Showing posts with label subsidies. Show all posts
Showing posts with label subsidies. Show all posts

Saturday, June 18, 2011

Littlestuff Weekender-6-18-2011


To some degree the Weiner fiasco appears to be fading from the consciousness of the media. Although I believe that he is a perverted slug whose politics are dangerous, the fascination with his peccadilloes distracted attention from the ineptitude displayed by the President and the ethanol and patent/copyright matters in the Congress. His decadent behavior merely reflects the decaying nature of many career politicians. Although they may be paragons of rectitude in their private behaviors, their policies and dismissal of their Constitutional limitations are driving our nation to destruction. Read your oath, take your oath, and honor your oath, politicians. In addition, I suspect now that the little weasel has resigned and “done the honorable thing,” he’ll be back to complete his mission to destroy our country.

Our agricultural situation in Northwest Ohio is grim. Many acres of corn have been diverted to soybeans because of late weather-induced planting. Much of the corn that has been planted is small and at great risk when the heavy heat of deep summer arrives. The end result in this region could be many fewer acres and much lower yields. When President Bush signed legislation to dedicate 40% of the annual crop to ethanol production, he, in essence, placed volatile inflationary pressure on feed grains (for meat production) and corn sugars. Some feed product can be harvested from the residue of ethanol extraction, but less than one would expect if the entire crop were dedicated to more traditional usage. Too many people in our country take the agricultural sector for granted. I would each of you to set aside a little plot for growing food. It will taste better and will be less expensive.

Some counties in Ohio are receiving some grants for growing and harvesting miscanthus as a bio-fuel crop. Under the right soil and weather conditions it is a superb alternative to corn. Miscanthus is a perennial that reappears every year and may be productive for up to 20 years under the right conditions. The plant could produce up to 15 tons per acre, and after harvesting, the yield would be pelletized for burning. I’ve studied miscanthus as a potential biomass source and believe that it has merit…perhaps more than any known temperate zone plant. But grants? The USDA has chosen counties in Northeast Ohio for distribution of grant money to explore the efficacy of miscanthus production. Why grants? If it works, they’ll do it without taxpayer money and government meddling. Check out the history of canola production.

Grants are nothing more than transfers of wealth. Take from taxpayers and give to others. Distort the market by subsidizing unproven ideas and technologies. Someone should apply for a grant to study how often grant recipients apply for extensions or renewals of the funds…and how frequently the renewals are granted. New job description from the 20th Century…Grant Writer.

Whew…the hockey and basketball seasons have finally ended. LeBron James jokes were vying with Anthony Weiner jokes on the water-cooler circuit. Good thing they’re over. The baseball all-star game is right around the corner, and if the NFL situation is rectified, camp will begin shortly.

It’s fair, festival and family reunion season. Good food (sometimes greasy), good fun and great friends highlight the all-too-short summer. Last year I attended 46 fairs plus three days at the Ohio State Fair. Also, there were numerous festivals and street fairs on my itinerary. Won’t be as many this year…elephant-ear overdose. I must admit that I do like them. When I was in my former phase as a broadcaster, my favorite events to cover were fairs and elections.

Our radio program is coming along reasonably well (Tuesday and Wednesday, 6:00-7:00pm. On 1370 WSPD, Toledo.   www.wspd.com ) It is rather uneven at times as I’m still adjusting to being at my peak for such a limited schedule. As much as I enjoy the medium, two hours per week is plenty. Too much work around the homestead, on the keyboard and advising clients to allow me to jump back on the radio horse.

To all you Dads and Granddads….Happy Fathers Day!!!! The greatest honor of my earthly life is to be called…”Dad”….followed closely by…”Grandpa (or Papa).” I pray that I am worthy. Back with Monday’s column.




Wednesday, June 15, 2011

Transfering Wealth


The lefties of our nation and the globe as well, insist that “fairness” can only be achieved by transferring wealth from the “haves” to the “have-nots.” As one can expect from most socialist reasoning (an oxymoron…emphasis on MORON), the holes in their policy are massive. Bernie Madoff sits in a jail cell as police, prosecutors, and plaintiff’s attorneys confiscate every remnant of his former ill-gained fortune. Now he appears to be broke. Should someone be required to share their wealth with the former prince of ponzi? I suspect that when we speak of transferring wealth from the “richer” to the “poorer,” we are in reality discussing transferring earned wealth from producers to socialist-voting looters. A person’s “right” to the wealth of others is determined by her or his likelihood of voting a certain way.

Transferring wealth is more complex than merely dropping a dollar into the bucket of a curbside beggar. The various governments, non-government agencies (NGA’s), non-profits, churches and other elements of the society employ a number of coercive devices to generate wealth-sharing. First, there is the direct tax, direct payment method. Welfare, Social security, Medicaid and Food Stamps are the most brazen examples. Some transfers are more indirect. They might include tax credits for munchkins (children), subsidies for behaviors (education) and massive industry and corporate subsidies or tax breaks. Straight forward foreign aid is direct. Sweet trade deals for preferred countries are an indirect form of the share the wealth mentality.

The transfer of wealth may also involve some subtlety (or sneakiness, if you prefer). Laws that include certain prohibitions may create a competitive advantage for one or another industry or company. For example, when I served in the legislature, there was a representative who introduced an absolutely devastating axle tax for the trucking industry. And….he introduced a similar bill every session…year after year. As I fielded the calls from truckers in my district and notes from lobbyists representing independent truckers, I sought to discover why he would introduce such a job-killing piece of   legislation. My older colleagues informed me that the offending representative was “in the pocket” of the railroads. No one took his legislation seriously, and it would not go anywhere, but just like biennial elections, he introduced it every session to earn his campaign check. When those pieces of legislation are taken seriously and passed, then a law-induced transfer of wealth is the result. Wait, there’s more.

