Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Thursday, October 7, 2010

"Individuals are always stupid."

Individuals are always stupid.

Dr. David Acheson
Assistant Commissioner for Food Protection
(Food Safety Czar)
Food and Drug Administration
U.S. Dept. of Health and Human Services

This lovely little quote is from a spot on the Colbert Report regarding the raid of a raw foods store in California (Rawsome foods).

In the bit, he candidly explains how "raw milk has led to serious illness and death...ecoli, salmonella, diphtheria," how "the FDA is composed of public health professionals" and "is interested in protecting the public and public health." He calls any accusations about the FDA being under the umbrella of the WHO or the U.N. "nonsense."

Here is the quote in the context (presented by Colbert):

Rawesome employee: "If we're all adults, why can't we choose to drink paint if we want to?"

Mr. Acheson: "Individuals are always stupid."

I'm going to assume Mr. Achenson, being an individual, didn't really mean that.

I think he is really saying "people who depend entirely upon their own faculties do not benefit from the specialization provided for them by social partners, and are therefore stupid."

Fair enough, David?

If so, we are in agreement. We are exponentially smarter because we all benefit through the collaboration of specialized individuals. I learned not to drink paint without even having to try it for myself. I don't need to carry water in a bucket from the lake because water treatment professionals pipe it in for me. Everyone is smarter and more capable and more free because of specialization.

But, is raiding a market of willing buyers and sellers benefiting this social collaboration?

The assumption, made by this David individual, is that some buyers will be unintentionally harmed by this "unsafe" collaboration, and, therefore, "all of us" will be less-well-off as a whole if this collaboration is permitted. What has happened is very simple: David has responded to a demand, by the people, to save themselves. He is simply responding to a legitimate need for safe food. The only problem is–he is doing it very, very poorly...

We all want safe food. Why does getting it require men with guns?

There is a correct answer.

Because we lacked the leadership and imagination that could have otherwise peacefully responded to the true demand for safe food.

Here's what really happened: no businessman had the balls to invest in a real, large-scale, quality-control business (as prevalent in other industries). As such, the issue struck the bargain-basement social safety net of government responsibility, and we all suffer from this stagnant, unchecked, authoritarian, armed government food safety monopoly.

Rather than respond to real public demand, bureaucrats manufacture an estimate of the public demand. They basically say: "people want 'safe' food, so that is what we will give them." Then, they get together to define "safe," author verbose works of fiction, and, if you don't agree with their story, they brandish a weapon. Their narcissism, believing that they know what is best for you, is one culprit.

But, they couldn't have gotten their without your tacit consent. You, the American citizen, is culpable for begging your government for a food safety handout. You gave your hard-earned money away to thieves with guns who write laws that they can shoot you for violating. What the hell did you expect? Safer food is not free. TNSTAAFSL (There's No Such Thing As A Free Safe Lunch), and, in this case, your payment is not only the scourge of taxes ripped from your wallet, but the harassment of armed soldiers.

Is that really the price of safe food?

Consider a non-authoritarian approach. Any quality-control company would immediately recognize the demand for safe raw milk. Competing quality-control companies would jump at the chance to be the first to provide safe raw milk. (Unsafe raw milk is most common in large, industrial farms with drugged-up cows). Consumers, none of whom wish to get sick, would highly value the company's identification of a safe raw product, and pay a fair price for it. Yes, safe raw milk would be expensive, but you could actually buy it.

In our current authoritarian system, you cannot buy "safe" raw milk. Because of laws, no quality control company has the incentive to illegally establish an underground "safe raw milk" certification program. No, instead, you trust the individual farmer who offers the black market raw milk. The farmer is also the quality control specialist because the government effectively prohibits specialization in this field.

How is this collaboration with social partners?

According to their site, the FDA is responsible for...
protecting the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products, medical devices, our nation’s food supply, cosmetics, dietary supplements, and products that give off radiation
What about the "safety" and "security" of the raw milk portion of our nation's food supply? If raw milk is not suitable for consumption, why call it "food" in the first place? Classify the stuff as a type of white paint. Everybody knows not to drink paint. "You drank raw milk? Why would you do a stupid thing like that? You had it coming." Let the crazies do what they will with their raw milk. If labeling "milk" a type of "paint" prevents the raiding and pillaging of innocent people, I say do it! This new legal definition is no less of a fiction than your other ridiculous legislative compositions.

David Acheson is correct that an individual is stupid. He is stupid when he believes he can force another not to harm himself. So blithe an error seems easily dispatched, but is the lifeblood and justification for all governance. It is proven wrong in every case, yet we cling to it. We acknowledge and champion the truth intuitively in all great works of art, movies, novels. Yet, in practice, we are terrified of it. We continue have faith in this grand fallacy that other individuals are stupid and unworthy of the opportunity to earn their own lives. We cannot stop the suicide bomber, yet, we believe we can stop the man from drinking from an udder. In practice, our terrified, apathetic, nihilistic will continues to worship this great golden calf and believes it has the divine power and inclination to save us from ourselves. It cannot. When we replace the "we" for "I" I it is obvious that David Acheson is full of shit. You are not stupid.

I'm going to go drink some paint.

Tuesday, October 5, 2010

Thursday, February 4, 2010

Danny's Bridge

They say Milton was a very talented builder of bridges, especially for a young boy. People usually think building bridges is a task best suited for a team of engineers or something, but Milton could do it all by himself. He could usually be seen by the banks of some river, planning or gathering building materials.

Danny was Milton's companion. While Danny knew nothing of actually building bridges, he was known far and wide as a master bridge builder. If fact, communities would pool their money to pay Danny a handsome price for his bridge building services. After all, they were the most sturdy bridges in the land, and could be built quickly. Most people had never heard of Milton or his bridge building skills. Most certainly didn't know that Milton built Danny's bridges. They only knew that Danny was the one to consult if a bridge needed to be built.

Here was the procedure: A representative from a community would consult Danny. Danny would be paid a very large sum of money as an advance. Then, Milton would build the bridge. After the bridge had been built, Danny would stand by the bridge and collect a toll for several months from everyone who crossed. As Danny collected the toll, Milton would be working at the next project site, preparing to build the next bridge.

Milton was always very friendly and cheerful as he worked. Most of the time no one bothered him. He did not expect payment for building bridges. He had learned to catch and eat fish from the rivers. All he really cared to do was build and catch fish, and he lived a content life. When he had finished a project, he would come to Danny to know where the next bridge needed to be built.

Danny was a nice man, and of temperate character. No one knew what he did with all his money. He wore modest clothing and lived in small, temporary apartments. He ate the most simple foods and had only a few close friends.

One day, Danny rode into town on horseback to join Milton and to collect his advance. As was customary, the mayor, in this case, Mayor Tom, invited Danny to dinner to negotiate. This was something Danny had done hundreds of times. The conversation was usually very short, and would consist of the mayor offering one-half gold brick for the advance, and the other half upon completion. But, this time was different. The conversation went like this:
Mayor Tom: "I will pay you one gold piece for the entire bridge."

Danny: "I'm afraid the bridge will cost you one gold brick."

Mayor Tom: "I know that Milton works for free. He collects his building materials from the land. You have no expenses!"

Danny: "If you will not pay one gold brick, I will send Milton to Millville downstream. Mayor George has already agreed to pay us a full brick."

Mayor Tom: "Yes, but George and I, and the mayors of all the other towns along this river had a meeting last week. We agreed that a tax must be levied on all bridge construction. The people in our villages think your price is too high. The tax will be 90%. We can pay you now if like."

Danny: "Well, I guess I have no choice. I guess we have a deal."

Mayor Tom: "You do have a choice. You can tell Milton not to build the bridge, and then you will make nothing."

Danny: "No, it's alright. I'll let Milton finish the bridge and take the single gold piece."
The next day, Danny walked to see his friend, Diane. Diane was friendly lady who lived in a very large house. She cared for ten young orphans. She welcomed Danny inside:
Diane: "Danny, thank God you're here. We had almost run out of food."

Danny: "I'm afraid I only have one gold piece for you today. The Mayors have all introduced a tax."

