The Tenth Amendment’s Power…

Our U.S. Constitution would never have come to fruition without the “Bill of Rights” (the first ten amendments) because the founders and other influential individuals would have never supported ratification without these amendments written specifically into the Constitution. The country had just rejected tyranny, and wanted explicit guarantees that this new government would not become the same government they had just shed their blood and treasures to defeat. They knew the propensity for government to steal the freedom of individual citizens, and they wanted to insure tyranny could never happen again.

The tenth and final amendment was seen as their “guarantee.” A way to contain the federal government from over stepping its bounds. If not for the tenth amendment, we may have never become the country we ended up being because it convinced the people of the time that because of the tenth it was safe to ratify.

How times have changed. But the tenth amendment still remains the most important tool today to take back the rights that the federal government has usurped throughout the years. It is simple in concept and clear in its language, and will again play a critical role in our history. I believe and am campaigning on the fact that the only way to stop the federal takeover of our lives is through the state government apparatus utilizing the tenth amendment. It is the law of the land and we must enforce the law.

It doesn’t matter that the amendment has been ignored to get us to where we are today, it is still clear in its purpose; to maintain political power close to the people and with the individual. It is now the responsibility of the states and the Governors to re-establish our fundamental law of the land. It is time for boldness, it is time for courage, and it is time to risk our lives and fortunes.

We are not to the point of armed revolution but we are clearly at the point of decisive and bold action to prevent this current expansion of federal power which is crushing our individual and state rights. It is a revolution but it is a revolution to reaffirm our constitutional government.

Our current crisis has been caused by our drifting from these founding principles. We must return and it is not too late. It is actually the beginning. People are waking up to the fact that we need to return to the constitution and its principles. We have seen the expansion of federal power and it is not a future we support. We have the opportunity to reinvigorate our constitutional form of government because we have the people’s attention.

We must not let this opportunity pass. We must support people committed to the constitution. We must forget about parties and find candidates that have committed their lives to the constitution. Give them your attention and we can re-institute our bill of rights by utilizing the tenth amendment.

We will win this battle if we commit our lives the way the founders did. If that scares you it should. We are at the point of losing our way of life. We are at the point that we must decide. We are in good company and we have the perfect foundation; the tenth amendment of our United States Constitution…

The Campaign Begins…

The tenth amendment is about to be thrust in front of the citizens of Colorado as the platform to a renewed prosperity and return to the great frontier spirit that created the great state of Colorado. As part of my campaign Colorado will again become; “The New Frontier for Free Markets and a Free People.”

The Federal Government has been put on notice. We are taking back responsibility for self government. Join my campaign and if you can donate a buck or two to get the word out. Thanks to all and especially my daughter Emily that produced this video!

Rich Hand
Candidate for Governor of Colorado

Our Kids Know Better…

I have to say that when you explain certain things to your kids they often react with: “that doesn’t make sense!” A good example is the effort of some adult’s years ago to stop keeping score at sporting events. The effort was spearheaded by parents that just hated the idea that sometimes our kids lose.

Losing builds character just like winning does. When kids lose they understand very quickly that winning feels better. That’s how the world works, and to try to change that is a fruitless effort. This effort defies human nature. Kids were keeping score even if some parents were trying to act politically correct and thinking they were supporting an effort to build “self esteem.”

It’s all bunk! Kids are smart, and when adults do stupid things like trying to eliminate a kid’s experience of losing they know this is not in sync with real life. The same effort is going on today in politics. Adults dressed up as politicians are selling a bag of poop as a bag of gold, and the kids see right through it. They know that spending trillions to make things “fair” doesn’t work because the world isn’t “fair.” You just have to look around to see it. Some kids are more talented than others and have a drive that will help them achieve more in life. That is the reality.

Kids know if you work harder and are more talented the results will be different than kids that don’t have a specific talent or choose to work less to achieve their goals. Kids that excel in math have a better chance at being an engineer than kids that excel in English. The kids that excel in English have a better shot at being a writer, and so on. Having talent and equal opportunity is the American way. Trying to have an equal outcome is a really bad parental experiment.