Nearly every regulatory initiative passed by nearly every legislative body or agency impacts some industries more than others…a subtle transfer of wealth. Within given industries some companies may be more adversely affected than their competitors by new rules because of their size, location or any number of intervening factors….in essence a transfer of wealth because compliance costs are not fairly assessed. The great dream of the socialist agenda, ObamaCare, is the epitome of a wealth transfer mechanism at every level. The more than one thousand, one hundred (1,100) waivers granted so far to corporations and labor unions with the “correct” political leanings is the epitome of an indirect and sometimes subtle transfer of wealth. As you can detect, wealth transfers involve much more than simply “robbing Peter to pay Paul.” They also include subsidizing Paul and giving him tax breaks. They may involve regulating Peter at a much greater level than Paul so that Paul gains a competitive advantage. Think of coal, oil and natural gas rules and regulations versus the subsidy packages for wind power, solar systems, and bio-fuels. And yet…the “green” technologies are not competitive on the open energy market.

Licensing and registrations are another form of wealth transfer that operates outside the public view. In my early days as a broadcaster, there were no licensing fees for stations to operate once they had paid the initial start-up licensing amounts. Now stations must pay annual fees based upon their transmitter power, their markets and their gross revenues. In other words the more successful stations must pay a penalty for their efforts while the ones that are not so successful get by with lower fees. Stations that have made the effort to attract topnotch on-air talent and hire competent sales people must subsidize the regulatory administrative costs for less popular stations.

Transferring wealth by force is how the government functions. Government by its very nature is the definition of force. In a world where liberty reigns, wealth would be transferred unfettered by government coercion. A series of voluntary transactions wherein quality, productivity and service would thrive is the model for free commerce. While government stacks the deck and enforces its preferences, wealth is transferred….and we’re all much poorer and less free.




Tuesday, November 9, 2010

Sharing Liberty

If you’ve ever had the opportunity to interact with a two-year old, then you are probably aware of the universal tendency to control our own lives. Toddlers undoubtedly have questionable judgment, but they, nevertheless, possess an insatiable urge to make their own choices. Where the little child may fall short in the milieu of responsible liberty is in the realm of accountability. As we mature through knowledge and experience, we must learn the laws of responsible accountability to complement our inherent liberty. True liberty, therefore, is the unfettered living of our lives in any way or form that does not harm others or their property.


The purpose of the law, therefore, is to enshrine our liberty not to limit it. Further, the law should be used to design and enforce the issues of accountability and responsibility. Contracts, public and private, should be rigorously enforced, and those (including government) who violate the lives, labor and property of others must be made to provide sufficient restitution. Liberty is, therefore, absolute regarding one self and extremely limited when interfering with others. Intervention and interaction with the lives of others can be accomplished if all parties involved willingly assent. The associations and cooperative efforts must be wholly voluntary for the essence of liberty to be maintained.

While on the campaign trail for the last year, I often lamented our loss of liberty because of the unrestrained growth of the “Nanny-state.” Invariably, my complaint was met with cheers, knowing nods or “amen’s.” I often wondered, however, how many of my listeners truly understood the core of my concern. For far too long, too many of our citizens have relinquished their freedom for mere crumbs of “security” from the federal government….and to a lesser degree from the state government. I suspect that a significant number of my audience would gladly stop our meaningless foreign aid program, but would fight to the death to retain Social Security or Medicare. Also, while many citizens may oppose the broken welfare system that we have in place, how many are truly willing to examine duplicitous military expenditures with the same fervor?

When we forfeit our liberty, for whatever purpose, we surrender a piece of ourselves. Our humanity, our unique nature is God-given and God-breathed, and when we willingly or submissively fail to wholly exercise our liberty, then we necessarily diminish our special humanity. A study of history illustrates that most people are willing to sacrifice freedom for some notion of security. Most of us lack the courage, the conviction or the passion to forgo a life of relative ease in order to secure our absolute liberty. Are we willing to give up our subsidies, our tax breaks or our special programs? Those of us who have had children know that weaning time is difficult and filled with angst. This analysis is not intended as an indictment of my fellow citizens, but merely represents my observations about our tendencies to travel the “easy’ path.

So, how do we share the concept of true liberty to our family, friends and neighbors? How can we inoculate them against the lure of government “gifts and largess?” We might begin with the example of the two-year old whose adamant desire for self-determination illustrates our innate desire to manage our own lives. Jesus said, “Let the little children come to me, and do not hinder them, for the kingdom of heaven belongs to such as these.” (Matthew 19:14, NIV). Although I’ve never encountered an exegesis that examines this verse on the basis of liberty, the application of innocence as the underlying attribute can be extended to include liberty. Childlike innocence makes one unaware or indifferent to the pervasive influence of a controlling government. Jesus admonished the disciples to allow the children to approach his seat of grace because they were doing so willingly. In a metaphorical sense, the disciples represent the power of a government that determines who is worthy. Just as grace is reserved for the willing, liberty is a gift for the unburdened. True liberty can exist only when we sever the tendrils of government control, and when we sever the cords of our reliance.

Your comments are welcome: cnpearl@woh.rr.com earl4sos@gmail.com