Tuesday, June 21, 2011

You Think You're Free?


You think you're free? I know we in the United States are far and away the most free of any citizens of the world. Yeah, yeah... I know there is this freedom index and that freedom index that place us second or fifth or thirteenth. Bull! I don't buy those for a minute because freedom cannot be quantified by stats and averages.

Have a look at the big picture. Human nature is to seek freedom. In other words, the heart of every human wants to be free. Governments create a much different perspective as to 'free from what?'. For example, women in the Middle East might desire to be free to drive a car or remove a mask. Us Americans may desire to be free from our 9-5 or free from our commitment to mow the grass at church. There's a big difference, but we want what we know is out there... don't we.

As far as 'freedom index', these indices are simply propaganda. If Denmark or wherever is more free, why are people not sneaking in there? Why are immigrants not flocking there? The frank truth is that people want to be here - right here in the United States. We have the only true civil society and celebrate the most personal freedom of any country. This freedom exists today despite the efforts of Progressives to exchange our freedoms for safety, the safety of a centralized State.

Something Mark Levin (whom I feel provides very intelligent commentary and analysis, despite his abrasive personality) said a couple weeks ago has been burned into my thoughts. He asked, "You think you're free? Just try to build something innocuous in your own damn yard like a playground or something... "

He is exactly right. Even our own personal property is not ours to do as we please. We've got neighborhood associations, local ordinances, this rule, that rule... Can't do this, can't do that. Nope, can't plant a tree. Nope, can't build a fence. Nope, can't put up a tall sign for your business. We are merely free to play within the guidelines created for us over the decades. Though still mostly free, this creates some perspective.

Progressives have succeeded in building an over-legislated society over the last hundred years. Do we really need hundreds of laws passed every year, from both a federal Congress and State Assemblies? Why don't we spend a decade or so repealing and reducing the legislative monstrosity of regulation already in place? Maybe every law written and passed should have a sunset of 50 years... Let the next generation decide if it worked out or is still necessary. What do you think?

Enjoy your weekend!

Sunday, March 20, 2011

Are You Better Off?



Are you better off than you were two years ago? Do you know anyone that is better off now than they were a couple years ago? For me, it's pretty clear that everyone is worse off. Many are much worse off.

The local cigar shop has a small, makeshift sitting area for guys to sit down and enjoy a cigar. Yes, in Indiana we are still allowed to smoke in some places... for now. So, this week I sat down with the six or seven fellows and lit up a Padron 3000 maduro. The discussion was candid and depressing.

Of the seven of us sitting there: three were unemployed and looking for jobs, one feels underemployed and is looking for a better job, and two of us own businesses which are fighting for every dollar. To top that off, gas went up over $3.50 per gallon and a cart full of groceries costs about $20 more... tough times for all.

As the discussion continued, it occurred to me that these older, wiser, experienced guys are seeing something different this time. In the past, these guys had roughed it through by tapping into savings or skipping expensive vacations. One business owner had lessened his margins just to get jobs and keep his guys working. Though we are taking these measures now, there is not much promising news after more than two years of this.

Personally, I believe things are about to get worse. Consider the state of things across the U.S. and around the world:
  • Middle East is ON FIRE and it is spreading
  • Japan is devastated
  • Europe is crashing 
  • China is capitalizing and nefariously manipulating it's currency
  • Total U.S. Employment is the lowest in DECADES
Now, combine all that turmoil with the confusing fact that U.S. Markets (Stocks) are performing pretty well...??? What does this mean? See, our economy and our markets are NOT one in the same. While the economy struggles to recover, businesses don't necessarily suffer the same fate.

Consider this example: A corporation reduces a department staff through attrition by 10%. Though employees fuss, the work still gets done. After further attrition, another 15% are gone, but the work is still getting done... hmm. Granted, the environment is not good for employees to fuss or threaten to leave - there are NO jobs for them to move into! 

So, the end result of this exercise is that businesses get their necessary work done with less employees. Less expense means more net income, which, in turn means better performance and higher equity valuations. That's the business perspective - more profitability, more efficiency, and higher share value.

The flip side of this sad story... in our example 25% of the department's workforce was under performing and expendable. The employees that remain could have been working harder and many were getting paid for showing up. That is the sad truth, and the reason for the strange circumstances of a strong market with a crushed economy. 

As for our Administration, we are about to experience the crippling effects of deficit spending and enormous budget growth. Pressure to raise taxes and cut benefits is coming. The irony is that the answer is cutting taxes, reducing Government and regulation, and empowering people to invest in themselves. 

As I smoked that cigar, I felt thankful for all that I've got. I felt thankful for the incredible standard of living we enjoy, even during the toughest of times. Additionally, I feel hopeful that we will endure the next couple years of turmoil and ultimately reject the Liberal agenda of modern Government (including many GOP - moderates will also be rejected next election!). America's future depends on Conservatives acting - NOW!

POTUS, his agenda, his direction, and his Liberal Congress are all being rejected by America. The simple truths are that things are much worse for most Americans. Now, we understand why it's happening, which we haven't realized in years and elections past. 

Wednesday, January 5, 2011

Tax Rates vs. Tax Revenue



Tax Rates vs. Tax Revenue

Frankly, I've heard enough of this tax debate. 'Tax the rich' or 'only the top 1%' are spouted off from the mouths of progressives and liberals while others seem to be happy with the way things are. Simply studying history will reveal that this experiment has been going on for a hundred years. Every generation tries to raise taxes or punish the rich - IT HAS FAILED TO INCREASE REVENUE in each and every case! Don't believe me, read this:

http://www.heritage.org/research/reports/2003/08/the-historical-lessons-of-lower-tax-rates

This article sheds light on the consequences of lowering tax rates. What ends up happening is, simply put, prosperity. Here's the rub, tax rates effect revenue but the relationship is inverse. In other words, if you lower one then the other goes up and vice versa. Every time we have lowered tax rates, Government revenue has gone through the roof. Every time we have raised tax rates, the U.S. economy has slowed.

Do you see the ultimate irony here? Liberals want to provide more services and entitlements, all of which cost lots of money. They also want to raise tax rates, which 'THEORETICALLY' will increase revenue (only in theory as history gives proof) but now we know will LOWER GOVERNMENT REVENUES. If liberals lowered tax rates they would have money piled up to the ceiling to spend on whatever they wanted! Funny, isn't it. This makes me wonder, are they really looking out for 'the people' or 'middle class'?

We Conservatives want to lower tax rates, both individual and corporate, because of the certain prosperity that would ensue. America would return to work, companies would invest and grow exponentially, and the $14 Trillion deficit would begin shrinking. See, this action would generate more revenue for the Federal Government. Now, how to spend all the extra money sounds like a nice problem for a future Congress to have.

So, why don't liberals study history and get on board? It's my opinion that they are simple ideologues, hungry for power. Maybe they just want to oppose Conservative Republicans... it's clear the current group of lib Democrats despise Ronald Reagan and resent his success. Their pursuit of these dysfunctional policies is a mystery to me, but in the end their experiment will fail. Conservatives will be there to pick up the pieces and get the ship on the right course... again.