Politics today is permeated with the parents that want equal outcomes. The rest of us know better. That is why I am running for Governor, and hope to attract the future generations to join this movement. I will support policies that give all kids equal opportunity and celebrate the winners. When we celebrate winning we create a culture of competition and engagement. Everyone that enters that arena ends up better for their efforts.

Sometimes we lose and it feels crappy. That is the power of losing; it builds character and helps us understand what we need to focus on to win. I wish more politicians focused on celebrating the wins and not so much on the ways we can make everyone a “winner.” We can give everyone the opportunity to be a winner but we can’t make everyone a winner. That is up to each of us. Kids know that so why don’t our politicians…

BTW: It is my 19th Anniversary and I have been blessed to have such a great companion on this crazy journey of life! Justine is a great caregiver in the nursing profession that I am so proud to have spent the majority of my life with. Thanks sweetie!

Our Children Need Us…

We are watching our government at every level justify increased spending, borrowing, and expansion for programs that our kids will end up paying for but have no say in approving. We had a 1.4 trillion dollar deficit for fiscal 2009, and we have an 11.9 trillion dollar federal debt (we will be leaving for our kids to pay), and the states are crying more, more, more funding to “balance” local budgets.

When does it end? When is enough, enough? It is totally irresponsible to take our children’s future from them. We are reducing not only their economic future but their freedom as well. Every dollar we borrow, print, and send to a government program is undermining the foundational principles this country has grown on; constitutional government, individual opportunity, small business opportunity, free markets, and individual freedom. When are we going to stand up and fight for their future?

I know many of you feel helpless because the problem seems so big but like “eating an elephant” we take one small bite at a time. We start by supporting candidates that want to end the fiscal gluttony at the federal level of government. The federal largesse is making it difficult for state and municipalities to provide the services people truly need. People lump all taxes into the wasteful bucket because we see the gargantuan waste going on at the federal level.

Do we need to send $90 billion dollars to the Department of Education to tell us how to run our schools? Or could we use that $90 billion to buy books and support great teacher initiatives? Do we need to send $76 billion dollars to keep the GM car company afloat? Or should we keep that $76 billion dollars at the state and local level supporting Colorado business initiatives? The list of federal spending and waste is endless.

The federal government is over stepping all constitutional barriers with little resistance until now. We are going to stop this out of control government not just because it is unconstitutional, not just because it is crushing our freedom, not just because we need to pay for local services like education, fire, and police, not just because it is the right thing to do, but because we are parents and we care about our kids.

I am asking you and your kids to get involved, and join me to take back the future for our kids. It’s not just political, it’s personal…

My personal best!

As a Dad I have to occasionally brag about my children. I don’t do enough of it but I am so sick over the incompetence of our government that I must focus on the future leaders of our country. My kids are building a solid foundation for a comeback for this great nation!

This past weekend my daughter turned 13 but not before she swam her final State Meet in the 11-12 age group in Fort Collins Colorado. Her results:

• 100 Back 7th overall in the State of Colorado
• 200 Back 7th overall in the State of Colorado
• 200 Free 8th overall in the State of Colorado
• 500 Free 11th overall in the State of Colorado
• 100 Free 18th overall in the State of Colorado
• 50 Back 20th overall in the State of Colorado

These swimmers that make the State meet are to be congratulated just for that honor. Making the top 20 puts them in a special category in itself. Being my daughter that makes me extremely proud and gives me hope for the youth of America; priceless!

Taylor is off to swim in the Sectionals this week where he will compete with some of the best swimmers in this country. I am proud he has qualified and is seeing results of all the hard work he has put into his sport. 5 – 8000 yards of swimming per day is no small feat.

Swimming is a sport of extreme discipline and I am so proud of these two future leaders of this great nation. No matter how each meet turns out, these two children are always my personal best! A Dad’s prayer…

Term Limits; Please!!!

