common enemy” for the community within which he was operating. Often, this would be a local politician or agency that had some involvement with activity concerning the community. Once the enemy was established, the community would come together in opposition of it. This management of conflict heightened awareness within the community as to the similarities its members shared as well as what differentiated them from those outside of their organization. The use of conflict also allowed for the goal of the group to be clearly defined. With an established external antagonist, the community’s goal would be to defeat that enemy.
Symbol construction helped to promote structured organization, which allowed for nonviolent conflict through another element in Alinsky’s teaching, direct action. Direct action created conflict situations that further established the unity of the community and promoted the accomplishment of achieving the community’s goal of defeating their common enemy. It also brought issues the community was battling to the public eye. Alinsky encouraged over-the-top public demonstrations throughout Rules for Radicals that could not be ignored, and these tactics enabled his organization to progress their goals faster than through normal bureaucratic processes.
Lastly, the main theme throughout Rules for Radicals and Alinsky’s work was empowerment of the poor. Alinsky used symbol construction and nonviolent conflict to create a structured organization with a clearly defined goal that could take direct action against a common enemy. At this point, Alinsky would withdraw from the organization to allow their progress to be powered by the community itself. This empowered the organizations to create change.
“Power is not only what you have, but what the enemy thinks you have.” Power is derived from 2 main sources – money and people. “Have-Nots” must build power from flesh and blood.
“Never go outside the expertise of your people.” It results in confusion, fear and retreat. Feeling secure adds to the backbone of anyone.
“Whenever possible, go outside the expertise of the enemy.” Look for ways to increase insecurity, anxiety and uncertainty.
“Make the enemy live up to its own book of rules.” If the rule is that every letter gets a reply, send 30,000 letters. You can kill them with this because no one can possibly obey all of their own rules.
“Ridicule is man’s most potent weapon.” There is no defense. It’s irrational. It’s infuriating. It also works as a key pressure point to force the enemy into concessions.
“A good tactic is one your people enjoy.” They’ll keep doing it without urging and come back to do more. They’re doing their thing, and will even suggest better ones.
“A tactic that drags on too long becomes a drag.” Don’t become old news.
“Keep the pressure on. Never let up.” Keep trying new things to keep the opposition off balance. As the opposition masters one approach, hit them from the flank with something new.
“The threat is usually more terrifying than the thing itself.” Imagination and ego can dream up many more consequences than any activist.
“The major premise for tactics is the development of operations that will maintain a constant pressure upon the opposition.” It is this unceasing pressure that results in the reactions from the opposition that are essential for the success of the campaign.
“If you push a negative hard enough, it will push through and become a positive.” Violence from the other side can win the public to your side because the public sympathizes with the underdog.
“The price of a successful attack is a constructive alternative.” Never let the enemy score points because you’re caught without a solution to the problem.
“Pick the target, freeze it, personalize it, and polarize it.” Cut off the support network and isolate the target from sympathy. Go after people and not institutions; people hurt faster than institutions.
Alinsky received criticism for the methods and ideas he presented. Robert Pruger and Harry Specht noted that much of his instruction has only been effective in urban, low-income areas. Pruger and Specht also criticized his broad statement that Rules for Radicals is a tool for organizing all low-income people. Further, Alinsky’s use of artificially stimulated conflict has been criticized for its ineffectiveness in areas that thrive on unity. According to Judith Ann Trolander, in several Chicago areas in which he worked, his use of conflict backfired and the community was unable to achieve the policy adjustments they were seeking.
Much of the philosophy of community organization found in Rules for Radicals has also come under question as being overly ideological. Alinsky believed in allowing the community to determine its exact goal. He would produce an enemy for them to conflict with, but the purpose of the conflict was ultimately left up to the community. This idea has been criticized due to the conflicting opinions that can often be present within a group. Alinsky’s belief that an organization can create a goal to accomplish is viewed as highly optimistic and contradictory to his creation of an external antagonist. By producing a common enemy, Alinsky is creating a goal for the community, the defeat of that enemy. To say that the community will create their own goal seems backwards considering Alinsky creates the goal of defeating the enemy. Thus, his belief can be seen as too ideological and contradictory because the organization may turn the goal of defeating the common enemy he produced into their main purpose.
The scope of influence for Rules for Radicals is a far-reaching one as it is a compilation of the tactics of Alinsky. It has been influential for policymaking and organization for various communities and agency groups, and has influenced politicians and activists educated by Alinsky and the IAF, and other grassroots movements.
After Alinsky died in California in 1972, his influence helped spawn other organizations and policy changes. Rules for Radicals was a direct influence that helped to form the United Neighborhood Organization in the early 1980s. Its founders Greg Galluzzo, Mary Gonzales, and Pater Martinez were all students of Alinsky. The work of UNO helped to improve the hygiene, sanitation, and education in southeastern Chicago. Additionally, the founders of Organization of the North East in Chicago during the 1970s applied Alinsky’s principles to organize multiethnic neighborhoods in order to gain greater political representation.
Rules for Radicals have been dispersed by Alinsky’s students who undertook their own community organizing endeavors. Students of Alinsky’s such as Edward T. Chambers used Rules for Radicals to help form the Industrial Areas Foundation, the Queens Citizens Organization, and the Communities Organized for Public Service. Another student of Alinsky’s, Ernest Cortez, rose to prominence in the late 1970s in San Antonio while organizingHispanic neighborhoods. His use of congregation-based organizing received much acclaim as a popular method of Alinsky’s by utilizing “preexisting solidary neighborhood elements, especially church groups, so that the constituent units are organizations, not individuals.” This congregation-based organizing and symbol construction was taught to him by Edward Chambers and the IAF during his time studying under both.
The methods from Rules for Radicals have been seen in modern American politics. The use of congregation-based organizing has been linked to Jesse Jackson when he was organizing his own political campaign. The book was praised and used as an organizational guide by the Tea Party conservative group FreedomWorks during Dick Armey‘s tenure as chairman.
Saul David Alinsky (January 30, 1909 – June 12, 1972) was an American community organizer and writer. He is generally considered to be the founder of modern community organizing. He is often noted for his 1971 book Rules for Radicals.
In the course of nearly four decades of political organizing, Alinsky received much criticism, but also gained praise from many public figures. His organizing skills were focused on improving the living conditions of poor communities across America. In the 1950s, he began turning his attention to improving conditions in the African-American ghettos, beginning with Chicago’s and later traveling to other ghettos in California, Michigan, New York City, and a dozen other “trouble spots”.
His ideas were adapted in the 1960s by some U.S. college students and other young counterculture-era organizers, who used them as part of their strategies for organizing on campus and beyond.Time magazine wrote in 1970 that “It is not too much to argue that American democracy is being altered by Alinsky’s ideas.” Conservative author William F. Buckley Jr. said in 1966 that Alinsky was “very close to being an organizational genius”.
Saul David Alinsky was born in 1909 in Chicago, Illinois, to Russian Jewish immigrant parents, the only surviving son of Benjamin Alinsky’s marriage to his second wife, Sarah Tannenbaum Alinsky. Alinsky stated during an interview that his parents never became involved in the “new socialist movement.” He added that they were “strict Orthodox, their whole life revolved around work and synagogue … I remember as a kid being told how important it was to study.” He attended Marshall High School in Chicago until his parents divorced and then went to live with his father who moved to California, graduating from Hollywood High School in 1926.
Because of his strict Jewish upbringing, he was asked whether he ever encountered antisemitism while growing up in Chicago. He replied, “it was so pervasive you didn’t really even think about it; you just accepted it as a fact of life.” He considered himself to be a devout Jew until the age of 12, after which time he began to fear that his parents would force him to become a rabbi.
I went through some pretty rapid withdrawal symptoms and kicked the habit … But I’ll tell you one thing about religious identity…Whenever anyone asks me my religion, I always say—and always will say—Jewish.
In 1930, Alinsky graduated with a Bachelor of Philosophy from the University of Chicago, where he majored in archaeology, a subject that fascinated him. His plans to become a professional archaeologist were changed due to the ongoing economic Depression. He later stated, “Archaeologists were in about as much demand as horses and buggies. All the guys who funded the field trips were being scraped off Wall Street sidewalks.”
After attending two years of graduate school at the University of Chicago, he accepted work for the state of Illinois as a criminologist. On a part-time basis, he also began working as an organizer with the Congress of Industrial Organizations (CIO). By 1939, he became less active in the labor movement and became more active in general community organizing, starting with the Back of the Yards and other poor areas on the South Side of Chicago. His early efforts to “turn scattered, voiceless discontent into a united protest” earned the admiration of Illinois governorAdlai Stevenson, who said Alinsky’s aims “most faithfully reflect our ideals of brotherhood, tolerance, charity and dignity of the individual.”
As a result of his efforts and success at helping slum communities, Alinsky spent the next 10 years repeating his organization work across the nation, “from Kansas City and Detroit to the barrios of Southern California.” By 1950 he turned his attention to the black ghettos of Chicago. His actions aroused the ire of MayorRichard J. Daley, who also acknowledged that “Alinsky loves Chicago the same as I do.” He traveled to California at the request of the San Francisco Bay AreaPresbyterian Churches to help organize the black ghetto in Oakland. Hearing of his plans, “the panic-stricken Oakland City Council promptly introduced a resolution banning him from the city.”
Community organizing and politics
In the 1930s, Alinsky organized the Back of the Yards neighborhood in Chicago (made infamous by Upton Sinclair‘s 1906 novel, The Jungle, which described the horrific working conditions in the Union Stock Yards). He went on to found the Industrial Areas Foundation while organizing the Woodlawn neighborhood; IAF trained organizers and assisted in the founding of community organizations around the country.
In Rules for Radicals (his final work, published in 1971 one year before his death), Alinsky wrote at the end of his personal acknowledgements:
Lest we forget at least an over-the-shoulder acknowledgment to the very first radical: from all our legends, mythology, and history (and who is to know where mythology leaves off and history begins or which is which), the first radical known to man who rebelled against the establishment and did it so effectively that he at least won his own kingdom – Lucifer.
In the book, he addressed the 1960s generation of radicals, outlining his views on organizing for mass power. In the opening paragraph Alinsky writes,
What follows is for those who want to change the world from what it is to what they believe it should be. The Prince was written by Machiavelli for the Haves on how to hold power. Rules for Radicals is written for the Have-Nots on how to take it away.