Diane: "Well, that will feed us for a week. Thank you."

Danny: "Your welcome, but I'm afraid that is all the money I will get for the whole bridge. You will need to ask the mayor for food. I cannot help you any longer."

Diane: "I understand. I will write him a letter."
Diane proceeded to explain how the tax had affected the town. At first, the tax only applied to stores and shops. For example, Billy the barrel maker was taxed 50% for each barrel he sold. Some people thought he could spare that much, but he couldn't. He had to raise the price of each barrel 25% and dismiss one of his four employees, Jim. He had no choice. Because of this, Jim could not afford to feed his children, and him and his wife needed to abandon them for many days at a time. They would forage for food in the wilderness. And, one time, they never came back. Diane cared for their three young children, and the children of others who have suffered the same fate. This tragedy had been occurring in all towns all up and down the river.

Danny left Diane's house and walked down to see Milton, who was busy building the bridge.
Danny: "Milton, is there any way you could catch extra fish for me while you're working on the bridge?"

Milton: "It will take longer to build the bridge if I need to spend extra time catching fish."

Danny: "That's alright. It's just very important that you catch extra fish. The mayor won't even notice that the bridge will take longer to build. I will need you to start catching the fish next week."

Milton: "Very well. I will catch 10 fish a day for you. Will that be enough?"

Danny: "Yes, that will be plenty."
This arrangement worked well. Even though Danny did not acquire enough gold to help Diane care for the children for a long time, Milton's fish kept them fed.

This went on for several weeks. Danny knew that Diane's orphans would starve if Milton left town, so construction slowed to a crawl. Milton spent most of his time catching fish. Before long, Mayor Tom demanded that Danny meet him for dinner. This time, it was a new Mayor's mansion that had just been built. There were statues and pillars and chandeliers. It was a very impressive house. Danny sat down to dinner.
Mayor Tom: "I see that the bridge is taking longer than expected."

Danny: "Yes, we have run into some obstacles."

Mayor Tom: "I have noticed that Milton is spending much of his time fishing."

Danny: "Well, yes, he likes to eat fish."

Mayor Tom: "I have seen him catch far more fish than he can eat. What does he do with the extra fish?"
Danny was afraid. He didn't want to tell Mayor Tom that he was giving away the fish. After all, many people would want to take Milton's free fish. He knew some of the others wouldn't use the fish to feed orphans or even eat themselves, but to sell. No, he definitely could not admit to giving away fish for free.
Danny: "What Milton and I do with the fish caught from the river is our business."

Mayor Tom: "Well, Milton is building the bridge for our town, and, the people of this town demand a bridge. They want the bridge soon, and they didn't hire Milton to catch fish. So, you see, it is my business. You have forced my hand. I must also tax all earnings from your fish at the same 90% rate."

Danny: "Very well, you will receive 90% of the earnings from the fish."

Mayor Tom: "Thank you, and finish my bridge."
Danny told Milton the news. He explained that Mayor Tom thought they were selling the fish, and decided to tax at the 90% rate. This meant Milton would need to catch an extra 9 fish every day and sell them at the market rate in order to both pay the tax and feed the orphans.

Milton spent his evenings catching the extra fish. He also worked hard to complete the bridge. Although, Danny knew that the orphans would have no food once the bridge was complete. So, he had a meeting with Milton.
Danny: "Milton, I need to tell you something."

Milton: "Yes, Danny."

Danny: "I use all the money from your work to help children who would go hungry otherwise. I give it to Diane at the orphanage."

Milton: "I know that, silly. Why do you think I work for free?"

Danny: "Oh, I guess I should have known you had figured it out."

Milton: "That's why I build strong bridges. That's why built them so quickly. Do you really think I could be so blind?"

Danny: "And that is why you have taken an extra long time with this one?"

Milton: "Yes, that's right. I know that if we leave town, those kids will go hungry."

Danny: "What do you think we should do?"

Milton: "Just keep doing what you are doing. I'll take care of it."
Two weeks later, work was finally complete, and Mayor Tom arrived for the ribbon cutting. There was a large celebration with fireworks.

In an 'unfortunate accident,' one of Mayor Tom's explosives struck the bridge and set it on fire.

Danny was handed another gold piece the next day, and Milton's work resumed.

Sunday, March 22, 2009

Traditional, liberal education

is the most persistent threat to our global empire. Disciplined, targeted instruction by competent educators tends to produce pesky, inquisitive children, curious adolescents, and dangerously mindful adults. We can all agree that literate, critical-thinking populations are almost impossible to control, and participate in activities corrosive to our goals. Through methods of research, analysis, discussion, and logic, these individuals tend to do things like:
  • Defame and scrutinize our foreign economic policies
  • Unearth and disclose our hidden agendas
  • Reveal popular logical fallacies upon which we depend
For example, only a relatively disciplined, educated person has the intellectual resources needed to explain how our foreign policy actually threatens our national security. Worse, when they follow up, they tend to look right through our cover of well-intentioned ignorance, and discover our actual motives, which sound, well, a bit contrived without all the details. They begin to understand some basics about how our organization functions, and this is also unnerving. We are not especially concerned with the few folks that see it for what it actually is. We fear the few who can actually communicate these unbelievable facts to normal, publicly educated, brainwashed populace. Such a thing sounds incomprehensible, as we have handily veiled our actions in tactics that no "sane" person could possibly take seriously...much less one drugged and assimilated by the intricate propaganda network so painstakingly crafted by our specialists. Those children who slip through the cracks of our system threaten everything, and must be stopped as they are the only force that could possibly hinder our global conquest for human enslavement.

Children must be raised as servants of the corporate political complex. First, they must be bored, as bored people seek direction and purpose. We must give them purpose, or they might find one of their own. Second, they must remain childish and retain their infantile sense of entitlement, as such individuals are easy to convince with promises of wealth and notoriety they always believed they deserved anyway. Having access to most of our planet's resources, a little can go a very long way. Third, they must be reformed to meet the pressing needs of our corporate partners. After all, these are the human resources we need to run the national machine of industry.

We all know that people are predictable by mathematical formula and are easily manipulated according to certain specifications. We can justify our actions for reasons of national security. We must ensure they specialize in a narrow field of study, so they have no chance at comprehending the department of the system upon which they depend...much less the goals of the system itself. We know that incomplete people make the best corporate employees, but we prefer to call them "specialists." The indoctrination process must begin as early in life as possible, preferably immediately after birth. Universal preschool to support our ends must be mandatory.

Of special importance are the citizens we choose for procreation. We will focus on encouraging low-class single mothers to have many children, as these vulnerable youngsters happen to be prime subjects for complete assimilation into a more efficient global system.

A proper, national education is the key to our prosperity and to global empire. We must be courageous in this endeavor because, after all, the children are our future.

Wednesday, July 2, 2008

Perspective

Forgive me, but nothing validates my suspicion that most people are economic retards more than a discussion of gas prices...

"Times are sure tough with gas prices so high and all. We are really struggling..."

Let's assume you own a regular sedan that gets 20 miles per gallon. If you roll a 1979 Suburban and complain about gas prices you are outside the sphere of reason worth considering. I want to focus on the otherwise reasonable software engineer who makes say $75,000 and drives a sensible, semi-luxury vehicle.

To make math easy, let's say your commute is 20 miles.

At $4 a gallon, driving to or from work costs you $4.
At $2 a gallon, driving to or from work costs you $2.
Extra cost per day (both ways) = $4.

Number of work days per year = (about) 235.
At $4 a gallon, yearly commuting cost = $940.
At $2 a gallon, yearly commuting cost = $470.

DIFFERENCE PER YEAR = $470.

That's $1.29 per day.

Great googly-moogly! $1.29 every day. Desperate to make ends meet, how can I possibly afford that? I have a $3000 monthly mortgage payment, $300 a moth car payment, and three-pack-a-day smoking habit. I'm suffering more than anyone here! The big oil corporations are stripping me of my heard earned money. We are all victims of greed and corruption!

Since this affects everybody, let's be strong together. Let us behave like a herd of wildebeest avoiding the lion by stampeding in a tightly woven pack. Safety in numbers, right? Yes, we must bitch about this collectively as much as possible until it goes away. Tell everyone you know how much it hurts!