The latest scandal for Obama’s state senate seat just adds fuel to the term limits argument. We need to get rid of all of these people on a very determined time schedule. None of the bums currently in politics deserve to be there more than a term or two. We need to reduce the scope of government at all levels and the time individuals spend in it; period…

Why Caroline Kennedy’s Lack of Political Experience Matters…

As you know if you follow this Blog, I don’t believe political experience is a virtue. In most cases it seems exactly the opposite, the more experience the less common sense the politician seems to have. But in the case of Caroline Kennedy and the open NY Senate seat experience does matter and here’s why.

It is an appointment outside of the normal voting process. She believes that she is entitled because her family has been involved in politics for years. They have also been boot legers so I guess she would be a good appointment for Chairman of the ATF committee but I digress.

If she were making her case to the voters rather than the inside NY political machine her experience would be on display for the voters to decide. In that case I would say experience or lack thereof would be for the voters to consider and make their choice. As a matter of fact, I believe whenever there is an open Federal seat there should be an election by the people of that State or district.

Governor appointments are political calculations with a complete disregard for the citizens those appointments impact. Costly yes, but what is the cost of a true representative democracy worth?

So in the case of the NY Senate appointment it is safe to say it will be a democrat that fills the seat. Elections do have consequences after all. But if I were Governor I would offer up a couple of strong democrat and republican candidates and poll the voters of NY as to their preference. It will at least have the appearance of some sense of democracy although very flawed. How about someone that has a background in running the finances of a private for profit business? Agahst the thought of real experience not political hackdom!

The appointment process is an extremely flawed process when it is for seats that are normally filled by elections. The one caveat I would add to the State constitution is the clause; if you obtain a Federal senate or house seat through the appointment process, you are not eligible to run for that seat in the election for that seat for a minimum of two terms. That would keep the real political hacks on the sidelines and we may just end up with some competent people in congress by accident. Just a thought…

Buy a Ford; For Now…

I listened to the President this morning, and I was dismayed by his remarks how in normal circumstances he believed chapter 11 bankruptcy was the right course of action, but these times are different. I disagree; in a market based economy all circumstances are normal.

Running a viable business is difficult at best but these car makers were on a path of self destruction long before any financial “crisis” became clear. They are running unsustainable labor and production costs compared to their competitors here in the US. Toyota, Honda, KIA all have factories here in the US. Volks Wagon is building a plant in Chattanooga TN, and these companies have been watching the markets carefully and adjusting accordingly.

For example, Toyota shut down their plants for 7 weeks during the summer to offset overproduction. Employees did not receive 95% of their wages and benefits, they had to make due or take unemployment insurance which is about 30% of their regular wage. And have you noticed any whining coming from the car companies or their employees in the Southern US? That’s why companies are moving there; a productive and grateful labor force.

There is one depressing news conference after another coming out of Washington. These politicians are clearly incompetent to do the right thing so the best course is to reduce their role and get out of the way of the markets. Just say no; like Ford has; for now…

A New Holiday; Constitution Day!

I am not for adding more non productive days to the already non productive Federal calendar BUT, it has become very apparent that no one understands the constitution anymore. That is why we need to create this new holiday; Constitution Day.

The first Wednesday in November (to follow our Election Day) we need a national reading of the Declaration of Independence and the Constitution. It will be mandatory to carry the reading on all TV and radio networks. No exceptions; no options, no alternatives. We need to read and listen to these wonderful documents to help us understand how far we have wondered from the things that have made us great.

It will generate news and debate about the documents but at least we will know that people have actually been exposed to this unmatched genius. God knows; the current people running our Federal and State government have either not read or forgotten what the United States of America truly stands for. Just a thought…

Building bridges and roads is a 21st century economy?

Back to the future is what Obama is talking about. How many more roads and bridges do we need? What are we doing with the billions of dollars already targeted for roads and transportation infrastructure with our gas tax dollars? Building roads and bridges we are told. So how will “creating” makeshift work take us into the “new economy”?

