Economics: January 2012 Archives

We've all heard news reports about thieves stealing things like copper pipes and wiring from empty or abandoned buildings. It's not all that surprising considering the price of scrap copper and other metals. (Some thieves have gone so far as to steal bronze plaques from grave yards and buildings.) We've heard about Darwin Award nominees trying to steal electrical cables from power poles (usually frying themselves in the process). But this bunch of thieves have taken it to a higher level by stealing an entire building.

(The thieves] first apparently called the owner of a business next to 18400 Frontage Road along I-55 and told him the structure was being dismantled that day because the property had been sold, the Will County Sheriff's office says.

They then pulled up two semi-trucks to the building -- and tore it down. They removed the steel from the structure and then carted it away in the trucks.

The audacity of this crew! This is a crime that took a lot of planning. It was not a spur of the moment "Gee, that building is mostly metal, let's steal it!" kind of plan. They pulled off this large scale theft in less than a day and got away clean. That means a lot of organization and the use of an experienced crew.

While still a crime, it's success has me admiring the crew that pulled it off.

(H/T Scary Yankee Chick)

Over at Ace of Spades is a list of the things the Left fears should Obama lose the election come next November. Are their fears unfounded? In some areas, yes. But for the most part they are right to fear that much of the damage done by the Congressional Democrats since 2007 and President Obama since 2009 will be undone should Obama lose in November. When you come right down to it, the upcoming elections are about the wholesale damage perpetrated by the Left's minions over the past 6 years. Will the American people allow the ongoing dismantling of a great nation all in the name of some vague sense of "fairness"? And just who defines what is fair? (Of course the Left believe they are the only arbiters of fairness, even though many I have debated with really have no idea what 'fair' really is.)

The problem is that many on the Left don't see the actions that have damaged the economy as bad. They only see it as 'fair'. (I'm still waiting for someone on the Left to show me where it says life is supposed to be fair. So far, they haven't, nor do I expect them to.) Through observation over the years I have come to see that the Left's ideology is both economically and morally bankrupt. Never mind history's lesson showing it to also to be a murderous ideology, in the end.

There are plenty of examples of the fairness of socialism going back over 400 years to show just how bad their ideology can make it. One of their first forays into 'fairness': the Plymouth colony in Massachusetts.

During the initial years of the colony, the Pilgrims tried a social experiment, one that predated Marx by almost 300 years, that experiment being "From each according to his ability. To each according to his need." The results? Famine. Everyone wanted from the common larder, but no one wanted to work to fill it. In the end the colonists abandoned the experiment as a failure and from that point on the colony thrived.

Did the Left learn from that experiment? No, of course not. They've tried that experiment again and again (Nazi Germany, the Soviet Union, China, North Korea, Cuba, Cambodia, Laos, Venezuela, etc.) with the results being the same: economic and social collapse, and in some cases, mass murder. Such failures haven't dissuaded them from trying to pull that here. I have little doubt their reasoning is something along the lines of "But we'll do it better this time because we're better than the others were!" They've become a living example of Einstein's axiom about insanity.

So now we come back to present day and the Left's push to drive America in a direction of oft proven failure. Again we return to the so-called fairness doctrine as an excuse to justify large scale theft and interference in our day to day lives. Where does this call for fairness derive?

I figure it goes back to the egalitarian movements that drove things like the French Revolution. An egalitarian society sounds like a great thing, in theory. But in practice, such societies tend to be anything but, usually devolving to the lowest common denominator - mob rule. The French Republic after the Revolution didn't earn the sobriquet "Reign of Terror" for nothing. Of those that did not devolve into mob rule, it was a totalitarian government that drove everyone to be equal - equally poor, equally miserable, and equally terrified of their government. I doubt that was the dream of the egalitarians, but that's what their dream ended up being - a nightmare.

The problem with such egalitarian ideals comes down to this: they are based upon two concepts that are poor at best and base at worst, those being human emotion and a false understanding of human nature. Let's take a look at both of these to see where the Left got it wrong and continues to do so.

The first of these two, emotion, is the most troublesome. While a sense of fairness may be an admirable thing and something to which we can aspire, it should not be something based upon envy or greed. Unfortunately the Left's sense of fairness is derived from that very source. All you have to do is listen to their rhetoric in regards to fairness and I think you'll find it has nothing to with actual fairness and everything to do with envy. Oh, they won't admit to it, but when you think about it it makes sense. It all comes down to "Hey, that guy/girl/person has something I don't and can't afford right now! That's not fair! We/I should take it away from them because they don't deserve it!" But if they earned the money to pay for it then why shouldn't they be allowed to have whatever it is? Again, envy comes into play, this time in regards to the money earned to pay for whatever it is. Why should one person make more for their job than someone else for their job? Never mind that one job may be worth far more than another, may create more goods, services, or jobs than another. It just doesn't seem fair. But it is. Too bad far too many of the Left are incapable of seeing this.

