THE ENTERPRISE--INDEPENDENCE--ARE WE LOSING IT?
ON THIS INDEPENDENCE DAY WEEK-END
Think about the role of the US Federal government in our world, our lives, and our economy. Do you want it to be more all encompassing--or less intrusive and influential. I think you know which direction it is heading under our current government leaders. I also imagine you are aware that I think it is the wrong direction. My principal tenet is: "Government should work for the people; not vice versa." My second principle is: Government cannot create wealth or, and it cannot, by itself, create a better standard of living in the lives of Americans overall. All it can do is levy taxes and fees upon those who have created wealth, and the use that income and redistribute it according to government's wishes." A government that does this more and more becomes one that rules the people it is supposed to serve--instead of providing necessary structural and administrative duties.
OUR FOREFATHERS REVOLTED AGAINST RULE BY ENGLAND
They resisted "taxation without representation." If you are not an economist, fear not; I am not either. I must explain some simple economic truths.
BASIC ECONOMICS FOR 2009
---CAP & TRADE (energy bill) is presented as a means of reducing carbon emissions to reduce global warming. Stopping the pollution of the earth is a noble cause--but at what price--and with what effectiveness? In the years since Al Gore's campaign and movie, seven times as many "experts" have now disputed that there is any proof that human actions are causing global warming. Notice how quiet Gore has become? Why? There has been no reporting of this in mainstream media since it is counter to their policies and politics. Cap & Trade represents a huge "hidden TAX" on all Americans that use energy. The largest source of emissions is power generation, followed by vehicular emissions (and then by gaseous emissions from cattle!). The fees for Cap & Trade charges will assess a huge price premium on coal generated electricity--our nation's primary fuel for electric power. The only alternative the power generators have is to pass on those costs in the form of higher rates--a HIDDEN TAX. (We should be building nuclear plants all over, but with our special interest driven red tape, that will take decades.)
--EXCESSIVE SPENDING AND FISCAL POLICY also leads to a form of hidden taxation. Spending beyond the income of the US government must be funded by one of three sources: increased TAXES, borrowing from others (which incurs interest costs and compound and grow, or increasing the money supply (essentially "printing more money." When the amount of money (currency) is increased with no increase in the underlying value base (our economy) it represents, the result is defined as INFLATION. That means that the face value of a dollar is inflated, but in reality, it will buy no more. If many of the purchases are from foreign countries (like China) these "weaker dollars" will be worth less and thus buy less. The effect is the same as levying a tax in the form of reduced buying power. You simply cannot keep spending more than your income indefinitely. There is no such thing as a "free lunch."
--REGULATORY MANIPULATION can also lead to HIDDEN TAXES. If regulations are changed (EFCA) to help Unions gain members and negotiate higher than current competitive wages and benefits for those workers, either the products and services they produce will be non-competitive, or if competition is barred from those markets, prices must rise--another form of HIDDEN TAXES. Companies who can seek lower cost labor elsewhere will leave the USA, and thus reduce the tax base they contributed to. (They will also be able to buy power cheaper elsewhere if no Cap & Trade is in effect. Thus China (for one example) can produce goods cheaper and in doing so, use more, cheaper energy--polluting the earth's atmosphere even more. Any regulatory solution such as Trade Restrictions, will "backfire" as foreign countries will simply match those restrictions, thus reducing USA's Export sales and cutting the tax base still further. When fewer, smaller businesses pay taxes, the cost of government must be borne by those that remain--thus creating yet another source of HIDDEN TAXES--except this time--they will not be HIDDEN any more.
FIRST, IF YOU AGREE THAT THE PENDING "ENERGY TAX" WILL BE DEVASTATING TO THE US ECONOMY
Sign onto this petition and send it. Here's the link so you can do it now. It must be stopped in the Senate since the House narrowly passed it 219-212 last week.
http://www.americansolutions.com/energytax/petition.php
I APOLOGIZE FOR THE "ECONOMICS LESSON" BUT OUR FUTURE DEPENDS ON THESE KIND OF ISSUES
Find out what position your Senators and Representatives are taking on these issues. Remind the Representatives that 2010 elections are less than 18 months away. IF they are for the causes of all these HIDDEN TAXES--and many of them are--YOU NEED TO FIND, AND ELECT NEW ONES.
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IF YOU WANT TO SEE A RECENT INTERVIEW I DID ON SUPPLIER PAYMENT TERMS & CASH DISCOUNTS
It's ironic how the simple economics principles apply on any scale. I did this interview for "small businesses," but the fact is that it's content applies for large and small, alike. Most will find this useful, even if you already know what I say in it.
http://blogs.openforum.com/2009/07/01/the-straight-skinny-on-when-to-offer-early-payment-discounts/#more-3072
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HOW ABOUT SOME GREAT PERIODICAL READING MATERIAL--TIME EFFICIENT & HIGH VALUE
A wise man once told me, "You are what you read." The older I get, the more I believe he was right. If you try these few publications, you will find a veritable treasure trove of facts and opinions. Other than The Week, which is primarily a paper-subscription magazine (just ~45 pp. usually), the others can all be read on-line--or printed out if you like reading from paper.