Obama is old ideas in a new suit. He has no understanding of economics which I argued often before his election. Here is today’s simple economics lesson:

Obama takes $10,000 from each productive family to build new roads and bridges. He claims this creates jobs and puts people back to work. He is building a 21st century economy through this program. Let’s analyze this promise.

First; what makes Obama’s plan the right plan for the $10,000? Obama believes we should build roads and bridges. If we really needed more roads and bridges would we have not built them? If they were needed to improve our economy they would have been built. Look around your region; when the last time you said, “honey, I think we need a bridge right here. Or honey, I wish we had another road right there”?

That 10K in my family might go for a down payment on a needed car, or put into the kids college fund, or a new computer, or maybe a well deserved vacation, a new roof on the house is a possibility. My needs are real needs that I choose to pay for. The money I spend will be spent on things that bring a value to me, and will keep the people providing these services employed. What would you spend 10K on? I bet a road or bridge is not on your top 10 list.

How many jobs will be created building bridges to nowhere? And all of that money that was taken from my family, and yours, to build these bridges to nowhere will not add one iota of value for our families. And the families that would have prospered from our spending of the 10K will not realize that money either because Obama took money out of the market and put it into this government program. Again I ask; why should the government choose the priorities for our families needs?

How is pouring concrete and paving roads 21st century work? I don’t design bridges, most Americans don’t. So while these people pour concrete and government pours money into programs they deem useful, the money I would have spent on real valued products and services gets poured down the drain as far as I’m concerned (and most Americans).

If Obama understood economics he would immediately suspend the capital gains tax for 3 years. Promise to reduce government spending by 25% over the next 3 years. Reduce the regulations to drill for oil in our country, reduce the regulations to build refineries and nuclear power plants for the private sector. That would get the market’s attention. Investors would invest in the things that will bring the most return in the next 3 years, which will create jobs that are needed. And if roads and bridges are needed people will invest but my guess is that the money will go to more valued services like refineries, and oil drilling, computer upgrades, and new cars, and education, and iPods, and G phones, and savings that will get invested.

Government infrastructure investment never worked. It never can replace real investment in real market needs. Just take an economics course and you will see. Obama’s program is so passé and has a history of failure… So why are we doing it again?

With this sense of entitlement…

The American economic system is doomed. We have raised and nurtured a new generation of Americans that have forgotten the first principle of any business ownership; risk & reward. America has become the wealthiest most benevolent society because of our respect for the business owners freedom to market and sell new products and services, the freedom to take risk, reap reward, and fail. In return these entrepreneurs create jobs, hire workers, make investments that encourage and support other business activity, become wealthy, fulfill dreams, under the simple rules of human behavior, needs, and economics.

Today with this attitude of entitlement it is all at risk; our jobs, our wealth, our benevolence, and our freedom. The economic and historical ignorance of too many Americans is appalling. The thought that the workers at Ford, GM, Chrysler, the window factory in Chicago, believe it is their right to have that job shows the depth of the ignorance. Do they have a stake in the future of these companies? You bet, but only to the degree that it will be in their best interest to make the best cars, at the best price so they can stay employed. Unless they want to put their savings into the company to keep it viable, they are at the will of the business investors, and owners; period.

Our politicians are part of the problem as well. They are thriving on the chaos to “save the day”. But the only thing they are saving is their own career at the expense of our nation. The future looks very bleak to me because of this permeation of entitlement from so many in our nation.

I ask every one of you to think about the business you are in and ask yourself; what did I risk to become an employee here? How much hard cash and collateral did you put up to enable your company to invest in itself for the future? Do you believe that the owner of your company deserves the rewards of investing his life savings in the business that created your job? What is stopping you from starting your own business?

Today’s stock held companies are a different model, and their failed leadership and the lack of consequence for that bad leadership has fostered resentment among the workers. A lot of it rightfully so but that is the stock holders responsibility, and they have failed to hold executives to the fire on the issue of compensation for failed leadership. To allow executives to part companies that they have destroyed with “golden parachutes” is a disgrace. A great example is the crop of CEO’s we now have at our car companies, financial companies, and all too many stock held corporations. They are so out of touch (showing up to beg for our tax dollars on corporate jets) are embarrassments to themselves as Americans, and should step down.