"Oh, God, I'm famished. Just couldn't afford to eat these last few days...you know, with gas prices what they are..."
"I hear ya. I'm feeling the hurt too. Had to put down the dog yesterday, just couldn't bear to see him suffer like that. Well, at least little Jimmy got to learn about the facts of life..."

If everyone feigns intense suffering together, we can really make a difference! And, what harm could it possibly do? Who's to say I'm not suffering anyway? Who's to say $470 a year isn't enough to break me?

Well, I can take a crack at it...

THINGS YOU CAN DO TO SAVE $1.29 A DAY:

Smoke 4 less cigarettes a day.
Drink one less beer every 3 days.
Go with the sub-premium vodka in your next Colorado Bulldog.
Order water instead of lemonade.
Drink tap water instead of bottled water.
Tip 18 instead of 20 percent when you go out to eat.

THINGS YOU CAN DO TO MAKE $1.29 A DAY:

Beg.
Look at the ground while you walk across the parking garage.
Peek under the vending machines in the break room.

THINGS YOU CAN DO TO HEDGE THE HIGHER GAS PRICES:

Go with the 58-inch HD plasma television instead of the 60-inch.
Savings: $808.00
Days of gas paid for: 626.36
Years of gas paid for: 1.7 years

Go with the Mercedes CLS-Class rather than the SL-Class.
Savings: $28,350
Days of gas paid for: 21,977
Years of gas paid for: 60.21

Just sayin'

Tuesday, April 22, 2008

Bullyville

Bullyville begs for bread. Bill needs a bakery and Bart needs billions and billions. So, Bart the banker brokers a bargain with Bill the baker. Bart and his banking buddies bring boatloads of bucks to Bill. Bill brings in the best bakers, bakes the best bread, and bills the buyers bits. Before long, Bullyville buries Bill's bakery with business. The balance of Bullyville's bakeries go broke. Bart bails them out, buying them for bits, and brands them "Bill's." All bread is now brought to Bullyville through Bill's, and Bart and his buddies benefit beautifully. Bill and Bart buy barley in bulk, they balloon the bounty, and bums in Bullyville that used to bake now blow big bucks buying bread; bemused they can't buck up the bank for their own beloved bakery. Bart won't bring a bargain to any baker but Bill. So, Bullyville basically breaks their backs bringing barley to Bart and Bill, who belly laugh to the bank bound in bling believing they brought Bullyville bread as they busted it bankrupt. Belligerent, brash, and total bullshit.

Monday, March 17, 2008

Peaceful Easy Feeling

Today's purpose from our overlords..."stimulate" the economy.

They way I see it, this is not a tyranny by a dictator or even the majority. This is the tyranny of the irresponsible minority who risked everything on real estate for a quick buck. Now, those of us who work for a living are doing what we always do...paying their bills.

I got the letter a few days ago. I will be reimbursed $600, a small portion of the many thousands I paid last year in taxes.

I'm glad we will get a nugget. I fear it is a small consolation for the impending monetary collapse. (Holy crap Bear Stearns was bankrupt!) Perhaps that $600 should be spent quickly or used to buy gold...before it is worthless. Let's cross our fingers that doesn't happen.

I'm not an economist, but I feel like the dominoes are crashing into one another. This is just another piece falling over...us, the normal folks (the people) being asked to grease the wheels for a few moments while the interested parties tinker with their machine, trying to force consequences on the innocent rather than the irresponsible...trying to slow the domino pyramid cascading before their eyes.

This may turn into one of those moments in history where those of us with the least to lose also have the least to fear. Or, maybe that was always the case, and only now will it become obvious. Funny how everything seems related somehow.
Reminds me of a song...
I like the way your sparkling earrings lay, against your skin, it's so brown
and I wanna sleep with you in the desert tonight with a billion stars all around

'cause I gotta peaceful easy feeling
and I know you won't let me down
'cause I'm already standing on the ground

And I found out a long time ago what a woman can do to your soul
Ah, but she can't take you anyway You don't already know how to go

and I gotta peaceful, easy feeling
and I know you won't let me down
'cause I'm already standing on the ground

I get this feeling I may know you as a lover and a friend
but this voice keeps whispering in my other ear, tells me I may never see you again

'cause I get a peaceful, easy feeling
and I know you won't let me down
'cause I'm already standing ...
I'm already standing...
Yes, I'm already standing...
I'm already standing... - on the ground

Peaceful, Easy Feeling
The Eagles

Sunday, March 9, 2008

Wake Up!

Well, that mysterious bonus hour from last fall has come back to bite us. The pain of time stings extra hard one day out of the year, and this is that day...an hour shaved from a precious weekend.

In all fairness, couldn't our time bandits have added one hour during a weekend, and then taken one hour off a Monday? For all the trouble it seems like they could have at least given us that.

But, maybe I'm missing the point. I know the original idea was proposed by Benjamin Franklin as a way for the people to save energy in a world powered by expensive lamp oil derived painstakingly from whales. So, if I'm getting this right, was he suggesting time itself conform to our needs rather than the other way around? Sounds like a thoughtful and brave proposition. Are you suggesting we place more light, less need for oil, and therefore, more prosperity and independence in the hands of everyone?

This sounds like a trap. And it's spoken by a diplomat. Aha! I see the problem Mr. Franklin...Are you suggesting we deprive the whalers and oil merchants of their earnings?

How dare you sabotage our bustling economy Mr. Franklin! What about the hard working whalers? What about the shop keeper trying to sell lamp oil. What will happen to them? May the cries of their starving children echo in your skull Mr. Franklin.

Now that we've easily dispatched that fallacy, let's look at a real solution...If you want to do some good, I suggest a simpler change...One that will charge the economy with a flood of wealth and activity. One without the need for any sort of biannual incremental shift. One so elegant in design and application that, after moments of thought, its merits are without question.

Simply switch AM and PM.

In such a world lanterns would burn throughout the night, every night! Thousands more would flock to the lucrative whaling business. Jobs would be plentiful as workers were hired to transport, store, and sell the much needed liquid gold. All who desired would share in the great demand...the overwhelming opportunities of a new renaissance!

As the sun set you would awaken to a bustle of activity with horses and carriages marching down the well-lit street with rows of lanterns ablaze on either side. Ordinances would be passed so all public buildings met the luminosity threshold throughout the dark hours.

An annual "Festival of Light" would be required in every town featuring giant flaming statues. Rivers, topped upstream with surplus fuel, would flow ablaze in the much anticipated conclusion to the ceremonies.

As the first hints of dawn approached on the horizon the curtains would be drawn and all the children would be tucked in for the daily winter's nap.

But, alas, the colonists were deprived of such an opportunity. Such prosperity was forsaken for the small reward of working during the same set of hours instead of the others...for the small advantage of some extra light from this glowing orb. They submitted to the ubiquitous golden monopoly in the sky at everyone's expense.

Shame on them and shame on us for blindly perpetuating these antiquated traditions. Those of us who "see the dark" understand that daylight is our perpetual nemesis. I hold my fist high and shake it at you, the day trader, The Sun magazine, DAY CARE! Yes, they even neglect the children.

Perhaps one day the thoughtless resistance of a simple, trivial change will not get in the way of unprecedented prosperity for every American. Perhaps one day we will hold our torches high and praise the great leader who brought the blessings of night to the doorstep of every man, woman, and child in this great country.

Until then I will awaken at dusk, strike a match, and light my lantern in ceremonial reverence for the opponents of Mr. Franklin and his ilk. I will curse this "Daylight Savings Time" for its short-sightedness and hope that one day we can conquer public perception and become noble creatures of the night.

When you peer out your window in the wee hours to see the rivers ablaze do not be afraid. It simply means the well-meaning people of the world have conquered ignorance and the era of prosperity has begun.

Wednesday, March 5, 2008

Beer and Shoes

The question: If you didn't have to pay taxes, would you give the extra to some sort of charity? Maybe just a little?

The answer: No you wouldn't. Hell no.

