Sunday, July 27, 2014

Economics II

Businesses are started to make money. Return on Investment (ROI) is a measure of efficiency.

Some common sense economic ideas:
  • If you subsidize something you get more of it.
  • If you tax something you get less of it.

Types of subsidies:
  • Tax rebates are a type of subsidy.
  • Postponing taxes for start-up business is a form of subsidy.

Types of taxes:
  • City, state, federal, environmental taxes.
  • Regulations
  • Boycotts
  • Artificially high wages

The term wages used in this essay includes salary and benefits. Reasonable wages are always determined by competition. Businesses have to compete with each other to get good employees. The fewer qualified people available, the higher the wages. The more qualified people available the lower the wages. With high unemployment, wages drop. The only reasonable way to increase wages to put more people back to work. Artificially high wages always mean fewer jobs.

Greater ROI means a better chance of survival. The increased ROI increases incentive to grow the business. As the business grows employment increases inside and outside the business.

Neighborhoods, cities, states, and countries all compete for businesses to move there, because more businesses mean more tax revenue and more employment.

  • Places that subsidize business generate more businesses.
  • Places with high taxes generate fewer businesses.

Say Place A has higher taxes relative to Place B. This alone gives companies an incentive to relocate. If Place B adds a little additional incentive (a subsidy) it might successfully get a business to relocate.   

If a business relocates to Place B, they will have more ROI and may be able to invest more in Place A. It is better for everyone for a business to be located where they can make the most money. 

Thursday, July 17, 2014

Global Warming

Most people do not realize what is going on with the EPA and why. The EPA is taking their cue from global warming enthusiasts. Since the earth stopped warming, Al Gore started calling his initiative climate change. Unfortunately, there are very few climate scientists in the world today. I say this with strong conviction. By definition, a scientist is a person endeavoring to learn the truth. Climate change scientists do not tell the truth, because there is no money in it. Scientists get government grants only if they support the global warming initiative.

Climate change is no longer a science topic. It has become a political topic. The climate change community has developed computer models that predict what temperatures will be in the future. They started with actual temperature data and when the actual temperature did not fit their model, they changed the actual temperature data instead of changing their computer model. If you do not believe what I am saying, do some investigation on your own. They present the erroneous data as fact and get away with it, but honest climate scientists cannot get funding. This is the biggest con since social security.

Sunday, July 13, 2014

Our Porous Southern border

Before I get into the topic of border security, I want to make it clear that I think immigrants, migrants, or refugees need to be treated with dignity and respect. I think if they are hungry and thirsty they should be fed and if they need medical attention it should be provided. I think they need appropriate, humane billeting while they await their court hearings. I also think we should follow our laws and deport the people that do not have valid reasons for being granted asylum here.

Our southern border is less secure than it has ever been, while we are spending more for security than we ever have. President Barack Obama always says the right things while he and his minions are doing the opposite of what he says. I call these deceptions lies, but many are reluctant to call the President a liar. I do not know why they would feel this way, since he is so blatant with his lies. This administration changed the way they count deportations. For the first time in our history, they started counting people refused entry into the country as deportees. In other words, they had intent to deceive the American people.

There are two reasons for the lack of security on the border. First, President Obama and Department of Homeland Security Secretary, Janet Napolitano decided to stop enforcing our border laws. Since Napolitano resigned, Jeh Johnson has been appointed to the department to keep the same policies of deception.

They moved the border patrol forty miles into the US away from the border, virtually ceding a large portion of Texas, Arizona and California to the drug cartels. Second, President Obama made it clear he did not intend to deport young people who crossed the border illegally.

Another lie is that all the people crossing the border now are young children, yet every picture you see of the immigrants you see children accompanied by adults and a lot of men between sixteen and twenty five, many sporting gang tattoos.

There are news reports from all over the world about radical Islamist coming into the US through Mexico. Our solution to this issue is to not require an ID for transportation as our government deploys infiltrators around the country. I think this behavior by our government is foolish, dangerous and illegal. 

Tuesday, July 8, 2014

Endangered Species Act

The Endangered Species Act of 1975 is being used against the American people like a weapon to take away use of public and private land. This is another environmentalist gift from the Nixon administration. Nixon and the congressional Republicans that allowed this bill to pass were extremely short sighted by ignoring the unintended consequences of legislation. This parallels the debacle of the Environmental Protection Agency, another Nixon boondoggle that he created with the stroke of a pen with an executive order.

These are bad laws administrated by bureaucrats that are never elected. They need to be stopped.

Fish and Wildlife is putting an eight foot board fence up around public land in New Mexico that they claim is a habitat for the New Mexico meadow field mouse, which recently went on the endangered species list. No one has seen any of the mice, but the environmentalist and their government cohorts always use the same excuse: You don’t look when they are there.

A field mouse we cannot see or find gets a border fence and the southern border of this country is wide open. It has been breached by invaders and drug lords and drug smugglers growing marijuana on American soil. The government’s answer is to protect mice, but endanger all of the American people and to keep American cattlemen from their own land and public grazing land. Americans are prevented from going into parts of America because the government is willingly allowing drug smugglers to use it. I know they know this because the government officials put up the keep out signs.

What have we become? The government cares more about rats than they do American people. It is past time to do something, folks. The Obama administration knows this. That is why he had the Department of Homeland Security buy up all the ammunition they could stockpile to use in suppressing the American people. They cannot get the guns out of your hands, so they are trying to make ammunition more difficult for citizens to get.

We are headed toward a dictatorship. Watch what he does, not what he says.

Thursday, July 3, 2014


I only took one economics course in college, so my economic understanding is very basic. Something I always thought was strange was the terminology used in my text book. The author would present a case for something and almost always followed up with “On the other hand, ..."  I had been out of school many years before I understood this terminology was basic to understanding economics. My layman definition of economics is the management of scarce resources to achieve desirable results for all interested parties.

Nothing is free. The major implication of this, in my mind, is that everything is a trade off. For every coal miner there is an environmentalist. Somehow for group success there must be compromise. The result is that everything is political. 

The political implication of this is when you vote for someone who gives you free stuff to buy your votes, someone is is paying your tab and you can expect them to be angry, maybe even to the point of retaliation. Incidentally, voting for someone because they give you free stuff is a form of prostitution.