Unfortunately I think my words just float in the wind. No one seems to care about the American work ethic, American free markets are being ignored, and a sense that a government intervention is necessary only adds to the demise of the system. The concept seems so simple to me, and I have a hard time grasping the way people are turning to the most inefficient and dangerous solution; the government. What has happened? My God we need you now!

We will still need cars!

I am tired of listening to the doom and gloom of the car companies. The latest is we will go into a depression if GM fails. A little news for GM; no we won’t, we will still buy cars. The company may not be called GM, but someone will buy the former assets, hire workers for a market wage, and start producing the cars we need.

The airline industry has been doing this dance for the past 30 years. They file chapter 11, reorganize, consolidate, merge, whatever, and come out of bankruptsy more efficient. It will actually work better in the car industry because there are less regulatory hurdles to jump over. That is unless they get our money as a bailout.

I have to ask; who have we become? We look like a bunch of whining beggars, typical of a third world country. This is embarrassing. This is not the American ingenuity I grew up being proud of. Who are these people running our car companies?

Our future looks dim with this group of people running our big companies and government. Where are the leaders!!!!

A Founding Debate…

One of the most debated issues at the Constitutional Convention in Philadelphia was the issue of a standing military force at times of peace. The founders were extremely suspicious of granting power to the Executive office that included access to federal troops.

You have to remember the circumstances in 1787. Thirteen separate colonies tied together by the Articles of Confederation, mostly content with a loose framework to insure there was no return to a dominant authority like Great Britain. Freshly freed from colonization and a bloody battle with British troops, there was little appetite for a centralized authority, controlling the affairs of the states, and in particular a central authority with a military.

In those lively constitutional debates the founders found it very suspicious that the federal government should need standing troops in a time of peace. In today’s world we see how important a military force is for the security and stability of the world. With that said, the military has rarely been used for internal domestic affairs. I share the founder’s suspicion.

I am uncomfortable with the military policing our streets. That’s why we have millions of local police, state troopers, all reporting to civilian law enforcement agencies. I love our military and their ability to keep us free from the enemies of freedom. I love knowing they are there in case of invasion from a foreign enemy. I also know they have a role in stopping terrorist activity.

My concern is the potential for abuse. Not the military per se, but the people in charge, particularly Obama. I don’t trust Obama, Pelosi, Reid, Kennedy, or most politicians with power. They are prone to abuse it. I think there needs to be further debate before deploying 20,000 troops to our local streets under the guise of terrorism. I need more information. The devil is always in the details…

The answer is simple…

The financial crisis, auto industry crisis, and budget crisis are products of businesses and government abandoning simple common sense principles.

In the financial industry too many companies abandoned sound lending principles and gave money to people that were either speculating in the real estate market or simply did not have the means to pay back loans.

The auto industry is paying people to sit around while they get paid 95% of their wage due to poorly negotiated union contracts. The wages are out of balance with the market system. The auto industry executives should be fired for allowing such ridiculous contracts. The big 3 make some great cars, they just cost too much to make.

The federal budget and state budgets are a mess because government is trying to do too much because the American people are asking or expecting it to do too much.

The answers; Lend money to all that have good credit and have shown a history of being able to make an income. Bring back the money down concept that has served us so well for so many years. If it makes sense to renegotiate mortgages then do so, if not, people can go rent an apartment until they can rebuild their finances to buy a home.

The auto industry should file chapter 11 and shed the union contracts that are a noose around the neck of productivity. Fire the top management and move out of Michigan. Michigan with its current Governor is hostile to the idea of free markets. I hear North Carolina and Tennessee are looking for some new car plants.