Alinsky did not join political parties. When asked during an interview whether he ever considered becoming a Communist Party member, he replied:
Not at any time. I’ve never joined any organization—not even the ones I’ve organized myself. I prize my own independence too much. And philosophically, I could never accept any rigid dogma or ideology, whether it’s Christianity or Marxism. One of the most important things in life is what Judge Learned Hand described as ‘that ever-gnawing inner doubt as to whether you’re right.’ If you don’t have that, if you think you’ve got an inside track to absolute truth, you become doctrinaire, humorless and intellectually constipated. The greatest crimes in history have been perpetrated by such religious and political and racial fanatics, from the persecutions of the Inquisition on down to Communist purges and Nazi genocide.
He did not have much respect for mainstream political leaders who tried to interfere with growing black–white unity during the difficult years of the Great Depression. In Alinsky’s view, new voices and new values were being heard in the U.S., and “people began citing John Donne‘s ‘No man is an island.'” He observed that the hardship affecting all classes of the population was causing them to start “banding together to improve their lives,” and discovering how much in common they really had with their fellow man.
Alinsky once explained that his reasons for organizing in black communities included:
Negroes were being lynched regularly in the South as the first stirrings of black opposition began to be felt, and many of the white civil rights organizers and labor agitators who had started to work with them were tarred and feathered, castrated—or killed. Most Southern politicians were members of the Ku Klux Klan and had no compunction about boasting of it.
Alinsky’s tactics were often unorthodox. In Rules for Radicals he wrote,
[t]he job of the organizer is to maneuver and bait the establishment so that it will publicly attack him as a ‘dangerous enemy.’ [According to Alinsky], the hysterical instant reaction of the establishment [will] not only validate [the organizer’s] credentials of competency but also ensure automatic popular invitation.
As an example, after organizing FIGHT (an acronym for Freedom, Independence [subsequently Integration], God, Honor, Today) in Rochester, New York, Alinsky once threatened to stage a “fart in” to disrupt the sensibilities of the city’s establishment at a Rochester Philharmonic concert. FIGHT members were to consume large quantities of baked beans after which, according to author Nicholas von Hoffman, “FIGHT’s increasingly gaseous music-loving members would tie themselves to the concert hall where they would sit expelling gaseous vapors with such noisy velocity as to compete with the woodwinds.” Satisfied with his threat yielding action, Alinsky later threatened a “piss in” at Chicago O’Hare Airport. Alinsky planned to arrange for large numbers of well-dressed African Americans to occupy the urinals and toilets at O’Hare for as long as it took to bring the city to the bargaining table. According to Alinsky, once again the threat alone was sufficient to produce results. In Rules for Radicals, he notes that this tactic fell under two of his rules: Rule #3: Wherever possible, go outside the experience of the enemy; and Rule #4: Ridicule is man’s most potent weapon.
Alinsky described his plans for 1972 to begin to organize the white middle class across the United States, and the necessity of that project. He believed that many Americans were living in frustration and despair, worried about their future, and ripe for a turn to radical social change, to become politically active citizens. He feared the middle class could be driven to a right-wing viewpoint, “making them ripe for the plucking by some guy on horseback promising a return to the vanished verities of yesterday.” His stated motive: “I love this goddamn country, and we’re going to take it back.”
Alinsky died at the age of 63 from a heart attack near his home in Carmel, California, on June 12, 1972. He was cremated in Carmel and his ashes were interred at Mt. Mayriv Cemetery (the cemetery is now included in Zion Gardens Cemetery) in Chicago. Shortly before his death he had discussed life after death in Playboy:
ALINSKY: … if there is an afterlife, and I have anything to say about it, I will unreservedly choose to go to hell.
ALINSKY: Hell would be heaven for me. All my life I’ve been with the have-nots. Over here, if you’re a have-not, you’re short of dough. If you’re a have-not in hell, you’re short of virtue. Once I get into hell, I’ll start organizing the have-nots over there.
Although Alinsky held little respect for elected officials, he has been described as an influence on several notable politicians in both the Democratic and Republican parties.
In 1969, while a political science major at Wellesley College, Hillary Rodham chose to write her senior thesis on Alinsky’s work, with Alinsky himself contributing his own time to help her. Although Rodham defended Alinksy’s intentions in her thesis, she was critical of his methods and dogmatism. (Years later when she became First Lady, the thesis was not made publicly available by the school based upon a White House request.)
According to biographer Sanford Horwitt, U.S. President Barack Obama was influenced by Alinsky and followed in his footsteps as a Chicago-based community organizer. Horwitt asserted that Barack Obama’s 2008 presidential campaign was influenced by Alinsky’s teachings. Alinksy’s influence on Obama has been heavily emphasized by some of his detractors, such as Rush Limbaugh and Glenn Beck. Thomas Sugrue of Salon.com writes, “as with all conspiracy theories, the Alinsky-Obama link rests on a kernel of truth”. For three years in the mid 80s, Obama worked for the Developing Communities Project, which was influenced by Alinsky’s work, and he wrote an essay that was collected in a book memorializing Alinsky.Newt Gingrich repeatedly stated his opinion that Alinsky was a major influence on Obama during his 2012 presidential campaign, equating Alinsky with “European Socialism”, although Alinsky was U.S.-born and was not a Socialist. Gingrich’s campaign itself used tactics described by Alinsky’s writing.
Adam Brandon, a spokesman for the conservative non-profit organization FreedomWorks, one of several groups involved in organizing Tea Party protests, says the group gives Alinsky’s Rules for Radicals to its top leadership members. A shortened guide called Rules for Patriots is distributed to its entire network. In a January 2012 story that appeared in The Wall Street Journal, citing the organization’s tactic of sending activists to town-hall meetings, Brandon explained, “[Alinsky’s] tactics when it comes to grass-roots organizing are incredibly effective.” Former Republican House Majority Leader Dick Armey also gives copies of Alinsky’s book Rules for Radicals to Tea Party leaders.
He is the author of The Growth Experiment: How the New Tax Policy is Transforming the U.S. Economy (Basic Books, New York, 1990, ISBN 978-0465050703), Economic Puppetmasters: Lessons from the Halls of Power (AEI Press, Washington, D.C., 1999, ISBN 978-0844740812), What A President Should Know …but most learn too late: An Insiders View On How To Succeed In The Oval Office (Rowman & Littlefield Publishers, Inc., Maryland, 2008, ISBN 978-0742562226), and Conspiracies of the Ruling Class: How to Break Their Grip Forever (Simon & Schuster, 2016, ISBN 978-1501144233). Also he has contributed numerous articles to professional publications. His honors and awards include the Distinguished Public Service Award of the Boston Bar Association, 1994; an honorary degree from Bowdoin College, 1993; selection as a Citicorp/Wriston Fellow for Economic Research, 1988; and the Outstanding Doctoral Dissertation Award from the National Tax Association, 1985.
From 1997 to January 2001, Lindsey was a Resident Scholar and holder of the Arthur F. Burns Chair in Economics at the American Enterprise Institute in Washington, D.C. He was also Managing Director of Economic Strategies, an economic advisory service based in New York City. During 1999 and throughout 2000 he served as then-Governor George W. Bush’s chief economic advisor for his presidential campaign. He is a former associate professor of Economics at Harvard University.
Lindsey is famous for spotting the emergence of the late 1990s U.S. stock market bubble back in 1996 while a Governor of the Federal Reserve. According to the meeting transcripts for September of that year, Lindsey challenged the expectation that corporate earnings would grow 11½ percent a year continually. He said, “Readers of this transcript five years from now can check this fearless prediction: profits will fall short of this expectation.” According to the Bureau of Economic Analysis, corporate profits as a share of national income eroded from 1997 until 2001. Stock prices eventually collapsed, starting their decline in March 2000, though the S&P500 remained above its 1996 level, casting doubt on the assertion that there was a stock market bubble in 1996.
In contrast to Chairman Greenspan, Lindsey argued that the Federal Reserve had an obligation to prevent the stock market bubble from growing out of control. He argued that “the long term costs of a bubble to the economy and society are potentially great…. As in the United States in the late 1920s and Japan in the late 1980s, the case for a central bank ultimately to burst that bubble becomes overwhelming. I think it is far better that we do so while the bubble still resembles surface froth and before the bubble carries the economy to stratospheric heights.” During the 2000 Presidential campaign, Governor Bush was criticized for picking an economic advisor who had sold all of his stock in 1998.
According to the Washington Post, Lindsey was on an advisory board to Enron along with Paul Krugman before joining the White House. Lindsey and his colleagues warned Enron that the economic environment was riskier than they perceived.
Cost of the Iraq War
On September 15, 2002, in an interview with the Wall Street Journal, Lindsey estimated the high limit on the cost of the Bush administration’s plan in 2002 of invasion and regime change in Iraq to be 1–2% of GNP, or about $100–$200 billion.Mitch Daniels, Director of the Office of Management and Budget, discounted this estimate as “very, very high” and Defense Secretary Donald Rumsfeld stated that the costs would be under $50 billion. Rumsfeld called Lindsey’s estimate “baloney”.
As of 2007 the cost of the invasion and occupation of Iraq exceeded $400 billion, and the Congressional Budget Office in August 2007 estimated that appropriations would eventually reach $1 trillion or more.
In October 2007, the Congressional Budget Office estimated that by 2017, the total costs of the wars in Iraq and Afghanistan could reach $2.4 trillion. In response, DemocraticRepresentativeAllen Boyd criticized the administration for firing Lindsey, saying “They found him a job outside the administration.”
^ Jump up to:abWolk, Martin (2006-05-17). “Cost of Iraq war could surpass $1 trillion”. MSNBC. Retrieved 2008-03-10. Back in 2002, the White House was quick to distance itself from Lindsey’s view. Mitch Daniels, director of the White House budget office, quickly called the estimate “very, very high.” Lindsey himself was dismissed in a shake-up of the White House economic team later that year, and in January 2003, Defense Secretary Donald Rumsfeld said the budget office had come up with “a number that’s something under $50 billion.” He and other officials expressed optimism that Iraq itself would help shoulder the cost once the world market was reopened to its rich supply of oil.
How Tesla Builds Electric Cars | Tesla Motors Part 2 (WIRED)
Electric Car Quality Tests | Tesla Motors Part 3 (WIRED)
Fatal Telsa crash shows limits of self-driving technology
The U.S. government is investigating the first reported death of a driver whose car was in self-driving mode when he crashed. Joshua D. Brown, 40, died May 7 when his Tesla Model S, which was operating on “autopilot,” failed to activate its brakes and hit a truck in Florida.
