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It won’t be much of a surprise to those living outside the Washington D.C. beltway


If you make it so burdensome to operate a legit business, then you’re basically giving people without big lines of credit and capital few choices but to work in the cash-only underground economy.

It won’t be much of a surprise to those living outside the Washington D.C. beltway and the Unicorn Herd of start-ups selling for millions of dollars that the underground cash-only economy is one of the few bright spots in the U.S. economy. Correspondent B.U. recently submitted this report from rural America in response to my entry What Happens to our Economy as Millions of People Lose the Habits of Hard Work?, which mentioned those in the cash-only sector as not showing up in official employment statistics:

It is very common for folks where I live to get some form of subsidy be it SSI or WIC or whatever. Then they maintain their lifestyle by:
— Selling items for cash on Craigslist:

This is mostly sub $1500 cars, Building materials or scrap metal.

I know quite a few folks that are doing very well in this line of business.

–Selling at various ‘trades-days’:

A friend mine clears ~$100K just trading in gold, firearms and ammunition.

Others I know trade cattle and livestock.

Another friend repairs cars at his home. He has weeks of backlog and turns away work all the time.

The key to all of this is that these folks have no official business. They trade only in cash. They do not make deposits in the bank except for the government checks.

The point is that for these folks, unplugging was a pay raise just in the tax exposure. When they get sick, they claim indigent and get whatever they need.

The spread between the burden of regulation and taxes is getting so onerous that folks are just falling into the very solution you describe.

I believe your focus is more professional in nature in terms of folks being a hired gun (i.e. free-lancer/contract employee). But what I see are the non-professionals as the ones who are really moving to fill the void of value that is growing as deflation/inflation oscillate.
Thank you, B.U., for the straight-up report from the real world. Despite the fact I pay all my taxes (and am royally reamed as a result), I sympathize with those making tax-free incomes in the cash-only economy.

Back when I had multiple employees in the 1980s, I was basically working to pay workers compensation insurance (40% to 80% of the hourly wage for construction workers), liability coverage, unemployment insurance, disability insurance, FICA (employers’ share of Social Security), excise tax, income tax, rent on the office that we were required by law to maintain, healthcare insurance for all the employees, filling out HUD/FHA forms required when building homes with FHA loans, and so on. Then there’s the cost of accounting and tax returns (complicated when you’re operating a business), and a long list of other expenses I’ve forgotten.

My partner and I had a stock response when any employee griped about all the money we must be making: we’d take out our keys to the office and offer it to them, and say “payday’s on Friday. It’s all yours.” I’d have been relieved if any had been dumb enough to accept the offer. No one ever did.

It’s no wonder that legit small business and self-employment is often a struggle for financial survival. I’ve covered the travails of one serial entrepreneur in launching a new business in today’s America: the costs were so heavy that he gave up. It was impossible to actually make a living once you met all the absurd regulations, codes and requirements.

The people enforcing the regulations (“just doing my job”) are paid by taxpayers; their job is safe, their paycheck and benefits guaranteed.

Our Government, Destroyer of Jobs (August 12, 2015)

The Troubling Decline of Financial Independence in America (August 28, 2015)

The Fading American Dream of Working for Yourself (October 2015)

Financial independence is the American Dream because it gives us the freedom to say Take This Job And Shove It (Johnny Paycheck).

This chart shows the tax-paying self-employed as a percentage of those with jobs (all nonfarm employees). According to the FRED data base, there are 142 million employed and 9.4 million self-employed. (The incorporated self-employed, typically physicians, attorneys, engineers, architects etc. who are employees of their own corporations, total about 5 million.)

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This chart depicts self-employment from 1929 to 2015. Self-employment is cratering in the “recovery” of high taxes, senseless regulations and burdensome report-filing (big fines if you don’t comply), tax preparation, business licence fees, fishing-expedition lawsuits, etc.

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I have no problem with paying all my taxes for a couple of reasons. One relates to “Render therefore unto Caesar the things which are Caesar’s.” That’s my view, but I don’t hold anyone else to it. That’s up to them to deal with.

