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How the Richest Members of Congress Made Their Fortunes
Capitol Hill is brimming with millionaires, but if you think that most of the richest members of Congress got that way from working hard, guess again.
When you browse through the list of the richest members of Congress, one of the most common themes is that many of them married into wealth, regardless of gender.
The best-known beneficiary of spousal wealth is former Sen. John Kerry, D-MA, who recently left the Senate to serve as Secretary of State in the Obama administration.
Sequestration Is a Gift – Not an Apocalypse
Everybody sing along…
It's a happy day… Oh happy days. It's a happy day…Oh happy days. When sequestration rules it drives the tears away… Oh happy days!
Those are the words President Obama used to describe what would result from sequestration.
Please, don't make me laugh. The sequester will not only not ruin America, it will in fact start the process of fixing what Congress can't – no, make that won't – fix.
What's the upside?
Our magnificent Founding Fathers were all together in the creation of the United States, but it didn't mean they all loved each other or that they all had the same views about government. They sure didn't. But, those differences were acknowledged and incorporated into the Constitution and sanctified – for the people – in the Bill of Rights.
That's divided government folks. This ain't socialism, though sometimes it feels like it.
And it's that nagging feeling that a slimy, slithering strain of socialism is snaking its way into mainstream politics that keeps me up at night, in case we, the people, are overrun by "them" – the usurpers of republican democracy.
Thank goodness that divided government gave us sequestration.
So, Congress can't get along. That's nothing new. The question is who gets to pander to their constituents. That's nothing new. We have sequestration. So, what? That's nothing new.
We need to cut crap out of the budget – A lot of crap. I'm sorry if that word bothers you… but I'm not allowed to use stronger language. Don't hate me because I'm fed up. You should be, too. Maybe you don't use strong language. Maybe you don't use colloquialisms (you're better then me, I grant you that, for sure) but I'm willing to bet that you're just as mad as I am.
The Republicans want to protect the rich and their tax loopholes – including carried interest. I get that, and I vehemently disagree (and believe me, folks, I enjoy carried interest). The Democrats want us all to share the cost of running a social welfare state to pander to their voting constituents. I get that, and I vehemently disagree.
So, they can't agree on tax increases (oh, wait, wait don't tell me… they did agree on $600 billion in tax increases in January, remember?) and they definitely can't agree on spending cuts. Why are spending cuts so hard? Because, silly, spending is the bread and butter that Congress feeds to their voting constituents – and campaign-backing cronies. Duh!
Sorry, I got carried away. Forget all that stuff. I just had to get it off my chest.
This is really about sequestration and how good it will be for the country.
We need to cut wasteful spending, period. What better way to do it that to take spending cuts out of the hands of Congress and put the task squarely in the hands of the departments and programs that are wasting the money in the first place? They should be tasked with making cuts and laying off unproductive people who do unproductive things. This is great!
The Budget Control Act, passed in August 2011, basically said, "Hey, if this Super Committee we put together can't cut $1.2 trillion from the federal budget over the next ten years (they were shooting for $1.5 trillion, go figure) then, by this law, sequestration will go into place to the tune of $1.2 trillion between January 2013 and October 2121."
Pretty simple, but no one figured we'd get here. Me, personally? I was praying we would.
Here's a brilliant, simple play-by-play I found from Brustein & Manasevit, PLLC, Attorneys at Law:
The 9 Biggest Sequestration Lies
Though we've come to expect no better from our leaders in Washington, the sequestration lies rank among the most blatant whoppers ever to come out of the nation's capital.
Sequestration, of course, is the $85 billion in across-the-board spending cuts scheduled to go into effect at midnight Friday.
Instead of working together to come up with an alternative to replace the sequester, Republicans and Democrats have spent the past several weeks playing a maddening game of political chicken.
Both parties were counting on the fear of sequestration to force the other to cave before it happened.
Toward that end, leaders of both sides have tried to sway public opinion with exaggerations, obfuscations and outright lies.
Yes, business as usual in Washington, but an affront to U.S. citizens nonetheless.
Here are some of the biggest sequestration lies.
What Does the Sequestration Mean for Investors?