The crash raises questions about autonomous and semi-autonomous cars, their capabilities and their limits. Here are answers to some of those questions:
Q: ARE THERE SELF-DRIVING CARS ON U.S. STREETS RIGHT NOW?
A: Yes, but in limited numbers. Various companies, including Google, Ford and Uber, have test fleets of autonomous cars running in specific areas, including Mountain View, California, and Austin, Texas. Right now, those vehicles always have a steering wheel, brakes and a driver ready to take over in case of a problem, but prototype cars without steering wheels are also being developed.
Q: HOW DO THEY WORK?
A: A network of cameras, radars and lasers feeds information to the car’s computers, helping to fill in the gaps in the GPS system, which knows how to get the car from point to point. Cameras let the car see what’s around it, while radar senses things in the dark or in inclement weather. Lasers constantly scan the road and give a three-dimensional picture of what’s going on.
Q: ARE THERE LAWS ALLOWING SELF-DRIVING CARS?
A: Right now, it’s a patchwork. Eight states — including Nevada, Michigan, Florida and Tennessee — and Washington D.C. have laws allowing autonomous vehicles. Other states have legislation in the works. Later this summer, the federal government is expected to release guidelines for the safe deployment of autonomous vehicles.
Q: WHAT ARE THE BENEFITS OF SELF-DRIVING CARS?
A: Self-driving cars have the potential to save lives by anticipating accidents before they happen. Intel CEO Brian Krzanich said Friday that 90 percent of car accidents are caused by human error, and distracted or drowsy driving accounts for some 13 percent of those crashes. The accidents cost about $870 billion a year globally.
Q: CAN I BUY A SELF-DRIVING CAR?
A: No. A few automakers offer cars and SUVs with semi-autonomous modes that can perform some functions without help from the driver, including maintaining a set speed, braking, changing lanes and even parallel parking. Semi-autonomous features can be found on high-end vehicles from Tesla, Mercedes-Benz, Infiniti and Volvo. Some lower-priced models have them, too. Toyota, for example, plans to make automatic emergency braking standard on its vehicles by 2017, ahead of a self-imposed deadline of 2022 that most automakers have agreed to.
Q: WHEN WILL COMPLETELY SELF-DRIVING CARS BE AVAILABLE TO CONSUMERS?
A: That’s not yet clear. Volvo plans a large-scale test of driverless cars in Sweden next year. Google wants to make cars available to the public around the end of 2019. BMW, Intel and Israel’s Mobileye have teamed up to roll out the cars by 2021.
IHS Automotive, a consulting firm, predicts that the U.S. will see the earliest deployment of autonomous vehicles, with several thousand on the road by 2020. That number will rise to 4.5 million vehicles by 2035, IHS says. But even if the vehicles are on the road, they might not be in your garage. The earliest self-driving cars might be on-demand taxis, employee shuttles or other shared vehicles.
Q: WHAT ARE THE TECHNICAL CHALLENGES TO GETTING AUTONOMOUS CARS ON THE ROAD?
A: Driverless cars need detailed maps to follow, and companies are still mapping roads. They also can have trouble staying within lanes in heavy rain or snow. And, as the Tesla crash showed, there will always be scenarios that driverless cars can’t foresee or navigate correctly. Brown’s car didn’t see an oncoming tractor-trailer because it was white against a brightly lit sky. Tesla CEO Elon Musk said the car’s radar is also designed to tune out what looks like overhead signs to prevent false braking.
Q: HOW COULD THE TESLA AUTOPILOT NOT SEE SOMETHING AS LARGE AS A TRACTOR-TRAILER?
A: Raj Rajkumar, a computer engineering professor at Carnegie Mellon University who leads its autonomous vehicle research, said computers can’t be programmed to handle every situation. But Tesla may need to adjust its radar, he said.
Tesla would not comment directly on the radar and computer programs, but the company issued a statement saying that it continually advances its software by analyzing hundreds of millions of miles of driving data. The National Highway Traffic Safety Administration is looking at the design and performance of Tesla’s system as part of its investigation.
Tesla has plenty of customers, but still no profit
by Jackie Wattles
Tesla CEO Elon Musk is spending some nights in a sleeping bag on a factory floor.
He’s keeping a very close eye on the electric car maker’s production.
“My desk is at the end of the production line,” Musk told investors Wednesday after the company posted its quarterly earnings report. “I have a sleeping bag in a conference room [nearby] and I use it quite often.”
Tesla’s biggest challenge is scaling up manufacturing to meet customers’ demand — and that’s why the factory isn’t just where Musk is sleeping, it’s where Tesla is spending billions of dollars.
Tesla (TSLA) said Wednesday that it’s decided to invest more than $2 billion on production capacity this year — $750 million more than initially planned.
But that means Musk won’t be able to deliver on what he previously told investors: Tesla may finally turn a profit in 2016.
“Naturally, this will impact our ability to be net cash flow positive for the year, but given the demand for Model 3, investing to meet that demand is the best long-term decision for Tesla,” Musk said.
The company posted a net loss of $282 million for last quarter.
The automaker made a name for itself with two $70,000-plus luxury models — the Model S and Model X — but a successful mass market vehicle is the cornerstone of Musk’s plan to grow the company.
The first Model 3’s are expected to reach customers next year, and he wants the company’s new gigafactory to be churning them out “at capacity” by the end of 2017. Musk said the company plans to start making 500,000 cars per year by 2018. For comparison, the company made about 50,000 in 2015.
To do that, the company is also looking to hire top-tier manufacturing talent, which Musk said is the “most significant” factor in ensuring a bright future for Tesla.
It’s unclear why, but the company also announced earlier in the day on Wednesday that its vice presidents of production and manufacturing are leaving the company.
Musk’s production plans may face other problems. He has given Tesla suppliers a July 1, 2017 deadline to ship the parts he’s ordered, but “it’s like college term papers. There’s always late term papers.”
Musk also said he plans to start producing more car components in-house — another reason he’s investing more money in Tesla’s manufacturing capabilities.
Tesla affirmed earlier guidance that it plans to put 80,000 to 90,000 new electric cars on the road this year, and that’s despite hitting a production snag with the Model X recently that made the company miss its quarterly delivery guidance.
And the Model S is still selling well. Orders were up 45% compared to the same quarter last year.
Tesla’s stock has struggled in 2016, down more than 7% since January. Shares were essentially flat after-hours when the company issued its report.
Tesla is a hot mess—there is no path to profitability
Michael Pento, president of Pento Portfolio Strategies
Tuesday, 3 May 2016 | 1:55 PM ETCNBC.com
Tesla shares got a little pop in after-hours trading Wednesday after the electric car maker delivered an earnings report in line with expectations and an optimistic outlook.
But I think the stock’s run is already over.
The primary reason? Profitability.
Tesla stock soared for a few months starting in February following news that pre-orders for the electric-car maker’s Model 3, with a price tag of $35,000, were approaching 400,000 units.
But, as well-known short seller Jim Chanos so perfectly put it in an interview with CNBC: “We have all kinds of questions on the profitability of the business.”
First, the Model 3. This was Tesla’s play for an “affordable” electric car but it appears to be affordable for everyone EXCEPT Tesla.
Tesla loses more than $4,000 on each of its high-end Model S electric sedans; and that model’s cost is between $70 and $108k. With margins like that, one has to assume a $35k Model 3 can’t be the answer to solving Tesla’s red ink.
Tesla’s income statement reveals the company is hemorrhaging cash at a robust clip. Furthermore, according to TheStreet Ratings, they have a net profit margin of -26.38 percent and a quick ratio of 0.49, which means they have 49 cents in available cash to pay every $1 of current liabilities.
Worse than its lousy earnings and cash flow, Tesla is grossly overvalued compared to its peers. Tesla’s market cap is more than $30 billion, compared to Fiat Chrysler at around $10 billion and Ferrari at around $8 billion. Being valued at 3x more than FCAU — an established and profitable company — looks especially absurd when considering FCAU produces annual sales of over $130 billion, while Tesla produces revenue of only $4 billion.
Furthermore, Tesla’s market cap is nearly two-thirds of General Motors‘ market cap. This is despite the fact that General Motors has a history of selling 10 million cars at a profit each year and Tesla sold less than 100,000 cars last year at a loss. They would have to sell 6.6 million cars this year to justify its current valuation. With less than 400,000 cars on pre-order that doesn’t appear likely anytime soon.
First, he pointed out that, on the back of falling oil prices, demand for electric vehicles (EVs) is slowing. Second, there is growing competition that will cut into Tesla’s margins as prices for EVs fall. Tesla has a lot of competition over the next few years. The industry is already awaiting the Apple car with bated breath that is set to launch in four years. And GM’s Chevy Bolt is similarly priced with a similar range and is set to come out this year. And then we have the Nissan Leaf expected to more competitive in the coming months and years. And add to that first generation vehicles like the BMW i3.
And in China, they have the EV Company LeEco, which recently unveiled its very first electric car that includes self-driving and self-parking capability using voice commands via a mobile app. Besides LeEco, there is another Chinese EV auto maker that sold more electric cars last year than Tesla, Nissan or GM, it’s called BYD Co. and is now targeting the U.S. market.
Lutz believes that competition from industry heavyweights like these could “kill” Tesla in the future.
“The major OEMs like GM, Ford, Toyota, Volkswagen, etc … they have to build electric cars, a certain number, in order to satisfy the requirements in about half of the states. Those have to be jammed into the marketplace, otherwise they can no longer sell SUVs and full-size pickups and the stuff that they really make money on. So that is going to generically depress the prices of electric vehicles,” Lutz warned.
Lutz also explained that companies such as General Motors will not be making any money on their “Tesla killer.” They are making these vehicles to appease Washington.
“The majors are going to accept the losses on the electric vehicles as a necessary cost of doing business in order to sell the big gasoline stuff that people really want. Well, Tesla does not have that option,” Lutz said.
But Musk has a strategy for driving down the cost of his electric car that hinges on achieving economies of scale, bringing down the production cost of the battery pack by 30 percent. This hinges on the success of their future Nevada home called the “Gigafactory.”
The Gigafactory is a one-stop shopping in battery-pack production. The company currently buys battery packs through a deal with Panasonicand has partnered with Panasonic in this venture. Production volume at the Gigafactory is anticipated to be the equivalent of over 30 gigawatt-hours per year; this would mean the Gigafactory would produce more storage than all the lithium battery factories in the world combined. The $5 billion dollar plant is as big as the Pentagon Tesla, and Tesla is hoping to produce 500,000 lithium ion batteries annually.
