Businesses’ Freedom to Choose.

I normally don’t directly comment on news stories, but I can feel my outrage building over the hot news out of Arizona.

For a background, please see my post on what Real Rights are: https://dannesrepossessions.wordpress.com/2013/04/09/real-human-rights/

Entitlements are never rights.  Never.  Claiming an entitlement as a right means you are claiming someone else as your slave.  Choice is the ultimate freedom in this world.  Choosing what to do, how to act, choosing our beliefs…

Businesses naturally have the right to refuse service to anyone they want.  At least, they should.  These reasons can be as simple as someone not wearing shoes, or it could be as complex or as mean as refusing someone on the basis of race.  Businesses should be free to choose who they serve, and suffer the consequences of such a decision.

Outlawing businesses from discriminating may seem like the righteous path from the outside, but forcing businesses and people to do that which they believe abhorrent is the greatest evil.  This is because the business is no longer a free enterprise that can choose to do business how they wish, but they are now slaves to the people that wish it.

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America’s Soul

It is not the low cost of labor that drove away America’s Soul, but the high cost of liberalism.  The regulations.  The laws.  The taxes and tariffs.  The union strangleholds.

If you analyze the costs of all a manufacturing business incurs, labor costs aren’t that big of a portion.  And businesses are starting to realize it, too.  The poor quality and the long term costs of businesses from off-shoring are actually starting to drive businesses to un-off-shore their manufacturing base.  For example, if a company builds a factory in China, they do not actually own the factory.  China owns it, even though the company still must pay property taxes.  So if a company wants to leave China, they literally have to leave everything behind.  The poor quality, bad customer relations and poor business models is starting to be bad for business.

This “Off-shoring” of business and the transfer of the economy from a Manufacturing base to a Service industry is **NOT** inevitable.  Nor is it healthy.  No country can survive it.  It is no coincidence that the country is on the down swing going from popped economic bubble to popped economic bubble to popped economic bubble.  And it is no coincidence that every pop swings the country lower, and every pop comes with higher real inflation.  It is no coincidence that even though unemployment rate is down, so is the Labor Force Participation rate.  It is no coincidence that with the departure of America’s Soul, that all of this is the new normal.

No country can survive the departure of manufacturing base.  As discussed in previous posts, Manufacturing creates Wealth.  Services can trade for this wealth, but they cannot create it.

If tomorrow every single Democrat were voted out of office, and replaced by a Republican, the country’s soul would still not be saved.  This country can only be saved by the return of Manufacturing.  This will bring back jobs and wealth.  It will bring back prosperity and innovation.  It will even make those in the service industry wealthy.  A rising tide lifts all ships.

We are at the tipping point.  The car is resting on the edge of the cliff slowly, very slowly falling off.  Doing nothing will be disastrous.  If we want to save this republic, we need to drop everything to get manufacturing back.  We can do things like fire every single person in the EPA and sell the building.  Or fire 95% of the IRS and institute a single, low flat tax rate.  Or institute equal tariffs and import policies against other countries.  Or all of these ideas, and more.

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State of Affairs in the Union.

In a few days President Barack Obama will give the annual State of the Union address where he talks about, in front of congress, all that is going well in the United States, all that isn’t going well, and his plans for the future. But since the President thinks that all is mostly right with this country, it is necessary to address the real State of the Union.

 

The Unemployment Rate is down! Hooray! There aren’t actually more people working, though. There are fewer people working today than there was a month ago, and a month previous, and a year previous, and half a decade previous. Labor Force Participation Rate is at a 40 year low. But the unemployment rate is down! Once a person is unemployed for a certain amount of time, that person is no longer counted as “Looking For Work.” And without creating a single job, without making a single person’s life better, the unemployment rate goes down! The cited unemployment rate is 6.7%. The REAL rate of persons unemployed is in excess of 25%.

