Archives For Politics

Now that Heath Care Reform (HCR) has passed in this country, I’m wanting to hear what this historic piece of legislation means to you. I’ve seen many people on Twitter today range in emotion from excited to angry to passive – some even grateful that the process has come to conclusion.

Where are you? How do you feel about the government getting into the insurance game? Regardless of where you stand, I’m interested more in why you believe what you believe and will challenge your comment openly if you don’t add that in there.

In addition, does this change how you will vote in November based on how your representative voted on the issue? Here is a list of how the votes were cast by state: http://www.govtrack.us/congress/vote.xpd?vote=h2010-165

As a continuation of the previous article, I’m compelled to help expose the hidden agenda of liberals – especially those in Washington these days. Whether it is job creation or universal health care or water allocations for the Central Valley of California – the truth isn’t readily apparent.

I’ve been told by a liberal friend that conservatives lack compassion and that is one of the reasons she votes for and supports Democrats. Is compassion bad? Surely not. But the distinction isn’t accurate or fair (and I’ll go into that in another post). On the surface, these federal programs do look to be meeting the needs to people that are hurting the most: the unemployed, the uninsured and the thirsty farmer.

In truth – they rarely accomplish anything that they are touted to do. When Obama and congress decided to pour over $1T into the economy to try to “stimulate” it rather than take a $1T hit on tax revenues by way of tax cuts, the result hasn’t been recovery, just more debt. Where has the stimulus been seen? GM is still in the tank, Wall Street is more unstable than ever and unemployment is still double-digits.

Ask any conservative what the biggest difference between liberals and conservatives is and you’ll hear a very common answer: conservatives desire less government and more personal responsibility. Why? Because there is a fundamental belief that the free-market, capitalist society in America will auto-correct anything that gets askew. Competition spurs innovation, which produces better products/services for less money.

Big government squelches competition because it takes away the accountability needed to keep the players honest and trades it for “stability” and broader access to privileges that have been turned into rights somewhere along the way.

Here’s the progression that liberals are working toward:

  • Big government produces services at no or little cost to the consumer
  • This entitlement removes the incentive to be creative and work hard
  • Private sector cannot compete with a government that doesn’t have to play by the same rules
  • The lack of competition has a direct impact on the price of goods/services from the private sector
  • People turn to government for intervention
  • Government obliges and offers a federal option
  • Taxes are increased to pay for it
  • Private sector is forced to cut jobs to meet shareholder expectations due to expanded taxes
  • Dependence on the government increases for more and more unemployed
  • Government programs grow to meet the need
  • Personal freedom is removed for the sake of the greater need
  • Taxes are raised
  • and so on…

That’s not the way this country is supposed to work. Here’s how it should work:

  • Private sector produces services at a fair market price
  • Innovation allows company A to offer same services at a lower price
  • Rest of market responds either with better services or still lower price
  • Consumer reaps the benefit of the battle for market share

Or

  • Private sector produces services at a fair market price
  • Company A decides to try to make more money by raising their price
  • Consumers respond by taking business to Company B
  • Company B is allowed to use additional revenue to offer better and better services – either by increased features or by lower price
  • Company A has to respond by adjusting price or adding features
  • Consumers decide who has the best value

You see – in a pure free-market economy, the consumer dictates the rules of the game. For the most part, we don’t have a pure free-market in core services because liberals have seen fit to create crutch programs that looked good on the short, but never took into consideration the effect on the long. And intervention is on the rise and threatens to undo the very thing that makes this country great – reward for hard work, innovation and creativity.

“But Steve, nobody would want something so devastatingly bad – right?” Wrong. If you give a man a fish rather than incent him to learn to fish, you have control over the man because of his dependence. He eventually can’t imagine a world without his daily fish and that is called job security for the fish vendor.

Yes, it comes down to simple security. Liberals want it through making people dependent on their programs, while conservatives want it based on the merit of their ideas and hard work. So, whether you are talking about health care reform or stimulus money, the goal of the current administration and democratic congress is to make us more dependent on the federal government and they will not let anyone or anything – including the Constitution of these United States – stand in their way.