Musk recently laid out his Energy-branded battery ambition in rock star glory. At the event spectacle, Musk declared that his batteries would someday render the world’s energy grid obsolete. “We are talking about trying to change the fundamental energy infrastructure of the world,” he said.
Musk envisions his affordable, clean energy will one day power the remote villages of underdeveloped countries as well as allowing the average homeowner in industrial nations to go off the grid.
But before you sever your ties with your electrical company, it’s worth noting that not everyone thinks Musk’s plans are achievable – at least not in the time frame he envisions.
Panasonic, the supplier of the lithium-ion cells that form the foundation of Tesla’s batteries, and partner on the company’s forthcoming battery factory — calls Musk’s claims a lot of hyperbole.
“We are at the very beginning in energy storage in general,” said Phil Hermann, chief energy engineer at Panasonic Eco Solutions. “Most of the projects currently going on are either demo projects or learning experiences for the utilities. There is very little direct commercial stuff going on. Elon Musk is out there saying you can do things now that the rest of us are hearing and going, ‘really?’ We wish we could, but it’s not really possible yet.”
And far from the grand stage with little fanfare buried in their November 10Q Tesla also sought to tamper investor’s expectations: “Given the size and complexity of this undertaking, the cost of building and operating the Gigafactory could exceed our current expectations, we may have difficulty signing up additional partners, and the Gigafactory may take longer to bring online than we anticipate.”
With a company saddled with debt and cash-strapped, who is going to shoulder the burden of a delay in the Gigafactory realizing its full potential? That would be shareholders through stock dilution or the American tax payer – but most likely a combination of both. There are those who believe that Musk’s real genius is in following government subsidies.
Tesla’s model relies strongly on a “green” administration. According to the Los Angeles Times, all of Musk’s ventures: Tesla Motors, SolarCityand Space Exploration Technologies, known as SpaceX, together have benefited from an estimated $4.9 billion in government support. The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups.
The promise is that the Tesla stockholders and the tax subsidizing public will greatly benefit from major pollution reductions as electric cars break through as viable alternative and gain access to mass-market production.
And frankly, I’m not convinced that electric cars are even good for the environment. First, it’s important to note that at this time, these cars don’t power themselves — they are plugged into an outlet in your garage that connects to an electric power plant. Second, there are a lot of environmental questions about the lithium battery itself. In a 2012 study titled “Science for Environment Policy” published by the European Union, a comparison was made of the lithium ion batteries to other types of batteries available such as; lead-acid, nickel-cadmium, nickel-metal-hydride and sodium Sulphur. They concluded that the lithium ion batteries have the largest impact on metal depletion, making recycling more complicated.
Musk may be a genius and a visionary but the truth is that Tesla has an unproven business model and a stock that is massively overpriced. Even if some year in the distant future there exists the charging infrastructure and pricing available to make electric vehicles conducive to supplant the internal combustion engine, Tesla faces an onslaught of competition that will most likely drive its profit margins further into the red for years to come.
So, as far as I’m concerned, the stock is not a buy — no matter what earnings say. The math just doesn’t add up.
Story 1: Lying Lunatic Left Lame-stream Losers: CNBC — Winners: Cruz, Rubio, Paul, Carson and Trump — Losers: Bush and Kasich — 2016 Republican Candidates Debate — October 28, 2015 — Boulder, Colorado — New House Speaker Paul Ryan — Videos
Lying Lunatic Left Lame-stream Losers
Carl Quintanilla, Becky Quick, and especially John Harwood
Are We Really Talking About Fantasy Football? • Chris Christie • GOP Debate • 10/28/15 •
Jeb Bush and Marco Rubio spar over Rubio’s congressional attendance record
Rand Paul on Raising the Debt Ceiling | Republican Debate
Ben Carson Says PC Culture is Destroying America
Donald Trump Closing Remarks During 3rd Republican Debate
Donald Trump says he negotiated the length of the debate from 3 hours down to 2 hours during his final statement at the end of the 3rd Republican Presidential Debate on CNBC.
The Republican debate
10 28 15 Luntz Focus Group After 3rd GOP Debate Segment 1
Did Marco Rubio Win The 3dr GOP Debate? Full Kelly File Segment.
O’Reilly On Trump: ‘Maybe This Is His New Style A Bit Low Key’
Must-see moments from the CNBC GOP debate (FULL VIDEO)
O’Reilly: ‘Jeb Bush Is Done, But He Has Cool Things To Do’ Post GOP Debate Recap
O’Reilly Recaps GOP Debate With Brit Hume 10.28.15
Paul Ryan Sworn In As New Speaker Of The House
Call It Like It Is: Marco Rubio Is Just Better At This Than Jeb Bush
FULL CNBC GOP DEBATE Part 8: Round 2 Republican Presidential Debate 10/28/2015
Texas Senator Ted Cruz Attacks CNBC Moderators- Presidential Debate
Rand Paul Opening Statement Republican Debate
Rand Paul on Medcaid and Medicare | Republican Debate
GOP presidential debate Highlights October 2015 #GOPDebate
FULL Rand Paul Highlights Republican Debate
Rand Paul Closing Statement | Republican Debate
Donald Trump Closing Statement At GOP Republican Presidential Debate On CNBC October 28, 2015
Donald Trump Interview after 3rd GOP Debate VIDEO CNBC Presidential Debate GOP
Donald Trump vs John Kasich At Gop Debate. Kasich Tears Into Trump, Carson:
Lamestream GOP Moderators’ Total Debate Fail
By Lloyd Grove
When Rand Paul asked for the rules about who was allowed to respond to a rival candidate’s statement, Quick informed him, “It’s at the discretion of the moderators.”
It was not an answer guaranteed to instill the participants’—or, for that matter, the viewers’—confidence in the fairness and balance of the occasion.
Speaking of which, Fox News, unsurprisingly, had a field day with CNBC’s treatment of the candidates.
“This is the most appalling performance by the moderators,” Charles Krauthammer opined, “that I can ever remember seeing.”
Republican talking point virtuoso Sean Hannity declared: “The candidates combined beat the moderators, who were taking the Democratic Party line.”
“This a horrible night for the news media,” Hannity added—and, for once, I agreed with him.
The trouble started with the very first question, Quintanilla cutely asked each candidate, as though they were in a job interview, to admit to a weakness of character or somesuch.
It was a gimmicky and rather puerile inquiry, of course, and predictably few of the contenders even bothered to address it. Bush conceded he was probably a little too impatient. Trump claimed he was a little too trusting, and then bitterly unforgiving when betrayed. Carly Fiorina—grinning winsomely for laughs—revealed she was advised to smile more during debates.
Quick, meanwhile, got blindsided when she asked Trump about something he supposedly said about Facebook chief Mark Zuckerberg’s immigration policies, and Trump told her he never said it.
“So where did that come from?” Quick pleaded lamely.
“I don’t know. You people write this stuff,” Trump retorted, to laughter.
Harwood, who also writes for The New York Times, came in for particular criticism from the candidates—and with justice. He came across as a sort of grand inquisitor and took on the severe and scolding tone of an irritated headmaster with candidates who spoke beyond their 60-second allotment.
“John, do you want me to answer or do you want to answer?” Christie chided after Harwood interrupted him. “Gotta tell ya, even in New Jersey what you’re doing is called ‘rude.’”
Toward the end, when each contender was invited to deliver a 30-second closing pitch, Trump used his time to congratulate himself and Ben Carson for negotiating with CNBC to pare down the debate from 3½ hours to 2 hours “so we can all get the hell out of here.”
Trump argued that it’s just those sorts of negotiating skills that he’ll employ as president to make America great again.
“Just for the record,” Harwood felt compelled to chime in, “it was always going to be two hours.”
“That is not right,” Trump shot back, basically calling Harwood a liar. “You know that is not right.”
All in all, the night offered a harsh lesson for future debate moderators: Go ahead and pose tough questions, but get your facts straight, don’t be snarky, and don’t, on any account, debate the pros
Story 1: US Economy Stagnating With Lowest Labor Participation in 38 Years of 62.4% With 94.6 Million Americans Not In Labor Force and 7.9 Unemployed and Only 142,000 Jobs Created In September — Recession in 2016? — Videos
U.S. economy gains 142,000 jobs in September
Does the weak jobs report take a Fed rate hike off the table?
The weak September jobs report and the markets
RETAIL APOCALYPSE CONTINUES SALES WORSE SINCE 2009
The last time September Retail Sales growth was this weak was 2009, limping aimlessly out of the ‘Great Recession’. With a mere 0.9% year-over-year growth, Johnson-Redbook data seems to confirm what Reuters reports is looming – the weakest U.S. holiday sales season for retailers since the recession. Consultancy firm AlixPartners expects sales to grow 2.8-3.4% during the November-December shopping period compared with 4.4% in 2014, based on analyzing consumer spending trends so far this year, noting (myth-busting for permabulls) dollars saved at the pump are being directed to personal savings or on non-retail activities.
Bursting Oil Bubble Could Put US Back in Recession
Commodities Report: October 2, 2015
Keep U.S. Jobs Numbers Volatility in Perspective: Krueger
Bad Jobs Report Prediction Understandable Says ‘Superforecasting’ Author
October 2, 2015 Financial News – Business News – Stock Exchange – NYSE – Market News
Gold Webcast – Gold climbs on weak US jobs report
Before the Asia Bell: October 2, 2015
Peter Schiff: Minimum Wage Will Result In Mass Unemployment & Self Service
MARC FABER – World Economy Grinding to a Halt. Don’t Trade With Leverage
Thom Hartmann “The Crash of 2016”
Keiser Report: Market Wasteland (E817)
The September Jobs Report in 11 Charts
By JOSH ZUMBRUN , NICK TIMIRAOS and ERIC MORATH
The U.S. economy added 142,000 jobs in September, but there’s more to the monthly jobs report than the number of jobs added. The report provides a wealth of information about the demographics of unemployment—about who is unemployed and why—summarized in the following 11 charts.
Over the past three months the economy has added jobs at the slowest pace since February 2014. Employers were adding an average of more than 200,000 jobs each month since the spring of last year, but now that pace has slowed.
Similarly, the annual pace of job creation has eased in recent months after peaking above three million late last year.
As a result of the weaker gains in August and September, job creation in 2015 has fallen well off last year’s pace. However, the economy is still on track to post the second-best year for employment growth in the past decade.
Every measure of unemployment is declining this year. The broadest gauge, which includes part-timers who would prefer full-time employment and Americans too discouraged to look for a job, fell to 10% last month. That’s the lowest rate since May 2008.