But, I don't mean a bit of minor tax relief, I mean no taxes; sales tax, income tax, social security, inflation tax, hidden taxes. You would bring home DOUBLE your salary over all. That's a lot. Come on, are you sure you wouldn't give just a little more? Maybe drop an extra penny in the jar.

no, No, NO you wouldn't! And you know it! Nobody would!

It's okay, you are not a cruel monster. On the contrary. You are a liberated citizen now keenly aware of your true worth. Damn, you earn quite a haul, don't you. Naturally, you value that money you have earned and can spend it however you wish. This is your very your standard of living, your children's future, your freedom, a ticket to possible happiness, your 15 gallon stainless steel pressure-sealed conical fermenter.

But, no, you don't get those things. Sorry. You can't keep half the money you earn. Let's take a closer look at what that money really is...

When the shoemaker offers the brewer a pair of shoes in exchange for a pony keg, the keg might be worth more than the shoes. So, to make up for the difference, the shoemaker needs to offer something else - something that is generally accepted, durable, and of stable value. Gold, currency, a foot massage, whatever the brewer accepts. Taxes are basically a redistribution of a portion of the transaction (beer and shoes) in order to protect everyone's right to engage in voluntary exchange of beer and shoes, to resolve disputes if the beer sucks, and to fight the guys trying to steal the beer and shoes. These things now take such a large portion of beer and shoes that everyone is hopping around with one shoe almost sober.

Why? Because we spend our own money more wisely than other people's.

It all comes down to...Who's money is more important? Yours, or someone else's? Many don't think their tax money is important because they already assume it is someone else's before they even see it. People's own worth has been stripped from their fingers without them even knowing. It's enough to make me damn depressed.

So, back to our fantasy...what to do with all that extra coin? Maybe you'll go scarf some sushi, buy better golf clubs, live in a new house, send your kid to private school with smaller class sizes, take the faster toll roads (if you live at the fringes), and maybe get better medical insurance.

You would probably buy some stocks. If you were a small business you would have to hire more people and raise your salaries to keep competitive. Work would be available to anyone who wanted it. Unemployment would be virtually zero.

But wait...what about all the folks on welfare? What would happen to them? Yes, they would suddenly be deprived of all their income. They would need to appeal to charity. Yes, that's right, anyone who couldn't make ends meet would have to take the hit to their pride and find a benevolent individual or organization caring enough to help them.

Oh, you don't believe we could actually care for the needy? Everyone who works would be twice as rich, and some people just get this thrill out of helping others indiscriminately (not really my thing, but they're out there). Most importantly, individuals would have a greater opportunity to succeed without the need for charity. But that's not really the point.

The point is, when government has cornered the market on virtue, we experience a net loss of it.

It's also futile from a practical perspective. People have an easier time stealing from government than they do from individuals (corporations and dead beats), and even the well intentioned politicians aren't capable of dealing properly with the economy (as we see now regarding the catch 22 at the Fed).

Oh man this had gotten boring. Such discussions require good beer and company or they are pretty dead in the water, but kudos if you made it to the bitter end.

Tuesday, January 29, 2008

ALF

Okay, how bout this one...Just because you understand evil doesn't mean you can do anything about it; on the contrary. The fact you understand it means you are less capable of doing anything about it. Not unless you can somehow rewire another person's brain. Not unless you can rewire your own brain. And that requires a mighty confidence in your ability to identify it; much less know the proper solution; much less your brain surgery skillz. Ever have the suspicion that the understanding of evil itself could be the only requirement necessary for its perpetuation? That the ability to recognize its source is the very thing that allows us to confuse other things with it, and therefore its primary proponent? Ever feel like all well-intentioned actions, including your own, are possibly contributing to global strife? That even if they could do some good in theory they are misinterpreted as evil? That preventing yourself from evil on the most minute scale is a full time job? Are world leaders susceptible to this? From watching the debates they seem rather confident this sort of thing doesn't bother them. Maybe they know something I don't. Maybe they are made of a finer clay than the rest of us. Like Bono.

I'm certainly thankful they aren't carting my family and friends off to death camps yet. Or released some "good will" virus that kills off everyone without a certain "good person" gene in their particular strand of DNA. What I mean is, I'm glad they aren't significantly impeding my ability to exercise my ability to contribute to the "good" - whatever that means for me (and doesn't harm anyone else). In their attempt to help they take 50 percent of my income. It could very well be these days that the less you accomplish the less damage you have done. What happens when every employee, every business owner, and every politician has some sophisticated ulterior motive dedicated to screwing everyone else to a greater net degree than they are being screwed themselves? What kind of enlightened philosophy is this based on? What the hell is really going on out there? And then people go and join the Animal Liberation Front - is that just a veiled protest against humanity? Is it justified?

Here's what I mean...you work as some well paid grunt consulting a huge American corporation that sells technology to another company that builds special top secret radioactive weapons for Blackwater. At the same time your tax dollars are going over seas to fund the safety of a suicidal hoard of barbarians as a humanitarian cover to secure the oil fields because we can't figure out how to become energy independent.

Are we really so hard up and afraid of "radicals" that we need to play their game by their rules? (Wire tapping, suspension of Habeas Corpus, etc.). What are we afraid of? Do we really think they hate us because we're rich? We (America) must identify with that somehow. We must think if another country were far richer than us that we would be capable of strapping bombs to our chests. I think that's preposterous. Maybe the rabid cut throat politicians who have clawed their way to the top drool over money and power like that, but we certainly don't have such petty, superficial values. Seems to me we're not fighting with our brains as much as our insecurities.

Saturday, January 12, 2008

More Bastiat

Alright, I've mentioned Bastiat's broken window parable before. Here's a quick recap of the argument (modified just a bit):
  • A clan of tax protesters storms the White House, smashing all the windows.
  • The president hires a window repair man to fix the windows.
  • Argument: This is good for the economy because it provides work for the window repair man.
Bastiat goes on to explain that this is a fallacy because you need to consider how that money would have otherwise been spent. Perhaps the Prez would have used it for speech therapy or something else that would benefit us all...

A current manifestation of this argument is that war is good for the economy because it provides jobs. This is a very potent argument used to defend the existence of the military industrial complex and aggressive war. But, this is really the same as breaking a massive amount of windows. We need to consider what other things the hundreds of billions of dollars could be spent on if we didn't have this war to pay for. Maybe we could even let our citizens keep more of their hard-earned money so they could use it for, oh I don't know, health insurance, education, skittles? Pretty hard to kill someone with skittles (although they are not good for your teeth).

Taking this further, everything is purchased at the expense of some other thing. It begs the question...what are our national resources best used for? What are our individual resources best used for? What do we need to pool our money together to accomplish through the state, and what portion of our income is best spent at our own discretion?

Imagine over one-third of your yearly income. Imagine writing a check for that amount. Then think of everything the federal government has provided for you. Then think about the possibility that intervention abroad has incited hatred making you less safe, that No Child Left Behind has deteriorated school performance and that the Patriot Act has violated civil liberties.

Then remember that those thousands of dollars have actually already been spent and are being used to pay interest on foreign debt. Then remember that every household is actually accountable for $400, 000 in public debt!

The system, our elected government, with the help of corporate influence, is being used for its own preservation at best, and our exploitation at worst. What is the solution? We must first hold the beast accountable with education, and starve it with cuts in taxes and spending. We need to stop using our resources to smash windows, and start using it to secure our individual security, personal sovereignty, and economic prosperity.

Thursday, December 27, 2007

Money on Trees

Okay, so while enjoying dinner and a few beers at a friend's place a discussion ensued regarding the destruction of our economy perpetuated by policies of the Federal Reserve. Somehow I'm always the only person in any given room with that interpretation.

As you can imagine, describing the complicated way our currency is manufactured and distributed, and illustrating the the dangerous cocktail of our fiat monetary system blended with public debt and fractional reserve lending is not a conquest for the faint of heart. Of course, it was designed that way. If we could all understand this stuff and could describe it over a couple beers it wouldn't have become a problem in the first place, or there would be massive outrage.

The first hurdle I was confronted with was a disappointing one as it demonstrated the long road ahead - the myth that our currency is coined/printed/created exclusively by the U.S. Treasury.