After months of bitter debate on Capitol Hill, claims and counterclaims and predictions of impending economic doom, sequestration arrives at last Friday, barring an unexpected last-minute deal.
And thus far, the markets seem to have pretty much shrugged off the impending $85 billion in automatic spending cuts.
Indeed, the Dow Jones Industrial Average soared to near-record levels Wednesday, ending the day up 1.25% to 14,075, while the S&P 500 and the Nasdaq also posted more than 1% gains.
This despite warnings from U.S. President Barack Obama and other Democrats that sequestration would send the economy back into a recession and possibly cost 1 million Americans their jobs.
The Sequester: What the President Should Do – But Won't
It's just days before the $85 billion in across-the-board spending cuts known as sequester are set to kick in and the Obama administration says the reductions would drastically hurt essential programs, including national defense, education and medical research.
Republicans, meanwhile, maintain that U.S. President Barack Obama doesn't recognize the problem isn't the sequester.
It's "an excessive, bloated, big federal government that's highly inefficient and highly ineffective," according to Sen. Tom Coburn, R-OK, on FOX News Sunday.
While Coburn said he would rein in spending through a different method than the sequester, some GOP lawmakers are ready to let the automatic spending cuts take effect in their current form.
As Money Morning Global Investing Strategist Martin Hutchinson explained in the accompanying video, the sequester should have been made part of a long-term deficit reduction plan.
The Sequestration Follies: How Washington Outsmarted Itself
It seems every politician in Washington is up in arms over sequestration, the devastating automatic budget cuts on track to take effect March 1.
For weeks, lawmakers on both sides have been calling sequestration a "bad idea" and criticizing any proposals put forth by the opposing party.
Politicians aren't happy that sequestration not only would cut billions of dollars in federal spending, it would also slash the budget indiscriminately with across-the-board cuts.
Just today (Tuesday), President Barack Obama urged Congress to delay sequestration for the rest of the year or risk damaging the U.S. economy.
"It won't help the economy. It won't create jobs. It will visit hardship on a whole lot of people," President Obama said. "If Congress allows this meat-cleaver approach to take place, it will jeopardize our military readiness; it will eviscerate job-creating investments in education and energy and medical research."
Listening to all the rhetoric, Americans with short memories might believe that those in Washington only have the best interests of the country at heart.
But the rest of us remember how this whole sequestration fiasco really happened. It was their idea – Republicans and Democrats, the White House and Congress. All guilty.
"The idea was that no sane person would allow such cuts to happen," Bob Schieffer, host of CBS News' "Face the Nation," said on that show Sunday. "Well, guess what. Even Washington managed to underestimate its own ineptitude."
Five State of the Union Bullet Points You Need to Know
Since President Obama's State of the Union Address Tuesday night, there have been a lot of articles dissecting his remarks and picking his proposals apart. As you might suspect, the vast majority have been politically charged by one side of the aisle or the other.
As Chief Investment Strategist for Money Map Press, I can't afford the luxury of taking sides. It's my job to help the hundreds of thousands of investors who are part of our family with their money…politics aside.
If you're with me, then I've got five bullet points – key takeaways really – from the president's speech that can help you grow your money this year and for the remainder of President Obama's second term.
Will Environmentalists Kill the Keystone XL Pipeline?
For more than four years, the controversial Keystone XL pipeline has been at the center of a heated battle between opponents and supporters.
Those who favor the 1,700-mile extension of the pipeline see it as a step toward North American energy independence and a source of tens of thousands of jobs.
Obama's State of the Union Address Was Short on Math
President Obama's State of the Union Address on Wednesday night was high on rhetoric but short on math.
As with most Obama speeches, it was beautifully delivered. However, even where I agreed with the ideas, I couldn't quell a nagging suspicion that the numbers simply didn't add up, and indeed likely missed by a lot.
And let's face it, some of the ideas in the speech were just plain bad.
The Bad Ideas
At the top of the list was the proposed increase in the minimum wage to $9 an hour. It's sounds nice, but reality is a different story.
Economists pretty much universally agree that high minimum wages have the opposite effect: They increase the ranks of the unemployed.