The American people need to stop asking the government to get involved in everything going on. Our politicians are incompetent misfits that have never managed anything in their lives. They are power hungry nit wits that don’t deserve a speck of respect based on their past performance, and they all need to be thrown out, forcefully if necessary.

Simple yes… Realistic?

Unions are the Government in disguise…

The car industry in America is failing because they are treating their employees like government employees. They are being crushed by contracts that can no longer be sustained, and remain competitive.

All you have to do is look at the pay scale for auto workers and questions arise. The average wage is more than $70 an hour. The real problem is that for every one active worker, GM has 5 retirees they are paying very lucrative benefits to as well. Granted these workers earned them but it is not the tax payer’s responsibility to rescue a failed ponsie scheme. We already have one failed ponsie scheme to support; Social Security. We need them to file chapter 11 and restructure the union contracts.

Union bosses’ average pay for the top 50 officers is $186,000. More than 1000 officers and staff make more than $100,000. I don’t begrudge them their pay; I just don’t want to pay it. If their company can’t afford it, then they can stop paying. Let the two parties work it out. Failure is the only option for these two groups to come to the table.

Let’s all agree - starting today that we need less government in our lives and industry, not more. Let’s get back to good old American ingenuity and stop asking a completely incompetent bunch of politicians to save any industry. They can’t fix anything. Just look at Social Security, Medicare, Medicaid, EPA, DOE, FCC, etc. They are just a few of the examples of government incompetency…

The more they ask the more we “get”…

Deeper into chaos is where we are heading with all of this tax payer “bailout” we keep talking about. It is time to stop!!!

If you look closely and analyze what is happening it is clear to see; the more the government gets involved the worse things are getting. We need someone to just say NO!

I am truly concerned for our future. If this continues you should be too…

Failure is not an option?

I had the pleasure last year to meet and introduce Gene Krantz, the man responsible for that memorable phrase. If you don’t know, he managed the Apollo 13 crisis. He is a remarkable man, and his determination to save his astronauts is embodied in his famous phrase; “Failure is not an option”.

But in the context of business, failure has to be an option; it is what inspires success. If there is no chance of failure what you get is government. Inefficient agents knowing anything they do cannot impact their success or failure. You get morass, bureaucracy, mediocrity, lost hope, and a failed system.

GM, Ford, Chrysler, and many financial institutions, are in their predicaments because of poor management, both of the business, and for car companies, the unions. These businesses must be allowed to fail to become more efficient. Lots of pain and suffering brings about a new perspective of the future. You learn what to do and not to do next time. It is what has evolved our economy into the greatest in the world.

Failure is the right option. Failure is the only option that will get us back on track. Failure is the precedent to success. Until we stop trying to “save” everyone, we will be stuck in this period of prolonged waiting. Because believe me, we will fail eventually. The longer we try to prop things up with the government the bigger and harder the failure will be. So let’s let the failure begin.

Honoring a Veteran Honoring Veterans...

I always count my blessings on Veteran's Day and look for the right words to honor those that have served and are serving. I found those words in a note from my good friend and veteran Kirk Weisler. I post his words for you to read on this day of honor:

It’s Veteran’s day, and I won’t cheapen it with a feeble effort and some patriotic platitudes. Rather I will attempt to express something from my own experience and from my own heart.

I would like to share with you a personal story of an opportunity I had while serving a 4 year active duty enlistment with the 3rd Ranger Battalion at Ft. Benning Georgia. I also got to serve a short stint with the 10th Mountain Division while at Benning. Part of my service included being assigned to the dreaded “Funeral Detail” Which I was informed would be a mostly boring assignment to honor recently deceased veterans. The funeral detail was a 30 day duty assignment where I would be in charge of the seven man team who did the 21 gun salute, during the funeral services of any active or retired serviceman who passed away within a 2-3 hour driving radius of our post. Also assigned to our detail was a service man to play Taps, and the crew assigned to carry the deceased veterans casket and attend to the folding of the flag from his casket and passing it to the spouse or next of kin.