 

The GDP increased this past year by 4% (estimated). The Economy is growing, hooray! But the federal reserve is inflating the economy by $1,250,000,000,000 per year. When M3 (the amount of cash supply + the amount of money in banks) is $10,000,000,000,000 per year, the Federal Reserve has in effect, created an inflation of 12.5%. So the economy has grown by 4%, but your money is worth 12.5% less. In effect, the economy has shrunk 9%. And the same goes for every year that Quantitative Easing has been in use.

 

Obamacare is kicking in, hooray! Nevermind that it costed us almost three quarters of a billion dollars to build the Obamacare website. Nevermind that the no-bid contract for the website went to a close personal friend of Michelle Obama’s for a company in canada. Nevermind that they couldn’t successfully get it deployed in time. Nevermind that it is one of the least secure websites on the whole of the internet. Nevermind that thousands have already had their data and personal information exposed. Nevermind that the website has no way of knowing if it has been breached. Nevermind that hundreds of thousands of people have signed up, and paid, and yet many insurance companies havne’t received a single filled in form. Nevermind that these people are showing up to get healthcare and are being told that they don’t have insurance. Nevermind that even for the people that have legitimately signed up, the Government still hasn’t figured out how to pay the health care providers. Nevermind that the millions of young and healthy people that the entire system is relying on to transfer their wealth in to the system haven’t yet signed up, in the biggest Wealth Redistribution Scheme in 20 generations. Nevermind that thousands of doctors are leaving this boondoggle, further straining the system. Nevermind that while some people are getting covered that weren’t before, it is MORE expensive for everyone, and everyone receives lower quantity and quality of coverage. Just remember that Obamacare is in effect, hooray!

 

Both sides of Congress are working to make the illegal aliens legal, hooray! Don’t worry that there are many rapists, murderers, felons, criminals and tax cheats among them. They will be forgiven when they are made legal! Don’t worry that we have a real unemployment rate of 25%. We’re going to legalize 30 million new workers! Don’t worry that the 12 million (minimum) already here won’t have to pay their back taxes. They’ll pay a simple fine that will be many, many, many times less than what they owe! Don’t worry about the illegals illegally receiving welfare, food stamps, social security, social security disability and house assistance. They are receiving those benefits anyway, so nothing will change! Don’t worry about the 18 million (estimated) family members that will be given immediate green cards and invitations to come to America. We’ll have already driven the car off the cliff at that point, what’s a few more bodies to change anything!? Don’t worry about the millions of “Anchor Babies” despite there not being a single word of law that says they are automatically citizens. Our children are forced to learn spanish to help them! Don’t worry about what would happen to you if you illegally entered their home country and tried to make residence. You would be housed in a beautiful prison that would make the gulag look like a vacation retreat! We’re making the illegal aliens legal, hooray!

 

So to sum up the state of the union (for now), we are broke, unemployed, about to be more unemployed, our money is worth less every day, the economy is shrinking, and either we can’t get healthcare, or we can’t afford healthcare now. Hooray! Well done Obama and the rest of the Government!

 

Sorry it has been a while since my last update. I’ve been working several ideas through my head but they were nothing worth posting. I’ve got a couple good ones coming. One concerns repealing the Bill of Rights. It will be a good one.

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The solution to ObamaCare.

After many arguments, the liberals don’t seem to understand that NO Obamacare is a valid alternative to Obamacare.  That even though we’ve suffered many evils so far with ObamaCare, there are more yet to suffer and that repealing it will go miles to making life better in the United States.

ObamaCare itself is either the greatest confluence of incompetence ever known in history, or it is an intentional botch up.  You can see it now every time a democrat gets in front of a microphone or camera.  “This [massive government intrusion into free enterprise] is a failure of Capitalism.  A single payer system will solve everything!”

And yet No Obamacare is not a solution to Obamacare?  Fine.  I’ll propose a real solution.  And I’ll fix the entirety of the Health Care system at the same time.