The median unemployed worker has been without a job for 11.4 weeks. That’s substantially shorter than during the first few years of this economic recovery, but still high by historical standards.
The number of Americans working full-time has finally returned to its prerecession levels, though this doesn’t account for an increase in the overall population.
The labor-force participation rate—that is, the share of the population either working or looking for work—declined to the lowest rate since 1977. The employment-to-population ratio, that is, the share of the population with a job, fell to 59.2% from 59.4%.
Much of the reason for the decline in the labor force is simply that a growing number of baby boomers are choosing to retire. Among workers ages 25 to 54, labor-force participation and employment rates are higher. Among this group of workers, dubbed prime-age by labor market economists, labor-force participation fell to 80.6% from 80.7% last month.
People can be unemployed for a range of reasons—whether it’s entering the job market for the first time; re-entering after going to school, starting a family or caring for a relative; quitting an old job with no new one lined up; or losing a job, either on a temporary layoff or permanently. As the recovery has progressed, the share of the unemployed who lost their previous job has declined. A growing share of the unemployed are new entrant or re-entrants to the work force.
College graduates have a significantly lower unemployment rate, which was unchanged at 2.5% this month. High-school dropouts have significantly higher unemployment, which climbed to 7.9% this month from 7.7%.
The unemployment rate has continued to come down for men, women, whites, blacks and Hispanics. The gaps in the unemployment rate between men and women have mostly closed, but significant gaps remain between racial groups.
Corrections & Amplifications
Monthly employment gains in 2015 have averaged 198,000. An earlier version of the chart “Slower, But Still Solid,” incorrectly showed an average gain of 221,000 jobs. Also, the number of Americans working full-time increased in September using a three-month moving average. An earlier version of the chart “Working Longer” included data for July, August and September that didn’t use the three-month average, while the post incorrectly suggested the number of full-time workers according to that measure had declined in September. (Oct. 2, 2015).
U.S. job growth stumbles, raising doubts on economy
BY JASON LANGE
U.S. employers slammed the brakes on hiring over the last two months, raising new doubts the economy is strong enough for the Federal Reserve to raise interest rates by the end of this year.
Payrolls outside of farming rose by 142,000 last month and August figures were revised sharply lower to show only 136,000 jobs added that month, the Labor Department said on Friday.
That marked the smallest two-month gain in employment in over a year and could fuel fears that the China-led global economic slowdown is sapping America’s strength.
“You can’t throw lipstick on this pig of a report,” said Brian Jacobsen, a portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.
The weak job growth took Wall Street by surprise and U.S. stocks sold off while the dollar also weakened and yields for government bonds fell.
Bets on interest rate futures showed investors only saw a 30 percent chance of a Fed rate hike in December, down from just under 50 percent before the job report’s release.
“(With) a weak report here, in combination with some of the other weakness that we are seeing across the globe, the odds get dinged for December,” said Tom Porcelli, an economist at RBC Capital Markets.
Investors saw virtually no chance the Fed would end its near-zero interest rate policy at its only other scheduled meeting this year, to be held later in October. Futures prices indicated investors were betting the Fed would probably hike in March.
U.S. factories are feeling the global chill and shed 9,000 jobs in September after losing 18,000 in August, according to the Labor Department’s survey of employers.
“We saw events in China lead to some global financial turmoil and you’re seeing that in the data here,” White House chief economist Jason Furman told Reuters.
New orders received by U.S. factories fell 1.7 percent in August, the Commerce Department said in a separate report..
Paul Ryan, a top Republican lawmaker in the House of Representatives, said the weak turn in the economy should be a wake-up call for Washington to reform the national economy with new tax laws, free trade agreements and policies to get people off welfare. “This recovery continues to disappoint, but we can’t accept it as the new normal,” Ryan said.
The recent pace of job growth should have been enough to push the unemployment rate lower because only around 100,000 new jobs are needed a month to keep up with population growth.
But the jobless rate held steady at 5.1 percent. The unemployment rate is derived from a separate survey of households that showed 350,000 workers dropping out of the labor force last month, as well as a lower level of employment.
The share of the population in the work force, which includes people who have jobs or are looking for one, fell to 62.4 percent, the lowest level since 1977.
Average hourly wages fell by a cent to $25.09 during the month and were up only 2.2 percent from the same month in 2014, holding around the same levels seen all year and pointing to marginal inflationary pressures.
The report did have a few bright spots that might be welcomed by Fed chief Janet Yellen, who said last week the economy was doing well enough to warrant higher rates this year.
The number of workers with part-time jobs but who want more hours fell by 447,000 in September to 6.0 million.
Yellen has signaled that the elevated number of these workers points to hidden slack in the labor market that isn’t captured by the jobless rate. A measure of joblessness that includes these workers and is closely followed by the Fed fell to 10 percent, its lowest level since May 2008.
Economists polled by Reuters had expected job growth of 203,000 in September.
All told, revised estimates meant 59,000 fewer jobs were created in July and August than previously believed.
In another grim sign, the number of hours worked in the country fell 0.2 percent, raising the specter that some broader softness might have gripped the economy last month.
Some of the strongest headwinds on the U.S. economy come from the commodity sector, which has slowed in part because of weaker demand from China.
The price of oil has fallen nearly 50 percent over the last year, and U.S. mining payrolls, which include energy sector jobs, fell by 10,000 in September, the ninth straight month of declines.
Transmission of material in this release is embargoed until USDL-15-1912
8:30 a.m. (EDT) Friday, October 2, 2015
Household data: (202) 691-6378 • firstname.lastname@example.org • www.bls.gov/cps
Establishment data: (202) 691-6555 • email@example.com • www.bls.gov/ces
Media contact: (202) 691-5902 • PressOffice@bls.gov
THE EMPLOYMENT SITUATION -- SEPTEMBER 2015
Total nonfarm payroll employment increased by 142,000 in September, and the
unemployment rate was unchanged at 5.1 percent, the U.S. Bureau of Labor
Statistics reported today. Job gains occurred in health care and information,
while mining employment fell.
Household Survey Data
In September, the unemployment rate held at 5.1 percent, and the number of
unemployed persons (7.9 million) changed little. Over the year, the unemployment
rate and the number of unemployed persons were down by 0.8 percentage point and
1.3 million, respectively. (See table A-1.)
Among the major worker groups, the unemployment rates for adult men (4.7 percent),
adult women (4.6 percent), teenagers (16.3 percent), whites (4.4 percent), blacks
(9.2 percent), Asians (3.6 percent), and Hispanics (6.4 percent) showed little
or no change in September. (See tables A-1, A-2, and A-3.)
The number of persons unemployed for less than 5 weeks increased by 268,000 to
2.4 million in September, partially offsetting a decline in August. The number
of long-term unemployed (those jobless for 27 weeks or more) was little changed
at 2.1 million in September and accounted for 26.6 percent of the unemployed.
(See table A-12.)
The civilian labor force participation rate declined to 62.4 percent in September;
the rate had been 62.6 percent for the prior 3 months. The employment-population
ratio edged down to 59.2 percent in September, after showing little movement for
the first 8 months of the year. (See table A-1.)
The number of persons employed part time for economic reasons (sometimes referred to
as involuntary part-time workers) declined by 447,000 to 6.0 million in September.
These individuals, who would have preferred full-time employment, were working part
time because their hours had been cut back or because they were unable to find a
full-time job. Over the past 12 months, the number of persons employed part time
for economic reasons declined by 1.0 million. (See table A-8.)
In September, 1.9 million persons were marginally attached to the labor force, down
by 305,000 from a year earlier. (The data are not seasonally adjusted.) These
individuals were not in the labor force, wanted and were available for work, and
had looked for a job sometime in the prior 12 months. They were not counted as
unemployed because they had not searched for work in the 4 weeks preceding the
survey. (See table A-16.)
Among the marginally attached, there were 635,000 discouraged workers in September,
little changed from a year earlier. (The data are not seasonally adjusted.)
Discouraged workers are persons not currently looking for work because they believe
no jobs are available for them. The remaining 1.3 million persons marginally
attached to the labor force in September had not searched for work for reasons
such as school attendance or family responsibilities. (See table A-16.)
Establishment Survey Data
Total nonfarm payroll employment increased by 142,000 in September. Thus far in
2015, job growth has averaged 198,000 per month, compared with an average monthly
gain of 260,000 in 2014. In September, job gains occurred in health care and
information, while employment in mining continued to decline. (See table B-1.)
Health care added 34,000 jobs in September, in line with the average increase of
38,000 jobs per month over the prior 12 months. Hospitals accounted for 16,000 of
the jobs gained in September, and employment in ambulatory health care services
continued to trend up (+13,000).
Employment in information increased by 12,000 in September and has increased by
44,000 over the year.
Employment in professional and business services continued to trend up in September
(+31,000). Job growth has averaged 45,000 per month thus far in 2015, compared
with an average monthly gain of 59,000 in 2014. In September, job gains occurred
in computer systems design and related services (+7,000) and in legal services
Retail trade employment trended up in September (+24,000), in line with its average
monthly gain over the prior 12 months (+27,000). In September, employment rose in
general merchandise stores (+10,000) and automobile dealers (+5,000).
Employment in food services and drinking places continued on an upward trend in
September (+21,000). Over the year, this industry has added 349,000 jobs.
Employment in mining continued to decline in September (-10,000), with losses
concentrated in support activities for mining (-7,000). Mining employment has
declined by 102,000 since reaching a peak in December 2014.
Employment in other major industries, including construction, manufacturing,
wholesale trade, transportation and warehousing, financial activities, and
government, showed little or no change over the month.
The average workweek for all employees on private nonfarm payrolls declined by
0.1 hour to 34.5 hours in September. The manufacturing workweek decreased by
0.2 hour to 40.6 hours, and factory overtime declined by 0.2 hour to 3.1 hours.
The average workweek for production and nonsupervisory employees on private
nonfarm payrolls decreased by 0.1 hour to 33.6 hours. (See tables B-2 and B-7.)
In September, average hourly earnings for all employees on private nonfarm
payrolls, at $25.09, changed little (-1 cent), following a 9-cent gain in August.
Hourly earnings have risen by 2.2 percent over the year. Average hourly earnings
of private-sector production and nonsupervisory employees were unchanged at
$21.08 in September. (See tables B-3 and B-8.)