So, today's lesson, for my benefit as much as anyone's, is to describe how money is created, and how the system is designed to spiral into a bloated monstrosity and collapse catastrophically.
  1. The Federal Government decides it needs some money to attack Canada. It prints a piece of paper with nifty designs and some words. They call it a "Treasury Bond" or "Treasury Note." These are IOUs to the Federal Reserve.
  2. To convert these IOUs to bills, the Federal Government gives this bond or note to the Federal Reserve. The Federal Reserve classifies these IOUs as a "securities asset." To us (who fund the Federal Government completely), this Treasury Note is debt that we will have to pay back in the future. To the Federal Reserve, this is an asset, because it assumes we will pay it back with interest (with Income Tax).
  3. Since this is an asset, it can be used to offset a liability, which the Federal Reserve does by printing a piece of paper with nifty designs and some words. This time they call it a "Federal Reserve Check." (Nothing backs this but the assumption that taxpayers will be fleeced of their earnings to pay it back).
  4. The Federal Reserve Check is given to the Federal Government, who endorses it. Then, they deposit it in one of the 12 privately owned Federal Reserve Banks. It is a government deposit, and used to pay government expenses (businesses, entrepreneurs, etc.).
  5. The Government Checks are deposited into commercial banks, where they are, again, treated as assets. 90% of this can be lent out, depending on the reserve ratio. This is called the "Fractional Reserve System," and is how all banks function - lending out the vast majority of their money. A loan is always considered an "asset" because it is earning interest. Banks want to make as many loans as possible to earn the greatest amount of profit.
  6. The recipient of a loan deposits the loan proceeds into their bank account, where the process repeats itself, over, and over, and over, and over again. The fiat money created by this is 10 times the size of the original debt created by the federal government.
  7. We attack Canada. Using money printed by the Federal Reserve cartel. It's counterfeit, and unconstitutional (only congress can coin and print currency) but congress likes unlimited wealth - it gets them power and votes - so they don't really mind.
  8. Too many foreclosures cause a liquidity crisis.
  9. More printing. More inflation. People are less able to pay back debt. The Fed needs to decide between financial collapse or rampant inflation. This really could get ugly.
Look on any bill and you will see "Federal Reserve Note." Yes, there is a signature of the Secretary of the Treasury, but in reality, a dollar is simply a promise by the American to pay back the Federal Reserve with interest, lining the pockets of the shareholders of the Federal Reserve (or funneled it through tax-free institutions such as the Ford Foundation - in which they avoid the income tax altogether...rrrr).

Throughout history, every single fiat currency, one not backed by a hard asset (usually gold), has devalued to the the paper or metal it is made from. I'm not saying the sky is falling, but I also can't say it isn't. Most disturbingly, something tells me when any of us regular folks get a clue it will be a moment too late.

(Here is a good site with diagrams and stuff)

Thursday, December 6, 2007

Goliath

RYAN! Read this one. It was a beautiful, sun-drenched day when the markets capsized. There were just too many defaults - not just in the sub-prime market, but everywhere. We all spiraled into a recession of unprecedented magnitude. All was sacrificed to save the banking system itself, which had the effect of lowering the value of the dollar to about 1 cent.

I asked for a raise that day - 10,000 percent to keep up with the cost of living. I didn't get one, so I quit. There was a general rent increase of 10,000 percent. They stopped paying. Their owners couldn't pay the mortgage as a result.

Here is what went down: The collapse of the system was caused by an extension of what had been happening for quite some time. There are three main players in this game (forgive the biblical references, but this disaster was of biblical proportions):
  • Big banks "Goliath"
  • Medium Banks "Building and Loan"
  • Mortgagees (owners) "David"
See, the Building and Loan banks owned all these loans but couldn't collect their debts in order to pay back Goliath. Goliath forgave the debts of the Building and Loan banks (a bailout). But, the Building and Loan banks continued to collect payments from David. They had no choice - they needed to stay in business. But that doesn't seem fair to David, does it?

It isn't. And more, it was actually the federal government who gave it to Goliath to bailout the Building and Loan banks. So, David is also paying taxes to fund Goliath's bailout. Again, no choice. David must to pay his mortgage to house his family and pay for puppy chow. He also must pay his taxes. So David is now struggling to pay the Building and Loan banks because the bailout increased the money supply causing inflation. The price of everything went up. The value of the dollar went down. His tenants stopped paying rent. His house went into foreclosure. He refused to leave. With rent so high there was nowhere to go.

What happened next was this. The Federal Reserve, in a last ditch effort to avoid disaster, decided to continue lowering interest rates. Adjustable rates had already been frozen so folks could continue to squeeze out payments (which failed to help). This all served to perpetuate the illusion that the system was intact. But, without gold backing, the dollar was actually facing imminent collapse. Suddenly, when people realized what was going on, all debts were forced to be forgiven for everyone at once! No Choice! (The truth hurt for many - some well groomed puppies starved).

So, in this way we are all Goliath. Every one of us. But we are also all David. And the knowledge of what is going on is David's stone. The sling is the ability to communicate this properly to everyone. Once enough people understand what is going on, the deception will dissolve. Mass outrage. Everyone simply can't continue like this until everyone is taking advantage of everyone else. For the sake of peace itself the people will take back what's rightfully theirs, and much turmoil will ensue while this happens. After this we will live once again in a free world - a world wary of Goliath's return.

The ones benefiting from this deception are living in either ignorance or fear. The knowing are increasingly terrified that the people will discover it. The beneficiaries of this delusion include every part of the influential world - mass media, government, wall street - anywhere a buck can be used to take advantage of it. It is truly a battle between the exploiters and the exploited - and the exploited are starting to wake up. Goliath holds the fools gold, and he thinks he makes the rules. But he will soon find that he has underestimated David's will and intelligence and will have pushed his love for peace beyond the event horizon.

What we are dealing with is a plutocracy. The rich happen to be very smart and very capable of sacrificing scruples to rob the rest of us without our knowledge. Often without even their own knowledge. Money isn't the real problem, it's the truth that we are losing! It's the rampant sacrifice of our language that's being lost - the rug of honesty has been pulled out from under us and replaced with a giant piggy bank. The piggy bank of good intentions. With so many sucked into the vacuum of false wealth and influence, those of us clinging to a thread, shoes in the nozzle, are screaming foul while the giant global puppy dog paws at us, calling us uncaring.

Right now truth is at a premium. It's enough to write a long and overly sirius blog about it. (With loathing I have the somber obligation to point out that the use of puppies was purely a demonstration of the core of the problem.)

Monday, November 26, 2007

Vincent, Borgman, and Lezlie

In the following transcript two veteran congressmen Vincent and Borgman discuss some issues with Lezlie, a rookie who was recently elected.

In Vincent's office.