I live by Andy Grove’s dictum Only the paranoid survive and for good reasons. (Intel co-founder Grove wrote a book with this as the title:Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company.)

Having experienced COINTELPRO in the early 1970s, I know what’s it like to be an enemy of the State. Violating tax codes makes you a very easy target for the state. If you want to draw a target on your back, be my guest. I’m going to pass.

(The FBI thug who “was just doing his job” snarled at me, “This isn’t the Sunshine Biscuit Company, this is the FBI!” Hopefully their witty-threat training has improved.)

Anyone who can’t find a state/Corporate America job or says Take This Job And Shove It has my sympathy. I’ve been down to my last $100, and it’s a lonesome, troublesome feeling. If you make it so burdensome to operate a legit business, then you’re basically giving people without big lines of credit or plenty of capital and regulatory expertise few choices but to work in the cash-only underground economy.

Cocky “refugee” makes demands at a German welfare office

Published on Sep 25, 2015

Commentary — Islamic refugees invade Western Europe then demand welfare; perfectly acceptable from a globalist perspective. Note the poverty-stricken “refugees” stand laughing at his side as they record the event with their smart phones.

Wtf ? Only in the country “safe” already demanding money. Fuck off ridiculous

get a job and support yourself, you lazy parasite!

What are you guys waiting to kick them out of the country ? Maybe you should start by rising against you corrupt gov.

Newsflash! Bernie Sanders Fans: All That “Free Stuff” Will Break the Middle Class

My latest Townhall column is called, Newsflash! Bernie Sanders Fans: All That “Free Stuff” Will Break the Middle Class. Here’s an excerpt from the column.



Science fiction writer Arthur C. Clarke once said, “Any sufficiently advanced technology is indistinguishable from magic.” Similarly, it could be said that for liberals, how the real world works is indistinguishable from magic.

They want “free” birth control, health care, college, “Cash for Clunkers,” free housing for the poor and paid time off for women who are having a child. They want welfare with no preconditions for anyone who wants it, a $15 minimum wage and they want to open our borders to anyone who wants to come here illegally, have a child and live off the American people for the next 18 years.

Unfortunately, as Thomas Sowell has often said, “There are no solutions; there are only trade-offs.”Put another way, giving away “free” stuff may seem appealing, but it often has terrible consequences.

First and foremost among them, if you give too much away, you can go bankrupt. It’s not the least bit controversial to say that even with our current level of spending, we’re on pace to become Greece. You don’t have to take my word for it because even a diehard liberal socialist like Bernie Sanders admits that we can’t keep piling on debt.

“Everyone agrees that over the long-term we have got to reduce the record-breaking $13.7 trillion national debt and unsustainable federal deficit.”

Incidentally, our record-breaking debt is now up to almost $18.4 trillion and Bernie Sanders is proposing another $18 trillion in spending over the next decade on NEW programs. That’s in addition to the deficit spending we’re already doing, all of which is theoretical because at some point in the next decade or two, no one will be willing to loan us any more money and our economy will splatter like a bug on a windshield.

At that point, your kids will be wearing potato sacks, you’ll be bartering your family heirlooms for fuel and the grandparents will be eating their shoe leather after the Social Security and Medicare checks stop coming.

Is that an exaggeration? Maybe, but MAYBE NOT.

While U.S. ‘can’t afford’ protection for Marines, look what incoming refugees are getting..

Written by Ashley Edwardson


While many of our military families must rely on food stamps and the United States Marine Corps claims itcan’t afford bullet proof glass to protect its rifle-less riflemen, President Obama is offering piles of cash to “refugees” coming to America. Yep, that’d be YOUR tax dollars.

And the tax dollars required to support these “refugees” — many of whom, it’s turning out, are actually NOT coming from war-torn Syria — are about to explode, given new directives from the Obama administration.

According to Yahoo! News, the administration is now saying that what was supposed to be 10,000 refugee settlers has now mushroomed into a reported 100,000 newcomers to the U.S. by 2017.

“We will now go up to 85,000 with at least 10,000 over the next year in Syria specifically. And in the next fiscal year we will target 100,000,” Kerry said.