The change in total nonfarm payroll employment for July was revised from +245,000
to +223,000, and the change for August was revised from +173,000 to +136,000. With
these revisions, employment gains in July and August combined were 59,000 less
than previously reported. Over the past 3 months, job gains have averaged 167,000
The Employment Situation for October is scheduled to be released on Friday,
November 6, 2015, at 8:30 a.m. (EST).
Employment Situation Summary Table A. Household data, seasonally adjusted
Summary table A. Household data, seasonally adjusted
[Numbers in thousands]
Civilian noninstitutional population
Civilian labor force
Not in labor force
Total, 16 years and over
Adult men (20 years and over)
Adult women (20 years and over)
Teenagers (16 to 19 years)
Black or African American
Hispanic or Latino ethnicity
Total, 25 years and over
Less than a high school diploma
High school graduates, no college
Some college or associate degree
Bachelor’s degree and higher
Reason for unemployment
Job losers and persons who completed temporary jobs
Duration of unemployment
Less than 5 weeks
5 to 14 weeks
15 to 26 weeks
27 weeks and over
Employed persons at work part time
Part time for economic reasons
Slack work or business conditions
Could only find part-time work
Part time for noneconomic reasons
Persons not in the labor force (not seasonally adjusted)
Marginally attached to the labor force
– Over-the-month changes are not displayed for not seasonally adjusted data.
NOTE: Persons whose ethnicity is identified as Hispanic or Latino may be of any race. Detail for the seasonally adjusted data shown in this table will not necessarily add to totals because of the independent seasonal adjustment of the various series. Updated population controls are introduced annually with the release of January data.
Employment Situation Summary Table B. Establishment data, seasonally adjusted
Summary table B. Establishment data, seasonally adjusted
Footnotes (1) Includes other industries, not shown separately. (2) Data relate to production employees in mining and logging and manufacturing, construction employees in construction, and nonsupervisory employees in the service-providing industries. (3) The indexes of aggregate weekly hours are calculated by dividing the current month’s estimates of aggregate hours by the corresponding annual average aggregate hours. (4) The indexes of aggregate weekly payrolls are calculated by dividing the current month’s estimates of aggregate weekly payrolls by the corresponding annual average aggregate weekly payrolls. (5) Figures are the percent of industries with employment increasing plus one-half of the industries with unchanged employment, where 50 percent indicates an equal balance between industries with increasing and decreasing employment. (p) Preliminary
NOTE: Data have been revised to reflect March 2014 benchmark levels and updated seasonal adjustment factors.
National Income and Product Accounts
Gross Domestic Product: Second Quarter 2015 (Third Estimate)
Corporate Profits: Second Quarter 2015 (Revised Estimate)
Real gross domestic product -- the value of the goods and services produced by the nation’s
economy less the value of the goods and services used up in production, adjusted for price
changes -- increased at an annual rate of 3.9 percent in the second quarter of 2015, according to the
"third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased
The GDP estimate released today is based on more complete source data than were available for
the "second" estimate issued last month. In the second estimate, the increase in real GDP was 3.7
percent. With the third estimate for the second quarter, the general picture of economic growth remains
the same; personal consumption expenditures (PCE) and nonresidential fixed investment increased more
than previously estimated (see “Revisions” on page 2).
The increase in real GDP in the second quarter primarily reflected positive contributions from
PCE, exports, nonresidential fixed investment, state and local government spending, and residential
fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
Real GDP increased 3.9 percent in the second quarter, after increasing 0.6 percent in the first.
The acceleration in real GDP in the second quarter reflected an upturn in exports, an acceleration in
PCE, a deceleration in imports, an upturn in state and local government spending, and an acceleration in
nonresidential fixed investment that were partly offset by decelerations in private inventory investment
and in federal government spending.
Real gross domestic income (GDI) -- the value of the costs incurred and the incomes earned in
the production of goods and services in the nation’s economy -- increased 0.7 percent in the second
quarter, compared with an increase of 0.4 percent in the first. The average of real GDP and real GDI, a
supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 2.3
percent in the second quarter, compared with an increase of 0.5 percent in the first.
FOOTNOTE. Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified. Percent changes are calculated from unrounded data and are annualized. "Real" estimates
are in chained (2009) dollars. Price indexes are chain-type measures.
This news release is available on BEA's Web site.
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 3.6 percent in the second quarter, compared with an increase of 2.5 percent in
The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.5 percent in the second quarter, in contrast to a decrease of 1.6 percent in the first. Excluding
food and energy prices, the price index for gross domestic purchases increased 1.2 percent, compared
with an increase of 0.2 percent.
Current-dollar GDP -- the market value of the goods and services produced by the nation’s
economy less the value of the goods and services used up in production -- increased 6.1 percent, or
$264.4 billion, in the second quarter to a level of $17,913.7 billion. In the first quarter, current-dollar
GDP increased 0.8 percent, or $33.3 billion.
The upward revision to the percent change in real GDP primarily reflected upward revisions to
PCE, to nonresidential fixed investment, and to residential fixed investment that were partly offset by a
downward revision to private inventory investment. For information on revisions, see "The Revisions to
GDP, GDI, and Their Major Components."
Advance Estimate Second Estimate Third Estimate
(Percent change from preceding quarter)
Real GDP............................... 2.3 3.7 3.9
Current-dollar GDP..................... 4.4 5.9 6.1
Real GDI............................... ... 0.6 0.7
Average of Real GDP and Real GDI....... ... 2.1 2.3
Gross domestic purchases price index... 1.4 1.5 1.5
Profits from current production
Profits from current production (corporate profits with inventory valuation adjustment (IVA) and
capital consumption adjustment (CCAdj)) increased $70.4 billion in the second quarter, in contrast to a
decrease of $123.0 billion in the first.
Profits of domestic financial corporations increased $34.6 billion in the second quarter, in
contrast to a decrease of $23.4 billion in the first. Profits of domestic nonfinancial corporations
increased $24.3 billion, in contrast to a decrease of $70.5 billion. The rest-of-the-world component of
profits increased $11.4 billion, in contrast to a decrease of $29.0 billion. This measure is calculated as
the difference between receipts from the rest of the world and payments to the rest of the world. In the
second quarter, receipts increased $24.9 billion, and payments increased $13.4 billion.
Taxes on corporate income increased $31.3 billion in the second quarter, compared with an
increase of $5.5 billion in the first. Profits after tax with IVA and CCAdj increased $39.2 billion, in
contrast to a decrease of $128.4 billion.
Dividends increased $1.2 billion in the second quarter, compared with an increase of $6.3 billion
in the first. Undistributed profits increased $38.0 billion, in contrast to a decrease of $134.7 billion. Net
cash flow with IVA -- the internal funds available to corporations for investment -- increased $48.1
billion, in contrast to a decrease of $135.5 billion.
The IVA and CCAdj are adjustments that convert inventory withdrawals and depreciation of
fixed assets reported on a tax-return, historical-cost basis to the current-cost economic measures used in
the national income and product accounts. The IVA decreased $78.7 billion in the second quarter, in
contrast to an increase of $45.7 billion in the first. The CCAdj increased $7.7 billion, in contrast to a
decrease of $208.1 billion.
Corporate profits with IVA
Profits of domestic financial corporations increased $34.3 billion in the second quarter, in
contrast to a decrease of $3.1 billion in the first. Profits of domestic nonfinancial corporations increased
$17.0 billion, compared with an increase of $117.3 billion. The second-quarter increase in profits of
nonfinancial corporations primarily reflected an increase in “other” nonfinancial industries that was
partly offset by a decrease in retail trade industries. A small increase in manufacturing industries
reflected an increase in durable goods that was mostly offset by a decrease in nondurable goods.
Gross value added of nonfinancial domestic corporate business
Real gross value added of nonfinancial corporations decreased slightly in the second quarter.
Profits per unit of real value added increased, reflecting an increase in unit prices and a decrease in unit
nonlabor costs that were partly offset by an increase in unit labor costs.
* * *
BEA's national, international, regional, and industry estimates; the Survey of Current Business;
and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the
site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.
* * *
Next release -- October 29, 2015 at 8:30 A.M. EDT for:
Gross Domestic Product: Third Quarter 2015 (Advance Estimate)
Story 1: Breaking News — Part 2 of 3, Trump’s Timid Tax Tweak — Does Not Abolish Income Taxes or IRS and Does Not Abolish Regressive Payroll Taxes For Social Security and Medicare — Trump Wrong on Economic Incentives — Could Have Been A Contender — Carson (Flat Tax), Cruz (Flat Tax) , Paul (Flat Tax), and Huckabee (FairTax) — All Have Better Tax Plans — Trump Is Just Another Progressive Country Club “Rockefeller” Republican — Dump Trump! — Fair Tax Less Is The Answer To Making America Great Again — Videos
Acceptance Speech as the 1964 Republican Presidential candidate
“I would remind you that extremism in the defense of liberty is no vice!
And let me remind you also that moderation in the pursuit of justice is no virtue!”
~Senator Barry Goldwater
Two of Ten planks of Karl Marx’s
ARE Americans practicing Communism?
2. A heavy progressive or graduated income tax.
Americans know this as misapplication of the 16th Amendment of the U.S. Constitution, 1913, The Social Security Act of 1936.; Joint House Resolution 192 of 1933; and various State “income” taxes. We call it “paying your fair share”.
3. Abolition of all rights of inheritance.
Americans call it Federal & State estate Tax (1916); or reformed Probate Laws, and limited inheritance via arbitrary inheritance tax statutes.
Gov. Mike Huckabee Speech at “Iowa Freedom Summit” – Complete
The Beatles – Taxman – Lyrics
Pure Communism VS Pure Socialism VS Pure Capitalism
Trump Could Have Been A Contender
On the Waterfront,
“I coulda been a contender”
Trump Reveals Himself As A Loser
The Beatles – I’m a Loser – Subtitulado en español
Mr. Conservative: Barry Goldwater at the 1964 Republican National Convention
Ronald Reagan Support of Barry Goldwater (10/27/1964)
A Classic Critique of Government Intervention & Manipulation in Markets: The Road to Serfdom (1994)
F.A. Hayek: Biography, Economics, Road to Serfdom, Quotes, Books, Nobel Prize (2001)
The New Road to Serfdom: Lessons to Learn from European Policy
Mind blowing speech by Robert Welch in 1958 predicting Insider’s plans to destroy America.
TAX REFORM THAT WILL MAKE AMERICA GREAT AGAIN
The Goals Of Donald J. Trump’s Tax Plan
Too few Americans are working, too many jobs have been shipped overseas, and too many middle class families cannot make ends meet. This tax plan directly meets these challenges with four simple goals:
Tax relief for middle class Americans: In order to achieve the American dream, let people keep more money in their pockets and increase after-tax wages.
