Archive for the ‘Ohio's Economy’ Category

Are you satisfied with how government works?

Friday, July 10th, 2009

            Are you happy with how government is functioning?  Are you in favor of a progressive, totalitarian government that determines what is best for the people even when it violates the rights of the individual?  Do you value individual achievement and individual accountability?  What do you want government to be? 

Our government is of course a republic, but for far too many years now, our government has been controlled by two political parties whose differences are far fewer than their similarities.  Political parties that resemble exclusive private clubs whose elitist members are expected to vote the party line and promote the progressive agenda of both parties.  These individual members are selected not for their ideals or values, but instead for their devotion and dedication to the club, be it the Republican or Democratic Party.  As long as these members are willing to support the agenda of the party, no matter what the cost and even to the detriment of their constituents, they are rewarded through the support of special interest groups and their political party.  This incestuous relationship has left Americans with little choice at the voting booth.  The progressive agenda of both parties is creating a larger, more invasive government that forces those agendas upon us without regard to our rights.  Meanwhile, Americans blindly argue which party’s progressive path is better, not seeing that the destination is the same for both parties.  Both parties have shown a fondness for large, invasive government at all levels.  The Democrats openly admit that more government is needed to control the economy, education, health care, manufacturing, and every other aspect of our lives.  The Republicans are not as up front about their desire for the growth of government, but the signs are there if you look.  When Democrats are in power, Republicans cry out for reduced spending, they shout from mountain tops for all to hear how Americans are losing their freedoms, how the Democrats are increasing spending and raising taxes.  The less power the Republicans have, the louder and more conservative they become.  The problem comes when the Republicans are in power and have the ability to enact these conservative principles; they fail to propose or to act on them.  Right now at the federal and state levels, Republicans are criticizing the Democrat’s agenda and they are proposing conservative alternatives; but where were these ideas and solutions when they were the party in power and could have gotten a conservative agenda passed?  I believe that the Republicans are using the Democrats as useful idiots, letting them grow government but being careful not to position themselves to be blamed.  The current example of this in Ohio is the budget.  The governor and Democrats want to use the lure of gambling revenue to help balance the budget and eliminate the need for a serious look of cutting the size of government.  They want the Republicans to support slot machines so that Democrats will not bear all of the blame.  Republicans claim that if the governor wants to put slot machines at race tracks he can unilaterally approve it without the support of the Republicans, thereby putting all political risk at the feet of the governor and Democrats.  The Republicans are now saying to put it on the ballot and let the voters decide.  This is a back door way for the Republicans to get slot machines into Ohio without any culpability to the Republican Party.  Neither party is willing to do what is necessary to balance the budget and get Ohio’s economy growing.  Neither party is willing to redesign or right size government in Ohio.  Ohioans have been bombarded with threats of draconian cuts to all state and local services.  Politicians on both sides know that many voters are so accustomed to our nanny state government that they are willing to accept anything if it will avoid service cuts, so allowing the voters to decide on the slots is a viable way for Republicans to allow the slots without subjecting the party to the scrutiny of true conservatives.

 If you are satisfied with your government, with increased government control of our industries; if you believe that government should protect us from ourselves because the government experts have spoken so there is no reason for debate or discussion; if you believe that the government should be our provider, then continue to faithfully support the two party system, continue to vote for those candidates that put the Party’s priorities above yours.  Continue to elect candidates that tell you what you want to hear, only to vote the Party line when elected, if that is what you want from your government.

 If on the other hand you believe in a limited government, that rugged individualism, personal choice and accountability are what allowed this nation to become great, that we the people know what is best for ourselves and our communities then use your vote to support the candidates that believe as you do.  Vote based upon your beliefs, not some elitist club disguised as a political party.  Seek out those candidates that share your values and ideals, candidates that are willing to stand by their convictions, and in the light of truth to be held accountable for their choices and actions. 