Have you ever heard that if you throw a frog into a pot of boiling water, he’ll immediately jump out, but if you put him in the water and then turn the heat on, he’ll stay and literally be cooked alive? It’s time we realize we are the frog and the liberals have been turning up the heat for decades now – it is up to us to change the menu to something other than frog soup. Get involved and call your elected officials and the next time we get a chance to vote, may we look deeper than a catchy campaign slogan and feel-good promises.

Remember, it is more compassionate to teach a man to fish than to make him dependent on anyone or anything.

Job Creation Hoax

Steve —  3.19.2010 — Leave a comment

Our president and elected officials have stated their number one job is to bring this country’s recession to an end as soon as possible.

I DON’T BELIEVE THEM!

I know…shocker, right? What you may not understand are all the reasons. Some probably assume that it is simply because the majority are Democrats and I’m a conservative and the two shall not mix…ever. That assumption, while true, isn’t why I’m writing – I think I can prove it without focusing on politics. It is simple logic and a slight understanding of how business works.

What do we need for more jobs to be created? A simple examination of why jobs are being eliminated should provide us the answers. A company, especially a publicly-traded company, is not owned by the business leadership, but rather by shareholders. People buy stock because they want to see a return (more money) from the money they use to buy the stock.

That return is realized when the company is able to make more money (net revenue) than they expected, which is one component of what drives stock prices up. There are two components to net revenue – profit and loss (income and costs). If a company says that they think they can produce a net revenue of $100K and are able to actually do $105K for a given time period, then people would buy the stock because the current price reflects the anticipated $100K and therefore undervalued and should go up. Make sense? If not, just know that doing what you say you are going to do in the stock market is good, and exceeding it is better.

All that to say is that the owners (shareholders) expect to be making money and therefore expect profits to be at least what you projected. To achieve this, in a recession, the focus gets put on the costs a company incurs. The most expensive line item on a company’s balance sheet is payroll and consequently the place where the biggest impact to the bottom line can be made. Eliminate jobs and you cut costs and directly affect net revenue.

So, if jobs are cut to help companies maintain net revenue and shareholder expectations and we want to stop that trend, what can be done help net revenue. The second largest cost on a company’s ledger is taxes and this is where we get to the meat of the issue. If you receive a paycheck and ever ventured to look at the amount of taxes that are taken out – you’d immediately get red in the face. What you need to know is that is nothing compared to what the business must pay.

There is a tie to payroll taxes and the overall picture for a company – if you have an employee that you hire at $50K, their take-home pay is affected by the taxes that are required to be taken out. A lower tax rate means that an employer might be able to hire the same person for $48K if the tax rates were lower. If you add that up over 1,000 employees, all of a sudden you’ve just found $200K of income that you can put into something else – like new jobs.

So, if you want to create jobs in America, the first place the government should be looking is to lower the federal taxes levied against employers. Decreasing the tax rate means more money stays with the company and can be reinvested immediately to stabilize and grow the business.

But this wasn’t even considered for more than a second in Washington. Reagan implemented this very tactic to successfully bring inflation under control and it has been successfully used time and time again to help stimulate the economy. There’s a proven track record and tons of evidence…so why haven’t we seen this as a proposed solution?

If you really want to know the full reason, read the next post. It is political…so be warned.

The short answer is that job creation, at least where most of us live (private sector), hasn’t been the goal at all. If it was, we would be seeing more money in our pockets each paycheck, which would allow us to go spend it on goods and services and really “stimulate” the economy.

All this to say, any talk about job creation coming out of Washington these days should be interpreted as creating federal jobs to support new programs intended to “fix” our country. Don’t be fooled for another second because now you know.

I heard the term “immoral profits” today from Nancy Pelosi in reference to the insurance companies’ financials and it floored me. I have never heard two words put side by side that don’t deserve it more in my life. In fact, I’m not even sure I know exactly what that means when you look at the words individually.

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The Whitehouse and Congress want you to believe that nothing can be done about the “cost” of medical treatment and the trouble lies in the insurance companies. I’m here to tell you that is a bold-faced lie.

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It has gone on long enough and like Popeye, “I’s can’ts takes it no more!” So, here we are in the midst of the most dire economic downturn since the Great Depression (or so “they” say) and our government deems it necessary to give OUR money to various companies because they can’t make ends meet – affectionately called a “bailout.”

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