The second of the concepts that lead the Left astray is their decision to ignore human nature. Or perhaps I should say their decision to ignore it as it happens to be rather than as they wish it to be. Of the two, the second is based upon pure fantasy. It seems one of the biggest fantasies that endure on the Left is that you can change human nature with enough education, indoctrination, or terror. It's been tried in a number of places, but has never yielded the expected results. The USSR tried for over 5 generations to create the New Soviet Man, a human with none of the ideological weaknesses attributed to capitalists. They wanted someone that would put the needs of The State (or The Good Of The People) ahead of those of their own, ahead of those of their own families. But that way lies slavery, where the individual is merely a replaceable cog in the machinery of state, without free will, to be sacrificed at whim and without a thought to their own welfare. But that goes against millions of years of existence, against millions of years of human nature. You can't overturn something so basic to human existence with education, indoctrination, or terror. Human nature wins out in the end. And in the end that's why Leftist 'paradises' have collapsed and disappeared into history. We're watching that happen now in Venezuela, a once prosperous nation turned into a land of want, broken down infrastructure, and the inability to even feed itself, all done in the name of 'fairness'. And this is what the Left wants to do here?

Thanks, but no thanks.

I got a bit of sticker shock today when I pulled up to the gas pump at our local BJ's Discount Club.

The Thursday before Christmas regular was $3.079 per gallon. Today, just a day shy of two weeks later, it was $3.229, an increase of 15¢. Asking around it turns out the price went up just yesterday by 7¢. Other prices around the area had jumped as high as $3.279.

It made me wonder why, considering oil prices haven't gone up nearly enough to generate that much of a price increase. Heating oil prices haven't increased as they would have had there been a crude oil price increase. Then I remembered: no more subsidies for the ethanol used in gasoline.

Gee, it didn't take long for that little gem to work its way through the supply chain, did it? Of course if it were the reverse, with subsidies starting, we wouldn't see a price drop at all, would we?

UPDATE 1/5/12: I drove by the same gas station today and the price had gone up an additional 7¢ to $3.299.

Now that we've made it past the first of the year, the focus here in New Hampshire turns in two directions: the upcoming Presidential Primaries and annual town/state budgets. Of the two, the primaries are receiving the most attention by both the populace and the media.

With the New Hampshire primaries scheduled for January 10^th, the media attention has been cranked up to "11". The various presidential wannabes have been spending every free moment in the Granite State, minus time in Iowa in preparation for tomorrow's Iowa Caucuses. (The one exception seems to be Jon Huntsman, who sees New Hampshire as the key to his moving forward.) There will be one last 'big' debate amongst the GOP candidates on the 7^th, with national coverage by ABC.

It's going to be intense for the next eight days.

The lesser of the two events, the annual battle of budgeting for the towns also start in earnest. Not that there hasn't been a lot of behind the scenes work on assembling proposed budgets for the various departments and schools.

Here in my small town the town and school budgets have been undergoing a lot of scrutiny by the board of selectmen, school board, and the budget committee. Everyone wants to cut spending, but of course it's always "someone else" who should cut their budgetary requests. It's never a pretty process and at times emotion can get in the way of logic and reason. When a position is cut in one of the town departments, many of us realize it means that someone we know, perhaps a friend, will lose their job. (That's happened to a friend of mine in the planning department. Her full time position - with benefits - was cut to part time. She couldn't justify staying there under those conditions and left for another job.) In some cases open positions have been eliminated for the time being, leaving some departments short staffed. But those are the choices that have to be made in order to keep spending in check when everyone is having a difficult time making ends meet, particularly those on fixed incomes within our town.

Once the various boards and committees have done their thing it will be up to the voters in each town to vote on them, either at town meeting or during the town elections in March. (A few towns hold their town meetings in April or May.) Towns with a board of selectman/town meeting form of government fall in to two categories: traditional town meeting and SB2.

The traditional town meeting is usually held in some time in March, and all registered voters are encouraged to attend. The voters will discuss and vote on all of the articles presented on the town warrant, some covering budgetary items and other with changes in zoning ordinances (assuming a town has any zoning at all). A second town meeting, usually called the school district meeting, deals will warrants pertaining to the towns school expenditures.

SB2 towns do things a little differently, with two different sessions for both the town and school portions of the warrants. The first session deals solely with discussion and amendments to the town and school warrant articles. The second session of each meeting takes place on election day in March, with the voters deciding whether to approve the various warrant articles discussed the previous session.

There are advantages and disadvantages to both systems, but they seem to work pretty well. In any case, the tax money that will be spent in the upcoming fiscal year is vetted by the very people that will be paying those taxes. (There are a few taxes which the town voters have no control, those being the county and state assessments levied upon them to run county operations and for some education funding, respectively.)

The state will be dealing with some supplemental budget items during the upcoming legislative session (the state runs on a two-year budget cycle). Sometimes adjustments are made if there's an unexpected expenditure needed to deal with unforeseen circumstances. Sometimes it's the other way around, with some line item that was approved but never implemented, meaning there are surplus funds that can go to other purposes to fill shortfalls someplace else. Sometimes the surplus goes towards the state's so-called rainy day fund, a savings account that can be used to fill revenue shortfalls under very specific circumstances.

All we can do is hope they folks in the state capitol don't go on some kind of a mindless spending binge. But then it does help that the GOP holds supermajorities in the state Senate and Executive Council and a majority in the state House.