---IBD Editorials & Cartoons: Unless you are a noticeably left of center liberal, sign up for this for sure. INVESTOR'S BUSINESS DAILY publishes this free, every day, and I promise you, they will make you think, and fill in a lot of the gaps left by the mainstream media or biased cable news. Even the liberals will like--and agree with some of the material. Independents--this is a must read for you. http://visitor.constantcontact.com/manage/optin/ea?v=001oGSL6wu1SRYXysj0KWIziQ%3D%3D
---THE WEEK is a non-partisan, highly condensed but wonderful little (less than 50 pp.) weekly publication. If you could only get one reading source, this would be the one. It doesn't cover things deeply, but its range is terrific, and its content is solid (much of it is derived or excerpted from other sources). I have recommended it to many, given gifts of it to a few. Try it for yourself and see. The link below will get you 4 free issues of it. Everyone I tell about it, tells me how much they enjoy it. https://secure.palmcoastd.com/pcd/document?ikey=061DGIAZ1
---The Kiplinger Letter is a weekly four page "treasure chest" of forecasts and trends, that is worth its weight in gold. It will cost you--about $2/week, but it is worth it. I have been a subscriber for years--and find it to be the most informative 4-5 pages I read each week, thanks to the work of Knight Kiplinger and his editors. Kiplinger has other publications, which are also good, but the Weekly Letter is the best. You can check out a free issue by clicking on the link. http://www.kiplinger.com/store/
---investor's Insight: This site offers two excellent, and free weekly newsletters/blogs. One is by John Mauldin. While he is the "more pessimistic" or "bearish" of the two, his newsletters and sources are brilliant, educational, and insightful--as is John. The other is by Gary D. Halbert. Gary is usually more "bullish"--although not right now. He also covers far more than just investment strategies. Both are "must read" sources if you want to understand what is happening in today's turbulent economic environment. Neither on puts pressure on readers to "invest with them," or even use their services. They are just great reading resources. Subscribe to both--you can always quit if you don't like them. http://www.investorsinsight.com/
---FORTUNE is the best of the business magazines. Quality writers, fact checked stories, and columnists like Geoff Colvin make it a must read on my list. A good value for a subscription.
---THE WALL STREET JOURNAL may lean too far politically "right" for some readers, but it is still the "gold standard" for business reporting and news. It's Weekend Journal is iffy, as is it's recent foray into "Sports", but its overall content is tremendous. One column that you MUST check out, is by Peggy Noonan. She was one of Reagan's speech writers and it still one of the most insightful and articulate journalists anywhere. Expensive but worth it.
---AUTOMOBILE because I love cars and this is the thinking person's car magazine
WHEN YOU WANT AN ESCAPE FROM THE STRANGE MOVIES THAT PREDOMINATE THESE DAYS, RENT THESE CLASSICS
Here are some of mine, and (perhaps) their central messages:
--Field of Dreams--dreams can come true
--Dead Poets Society--carpe diem, boys
--Mulholland Falls--film noir always gets me--and this is a great "mystery"
--Body Heat--watch out for "HOTTIES" and a surprise ending
--Ferris Bueller's Day Off--if you can play the role, sometimes you can fake it, and make it
--The Italian Job--make a great plan, execute it, and take Charlize Theron along in your Mini
--Independence Day--the good guys (USA) WIN! Yeah!
THINK ABOUT YOUR FAVORITES OF ALL TIME AND ADD THEM TO THE LIST
Casablanca, Gone With The Wind, The Shawshank Redemption, A Streetcar Named Desire, Chinatown, and Marty are all wonderful classics--but perhaps best of all: It's A Wonderful Life, with James Stewart
WHEN YOU WANT A REAL BREAK, TURN OFF THE TV AND ESCAPE INTO A BOOK; I LIKE FICTION
HERE ARE SOME NOVELISTS--WHOSE NEWEST BOOK IS ALWAYS ON MY WAITING LIST
--Robert B. Parker--Spenser & Hawk are so cool, and now, so is Jesse Stone
--Ken Follett--always original and compelling
--Gregory Iles--great story teller, and always original in concept
--Vince Flynn--Mitch Rapp rocks, and he does what many of us wish our CIA guys would do (sort of like Jack Bauer of 24!)
--Lee Chllds--Jack Reacher is irreverent, and tough--and you gotta like a guy whose only luggage is a folding toothbrush
--Dean Koontz--they may start out strange, but they always end up with a message hidden in there
--Clive Cussler--a masterful adventure story teller
--Dale Brown--can they really do that stuff with technology?
AND--John Mariotti's--THE SILENCE--can't finish the list without adding my own, can I? The topic is as relevant today as it was 7 years ago, and even the bad guys are "right." Plus, it has a happy ending. (Whoops)
AND IF YOU MUST WATCH TV NEWS
Watch a mixture of Fox News (2/3) and CNN (1/3), and know that the real answer is somewhere in between the two extremes. Watching MSBNC for news is like reading supermarket tabloids. Watching the "major network news" might cause you to be grossly misinformed, as all three have been caught telling people what they want to tell them instead of the truth or the news. ABC, CBS, and NBC might be fine for the latest on Michael Jackson's death or Brittany Spears latest exploits, but for factual, honestly reported news--tune them out.
There you have it. Ayn Rand was right--now let's hope we can head off the realization of Atlas Shrugged in our lifetime. I'm leaving with John Galt if we can't. Want to come along?
Best, John
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