If you are happy with how government is working in Ohio and across the nation, then continue doing what you are doing.  However, if you think that government is out of control, that government no longer works for the people, then it is time to stand up and vote your convictions.  It is still our government, they still work for us, and we have no one to blame but ourselves if we continue to support politicians and candidates that lie to us, steal from us and our children, and generally act like royalty that is above the law.

The Growth in Government

Sunday, June 21st, 2009

            For the past five months each week has been a surprise, each week we see our federal government get larger and more invasive.  Are we on the right path?  This discussion is not about left and right, republican or democrat, this discussion should be about up and down.  Are our actions and the actions of our elected representatives elevating our society to the ultimate freedoms our founding fathers envisioned, or are we being dragged down under an ever more controlling government toward totalitarianism? 

            In the past few weeks we have witnessed government take control of our banking industry, our insurance industry, the automobile manufacturing industry, and the credit card industry.  Proposals have been made to artificially and intentionally greatly increase the cost of energy for the express purpose of making our current way of life unaffordable to the majority of Americans, thereby changing behaviors and giving the illusion that alternative energy sources are more affordable.  The president announced new draconian CAFÉ standards for all American manufactured automobiles.  This legislation serves to force the auto industry to limit the type of cars they make to very small, very dangerous econo-boxes that Americans would not otherwise purchase.  Once again taking away our ability to choose how we want to live our lives.  Now we are facing another assault on our health care system.  An assault that, if successful, will cost trillions of dollars and destroy the best health care system that currently exists anywhere.

            Currently there are 6 million people in this country collecting unemployment benefits.  While they are collecting those benefits, they are purchasing goods and services and paying their bills.  What will happen when those benefits run out?  As the benefits expire, fewer goods and services will be purchased, more homes will be foreclosed on, and more bankruptcies will be filed.  Meanwhile we are adding 600,000 new jobless Americans to that list each month.  Our economy is just in the beginning stages of spinning out of control.  As fewer people are spending fewer dollars, more and more layoffs will occur as the cycle feeds on itself.  Lately the media and economists have been trying to tell us that while the economy is still bad and getting worse, it is getting worse at a slower rate, so therefore things are getting better.  Our weekly jobless numbers remain dismal, unemployment rates for the nation and individual states are continuing to worsen, so why are we being told not to worry?  These economists point to the number of Americans collecting unemployment and how that trend is starting to flatten, implying that it means fewer Americans are unemployed.  Actually, we are seeing people that no longer qualify for unemployment fall out of this statistic. 

            The solution to our current plight will not be easy.  We as Americans must demand from our politicians that they stop spending our money wastefully.  We must demand that they stop nationalizing our industries.  As a nation, we must stop borrowing money from around the world, stop printing new money at unprecedented rates, and learn to live within our means.  Taxes must be lowered to allow people to keep what they earn so that we the people can have the ability to rejuvenate our economy. 

            Government does not create wealth.  By taking wealth from those who earn it and redistributing that wealth, we are reducing people’s and businesses ability to grow and create the wealth that is required to grow our economy.

 

Industrial nationalization

Sunday, June 7th, 2009

            We are living in historic times.  In the past months we have been witness to the largest government takeover of private industry ever seen.  AIG, Citibank, GM, and Chrysler have all been taken over by our government.  To get a glimpse of what this will mean to our citizenry, we need look no further than Fannie Mae and Freddie Mac.

            Fannie Mae and Freddie Mac created the housing bubble that has led to one of the greatest losses of global wealth in history.  Rather than using standard risk management models to determine eligibility of a loan or assessing the ability of the potential borrower to pay back the loan, Fannie Mae and Freddie Mac were politicized and used to promote a social agenda whereby loans were given based upon minority status.  When the individual could not put any money down on the property, zero down loans were created.  If the payments were too high, short term adjustable rate mortgages and interest only loans were created.  In order to compete, other banks were encouraged and in some cases forced to offer similarly risky loans.  All of this easy credit led to excessive inflation in home values.  What we see now is that many of the people that were supposed to have been helped through the social agenda based loan policies are now the ones that have lost their homes, declared bankruptcy, and in many cases lost their jobs through the economic collapse caused by the housing bubble burst.