Vincent
"Where I come from there is a rule. If you have stolen from someone and convinced them it is for their own good, it is not stealing."
Borgman
"I will see you and raise you. Who cares if they believe it's for their own good. If you have stolen from someone and they are unaware of the theft, it is for their own good!"
Vincent
"Know what? Re-raise. If someone permits you to steal from them, that qualifies as voluntary charity; the recipient has no obligation to refuse."
Borgman
"I guess I can't argue with that."
Vincent
"Why are we refusing charity? We have a country to run here."
Lezlie
"Wait. Are you suggesting our budget should be determined by the amount of income we can "steal"? And the people should be relieved of their income by whatever means necessary, even if they are unaware?"
Borgman
"No. Because of the fact they are unaware. We are entitled whatever they don't notice we take."
Vincent
"But it's really not charity at all, it's a mandate for improvement! If the people are releasing their income to us, we have a somber obligation to put it to good use. Everyone knows the larger the order, the more we can get for every dollar. This makes it our obligation to relieve the population of as much unwanted income as possible - to give them more for the dollar."
Borgman
"Exactly. If they contribute 30-50 percent of their income, they must believe we contribute 30-50 percent of their freedom and happiness. Or, they believe it's simply the price of living in a free society. It's tiny compared to the big things we can do with it. "
Lezlie
"Not tiny to them. They wouldn't have any idea what life would be like with twice the income. There's no frame of reference. Most disturbing of all, they have no idea they are even being taxed. We take 22 percent for every retail purchase in hidden taxes passed down to the consumer from corporate taxes. We withdraw directly from their paycheck. Is this an honest way to handle the financing of government?
Borgman
"We've been withholding since 1944. It's more convenient for everyone, but mostly for us. Right from under their noses. Beardsley Ruml's a genius."
Lezlie
"So you think the green light to withhold is also a green light to take as much as you can before the majority of people really take notice?
Vincent
"Sure. It's not our task to judge what motivates the people to bestow upon us this grave obligation. If they give involuntary because they are unaware it is being taken, they haven't earned the right to that money anyway. The facts are available to everyone."
Lezlie
"The facts are not accessible to most people. They are too complicated. They have jobs you know. They don't have time to research the tax code. Few really see what is going on here."
Borgman
"Well, we have our work cut out for us. Always have. Look, if I know people, they want a bargain, and the more income we get, the better bargain they get, get it? If people are dropping coins in the street, why not pick them up and put them to good use."
Lezlie
"But you've cut the holes in their pockets!"
Borgman
"They are too careless to notice. It's called a needle and thread. They'll use it if/when they're ready. If we volunteered some of that money back to them, we couldn't do nearly as much good - the law of diminishing returns. Besides, it's pennies for them, millions for us."
Lezlie
"But how do you know what make and model of "good" they're looking for? All you have is a dollar amount."
Vincent
"We use it for whatever gets us re-elected - that's the best measure. The people will choose if we've done our jobs well."
Lezlie
"So, what got you re-elected?"
Vincent
"They want to hear that we are doing good things and all that warm and fuzzy stuff. They want prosperity and security."
Lezlie
"Can you give them those things?"
Vincent
"Ha. No, no one can, of course. No one but themselves. But we can give them the impression that voting for us will help."
Lezlie
"How do you make such a good impression?"
Vincent
"It's easy once you recognize we are judged on our intentions, not on our results. Relating to the people - that's all that matters. It's all advertising. People love watching TV - it is easy to make a good impression in a 30 second slot. Radio also works well. It's all about being believable and acting like you really know what you are talking about."
Lezlie
"What about all those good things you promise to do with their money.
Vincent
"We give them peace of mind. Of course. Come on, what, were you born yesterday? The people want to hear we are the greatest country in the world. They want to know they have a capable leader and that the economy is strong. They want to hear about how other countries envy us. We have the tools to make all those things appear to be true! They want their big ass American egos stroked, and they are paying top dollar for it. Far be it from us to deny them that. Look, you might think you ran for office to be an honorable public servant. The public doesn't really need or want that anymore. The public only elected you to engage in the giant ideological battle on their behalf. Republican, Democrat, whatever. We are all being paid to engage in this battle, and it will rage on as long as the people want it to. As long as government is seen as the solution. Our mission is to remind the people that the battle must rage on, that government is the solution to their problems. Why else would they allow us to deprive them of half their income. The people buy it. We aren't here to protect the people's rights, we are here to convince them we know what is right. The more money they give us, the easier it is to convince them.
Lezlie
"So, what bargains are you talking about?"
Vincent
"Well, let's see, we get a great deal on military supplies. Remember, it's a two front war - one against the Republicans or Democrats, and one against the Islamo Fascists. You do want the troops to have body armor, right? Thought so. War is our trump card. Now that we have a perpetual war, the public needs us more than ever. The people will pay anything for security. If they are shy about fighting to keep their income they are pathetic whimpering cowards when it comes to terrorism. Why? Because we have terrified them with threat levels, and constant news coverage. It is awesome. The people think the country would collapse if weren't on the offensive against the terrorists (I mean "offense" - people dig the football terminology - it makes our policy seem less like preemptive war). Regardless of whether that is true, it must be perpetuated at every opportunity - your job, and the jobs of your contemporaries, depend on it. Remember, you must be resolute - this is the home of the brave."
Borgman
"Come off it Vincent, enough of the melodrama. There are plenty of good things going on. Things that do help the public. I happen to believe the public is made of a certain percentage of individuals who aren't drooling, brainwashed Neanderthals. Lezlie, you can appeal to whatever constituency you want, but some are growing and some are shrinking. Vincent believes he represents a growing constituency and I believe he might be right.
Vincent
"Oh, get over it. Both of you. We have the public bought and paid for, you too Borgman, whether you think it's right or not. We have every media outlet behind us. We make the news. You're with us or against us. If you really think you're going to do any real good for the country feel free to opt out of the congressional pension plan. Fell free to be mocked and laughed at. If you try to cut out taxes or reveal any of this to your constituency you will be ostracized from both sides of the aisle. Your district will be a laughing stock. You are here to do what's necessary to get your skin elected for another term, and that means passing laws that help you get on the tube before the next election. It means sticking with us. It means proving your worth to the public in 30 second segments and slinging mud at your opponent. It means voting with the hand of your campaign contributers. You are not a public representative. You are a puppet. The corporations own you just like they own every other American citizen. You need the people's tax money to convince them otherwise. That's how you play."
Borgman
"I need another drink."

Sunday, November 25, 2007

William

Mr. William R. McGlover's hobby was collecting money, and he took it very seriously. Every other week he carried his paycheck from his office to the local bank to redeem his prize. There the teller, Rachel, would stand patiently over a pile of bills while William made his picks. He liked one dollar bills and ten dollar bills, and also found fifties and one-hundreds attractive. His favorite, however, was the twenty; the good old double-sawbuck.

His ritual was to walk home, place his briefcase on his desk, and pull each bill from its pouch for examination. William would sit at his desk over a magnifying glass for hours admiring the microtext and tiny intricate designs of each bill. He was particularly fond of Jackson's portrait; his disheveled hair and serious expression. Focusing on his right eyebrow, Jackson almost looks sad, like a severely disciplined but misunderstood puppy. "What could he be thinking?" William would ask himself, head hunched, pressed against the glass.

He began by storing the bills in the drawers of an old card catalog he salvaged from the local library. After examination each was carefully placed, neatly sorted by serial number and year. He took such care of his bills that not one had so much as a fold or blemish. To him, each one was priceless.

Rachel had grown fond of William's visits and knew when to expect him. She would have the bills waiting when he arrived; always two hundreds, four fifties, and twenty twenties, then some fives and ones. Over the years he continued to choose from the same lot, although the number of fives and ones would increase from time to time. William became increasingly discriminating, and over the years his visits grew longer. Eventually the bank reserved a desk for William, who would pour over the bills as Rachel presented them, sometimes for over an hour.

After a decade of saving William was able to afford a more sophisticated filing bureau and invested in a climate control system, which he built himself. He spent weeks walking back and forth to the hardware store purchasing the duct work and other supplies, painstakingly assembling the system. When he was finally done, temperature and humidity were optimized for paper storage. By this time, William's collection had expanded to fill several cabinets.

After one trip to the bank, Rachel asked William if he'd like to get some coffee. Neither the quantity nor quality of William's collection improved after that. And he didn't seem to mind.

Wednesday, November 14, 2007

Fribbles for All

Fribbles were the most fantastic natural resource ever discovered. Rupert Dingleberry was the gentleman who discovered the only known source of Fribbles beneath a melting glacier on his property in Alaska. A few years ago he was walking his schnauzer and there they were, precisely 800,000,000 of them sitting in a huge pit; identical, pristine, and beautiful. He had no idea what to do with them, so there they sat.

Rupert lived in the small town of Bigville, and when word got out that Rupert had Fribbles on his property, folks were stunned. Nothing this exiting had ever happened in their little town. Everyone thought they would have access to cheap Fribbles. Mr. Dingleberry was an instant celebrity, and so was his schnauzer, Lorenzo.

Rupert would haul loads of Fribbles into town and sell them. He made a living doing this. The folks loved the Fribbles so much they were happy to pay a reasonable price for them. After all, they made life so much easier.