Simplify the tax code to reduce the headaches Americans face in preparing their taxes and let everyone keep more of their money.
Grow the American economy by discouraging corporate inversions, adding a huge number of new jobs, and making America globally competitive again.
Doesn’t add to our debt and deficit, which are already too large.
The Trump Tax Plan Achieves These Goals
If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax. That removes nearly 75 million households – over 50% – from the income tax rolls. They get a new one page form to send the IRS saying, “I win,” those who would otherwise owe income taxes will save an average of nearly $1,000 each.
All other Americans will get a simpler tax code with four brackets – 0%, 10%, 20% and 25% – instead of the current seven. This new tax code eliminates the marriage penalty and the Alternative Minimum Tax (AMT) while providing the lowest tax rate since before World War II.
No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes. This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world.
No family will have to pay the death tax. You earned and saved that money for your family, not the government. You paid taxes on it when you earned it.
The Trump Tax Plan Is Revenue Neutral
The Trump tax cuts are fully paid for by:
Reducing or eliminating most deductions and loopholes available to the very rich.
A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate, followed by an end to the deferral of taxes on corporate income earned abroad.
Reducing or eliminating corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses.
DETAILS OF DONALD J. TRUMP’S TAX PLAN
America needs a bold, simple and achievable plan based on conservative economic principles. This plan does that with needed tax relief for all Americans, especially the working poor and middle class, pro-growth tax reform for all sizes of businesses, and fiscally responsible steps to ensure this plan does not add to our enormous debt and deficit.
This plan simplifies the tax code by taking nearly 50% of current filers off the income tax rolls entirely and reducing the number of tax brackets from seven to four for everyone else. This plan also reduces or eliminates loopholes used by the very rich and special interests made unnecessary or redundant by the new lower tax rates on individuals and companies.
The Trump Tax Plan: A Simpler Tax Code For All Americans
When the income tax was first introduced, just one percent of Americans had to pay it. It was never intended as a tax most Americans would pay. The Trump plan eliminates the income tax for over 73 million households. 42 million households that currently file complex forms to determine they don’t owe any income taxes will now file a one page form saving them time, stress, uncertainty and an average of $110 in preparation costs. Over 31 million households get the same simplification and keep on average nearly $1,000 of their hard-earned money.
For those Americans who will still pay the income tax, the tax rates will go from the current seven brackets to four simpler, fairer brackets that eliminate the marriage penalty and the AMT while providing the lowest tax rate since before World War II:
Income Tax Rate
Long Term Cap Gains/ Dividends Rate
Heads of Household
$0 to $25,000
$0 to $50,000
$0 to $37,500
$25,001 to $50,000
$50,001 to $100,000
$37,501 to $75,000
$50,001 to $150,000
$100,001 to $300,000
$75,001 to $225,000
$150,001 and up
$300,001 and up
$225,001 and up
With this huge reduction in rates, many of the current exemptions and deductions will become unnecessary or redundant. Those within the 10% bracket will keep all or most of their current deductions. Those within the 20% bracket will keep more than half of their current deductions. Those within the 25% bracket will keep fewer deductions. Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers.
Simplifying the tax code and cutting every American’s taxes will boost consumer spending, encourage savings and investment, and maximize economic growth.
Business Tax Reform To Encourage Jobs And Spur Economic Growth
Too many companies – from great American brands to innovative startups – are leaving America, either directly or through corporate inversions. The Democrats want to outlaw inversions, but that will never work. Companies leaving is not the disease, it is the symptom. Politicians in Washington have let America fall from the best corporate tax rate in the industrialized world in the 1980’s (thanks to Ronald Reagan) to the worst rate in the industrialized world. That is unacceptable. Under the Trump plan, America will compete with the world and win by cutting the corporate tax rate to 15%, taking our rate from one of the worst to one of the best.
This lower tax rate cannot be for big business alone; it needs to help the small businesses that are the true engine of our economy. Right now, freelancers, sole proprietors, unincorporated small businesses and pass-through entities are taxed at the high personal income tax rates. This treatment stifles small businesses. It also stifles tax reform because efforts to reduce loopholes and deductions available to the very rich and special interests end up hitting small businesses and job creators as well. The Trump plan addresses this challenge head on with a new business income tax rate within the personal income tax code that matches the 15% corporate tax rate to help these businesses, entrepreneurs and freelancers grow and prosper.
These lower rates will provide a tremendous stimulus for the economy – significant GDP growth, a huge number of new jobs and an increase in after-tax wages for workers.
The Trump Tax Plan Ends The Unfair Death Tax
The death tax punishes families for achieving the American dream. Therefore, the Trump plan eliminates the death tax.
The Trump Tax Plan Is Fiscally Responsible
The Trump tax cuts are fully paid for by:
Reducing or eliminating deductions and loopholes available to the very rich, starting by steepening the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions. The Trump plan also phases out the tax exemption on life insurance interest for high-income earners, ends the current tax treatment of carried interest for speculative partnerships that do not grow businesses or create jobs and are not risking their own capital, and reduces or eliminates other loopholes for the very rich and special interests. These reductions and eliminations will not harm the economy or hurt the middle class. Because the Trump plan introduces a new business income rate within the personal income tax code, they will not harm small businesses either.
A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate. Since we are making America’s corporate tax rate globally competitive, it is only fair that corporations help make that move fiscally responsible. U.S.-owned corporations have as much as $2.5 trillion in cash sitting overseas. Some companies have been leaving cash overseas as a tax maneuver. Under this plan, they can bring their cash home and put it to work in America while benefitting from the newly-lowered corporate tax rate that is globally competitive and no longer requires parking cash overseas. Other companies have cash overseas for specific business units or activities. They can leave that cash overseas, but they will still have to pay the one-time repatriation fee.
An end to the deferral of taxes on corporate income earned abroad. Corporations will no longer be allowed to defer taxes on income earned abroad, but the foreign tax credit will remain in place because no company should face double taxation.
Reducing or eliminating some corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses.
Middle class, businesses get break, but overseas profits would face a one-time 10% levy
By MONICA LANGLEY And JOHN D. MCKINNON
Republican presidential candidate Donald Trump unveiled an ambitious tax plan Monday that he says would eliminate income taxes for millions of households, lower the tax rate on all businesses to 15% and change tax treatment of companies’ overseas earnings.
Under the Trump plan, no federal income tax would be levied against individuals earning less than $25,000 and married couples earning less than $50,000. The Trump campaign estimates that would reduce taxes to zero for 31 million households that currently pay at least some income tax. The highest individual income-tax rate would be 25%, compared with the current 39.6% rate.
Many middle-income households would have a lower tax rate under Mr. Trump’s proposal, but because high-income households generally pay income tax at much higher rates, his proposed across-the-board rate cut could have a positive impact on them, too. For example, an analysis of Jeb Bush’s plan—taxing individuals’ incomes at no more than 28%—by the business-backed Tax Foundation found that the biggest percentage winners in after-tax income would be the top 1% of earners.
Mr. Trump’s plan appears designed to help him, as the GOP front-runner, cement his standing as a populist—though that message is complicated by the fact that the billionaire, like other Republican leaders, would eliminate the estate tax.
READ MORE ON CAPITAL JOURNAL
Capital Journal is WSJ.com’s home for politics, policy and national security news.
“My plan will bring sanity, common sense and simplification to our country’s catastrophic tax code,” Mr. Trump said in an interview. “It will create jobs and incentives of all kinds while simultaneously growing the economy.”
But Mr. Trump will face a challenge in convincing skeptics that his aggressive tax cuts can be implemented without adding to the federal deficit.
To pay for the proposed tax benefits, the Trump plan would eliminate or reduce deductions and loopholes to high-income taxpayers, and would curb some deductions and other breaks for middle-class taxpayers by capping the level of individual deductions, a politically dicey proposition. Mr. Trump also would end the “carried interest” tax break, which allows many investment-fund managers to pay lower taxes on much of their compensation.
A significant revenue gain would come from a one-time tax on overseas profits that could encourage U.S. multinational corporations to return an estimated $2.1 trillion in cash now sitting offshore, largely to avoid U.S. taxes. His proposal would impose a mandatory 10% tax on all of that money, even if the money stays overseas, but allow a few years for the tax to be paid. The Trump campaign estimates that many companies would choose to bring their money back home, boosting jobs and investment in the U.S.
Mr. Trump also would impose an immediate tax on overseas earnings of American corporations; currently, such tax payments can be deferred. All told, the campaign says the plan would be revenue neutral—neither raising nor lowering federal revenues—by the third year and then begin adding revenue.
With the tax plan’s release, Mr. Trump is moving to quell criticism that his campaign has been more style and less substance. This tax proposal follows his well-known immigration plan in the summer and one on gun rights last week.
Mr. Trump saves some money and fiscal headaches by skipping some of the big but complicated and costly changes that other candidates have embraced, such as business-expensing breaks and so-called territorial taxation for multinational corporations.
On the individual side, Mr. Trump would consolidate the current seven rates to four, of 0%, 10%, 20% and 25%. Those changes alone would exempt all married couples making $50,000 or less from the income tax, as well as singles making $25,000 or less.
The 10% bracket would apply to incomes from $50,000 to $100,000 for a married couple; the current 10% bracket has a ceiling of $18,450. The new 25% top bracket would apply to married couples’ incomes in excess of $300,000, which currently are subject to rates as high as 39.6%. Mr. Trump also would cut the top capital gains rate to 20%, from the current 23.8%. And he would eliminate the alternative minimum tax.
But the candidate doesn’t propose to end taxation of individuals’ investment income, as some other Republicans propose, nor would he expand the standard deduction, child-credit and other middle-class breaks as some other GOP candidates have suggested.
For businesses, Mr. Trump’s 15% rate is among the lowest that have been proposed so far. Rand Paul has proposed a 14.5% flat-tax rate for all types of income. Marco Rubio, another candidate with a detailed plan, would tax all business income at no more than 25%. Mr. Bush has proposed a 20% top corporate rate. The current top corporate tax rate is 35%, and small business income is subject to rates of as much as 39.6% (although many small businesses pay out a lot of their profits as lower-taxed dividends or capital gains). The campaign argues the rate would be among the lowest among industrialized nations, giving U.S. companies an edge to compete.
The lower corporate rates would provide “a tremendous stimulus for the economy,” the campaign’s plan argues. Mr. Trump would not, however, allow businesses to expense all their new equipment purchases, as some other Republicans do.