            To apply these same political processes to our financial, insurance, and manufacturing industries will be devastating to our nation, our freedoms, and our very way of life.  Even those companies that have been fiscally responsible will be affected.  As GM and Chrysler move forward, they will be forced by the government to produce alternative energy and sub-compact vehicles, vehicles that the majority of Americans have rejected through free choice.  Earning a profit will no longer be a prime motive for determining what vehicles are produced since the government now owns a majority stake in these companies.  Without a profit motive, these companies have no reason to improve services or seek innovation to produce better vehicles.  As the companies lose billions of dollars annually, the federal government will subsidize them in the same way is has subsidized Amtrak for the past 37 years.  Other auto manufactures will be unable to compete simply because they are not receiving government subsidies.  Just as Amtrak has prevented any other passenger rail service companies from being able to compete, GM and Chrysler will eventually spell the demise for automobile manufacturing in the U.S. 

            As I have written before, we can resolve these problems through conservative principles of limited government and the free market system.  I wrote months ago that both GM and Chrysler should have been allowed to enter bankruptcy protection instead of accepting bailout money.  Through the principles of allowing failure and rewarding success, we will reverse the ineptitudes of government that is epitomized by Amtrak, the Postal system, Medicare, Medicaid, Social Security, and the Bureau of Motor Vehicles.  There is nothing that the government does better, more efficiently, or more effectively than the private sector.  As our government continues to nationalize key industries, we lose the competitive drive, rugged Americanism, and entrepreneurship that has made this country the most successful in the world and made her the envy of all others.  Rather than apologize for our success, rather than make our states beholden to the federal government through acceptance of so called stimulus funds, our elected officials need to look toward the conservative values that allowed us to become the world’s greatest nation.

Oil speculation works both ways

Saturday, February 21st, 2009

When the price for a barrel of oil was nearing $150 and setting new records on a nearly daily basis, we heard a public outcry for congress to investigate oil speculators. Some of our citizens felt it somehow unfair that those who make their living taking risk in speculating the oil market were earning a profit at the apparent expense of consumers. Now that oil prices have subsided dramatically, no one seems to see the need to investigate the speculators now. As I said this past summer, rather than blame the speculators, we should pay attention to what they are telling us so that we as a nation can make informed decisions regarding our energy plan. The message the speculators are now sending has never been more important.

Why have oil prices dropped to nearly one fourth of their value in just a few short months? The equation I gave last summer has not changed. Speculators buy and sell oil futures based upon anticipated future demand and forecast supply. Clearly in the last six months the forecast supply has not been dramatically increased, therefore the anticipated future demand has been greatly decreased. Inflating our tires, getting tune-ups, and parking our SUVs are not responsible for this decreased demand. What has changed is the anticipated demand in developing nations. This demand has decreased so much so that even when OPEC met and agreed to decrease production levels, the price of oil continued to decrease unabated.

Essentially, the speculators believe that the global recession has stunted growth and development to the point that even at current prices, developing nations will be unable to afford oil. It is no coincidence that as oil prices were hitting record highs, food prices were also reaching record highs. Just as the price of oil has plummeted, so has the price of commodities to farmers although consumers have not seen the level of relief in food prices as we have in gasoline. This is driven by the same economic predictions and scenario, that nations will not have money to purchase food let alone oil in the very near future.

When prices continue to drop despite reduced production of commodities, it paints a very bleak picture for not just our economy, but for the global economy as well.