Almost all the problems of our current health care system are due to Health Insurance.  So the solution to the ills of Health Insurance is more Health Insurance?  Laughable.

Step 1.  In effect immediately, all Health Insurance is now illegal.  No person from a homeless man on the street to Bill Gates in his mansion will be allowed to purchase Health Insurance.  All the Cadillac plans that Congress, the Judicial Branch and the Executive Branch are hereby void.  Medicare is void.  Medicaid is void.  No health insurance anywhere.

Bad things happen when you disconnect the consumer / costumer from paying for the product / service.  Bad things happen when the customer no longer shops for the best price for the product.  When both are combined the prices skyrocket.  If someone is buying your product, and they don’t care what it costs, and they are not checking out your competitors, are you going to have low prices?

Step 2.  We change the entire judicial system to a “Loser Pays” system.  As it stands many lawyers bring frivolous lawsuits.  They would ask for a $50,000 settlement.  And if it will cost the company / doctor $75,000 to successfully defend it, with no recourse to recoup court costs, which course do you think they will take?  Naturally they’ll pay off the $50,000.

Several things will happen if you switch to a “Loser Pays” system.  First companies will have a financial incentive to defend themselves.  If someone brings a frivolous lawsuit and gets spanked in court, then they would be required to pay the defendant’s court and lawyer costs.  Second, only real cases with real malpractice will be brought.  Third, this would undercut the gigantic legal industry.  If tomorrow there were only a quarter the amount of lawsuits lawyers won’t be as important.

Step 3.  You limit awards from all lawsuits to Actual Damages only.  No more will someone be awarded hundreds of millions in Emotional Distress.  No longer will a company have to pay bundles and bundles in Punitive Damages.  All awards will be limited to actual costs of what it takes to fix the problem.

Step 4.  Hospitals are now no longer required to take anyone and everyone that comes in.  One of the largest drivers of Health Care Cost is paying for people who can’t pay.  This is a snowballing problem, too.  By transferring costs of those who can’t pay they are inherently taking people who could pay yesterday, but can’t pay tomorrow.  Suddenly a new person is unable to pay and the costs get pushed up more.  And more.  And more.  And eventually the system will shatter when no one can afford health care.

It may seem cruel to turn away those that can’t pay at first, but the alternative is an untenable system that will eventually explode.  By allowing Hospitals to turn away people that can’t pay they are taking off a HUGE chunk of hospital costs, and in turn, making Health Care more affordable in the process.

Step 5.  Health Savings Accounts will be encouraged through several ways.  If you currently have insurance, add up all the money you’ve spent on Insurance over your lifetime.  Now deduct how much the insurance has paid out in health care costs. Very, very, very few people actually receive more in benefits than what they paid in.

Like before, all money put into it would be tax free.  All money in it used for health care would be tax free.  And as an added bonus, once the savings account is maxed out, the person can take their monthly HSA allotment and receive it into their paycheck at a half-taxed rate.  So if you pay in $300 per month and max it out at $10,000, you can collect an extra $300 on your next paycheck, but only pay taxes on the extra $150.  Furthermore any money directly deposited into the HSA will be eligible for a 50% tax refund.

All HSA accounts would be fully insured by the Federal Government.  Also, the banks would be allowed to loan out at a rate of 50% (instead of the usual 90%) which will boost the economy.

This will do several things.  It will reintroduce capitalism back in the system.  People will be paying for health care with their own money and will be forced to pick the best value for their money.  Next it will force health care providers to compete for the customers.  Third, it will boost the economy with money being held in the bank ready to be used AND being loaned out at the same time.  Fourth it will incentivize having a maxed out HSA.

Step 5. After a period of several years, maybe 5-15 years after all of this has been enacted, Health Insurance will be legal again.  But it will not be a first-dollar service plan.  The only Health Insurance allowed would be high-deductible, catastrophic coverage.  And the lowest deductible would be equal to the maximum HSA amount.