As we reported last week, many of these desperate refugees are shopping around for the host country with the best benefits. So what will the United States be doing to “compete” in this market for refugees — some of whom may not be quite as tired and poor as they are portrayed to be?

The United Conference of Catholic Bishops recently posted the list of freebies President Obama’s offering to those thousands of “refugees” he and the United Nations are demanding America accept. The information came from our very own Government Accountability Office.

As reported by the Daily Caller:

Each refugee is offered a placement grant of $1,850 from the Department of State. This includes: pre-arrival, reception, initial housing food, clothing, referral services and social programs. The benefit eligibility are for those refugees who have been in the U.S. for up to three months.

Refugees needing cash assistance can get it through Temporary Assistance for Needy Families (TANF). This is temporary financial assistance and social services for those eligible low-income refugees with dependent children. Cash assistance for refugees who do not qualify for TANF can also be obtained through Refugee Cash Assistance. This is available for those in U.S. for up to 8 months.

Supplemental Security Income (SSI) is also an option for incoming refugees and those who settled in the U.S. for up to nine years. This is cash is cash assistance for those low-income individuals who may be elderly, blind, or disabled.

Refugees who’ve been in the United States up to seven years are also offered medical financial assistance through Medicaid as well as through the State Children’s Health Insurance Program (SCHIP). Otherwise, Refugee Medical Assistance is available for up to eight months for those individuals who are not eligible for Medicaid.

The Supplemental Nutrition Assistance Program (SNAP) is made available to refugees for up to nine years while social services for refugees — including job training, placement, and retention for those settled in the U.S — are available for up to five years.

Ann Corcoran, founder of Refugee Resettlement Watch, first noticed the posting and comments, “At the top you will see that each refugee gets $1850 as a one time payment from the US Dept. of State (a family of 6 would receive $11,100). However, the contracting (non-profit) agency keeps about $750 of each refugee’s allotment for its own overhead.”

She later noted, “But, that is not all the contractor receives, most get tens of thousands of federal dollars to run myriad other programs through their offices including English language lessons, employment counseling, and even are granted federal dollars to develop community gardens for their refugee clients.”

You do the math. That means at least $342,250,000 of U.S. funds over the next couple of years.

Meanwhile, according to Marine Lt. Gen. Mark Brilakis, providing bullet-proof glass for Marine recruitment offices would cost about $100 million dollars the U.S. government just doesn’t have. General Brilakis, I think I just found your $100 million, even if it means that those refugees coming to America will have to suck it up and divide the remaining left over $243 million amongst themselves.

I don’t know about y’all, but Monday morning I’m going to light up the phone lines to my Congressmen to demand our Marines be taken care of before any refugee who sets foot on our soil. Be sure and contact us if you need any assistance contacting your representatives.


Published on Sep 18, 2015

Experts say looming debt could lead to a financial crisis

The federal debt held by the public totals more than $13 trillion, or about $107,000 per household in the United States, according to a report released this month by the Cato Institute.

How can the public have debt they did not spend,, politicians spent it without our consent, I owe nothing

Yes tax increases for workers not for hand out recipient’s who keep getting raises in their income when workers loss income and have to pay for them to survive. Wake up America we need jobs so everyone can contribute and not suck the blood out of workers who are losing everything and working hard in doing so. You want equality. Then everyone should work at least 8 hours and if you want ore in your live than 12-15 hour days as I have. While others sit at home and worry about nothing as our tax dollars are supporting their way of life. Very Unfair to workers


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About Half Of LEGAL Immigrant Households Use Welfare


Legal immigrant households dominate immigrant welfare use in the United States, a new study shows.

About half of all legal immigrant households use welfare, and they account for 75 percent of all immigrant household welfare use, reported the Center for Immigration Studies in a follow up to last week’s report that more than half of all immigrants in the United States use welfare.

Using Census Bureau data, CIS estimated 49 percent of households headed by legal immigrants used one or more welfare programs in 2012, compared to 30 percent of households headed by natives and 62 percent of households headed by illegal immigrants.

That number jumps to 70 percent if the legal immigrant households include kids.