No Free Lunch

Saturday, October 4th, 2008

“There is no such thing as a free lunch”; “You can’t get something for nothing”. We have all heard and recited these phrases many times, these words may have never been truer than today. Whether we are talking about individuals, schools, small businesses, or major corporations, whenever the government offers money in the form of welfare, subsidies, or bailouts, there is a price to pay. This price is steep and it is paid by us all. Our social spending, the war on poverty and the New Deal, has cost this nation billions of taxpayer dollars with nothing to show for it. If poverty were simply a situation of having no money, we would have eradicated poverty years ago. Agriculture subsidies come with regulations that restrict what farming practices farmers can use. It limits what they can grow and where they can grow it. Our administrators have lost local control of our schools since accepting increased federal and state funds, exponentially increasing the cost to operate our schools. Individually, when we accept government payments there are also restrictions and expectations placed upon us. State and federally funded universal health care will come with the expectation of modified behaviors; tobacco products, fast food, and foods considered unhealthy will all be heavily taxed, restricted and in some instances even outlawed. Risky behaviors will be restricted and more regulations will be enacted, all for “our own good”. Helmets will be required for motorcycle riders, all passengers in an automobile or bus will be required to use seatbelts, gun ownership and even carrying a pocket knife will be restricted and banned. These advancements in regulation upon the citizenry have already occurred in Great Britain since adopting Universal Health Care.

Our current “economic crisis” is another prime example of paying dearly for a “free lunch” as government tries to inject itself into the free market. Capitalism, lack of regulation, or oversight is not to blame for our current situation. Our current problems started with the New Deal but were greatly exacerbated over ten years ago with the creation of Freddie Mac and Fannie Mae. These are government run agencies that determined success not by merit or real earnings, but by a social agenda for the purpose of giving loans to individuals that could not qualify for traditional loans and were high risk for repayment of those loans. This type of subversion of the free capitalist market skewed the market, artificially elevating home and stock values. Home owners as well as investors saw their portfolios grow seemingly overnight because of this “free lunch”. What we are now facing is nothing more than a necessary correction of these markets. Unfortunately, so many financial institutions, businesses, and individuals are so heavily leveraged that they cannot survive these devaluations and are becoming financially insolvent. As this happens, banks don’t know who next will default on a loan or declare bankruptcy; therefore banks have tightened the flow of money and are limiting loans to other banks, businesses, and individuals. Even responsible businesses and individuals cannot borrow money no matter how good their credit rating is. Now, the same government that thought injecting itself into the banking industry was a good idea wants to apply even greater controls over all aspects of not only the financial industry, but to all businesses and individuals. Instead of having to live through this “bitter pill” for several months, our government wants to extend this misery for several years. The Great Depression was brought about by a very similar type of government intervention and it lingered for ten years because of government interference. Government intrusion will not prevent the correction; in trying to control and soften the blow of the correction, government will simply cause the effects to be felt for a much longer period of time and costing us all even more money in the long run.

In the event of this bailout, there will be no accountability. The market will not be cleansed of those entities that utilized bad business practices; those entities will still exist and will continue to apply the same bad business principles that put them in this very predicament. In my judgment, we need to allow the marketplace to determine the winners and losers; we need to allow the losers to fade into the history books while allowing the winners to grow and newcomers to the market to be allowed to compete. Those businesses that apply sound business practices should be allowed to succeed and not be held down by the losers that are being artificially supported by an intrusive government at the taxpayers’ expense. The apparent economy of the 1990’s may have been a wonderful feast, but as we taxpayers will soon find out, there is no free lunch.

Is it time to celebrate yet?