I cannot think of any other assignment or duty I performed during my enlistment that was as personally rewarding to me as this one. The absolute depth of humility and gratitude I felt for these men, whom I did not know, was surprising to me then as a young and mostly immature soldier. But my knowing them did not seem to be important…knowing that they had sworn to “uphold and protect”, that they had worn the uniform of a soldier, that they had been willing to put their life in harms way for a cause greater than themselves, seemed to be more than enough. I remember clearly the intense feelings that came to myself and my squad each time the sound of Taps reached through our ears to our hearts, each time the shots rang out, and each time our sacred flag was folded with reverence and respect. It seemed during those moments that the soldier we honored that day was some revered national hero, someone whom had single handedly won the day. As if the soldiers we honored at those services somehow represented every soldier who had every fought in or been to battle… the presence or sense that I felt during those sacred moments was if there were literally thousands of soldiers there at that moment, coming to pay their respects, to give reverence and honor to one of their own. On the sometimes long and mostly quite bus rides back to base as I reflected on the feelings of the day…I could easily imagine the deceased whom we had honored being welcomed from this life into the next by the Warriors and Soldiers of yesterday’s battles into a Army of with perhaps a different uniform, maybe a different commanding officer and weapons…but still fighting for the same cause…. A cause of Justice a cause of Mercy, Be-Cause of Freedom.

The fanciful romantic musings of a young Christian soldier?…Maybe so. One thing is for certain though…Funeral Detail was anything but mostly boring and honoring veterans dead or alive is no singular activity. Honoring one is honoring all, honoring all is honoring the one. Today I will find at least one veteran, I will thank him for what they have done, what they were willing to do, what he/she is doing right now and what they may be asked to do tomorrow. My experience on that funeral detail taught me anything it taught me that honoring one….truly can be honoring all…and in honoring them all we miss not a one.

God Bless America and the Soldiers Who’ve Fought for Freedom Kirk Weisler, Former Sgt, 3rd Ranger Bn. , 10th Mtn Division, 19th Special Forces

Hooah and thank you!

Finally economics we can toast with a beer...

This little story about some beer drinkers explains a lot.
A good lesson for our country.

Suppose that every day, ten men go out for beer and the bill for all ten
comes to $100. If they paid their bill the way we pay our taxes, it
would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that's what they decided to do. The ten men drank in the bar every
day and seemed quite happy with the arrangement, until one day, the
owner threw them a curve. 'Since you are all such good customers, he
said, 'I'm going to reduce the cost of your daily beer by $20. Drinks
for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the
first four men were unaffected. They would still drink for free. But
what about the other six men - the paying customers? How could they
divide the $20 windfall so that everyone would get his 'fair share?'
They realized that $20 divided by six is $3.33. But if they subtracted
that from everybody's share, then the fifth man and the sixth man would
each end up being paid to drink his beer. So, the bar owner suggested
that it would be fair to reduce each man's bill by roughly the same
amount, and he proceeded to work out the amounts each should pay.

And so:

The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now paid $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before And the first four continued
to drink for free. But once outside the restaurant, the men began to
compare their savings.

'I only got a dollar out of the $20', declared the sixth man.
He pointed to the tenth man,' but he got $10!'

'Yeah, that's right', exclaimed the fifth man. 'I only saved a dollar,
too. It's unfair that he got ten times more than I!'
'That's true!!' shouted the seventh man. 'Why should he get $10 back
when I got only two? The wealthy get all the breaks!'

'Wait a minute,' yelled the first four men in unison. 'We didn't get
anything at all. The system exploits the poor!'

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat
down and had beers without him. But when it came time to pay the bill,
they discovered something important. They didn't have enough money
between all of them for even half of the bill!

And that, boys and girls, journalists and college professors, is how our
tax system works. The people who pay the highest taxes get the most
benefit from a tax reduction. Tax them too much, attack them for being
wealthy, and they just may not show up anymore. In fact, they might
start drinking overseas where the atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics, University of Georgia


For those who understand, no explanation is needed.

For those who do not understand, no explanation is possible. ...

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…