Each step previous would lower the Health Care cost quite a significant bit.  #1 would prevent Insurance Inflation, driving down costs.  #2 would help America with many things, but with this problem would drive down Malpractice Insurance, another significant cost.  #3 would drive down malpractice insurance more.  #4 would significantly drive down costs because you would no longer be paying for others when you get healthcare, you would only be paying for yourself.

In addition, #’s 2, 3, and 4 would cut the gigantic “Administration” departments that Hospital Corporations have to deal with lawsuits, malpractice insurance and billing departments.

When the costs have come down, and stay down, then and only then would Catastrophic Insurance become legal.  While $10,000 deductible on Catastrophic Insurance seems low now, when the costs for Health Care drop 70-90% in total, $10,000 would cover a lot.

 

 

Sorry I haven’t posted in a while.  I have several posts that I’ve been editing and re-writing for a while, but I just don’t like them yet.

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Real Money and Fake Money.

Many of the problems in our country have to do with the difference between Real Money, and Fake Money.  Ideally all of our money would be backed by some commodity with a relatively inflexible value, like Gold, or Silver, or Bacon.  If we had Gold Backed Money, then there would be no such thing as Fake Money.

But it has been many decades since all of the gold was confiscated and spent, and all of the pre-existing gold in the treasury just spent outright.  We have a FIAT system now.  Basically that means the value of it is based on how much there is of it, and how much people want it.  Since the laws of Supply and Demand are inviolate, fiat systems can work.

That is, until you start running into Fake Money.

Ignoring inflation for a moment, Real Money would have a value because there is only a finite amount of it (including the amount sitting in banks), and that finite amount can only be used to purchase so much.  Because there is a supply of paper bills, and a demand for them to purchase products, Paper Money has a Real Value.

But the first issue with fake money comes from Government Assistance Programs.  Let’s take a guy, and call him “Person A.”  He is a carpenter, and works for $10/hour, 40 hours a week.  $400 a week paycheck (ignoring taxes) might not seem like much, but to Person A it is a lot.  He remembers every single nail he had to hammer to earn that $10/hour.  He remembers the back breaking labor required, the mind bending mathematical problems to get the house straight…  He remembers every ounce of effort it took to earn that $400.

And then we have “Person B.”  This guy gets a welfare paycheck and social security disability payments.  Let’s assume that he coincidentally gets $400 a week.  How hard did Person B have to work to get that $400?  Did he actually add anything to Society to earn that $400?

So we see the first instances of Fake Money.  Real Money is taken from productive people and given to someone who isn’t productive.  Because the welfare check is unearned, the Real Money becomes Fake Money.  While the Carpenter goes out into the Marketplace with the $400 he earned and decides how to best spend it, so does the welfare recipient.  The presence of Fake Money, money that isn’t earned by adding value to the economy, devalues the Real Money.  The amount of money in the economy may be the same, but the amount of value produced is down.  Because there is more money, and less products, the money is worth less.

The second instance of Real Money vs. Fake Money has to do with what I said to ignore above.  Inflation.  If we assumed that the supply of money never changed, as more people enter the economy and add value to it, the demand for the money increases.  So the purchasing power of the dollar rises.  This is called deflation.  (And personally I’m not convinced that it is a bad thing).

What governments with fiat systems should try to do is to increase the supply of money (remember that it’s just paper and nothing more) at the same rate as the increase in demand.  This would lead to neither inflation, or deflation.  However the vast majority of the time governments print out more money than the increasing demand.  Thus the demand increases, but the supply increases more, and we have Inflation.  The purchasing power of the dollar is decreased.  The rough average is 5% inflation, give or take.

This is, in itself, a creation of Fake Money.  By taking money that no one earned and just spending it on the economy, or loaning it out at 0% interest, you have the same issue as you had above.  You have one guy who earned $400 go out and try to buy something while another guy shows up with $400 that still has wet ink.  Bad things happen to the guy who earned his money when suddenly there is twice as much money to purchase something.  But this example is assuming 100% inflation.

