tag:blogger.com,1999:blog-21829866.post2417490256411823465..comments2023-08-20T07:06:14.115-04:00Comments on Thurber's Thoughts: The 'appearance' of economic growthMaggiehttp://www.blogger.com/profile/12677808307727487766noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-21829866.post-81471859392914359602009-01-30T09:02:00.000-05:002009-01-30T09:02:00.000-05:00Maggie,Until we have people representing us who un...Maggie,<BR/><BR/>Until we have people representing us who understand and follow the Constitution, we are doomed.<BR/><BR/>Doomed to pay the ever increasing debt, but more importantly the compounding interest that overspending your income brings.<BR/><BR/>We need people who will dedicate themselves to:<BR/><BR/>Systematically pay down the debt<BR/><BR/>Cut the budget to (as we need to do locally) stay within the Constitutional mandates<BR/><BR/>And, when the debt is paid off, cut taxes to the levels needed to pay only for the Constitutionally mandated functions.<BR/><BR/>(P.S., Yes, I still believe in the tooth fairy and Santa Claus too.)Hooda Thunkit (Dave Zawodny)https://www.blogger.com/profile/13176392380086227377noreply@blogger.comtag:blogger.com,1999:blog-21829866.post-12552660338576314252009-01-29T19:45:00.000-05:002009-01-29T19:45:00.000-05:00Mad Jack - you're correct, but I was trying to kee...Mad Jack - you're correct, but I was trying to keep it simple...Maggiehttps://www.blogger.com/profile/12677808307727487766noreply@blogger.comtag:blogger.com,1999:blog-21829866.post-22320360740567292402009-01-29T19:40:00.000-05:002009-01-29T19:40:00.000-05:00This is a fairly good explanation, but there are a...This is a fairly good explanation, but there are a few things I believe are not being explained quite correctly. For instance:<BR/><BR/>From Maggie Thurber: <I>Regardless, the government 'takes' (in one form or another) the money from us. That means that none of us have the funds to replace our own sod. The local company has the single order which probably won't be duplicated. Potential customers in this area are left with less funds so they won't be ordering from him. Government - in spending this way - creates the appearance of economic growth, but no growth has actually occurred.</I><BR/><BR/>It's true the government takes money from us, but our sod may not need replacing, either now or ever. Moreover, the money is not just taken from potential customers who live within the commercial region of the sod vendor. Money is taken from everyone, potential customer or not. The additional amount taken from potential customers is so small that the potential customers are not affected and continue to order sod. The real danger lies in the single large order which will not be repeated. <BR/><BR/>Consider that the sod company's business has fallen off, so employees have been fired and capital has been reduced (equipment and such). The large order must be filled, which means a large investment in capital and hiring employees, both of which cost money. Since the large order won't be repeated any equipment purchased will fall to disuse and employees will be fired (again). A bigger danger comes in the form of opportunity cost. The sod company is able to fill the large order at the cost of not filling many smaller orders, which they would otherwise be likely to get again. Thus, the customer base falls and the sod company is likely to end up in worse shape than before. Finally, if a cost accountant analyzes the project he is likely to find that the project will lose money for these reasons. Try to explain that to someone in marketing looking at a huge pile of government money. Wal-Mart has helped to bankrupt companies using this method. Not that Sam strong armed anyone – all he did was wave a huge wad of cash in front of them. After that, no one even bothered to read the contract.<BR/><BR/>From Maggie Thurber: <I> Now, if the government gave every taxpayer (not every citizen, but everyone who actually pays taxes) a reduction in their tax rates, every taxpayer would have more money. Those taxpayers would then either spend it, invest it or save it. If they spend it, they generate the activity that leads to economic growth, creating a demand for products and services. If they invest it, it provides the equity and funds for companies to do capital projects, like upgrading equipment or facilities. Again, that generates the activity that then leads to economic growth. If they save it, the bank they use has higher assets and can loan more.</I><BR/><BR/>Ha! Ah-Ha! Excelsior!<BR/><BR/>Now, why didn't King George II think of that? Do you suppose The Anointed One will think of it? I'm being facetious, which is a five dollar word that means I'm pulling your chain. I believe that both men have thought of this scenario and taken a hasty belt of their favorite pain killer before rolling over and falling into a troubled sleep. Here's why.<BR/><BR/>The government is like any other organism in that it must either grow or shrink. Since growth is akin to life and survival, growth is preferred. To grow, our monster needs food (tax money) and control of its environment (law and law enforcement). The right of the individual to grow as an individual and to control their own life is in direct opposition to the growth of government. Why allow the parts to control their own destiny when those parts may decide that government has grown large enough and must be trimmed back? Think of this in terms of your neighbor's hedge which has grown from a neatly trimmed four foot ornamental property demarcation offering the illusion of privacy to a twelve foot high, six foot thick mass of impenetrable brambles that have long since obliterated your rose garden and now are beginning to encroach on your pool. A new neighborhood ordinance makes hedge trimming an offense punishable by twenty-five years to life at hard labor. Worse, the other neighbors think the hedge is a marvelous idea and wouldn't dream of being without it. Who would protect them from the Canadians, if not for the hedge?<BR/><BR/>The government also believes that it is smarter, wiser, cleverer and more astute than the average chili slurping Caliban who busts his hump five days a week just to make it to the bell on Friday. Even though this position could be successfully argued without naming names, it still isn't the real reason control is being slowly wrested from the individual. It's uncontrolled growth brought on by greed.<BR/><BR/>Each United States President in turn could have reversed this trend, if only for four years. None have. Not "That Damn Truman" as my old pater used to refer to him, not I Like Ike, not JFK or LBJ, not Tricky Dick, not What's His Name, not the Peanut Man, not Ronnie, not King George I, not Slick Willie, and darn certain sure not King George II. I don't think The Annointed One will be any different at all.Mad Jackhttps://www.blogger.com/profile/06190137186843630543noreply@blogger.com