Thursday, September 4th, 2008

            The price of oil is declining, U.S. exports are slowly rising, once vacant houses are starting to sell, and the value of the dollar is beginning to rise.  This is good news for Americans, but does it mean our economy is on the mend?  Not necessarily, the good news we read in the headlines today are due in large part to slowing economies in other parts of the world.  China’s exports, while still strong, are beginning to show weakness due in part to Western Europe.  England is facing a housing market collapse that could be far greater than what we in the U.S. have experienced.  Most European countries are experiencing an economic slowdown and London is forecasting a recession that could be the worst economic downturn in decades.  Even Russia’s robust economy is showing signs of weakness.  While Americans are realizing some much needed relief at the gas pump, it is not a time to return to our apathetic mindset.  Rather, this is a temporary mild relief that provides us an opportunity.  Our dollar is experiencing some relative strength, which combined with excess gasoline inventories, is lowering fuel prices, which is giving us an opportunity to proceed with expanded domestic drilling plans and alternative energy technology development.  When gasoline was $4 per gallon and analysts were forecasting it even higher, consumers across the nation were asking why we as a nation were not utilizing all of our domestic resources.  Now is the time to build the infrastructure needed to utilize these resources later, rather than wait until oil prices elevate again.  As I have stated in the past, it is my judgment that becoming more energy independent is an issue of national security as well as one of economics.  As long as we rely on nations that are unfriendly toward the U.S., our economy, our foreign policy, and our freedoms will be dictated to us by foreign nations.  This is clearly not the American way and not what has made our country great.  In order to become energy independent it is imperative that we continue to push for more offshore drilling, the use of oil shale, the conversion of coal to liquid fuel, and construction of new nuclear power plants.  In my judgment we need continued research of wind and solar power technologies and most importantly battery technology.  Until we develop the technology to efficiently store electric energy, solar and wind power will never be efficient, reliable sources of energy.

            As gasoline prices and the accompanying inflation rates decline, if we allow ourselves to once again become complacent about our energy future, we will look back at this time and ask why we allowed our nation and way of life to be compromised when we had the opportunity to prepare.

Individual Greatness

Wednesday, July 30th, 2008

It is difficult to turn on a radio or television and not hear someone telling you what is wrong with America, or locally, what is wrong with Ohio.  We are constantly bombarded with news of escalating energy prices, unemployment rates, rising health care costs, and jobs that are being exported out of Ohio or even beyond our borders.  While all of these issues are of concern to us all, it is also important to look at what we as Americans are doing right and how we will overcome these obstacles, just as we have overcome insurmountable obstacles in the past.  Today it seems that everyone in the media is asking us to look to government for solutions to our problems, that somehow we are unable to create our own solutions.  Rather than look to government, we must do what Americans are best at, we must look to ourselves, look to our own ingenuity and creativeness for solutions to the ills of our state and nation.

            At the birth of this nation our founders framed the constitution to allow for individual freedoms.  We have the freedom to try, the freedom to succeed and the freedom to fail.  We have the right to be wealthy or poor, the right to work hard or not work at all, the right to pursue our dreams or to be content with where we are.  These rights and freedoms are not things that the government gives us, but rather recognizes as inalienable rights given to us by God.  One of the arguments over slavery was that the economy would collapse in the South without slaves to work the farms.  When land owners could no longer own slaves, Eli Whitney invented the cotton gin.  Technology and man’s creativity replaced slaves.  Government did not create it, nor did government mandate its creation.  It was individual greatness that overcame the problem and made cotton production more efficient, more profitable, and more affordable.  Did Mr. Whitney succeed on his first attempt?  No, he had many failures but from these failures came success.  Failure is not the end of an idea or a process; rather it is the beginning of success.  Without failure there can be no success. 

            The answers to our problems cannot be found in government, but rather in the individual greatness of the people.  Our society is the greatest society that exists.  It is a result of individuals that risk their money, dedicate their time and ingenuity to start a business and make it successful.  It is individuals that continue even though they face potential failure and expand their business, hire employees, and create our economy.  It has been individuals, not a government trying to see to our every need, treating us as a child or an invalid that has made our country great.  Our solutions will come from people who risk their capital, use their ingenuity, and work tirelessly.  They will endure failures, but they will also enjoy success as long as our government stays out of the way and does not intercede with excessive restrictions and regulations.  It will be the people that create solutions to our escalating energy costs through their visions and drive; perhaps building nuclear power plants or refineries to convert coal to fuel, or using algae to create fuel.  It will be the people that create new medicines and new medical procedures that improve our health and at a lower cost.  It will be individuals that take the risk and open new businesses or expand businesses here in Ohio that will create jobs and expand our economy.