What is the inflation right now, you’re probably asking.  According to the Bureau of Labor Statistics, the CPI right now is about 2%.  And it has been 2% each of the past couple of years.  Not bad, right?  Except that the BLS doesn’t include Food Prices, Energy Prices and Housing Prices in their calculation of inflation.  Since the 3 largest fluctuating items are Food Prices, Energy Prices, and Housing Prices, it is utterly clear that the government is cooking the books to make things appear much better than they are.

So let’s take a try at calculating the Fake Money ourselves.  As it stands, there is $2.5 trillion in paper bills floating around in the economy.  If you count the money in banks (who take the money, hang onto 10% and loan the rest out) there is about $10.6 trillion in money value in the economy.  The problem is that for the past several years the Federal Reserve (who actually owns and prints our money) has been making $0.2 trillion of Fake Money every month, and loaning it out at 0% interest.  So we have $2.40 Trillion in Fake Money created every year, against $10.6 trillion of money value.

This puts the real inflation at 23%.  Yup, 23%.  Not 2%.  23%.  With 23% inflation, the value of the money you put in the bank account 3 years ago is now practically cut in half.  The real money you earned had its value cut in half in 3 years because of fake money.

 

 

Again, thanks for reading!  Now before everyone jumps all over me, I am spectacularly aware that it is not that simple as I described.  Often times I exhaggerated the situation (like with 100% inflation), or I ignored how complex a situation is.  For example, even with 23% inflation, people haven’t felt most of the pain of the fake money.  Yet.  There is a big question as to where it is going, and that could be a huge post in and of itself.

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What is a Job?

I know it seems like a silly question, but it goes to the heart of why the Liberals cause the economy to tank every single time they take over.  Without exception.

So what is a job?  It’s not simple.  A job is when a business hires a person to fulfill a business need.  What is a business need?  It is a lot more complex.  A business need is a task a business needs completed.  This task could be simple, or difficult.  It could require a new skill, or just a new person.

For example, let’s imagine a simple business with a boss and all of his construction laborers.  In this example, the boss does his managing of the job which takes 45 hours a week.  However, the boss also is running the office, making copies, shipping paperwork, taking phone calls…  This portion of the job takes 35 hours a week.  Assuming a 40 hour work week, the boss himself is working 2 full work weeks every week.

It’s important to understand that every person has a usable number of hours every full week (including saturday and sunday).  Let’s just say that this number is 60 hours a week.  After you take out sleep, meals, bathroom breaks, commuting / travel, and other miscellaneous but necessary activities there are 60 hours a week.  And at some point for a task that is difficult, a task’s efficiency starts to drop after a certain amount of time.  Let’s just say this number is 40 hours a week.

Back to our original example, not only is the boss killing himself trying to do everything, but he’s doing it inefficiently using a lot more time than he has.  The solution?  Hire a secretary to fulfill his business need.  One person, one job.  This one person performs an act that makes the entire business run better, more efficiently, during normal business time, and even though this person is paid with money, probably saves money for the business.

This is the perfect example of a Job that fulfills a Business Need.  Furthermore, this is all done with “Real” money.  And no, not all money is “Real.”  Only money earned and traded for jobs that are from business needs, from people to people, and business to business is real money.

Go back to the example.  Say the boss only manages for 20 hours a week, and organizes the office for 20 hours a week.  Does the business need a secretary?  What happens if the business doesn’t need a secretary, but hires the secretary anyway?  Does the business prosper?  Do the customers get the best deal for their money?

Nothing good comes out of hiring someone the business doesn’t need.  It’s called “Busy-Work.”  That person isn’t actually adding anything to the function and efficiency of the business.  While he may be paid with money like the real secretary, the money to pay him isn’t magicked into existence.  It comes from somewhere, most often, from the customer.  But since the Business isn’t actually offering a more tangibly more expensive good or service, the customer is buying the same thing for more.  One of two things will happen.  Either that person will bear the cost and have less to spend elsewhere, thus damaging the economy.  Or that person will choose another contractor and thus damage the economy.  Anyway you cut it, hiring someone the business doesn’t need doesn’t just hurt the business, but it hurts everyone.

