Monday, November 10, 2008

Two stories to ponder…

Since the radical left have this feeling like the rest of the country believes in their tripe, I have a couple of lessons for this mis-informed group of “do-gooders”.

Remedial Economics: Let’s apply a simple economic example for the left although they may be too emotional to get it, the rest of us will. The following is an example of why taxes and big government are not the answer to help our economy.

Mayor Bloomberg of NY (I often wonder how he stays a billionaire) is proposing raising all kinds of taxes, adding bridge tolls where there currently are none, and overall making it even more expensive to live and do business in NYC. He believes that if he adds tolls to the bridges that have no tolls now he will add a billion dollars to his coffers. He gets that figure from counting the current number of cars that cross the bridge. The problem is, once you add the toll less people will use the bridge. The same thing goes for adding taxes to do business in NYC. Raise them and less businesses will start and more will leave; remedial economic principle.

Now just imagine your favorite coffee shop is no longer making a profit. They refuse to reduce staff and become efficient; they simply raise a cup of coffee from $1.50 to $5.00 to increase their business to cover their inefficiencies. You go to your favorite coffee shop and go to buy your morning coffee and the counter person says, “That will be $5.00”. You say that must be a mistake it was $1.50 yesterday. They say well we had to raise our price to cover our inefficiencies. You do what? My guess is you will either stop buying their coffee and find an alternative, or buy coffee less often. So now the coffee shop actually makes less money and goes out of business. Remedial economics.

The difference between the two examples is government does not go out of business, and that is very unfortunate. The one principle that does stay the same though is the higher the price the less people will or can buy the service or product. Taxes are the price of government. Increase the tax and the revenue is reduced, and you can’t pay for the cost of providing the service. It is a vicious cycle unless the entity goes out of business. In the private sector the business goes away, in the government it does not. That needs to change.

Global Citizenship: With the election of Obama there is a move for these same radical left people to push for global solutions because we are “citizens of the world”. First of all, we are not, we are citizens of the US under the governance of the US constitution. We have enough problems running our own government, what makes anyone think we want to get into a mess like the EU? It is just a matter of time before that entire structure falls apart under the weight of inefficiency and quests for power.

The US is the greatest nation in the world because we adhere to US principles that put Americans first. We don’t need other countries trying to control our natural and human resources. Talk about an impetus for revolution.

So as Obama gets ready to take office his first order of business is to reject the radicals on the left. Just a thought…

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