There is a worker present in 85 percent of legal immigrant households, but many of them are eligible for welfare because they are not highly educated and earn low wages. Those legal immigrant households that do take advantage of welfare make up 75 percent of all immigrant welfare use.

CIS, an advocate for reduced immigration levels, found a lack of education is a bigger driver of immigrant welfare use than legal status. And because most illegal immigrants are only modestly educated, CIS concludes granting them legal status would increase welfare costs, especially for cash and housing programs. (RELATED: WSJ Admits There IS A Cost To Massive Migration Across Insecure Borders)

Legal immigrant households use more welfare overall and cash, food and Medicaid programs, CIS found. Fourteen percent of legal immigrant households use cash programs, compared to 10 percent of native households. Thirty-six percent of legal immigrant households use food programs, compared to 22 percent of native households.

(Center for Immigration Studies)

And 39 percent of legal immigrant households use Medicaid, compared to 23 percent of native households.

“Welfare use by illegal immigrant households is certainly a concern, but the bigger issue is welfare use by legal immigrants,” report author Steven Camarota, director of research at CIS, said in a statement Thursday.

The U.S. is set to add a bloc of new permanent immigrants — 10 million — in the next decade that is larger than the combined populations of Iowa, New Hampshire and South Carolina, if Congress does not reduce the number of green cards issued each year. (RELATED: NYT, Brookings Unwittingly Show How Immigration Affects Wages)

Green cards guarantee immigrants a lifetime work authorization, access to federal welfare, Social Security and Medicare, the ability to obtain citizenship and voting privileges and the immigration of their close relatives.

The U.S. foreign-born population has reached an all time high of 42.1 million — helped along by a rebounding Mexican immigrant population — and is now 13 percent of the U.S. population.

By 2023 the Census Bureau projects the foreign-born population will exceed 51 million — the largest share of total population ever recorded in American history. And nearly one in five U.S. residents will be an immigrant by 2060, largely because of legal immigration, not illegal immigration.

USA CHART: More Than 90% Of Recent Muslim Refugees On Food Stamps, Almost 70% On Cash Welfare

This in and of itself is a stunning indictment of the “migrants” Obama vows he will bring over in untold numbers to assist Europe in an ongoing Islamic invasion.

ISIS recruits are in and among these “migrants.” Jihad terror and jizya — Obama’s poison legacy.

Obama’s “radical transformation” of America.

“CHART: More Than 90% Of Recent Middle Eastern Refugees On Food Stamps, Almost 70% On Cash Welfare,” US Senator Jeff Sessions,  September 10, 2015


Immigration Subcommittee Background:

The statistics in the chart are provided by the Office of Refugee Resettlement (ORR) in the U.S. Department of Health and Human Services. The ORR figures defined refugees from the “Middle East” as being from Afghanistan, Iran, Iraq, Jordan, Kuwait, Lebanon, Saudi Arabia, Syria, Turkey, and Yemen.

During the time period referenced in the chart (FY2008 to FY2013), the United States admitted 115,617 refugees from the Middle East and granted asylum to another 10,026. Also during this 5-year time frame, according to the Department of Homeland Security, the United States granted permanent admission to a total of 308,805 individuals from these same 10 Middle Eastern countries (designated as refugee-sending nations) through the issuance of green cards.Those with green cards are Lawful Permanent Residents (LPRs) of the United States who may apply for citizenship after 5 years and bring their foreign relatives into the U.S. on green cards as well. Refugees are required to apply to adjust to LPR status within 1 year of their admission to the United States. The DHS 2013 report on Refugees and Asylees list the top ten countries, numerically, for refugee admission into the United States as: Iraq, Burma, Bhutan, Somalia, Cuba, Iran, Congo, Sudan, Eritrea, and Ethiopia. More broadly, concerning all immigration, the Migration Policy Institute notes that the U.S. has taken in “about 20 percent of the world’s international migrants, even as it represents less than 5 percent of the global population,” and that 1 in 4 U.S. residents is now either an immigrant or born to immigrant parents. The Census projects that another 14 million immigrants will arrive in the United States between now and 2025, easily eclipsing the highest previous historical watermark for foreign-born population share

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