Now, let’s take another example.  How about a Government entity artificially lowers the Full Time Week from 40 hours, down to 30 hours.  And since the penalty for having a part time employee work 30 hours is huge, all the part time employees are cut to 20 hours just to give a safe cushion against accidental overage.

Because a full time workweek is effectively now 20 hours instead of 40, overnight you’ve doubled the amount of jobs in the economy!  This is a good thing, right?  Nope.  The amount of work one person can do in an hour is called “One Man Hour.”  This is ignoring the differences in work between an Engineer and a grocery bagger.  If you add up all of the jobs and the amount of time they would take, you’d have a certain number of Man Hours that the current economy requires.

Cutting the Full Time Workweek from 40 hours down to 20 doesn’t magic more money into the economy.  In a real economy there is only a finite amount of money, and there is only a set number of Man Hours required.  The money to man hour ratio doesn’t change.  The economy isn’t more prosperous just because you artificially cut the Unemployment rate down.  Since the workers are now working less, they are not as efficient as if they had a full time job. 

So not only has the money to man hour ratio not changed, but worked efficiency is down and the economy is worse yet!

Fortunately for us, it won’t get too much worse as long as the US Population isn’t growing.  Or if 30 million illegal immigrants are about to be legalized.  Either of those would really put the final nail in the coffin of the American Economy.

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The Second Amendment is America’s Greatest Legacy.

Of all the offenses against real human rights, the removal of the right to Self Destiny is the worst.  What is the point of living if you can’t determine your own destiny?  This is why the second amendment is the most important of all.

There are many predators in the world.  Both with, and without government sanction.  The only thing that keeps them in check is both the ability to be just as lethal, and the willingness to be ready.

The Gun is the pinnacle of society.  And I’m not saying that flippantly.  There is no finer thing ever invented, or legal doctrine, or law, or philosophical statement that does more to make people equal to each other than the gun.

A thousand years back there was a hierarchy to the world.  The biggest barbarian swinging the biggest axe was the metaphorical 800 pound gorilla in the room.  He did what he wanted and there weren’t any men including groups of men that could stop him.  He could take what he wanted, eat what he wanted, rape what he wanted and coerce actions that he wanted.

At the opposite end of the spectrum at that time was the 4’6 tall 60 pound woman.  There wasn’t a single person that could do whatever they wanted to this person, and in reality there wasn’t a single thing she could do to stop it.

And now in present times this is not true.  Your 60 pound woman is just as equal as the biggest barbarian.  Why?  Not because of some judicial fiat or law.  A piece of paper is meaningless to an intruder in the middle of the night.  Because of something a philosopher said many centuries ago?  Ask a victim of a break in if quoting Plato would have saved them.

The 60 pound woman is the equal of the biggest barbarian because she is just as lethal as he is.  The giant axe wielded by the giant barbarian isn’t the deadliest weapon on the battlefield any more.  A tiny purse pistol is just as lethal to the human body as the largest hand cannon the barbarian can hold.

Suddenly people are equal.  Not because some men committed treason some 240 years ago by signing a piece of paper.  But because criminals and tyrants can no longer resort to coercion to get what they wanted.  A criminal can no longer demand your wallet because you can’t fight back.  A tyrant can no longer demand you swear fealty to a new crown because you are incapable of standing up for yourself.

That is why the 2nd Amendment is the greatest of all the Amendments.  This is why the right to bear Arms is the greatest of all Inalienable Rights.  It means far more than just going off to plink some aluminum cans.

 

 

Hi all!  Thanks for reading.  I have more lining up, but they are taking a lot more work to get in a finished state than I had planned.  They’ll be released when I know they are good enough.

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