Tuesday, July 17, 2012

Please, Tell Me Where I Get It Wrong

    Say I want to buy some communications device...I'm sort of leaning towards an I-Pad but I'm not sure.
    I have money.  I'm going to weigh this product's value to me against how much money I have to part with to get it.  This is 100% my decision.
    The makers of communication devices want my money.  They are competing to research and develop the best product, and know that the cheaper they can sell it for, the more likely I am to decide having it benefits me more than having the money.
    They have to take some risks.  They have to decide what features are selling points, guess at how many to produce---not enough, they sell out and I buy something else.  Too many , they invested too much in production and hiring.  It's a tricky thing, business. 
    This is the height of efficiency.  A company that chronically makes poor decisions eventually is replaced by one that does not.  I end up with the best product for the price---maybe even decide to do without.
    Sure, it took hard work.  Probably not as hard as Masai women work their cattle on a daily basis, though.  Sure, it took smarts---but smarts are a very difficult thing to quantify, and there are some very successful people that really aren't that bright.
    Here's what the left is missing.  You also need to specialize----which is why the Third World is full of hard working people still in the Third World.  You also need to take your unique specialty and take some risks.   Just hired employees take very little risk--the people that employ them have taken a risk by hiring them.  Often they've invested their savings in an idea, borrowed against a house, stretched very thin.  Most fail, some succeed.   The ones that succeed USED to be looked up to and emulated.  Every single penny of our economy has come from two sources---people capitalizing on their resources, or borrowing against the future capitalization of resources.  That's it.  The government has no money.
   So here is our president telling people business starters didn't build their business.
   Do you know how profoundly insulting that is?  We are proud of America, Mr. President, because here, if we work hard, and smart, and take risks, and produce something that's more valuable to people than the money in their pocket, we might succeed.
   My cottage industry (building cottages) is a second career.  I work harder there than my main job, 14 hour days are not unusual.  I LOVE providing housing for people.  They have decided staying in the homes I've built is a higher value to them than the rent they pay.  As soon as it's not, they leave.
   Roads, Schools???? Are you kidding me?  Do you have any idea the kind of road fees I pay to get a permit?  And continue to pay with every gallon of gas driven to build and maintain?  I spent more on the school fees and parks fees to build (never mind there is no park in the subregion) than I did on lumber!
   So my reward is a higher tax bracket.  You need to tax behaviour you are trying to discourage, like smoking.
    Anyway, I build the best places I can in the hopes people will decide to rent them.  WE are blessed with good tenants and I want to continue to provide safe, functional living spaces---my tenants are people, and friends. 
    Compare that with our President's drive to socialize medicine.  I don't get to decide if the service is worth exchanging my money for.  I'm required to buy it.  There is no incentive for healthcare to be efficient, or good, or innovative.  Demand will skyrocket since there's no financial impact either way.  There will be no competition to provide the best service, people will just want to get me in and out and who cares if I die anyway?
    A private drug company just developed Truvada, a promising drug to prevent HIV infections.  This innovation didn't come from the government and the more intrusion there is, the less of this sort of thing we'll have.
    Which came first Mr. President---Mr. Ford and his assembly line, or the government built roads?  You want to hold education of our heads?  End it!  Families that value education for their kids will find a way and it will become far more efficient---the tax savings will be far greater than the cost of privately run, competetive schools. 
    You exposed yourself, Mr. President.  Your rhetoric is polar opposite of what it means to me to be an American.  You can't be proud of yur country and want to fundamentally change it at the same time.  I just hope everyone else sees it too before you get another term with no worries about needing to get re elected.  We can't afford it.


Lee Kiester said...

i-Pad would be a mistake... jus sayin...

flyingvan said...

I have a flip-phone ad the Toshiba laptop I needed to go to Hurricane Katrina. Our 18" TV I got from Sears outlet in 1989 (We do have a bigger TV in the basement for group movies)

timmer said...

we got our ipad for free. plus $100 to repair once. wifi only. no plan. it's wonderful for geocaching. seriously doubt i'd pay full price for one.