The plan proposes to simplify tax filing for many lower- to middle-income households. The plan says that some 42 million households that currently file tax forms to establish that they don’t owe any federal income tax now will be able to file their returns on a single page.
The 31 million households that have been paying some taxes but now won’t have any tax liability can use the same single-page, and keep an average of $1,000 in tax savings, the Trump campaign says. Today, 36% of American households today pay no income taxes, and that number would grow to 50%.
The Trump plan would raise revenues in at least a couple of significant ways. It would limit the value of individual deductions, with middle-class households keeping all or most of their deductions, higher-income taxpayers keeping around half of theirs, and the very wealthy losing a significant chunk of theirs. It also would wipe out many corporate deductions.
All taxpayers would keep their current deductions for mortgage-interest on their homes and charitable giving.
The plan also proposes capping the amount of interest payments that businesses can deduct now, a change phased in over a long period, and would impose a corporate tax on future foreign earnings of American multinationals.
ARE Americans practicing Communism?Read the 10 Planks of The Communist Manifesto to discover the truth and learn how to know your enemy…
Karl Marx describes in his communist manifesto, the ten steps necessary to destroy a free enterprise system and replace it with a system of omnipotent government power, so as to effect a communist socialist state. Those ten steps are known as the Ten Planks of The Communist Manifesto… The following brief presents the original ten planks within theCommunist Manifesto written by Karl Marx in 1848, along with the American adopted counterpart for each of the planks. From comparison it’s clear MOST Americans have by myths, fraud and deception under the color of law by their own politicians in both the Republican and Democratic and parties, been transformed into Communists.
Another thing to remember, Karl Marx in creating the Communist Manifesto designed these planks AS A TEST to determine whether a society has become communist or not. If they are all in effect and in force, then the people ARE practicing communists.
Communism, by any other name is still communism, and is VERY VERY destructive to the individual and to the society!!
The 10 PLANKS stated in the Communist Manifesto and some of their American counterparts are…
1. Abolition of private property and the application of all rents of land to public purposes. Americans do these with actions such as the 14th Amendment of the U.S. Constitution (1868), and various zoning, school & property taxes. Also the Bureau of Land Management (Zoning laws are the first step to government property ownership)
2. A heavy progressive or graduated income tax. Americans know this as misapplication of the 16th Amendment of the U.S. Constitution, 1913, The Social Security Act of 1936.; Joint House Resolution 192 of 1933; and various State “income” taxes. We call it “paying your fair share”.
3. Abolition of all rights of inheritance. Americans call it Federal & State estate Tax (1916); or reformed Probate Laws, and limited inheritance via arbitrary inheritance tax statutes.
4. Confiscation of the property of all emigrants and rebels. Americans call it government seizures, tax liens, Public “law” 99-570 (1986); Executive order 11490, sections 1205, 2002 which gives private land to the Department of Urban Development; the imprisonment of “terrorists” and those who speak out or write against the “government” (1997 Crime/Terrorist Bill); or the IRS confiscation of property without due process. Asset forfeiture laws are used by DEA, IRS, ATF etc…).
5. Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly. Americans call it the Federal Reserve which is a privately-owned credit/debt system allowed by the Federal Reserve act of 1913. All local banks are members of the Fed system, and are regulated by the Federal Deposit Insurance Corporation (FDIC) another privately-owned corporation. The Federal Reserve Banks issue Fiat Paper Money and practice economically destructive fractional reserve banking.
6. Centralization of the means of communications and transportation in the hands of the State. Americans call it the Federal Communications Commission (FCC) and Department of Transportation (DOT) mandated through the ICC act of 1887, the Commissions Act of 1934, The Interstate Commerce Commission established in 1938, The Federal Aviation Administration, Federal Communications Commission, and Executive orders 11490, 10999, as well as State mandated driver’s licenses and Department of Transportation regulations.
7. Extension of factories and instruments of production owned by the state, the bringing into cultivation of waste lands, and the improvement of the soil generally in accordance with a common plan. Americans call it corporate capacity, The Desert Entry Act and The Department of Agriculture… Thus read “controlled or subsidized” rather than “owned”… This is easily seen in these as well as the Department of Commerce and Labor, Department of Interior, the Environmental Protection Agency, Bureau of Land Management, Bureau of Reclamation, Bureau of Mines, National Park Service, and the IRS control of business through corporate regulations.
8. Equal liability of all to labor. Establishment of industrial armies, especially for agriculture. Americans call it Minimum Wage and slave labor like dealing with our Most Favored Nation trade partner; i.e. Communist China. We see it in practice via the Social Security Administration and The Department of Labor. The National debt and inflation caused by the communal bank has caused the need for a two “income” family. Woman in the workplace since the 1920’s, the 19th amendment of the U.S. Constitution, the Civil Rights Act of 1964, assorted Socialist Unions, affirmative action, the Federal Public Works Program and of course Executive order 11000.
9. Combination of agriculture with manufacturing industries, gradual abolition of the distinction between town and country, by a more equitable distribution of population over the country. Americans call it the Planning Reorganization act of 1949 , zoning (Title 17 1910-1990) and Super Corporate Farms, as well as Executive orders 11647, 11731 (ten regions) and Public “law” 89-136. These provide for forced relocations and forced sterilization programs, like in China.
10. Free education for all children in public schools. Abolition of children’s factory labor in its present form. Combination of education with industrial production. Americans are being taxed to support what we call ‘public’ schools, but are actually “government force-tax-funded schools ” Even private schools are government regulated. The purpose is to train the young to work for the communal debt system. We also call it the Department of Education, the NEA and Outcome Based “Education” . These are used so that all children can be indoctrinated and inculcated with the government propaganda, like “majority rules”, and “pay your fair share”. WHERE are the words “fair share” in the Constitution, Bill of Rights or the Internal Revenue Code (Title 26)?? NO WHERE is “fair share” even suggested !! The philosophical concept of “fair share” comes from the Communist maxim, “From each according to their ability, to each according to their need! This concept is pure socialism. … America was made the greatest society by its private initiative WORK ETHIC … Teaching ourselves and others how to “fish” to be self sufficient and produce plenty of EXTRA commodities to if so desired could be shared with others who might be “needy”… Americans have always voluntarily been the MOST generous and charitable society on the planet.
Do changing words, change the end result? … By using different words, is it all of a sudden OK to ignore or violate the provisions or intent of the Constitution of the united States of America?????
The people (politicians) who believe in the SOCIALISTIC and COMMUNISTIC concepts, especially those who pass more and more laws implementing these slavery ideas, are traitors to their oath of office and to the Constitution of the united States of America… KNOW YOUR ENEMY …Remove the enemy from within and from among us.
VOTE LIBERTARIAN, the only political party in America that still firmly supports and diligently abides by the Constitution of the united States of America.
Story 1, Arrogance of Power — The Two Party Tyranny — Democratic and Republican Political Elitist Establishment (PEEs) Ignoring The American People — Trump Becomes Champion of American People — Trump Does Dallas — The Winning Silent Majority Roars –Videos
FULL: Donald Trump Speech at Campaign Rally In Boone, Iowa (9-12-15) #CyHawk
Trump pokes fun at himself with some help from Fallon
Donald Trump Interviews Himself In the Mirror
Protesters plan ‘Dump the Trump’ rally near Texas speech
Is Donald Trump serious about tax reform?
Donald Trump Is OK With Raising Taxes on Himself
Donald Trump: I pay as little as possible in tax
Dr Ben Carson On Donald Trump – The Kelly File
Rick Perry: Donald Trump’s ‘Offensive’ Rhetoric Bad for the GOP
Trump: US ‘a dumping ground for the rest of the world’
The Associated Press – By By STEVE PEOPLES –
Renewing his charge against illegal immigration, Republican presidential candidate Donald Trump on Monday called the United States “a dumping ground for the rest of the world” as he rallied thousands of Texas supporters behind his fiery candidacy and promised Republican leaders he’s just getting started.
Despite calls from GOP officials to tone down his rhetoric on the sensitive issue, the GOP front-runner decried “anchor babies” and gang members among the immigrants living in the U.S. illegally, drawing huge ovations from a rowdy audience packed into Dallas’ American Airlines Center. The 20,000-capacity venue that was at least three-quarters full for the evening rally.
“You people are suffering,” Trump told the Texans. “I’m in New York, but they’re in New York, too. They’re all over the place.”
“It’s disgusting what’s happening to our country,” Trump continued as he called for more legal immigration.
Provocative rhetoric on immigration has defined Trump’s presidential campaign from the very beginning, when the billionaire businessman called Mexican immigrants rapists and criminals in his June announcement speech. Republican National Committee Chairman Reince Priebus, among others, has encouraged Trump to soften his tone, yet the former reality television star has refused.
The strategy may play well among the GOP’s more conservative voters — those who filled the Dallas sports arena among them — yet threatens to hurt the party’s standing among a growing group of Hispanic voters in the general election.
Trump’s popularity within his party has kept growing. He holds a commanding lead in early polls.
“This is a movement that’s happening,” he declared, confronting critics who think he’s not running a serious campaign. “Now it’s time to really start, because this is going to happen, I’m telling you, I’m not going anywhere.”
“Unless I win, it’s been a waste of time for me, folks,” he continued.
Monday night’s crowd ate it up.
They waved miniature American flags, munched nachos and drank $13 cups of beer from plastic cups as they interrupted Trump repeatedly with applause.
“Sometimes he puts his foot in his mouth, just like everybody,” said Barbara Tomasino, a 65-year-old retired elementary school librarian from Plano, Texas, who donned a dress, shoes and a purse plastered with pictures of Trump’s face. “If he gets elected, he might need to tone it down a little bit.”
Still, the crowd cheered wildly when Trump bashed immigrants in the country illegally, the media, Republican operatives such as Karl Rove, and the energy levels of his rivals.
“I have tremendous energy,” Trump said. “Tremendous. To a point where it’s almost ridiculous if you think about it.”
Story 1: Donald Trump is a Libertarian-Leaning Conservative and Ted Cruz is Hard Core Conservative — Trump/Cruz Ticket? — Conservatives Intellectuals Need To Focus on Results Not Words — The Republican Party Is Not A Conservative Party — Conservatives and Libertarians Voters Have Been Abandoning Both The Democratic and Republican Parties Who Are Bought and Paid For By The Donor Base — The Tyranny of Two Party System — Corrupt Big Government Parties — The Decline and Fall of American Republic — Remembering 9/11 — Videos
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