When Washington caught wind of the Fribbles bonanza going on in mainland Alaska there was pandemonium. The President called the news media and asked them to produce a hue and cry from the public. They did. "Alaskan's hoarding Fribbles" was front page news the next day. By mid-afternoon everyone knew what a Fribble was, and were shocked, SHOCKED, the Alaskans were such selfish miscreants. Politicians rallied behind the President. "Fribbles for all" was the call from the pundits.

As it turns out, the lawyers discovered Rupert did not have Fribble rights on his property. Some said there was ambiguity in the law defining "Fribble rights discovered under glaciers," but these folks were skewered on the news - dubbed "pinheads." The Department of Homeland Security sent troops to guard the Fribble deposit from an "impending terrorist attack." Dissent was marginalized by reports of "overwhelming public opinion" in favor of public ownership of Fribbles. The WC ("We Care") association was established to defend "fair Fribble distribution."

Rupert's Fribble pit was seized and an electric fence secured the deposit. A machine gun nest stood at the gate. A permanent military base was constructed in Bigville. The price of Fribbles skyrocketed, but since only people in Bigville had ever bought Fribbles, no one in the lower 48 states even noticed.

Due to their convenient size, unique characteristics, intrinsic value, scarcity and durability, Fribbles were increasingly used in trade. WC endorsed their use as currency. All of the sudden, everyone wanted to get their hands on more Fribbles!

All government employees were paid in Fribbles. Well, they weren't actually paid in Fribbles, but notes that were redeemable in Fribbles. All international debts were also paid in Fribbles. Before long, all government debt was backed by Fribbles. Soldiers could now be sent to defend the United States against Fribble seeking terrorists and compensated with Fribble notes. Soon, Fribbles replaced the dollar entirely.

Few people actually had Fribbles. In fact, owning Fribbles themselves was illegal. Everyone used Fribble notes. One day, a scientist actually did some studies on a Fribble. In his Virginia laboratory, Dr. Danger poked them, froze them, crushed them, soaked them in acid, and even ate one. It tasted like strawberries. After several days of study, Dr. Danger was mesmerized by the amazing properties of the Fribble. He hypothesized they were indestructible.

Then, one day, Dr. Danger assembled all the leading scientists in the world to scrutinize the Fribble. He gave his first speech before a crowded outdoor amphitheater. With a Fribble placed before him, resting on a marble pedestal, Dr. Danger professed its wonders.

On this day, Virginia was in the midst of a record breaking heat wave. Never in recorded history had the mercury risen so high. In fact, this day was so hot, during his speech, the doctor frequently wiped sweat from his forehead and paused for a sip of water. Suddenly, at a point when all in attendance were focused on the Fribble, it vanished in a cloud of vapor.

It was soon disclosed that Fribbles indeed have one weakness. They evaporate instantly at precisely 110 degrees Fahrenheit.

The people realized Fribbles were of dubious intrinsic value.

Everything got real ugly after that.

Saturday, November 3, 2007

More vacation for eveyone, Yay!

Okay, in an earlier blog I explained why all us overworked and underpaid grunts who actually keep the world turning can't just all agree to tell the government to force our employers to kiss our asses and give us, say, 12 weeks of vacation a year. While it might seem to work right away, we would actually suffer from either a proportional amount of lower pay, having to work faster, or simply breaking the law and working more than the regulations specify (or all of these). Most importantly, we would be throwing many folks at the lowest end of the pay scale out on the streets, or more likely, on the dole paid for from increased taxes on our deflated salary. Yuk!

So, if we can't all bump up our vacation time by compelling, through state/federal regulation, our employers to change their benefits package, how do we do it? How do we all spend more time kayaking in Belize or hiking the Rockies while not working our fingers to the bone, living on less, becoming criminals, and disregarding the working poor? It can be done. But let's take a closer look at the animal so we know what we're up against.

We might ask someone: "So, what kind of vacation benefits does your company offer?" But that's only one interpretation, and one favorable to the employer. By becoming an employee are we really giving away every day of our lives to our employer? That seems to be the assumption. After all, an employer can't offer anything it doesn't already have. You should be asking: "So, how many lovely days in the sun has your employer contracted out of your precious life annually?" According to Wikipedia, that's 242 give or take a few days. That's 10 days plus 8 holidays and weekends. And, in most cases, employees really don't get much freedom to choose which days they prefer to work and which days they prefer to not work.

Paid Vacation. Is it really? Absolutely not! Your employer knows the least number of days you will be working and offers/adjusts your pay accordingly. A salaried position with three weeks of vacation pays less than the same position with one week vacation (considering equal obligations). Since all workers expect vacation time, employers must offer it to be competitive and attract talent, and the result is that everyone's salary is lower than it otherwise would be. So, while you may technically get paid for days you are scuba diving in the tropics, you have actually already been penalized for those days with a lower salary. So ENJOY IT!

Employers don't own our lives, just our work. We exchange our valuable time and hard work for pay, and that pay is ours to distribute as we see fit (or on our slightest whim). Vacation/time off is a reward we earn and any restriction on that reward by our employer should be seen as a benefit WE offer THEM. After all, if we are committing 242 days to our employer, the least we should get is straight talk and an ability to take days off when we see fit. Today, since workers generally volunteer their whole lives to their employer's, the specific days requested for vacation might not be "approved." (After all, this is "paid vacation" - how gracious they offer it at all). Isn't submitting this veto power a valuable thing in itself?

We'd all be a whole lot better off if we demanded to be compensated according to shorter contracts and by merit rather than by signing our lives away to be dictated at the digression of our managers; pay well for work and leave the rest up to the workers. Yes, the full solution depends in part on each worker demanding terms he/she regards as fair - it's a vital piece of the puzzle. But, even if workers across the land suddenly adopted this brand of thinking, they aren't all necessarily good at negotiating. They are good at flipping burgers, coding software, driving zambonis or grading papers, not haggling with business types. So, how do we save us from ourselves without asking the state to do it? Unions? No way! (They've got a track record of screwing workers). IMHO, you can really only do it by placing employers in a position that allows them to realistically meet a demand for more vacation from their employees. You can probably see where this is going - please bear with me.
  • In the United States, the federal corporate tax rate is 35%. (35% of profits go to the government). Of course, a corporation is just a piece of paper. This 35% burden is shared by real people; consumers in higher prices, the shareholders in lower stock prices, and, yes, employees in lower wages. To be safe, let's say, without this tax, demand for workers would force corporations to increase pay an average of 10%. (This doesn't account for the lower competition in labor. Here's a short explanation).
  • Federal Income Tax. A married couple earning, say, $70,000 combined pays 10% on the first $15,101 ($1,510), 15% of the next $46,199 ($6,929.85), and 25% on the remaining $8,700 ($2,175). Thats a total of $10,614.85. That's about 15% overall.
  • State Income Tax. 7.85% for the same 70,000. That's $5,495.
Now, I am very much in favor of a working government. We absolutely need a military, courts, and no children left behind, but we are paying for much more than that. For now, let's focus on just the income tax. Imagine you lived in the days before witholding - that's, for our example, a $10,500 check written out to Uncle Sam. I don't know about you, but that's the biggest check I'd write all year! We work about two months each year just to pay the Income Tax. In other words, if it didn't exist, we could all take an extra two months off work every year. (This would have none of the long-term negative consequences of government-regulated vacation.)

The income tax accounts for approximately one third of federal revenue. Eliminating one-third of the proposed 2007 budget would leave federal spending at 1.8 trillion - a sum greater than the budget in the year 2000. All we need to do is cut federal spending back to 2000 levels and we can ALL GO ON VACATION FOR AN EXTRA COUPLE MONTHS EACH YEAR!

Things we could do to cut federal spending:
  • Withdraw our troops from Iraq and around the world. Huge savings here.
  • Eliminate the IRS (a side effect of eliminating the income tax). Billions spent in enforcing and accounting could be saved (not to mention the savings corporations would see not having to pay lawyers to find tax shelters).
  • Close the Federal Reserve - we didn't need it before 1913 and we certainly can't live with it now.
  • Return the responsibility of education to the states. Eliminate the Department of Education.
  • Eliminate the Department of Homeland Security. We don't need it. Our military rocks.
  • Eliminate the Transportation Safety Administration.
  • Eliminate the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
If we only did a few of these things, money that would have gone to government would instead go into workers' pockets. It wouldn't all go into our pockets - some would go to wages of new employees as new jobs pop up. Some would go to shareholders as revenues rose. But, overall it would mean more pay for the same work which means more time for vacation without a decrease in standard of living. And then, if we eliminated those other taxes I mentioned we could prosper even more.