            It is the individual greatness of people, the American Spirit that has made America the greatest country on the planet.  It will be that spirit that moves us on to greater success in the future rather than the surrogate government that so many politicians and those in the media try to suggest.

Limited Government

Monday, June 16th, 2008

            Since the inception of the Great Society, we have been increasingly conditioned and expected to turn to government for the answers to the ills of society.  Government is not the answer to the state’s problems, it is the problem.  There are really only three things that citizens should expect from their government at any level.  We should expect the government to protect and secure our freedoms, to create an environment where the economy is allowed to grow, and enforcement of our laws.

            As the size of government grows, an ever increasing amount of money is removed from our economy to support that government in the form of ever greater taxation; taxes on our income, on our property, on our investments, on our expenditures, on businesses, on utilities, on fuel, on inheritances, and on our savings.  In nearly every aspect of our daily lives the government is taking money in the form of taxes out of the hands of its citizens, money that otherwise would have been available for people to spend, save, or invest as they see fit; assets that are no longer available for industry to reinvest in the form of research, development, and expansion.  This, in conjunction with excess regulation and red tape restricts our economic growth.

            Our freedoms are not given to us by our government, only to be taken back when they become inconvenient.  Our freedoms are inalienable rights given to us by God, our Creator and cannot be taken from us unless we willingly surrender them.  If we allow our rights and freedoms to be taken from us in exchange for perceived physical or financial security, we shall in the end, have neither.

            Government does not create jobs nor create a robust economy.  Government on its own has nothing; it only has what we, its citizens, give to it.  Government does not create wealth or goods; it only redistributes the assets it has taken.  People, through their ingenuity, labor and risk create our economy and wealth. 

            Our laws, our constitution is not based upon the laws of man, they are based upon natural law, the laws of God.  As such these laws must be upheld in a consistent manner for all citizens.  No one can be above the law, and no one can select which laws we choose to enforce and which we choose to ignore.

            Rather than turn to government, we must turn back to what made America great.  We must look to the people for the solutions to the ills that we now face.  Individual ruggedness, innovation, accountability and risk taking will provide more sound solutions to our current social and economic plights.

             

 

Reducing taxes and public spending

Tuesday, June 10th, 2008

            Our communities are confronting an economic affliction of great proportion.  Inflation fueled by escalating energy costs distort our economic decisions, penalize thrift, and crush our struggling youth and fixed income elderly alike.

            Idle industries have cast our workers into unemployment.  Those who do work are denied fair compensation for their labor by a tax system that penalizes personal achievement.  President Reagan made these statements over 20 years ago, and they are just as true today.

            As great as our total tax burden is, it has not kept pace with our public spending.  As individuals we can only live beyond our means for a short time by borrowing.  Why then should we think that our state should not be bound by the same limitations? 

We are facing an estimated state deficit of nearly $1.8 billion.  Some will say we simply need to increase taxes, but we have reached and exceeded the public’s tolerance for and ability to pay for more taxes.  Some have suggested increasing taxes on business and industry.  But business does not pay taxes.  Businesses are being taxed, so much so that they are unable to compete on the global market and are being forced to relocate and shift production to plants beyond our borders.  Business must pass its costs, including taxes, on to the consumer.  Only people pay taxes.

For years we have talked of reducing government spending in order to decrease taxes, and at times we have made feeble attempts at it.  There are those that say we cannot reduce taxes until after we have reduced spending.  Well, we can lecture our children about their wasteful spending habits until we are out of breath, or we can change their spending habits by reducing their allowance.

Spending cuts should not be at the expense of the truly needy.  We can continue to meet our responsibility to those who, through no fault of their own, need our help; as well as meet the other legitimate needs of the state.  We cannot continue our wasteful ways at the expense of our workers and economy.  Our goal should be to increase wealth so all will have more, not just to redistribute what we already have.  We must again reward hard work and risk taking by forcing government to live within its means.  For years we have been in denial of our self destructive economic structure, but we no longer have that luxury.