Basically we need to reassess the role of government and reconsider what is necessary and what isn't. I've asked many people if they can think of one thing from the federal government they depend on. It's usually nothing - roads are (mostly) from gas taxes, education is from (mostly) state taxes, snow plows are city. But if we did depend of the federal government, that would be an even bigger problem. Like I said, military is good, but not for inciting hatred around the world! Many feel less safe now than before the whole Iraq ordeal.

Whatever we are getting from the federal government, think about how it compares to everything else that constitutes your standard of living. Then, write out a check for 15% of your annual salary and take a look at it. What are you buying with this check? What could you do with it instead of sending it into the federal government? That would be life after the death of the Income Tax plain and simple.

Okay, I think I'm done for now and am relieved to remove myself from this soap box. This is obviously an inadequate summary for such drastic measures, but big problems require big solutions. Most importantly, when things get too complicated, everyone is afraid to change them because they don't understand them well enough. It always seems easier to just throw more money at a problem and hope it goes away. Unless there is a broad understanding of our perilous economic condition I'm afraid it will spiral out of control into something other than a "soft" landing. That will mean much less vacation for everyone.
"If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." -Thomas Jefferson

Wednesday, October 31, 2007

Spooky Economics 101 (not voodoo!)

A socialist comrade and I have been discussing the need for more vacation among our overworked brethren. He insists a European style state-regulated system is required. I insist we increase vacation time more dramatically and without all the evil. Here's what I mean...(comments please!)

Securing more vacation time is too valuable to release to the black hole of governmental regulation. The consequence of such plans almost always has the opposite effect of what their well intentioned advocates expect. Passing a law such as this has the unavoidable consequence of lowering the amount of income that can be devoted to vacation days.

Oh, you don't mind trading income for vacation? OK, let's assume you only want to earn $1000 a year for food and take the rest as vacation.

Let's say your skills are worth (for easy math), $52,000 a year on the free market. You sign a contract to work for a company for one week. You plan to earn your $1000 and take the rest of the year off.

But wait, the government suddenly passes a law requiring 25 days of vacation per year - this is 10 more days than before. The company currently employs 100 other employees and now must hire approximately 3 additional employees to make up for the 1000 days of work being missed this year. Of course, the company needs to get the same amount of work done in order to pay its existing employees' raises etc. It simply adds 3% to its workforce.

Now, let's take the best case scenario and not include any costs of finding the new employees, providing medical insurance, or training. Let's say the additional three employees magically appear and pick up the required work perfectly. Since this is a national law, all companies need to do this.

Wait! the country doesn't have 3% more people - certainly not 3% more qualified people! Why didn't we think of that?! Oh no's.

The company now requires its workers to be 3% more productive, but they were already working at 100% productivity. The company loses revenue, and cut expenses. This is a technology company, so its workers are its primary expense. All employees get a wage reduction of 3%.

This 3% translates to a hidden tax lowering the amount the company can pay any new employee for any position. (This would be much higher considering training etc.)

Instead of $1000, you are only offered $970 for the same week's work. You are now required to work either 3% more productively or 3% longer than before the vacation law.

Now, in reality, this type of law simply increases the lowest common denominator for worker requirements. It now can only afford employees who are much more productive - especially considering the extra expenses (medical, training etc.). This is why the unemployment rate is about 10% in Europe compared to 4% in the US. More unemployment means higher corporate taxes to afford the expanding welfare state. Higher corporate taxes means less money for payroll = less money for vacation and even higher productivity requirements to keep the company competitive - which is a losing battle.

As much as they try, these workers will not be able to make up for the difference and will end up working during vacation being paid under the table (breaking the law) to keep the company afloat while perfectly able workers beneath the government manufactured productivity threshold are eliminated from the workforce and destined to ride the wave of the welfare state.

Now, if any of the above makes sense, I can also tell you how we could just as easily increase worker income about 30% (which would translate to 30% more vacation without any sacrifice to standard of living) while lowering unemployment and increasing productivity. I'll save this for another blog.

Thursday, October 18, 2007

Save Us Grunt Monkeys!

Our yellow rockin' nuclear submarine rests at the floor of the deepest abyss on the planet, and when I hear the walls creak it is kind of creepy (which is more often these days). But usually I forget about it and enjoy myself - all of us do. This is no regular submarine. Yesterday I awoke, strolled across the hall into our 10,000 square foot recreation area and played racquetball. I'm a member of the Club, and our clan always goes to the spa for complimentary massages afterwards. Yes, we have a spa here, and a staff of lovely attendants. This is our Saturday ritual and we've done it ever since the accident. Well, it was hardly an accident. We gently glided onto a flat and level portion of the sea floor. Some didn't even notice we crashed!
Oh, and the food! For breakfast I ate Mahi Mahi and eggs. You wouldn't think they complement each other, but our chefs are damn good. So good I often order the most obscure thing on the menu. Food is all part of the package, and it means I don't have to worry about overeating or cholesteral or anything. The chefs mold my meals according to my medical charts and physical activity. There is a whole department hired by the Club that handles nutrition. It's kind of funny, non-crew members can actually request a specific level of health. If I choose a higher BMI on my account's LP (Life Preference) settings I get larger portions and extra desserts! Everyone would see that on the CM (Club Monitor) though and I'd kind of look like a slob, but the option is there. Right now I'm already on a "socially active lifestyle plan" which compels extra physical activity and a low-cal diet for a couple extra beers on the weekend - all my friends are too. (It feels sort of rebellious). My level of compliance is constantly recorded and displayed in real-time on the CM. I work out hard early in the week so I can relax a bit as the weekend nears - I do like beer.
Club membership pretty much takes care of everything actually, and just about everyone on the sub is a Club member. We call the few remaining non-Club members grunt monkeys because they work twice as hard for the same pay. They also drive the tiny fishing and mining subs, which look like bananas. The Club owns those. Anyway, Club membership has become very expensive and the dues keep going up. Basically everyone also works for the Club, so they actually just take more out of our paycheck. Like I said, the Club takes care of everything, so we don't complain. This time the dues went up because the chef's union needed more money for fish. They said the grunt monkeys raised the price of fish for some reason. Something about a higher mini-sub user fee. (Damn grunt monkeys!) The Club Captains know we won't stand for second-rate fish, so the dues went up.
Actually, this means that the amount I earn is precisely the same as the Club dues. (I'm just a cameraman for the sub porn industry, so my income is relatively low.) It's a common predicament, and everyone knows what happens next. When they raise dues again, I'll tell the Club captains I can't afford it because they aren't paying me enough. I know the Club needs our membership dues to survive, and can't do without sub porn. They will raise the mini-banana-sub user fee on the grunt monkeys. Then, they will give me a raise, but just enough to cover the extra dues. But, the extra Club income from the mini-banana-sub user fee won't be quite enough. The Club will also have to borrow some money to pay me every two weeks. Overall, the Club actually borrows about half the money it pays to its workers from the super-rich Grunt Monkey Bank, which is owned by the Club Captain's red-headed identical triplet bastard stepchildren. (And, just because they officially named the bank "Grunt Monkey" doesn't mean it's still not used exclusively the pejorative.) So anyway, the portion of the dues that consists of real money combined only covers the interest payment on this huge loan. And, since the dues always go up, the proportion of real money compared to borrowed money in each month's revenue will always go down. The GMB (Grunt Monkey Bank) knows it can't stay in business if the Club is broke, so when the Club says it can't pay, the GMB just lowers the monthly payment and reschedules the payment over a few more years. Or, sometimes it gives the Club another loan so it has the money to pay. In any case, it all ends up working out just fine. Well, time for my power rock ballad jello-yoga class.
Ha, the Club's sub maintenance crew just went on strike. Fix that damn creaking grunt monkeys!