Wednesday, August 31, 2005

Who's being taken advantage of?

Every time a natural disaster occurs we hear of "price gouging" going on. Are companies really taking advantage of people after natural disasters through "price gouging"? The mainstream media is actually taking advantage by using such an event to further its anti-Capitalist agenda. What they call "price gouging" is simply the free market doing its thing. When demand increases so does price, and for good reason; if the price stays the same or is kept low by the government a shortage will occur. That means instead of expensive food, and gas the locals will have no food or gas. Which is better for the locals?

Sunday, August 28, 2005

Miracles happen every day,

When Capitalism is put in place; miracles occur every day. Americans see such miracles so often they usually don't notice them. When you go to the mall you may not stop to think how everything there (the floor, the buildings, the fountains, the plants..Etc. Etc.) had to be created. But why would anyone create those things? For profit. Take away profit and you take away such beauties as shopping malls, theme parks, movies, books, cars, and airports. Not to mention necessities like hospitals, dentist offices, and private universities. To make it simple think of Capitalism as the bean in the old story "Jack and the Bean Stalk" that grew a vine into heaven. The only limits to Capitalism's growth are the limits that humans put on themselves.

Thursday, August 25, 2005

Neal's real,

The following is an article by Neal Boortz:

Gas is pretty expensive right now, and while not yet a record, it's getting up there. So the politicians in the state of Hawaii have hatched a plan. What better way to deal with rising gas prices than government-implemented price controls? Everybody wins, right? The politicians win because they get to enjoy the added popularity their forced price discounts impose and consumers win because gas will be cheaper. What's not to like? Well, there's only one problem with price controls: They never work. First, a little economics lesson for the government-educated among us. Prices are set by market forces. Yup...good 'ole supply and demand. If there is greater demand for something than supply, prices will go up. Every time, without exception. Everybody in the supply chain has a cost. Along comes a politician, wanting to distort those market forces and implement a little communism. So Mr. Politician sets a price control. What suffers? The first thing that always suffers during price And it's already happening in Hawaii as a result of this stupid plan. Beginning September 1, gas wholesalers won't be able to charge more than $2.74 a gallon. But what happens when the market price goes above that and nobody involved is making any profit? No more gasoline. There are two refineries in Hawaii owned by two different oil companies. One of them already says it may need to close one of those refineries. So which would be better? No gas at all or plentiful gas at the going market rate? Only one is going to make your car go. But no matter...our government schools have done a good job educating the masses on the subject. Check out this quote from the AP story on Hawaiian price controls...a 25-year-old student: "The gas prices that are continuing to go up — how am I supposed to afford it?" Well, he won't have to worry about that...because there won't be any gas to buy. Capitalism: it works every time it's tried.

Neal Boortz

It doesn't get any better than this,

In America we have a demand economy that is rooted in free market Capitalism. There are so many examples to illustrate this that I could spend all day typing them. But one lesson all folks need to know is just how miraculous free market economies are. Since the free market is full of competitors, they are always looking for a cheaper and quicker way to provide their good or service. When this happens everybody benefits.....and they often benefit pretty darn quick. The very minute one competitor lowers its price one of its competitors will follow suit. And so on and so on throughout that industry's market. Prices drop quickly and often whenever the free market is allowed to do its thing apart from government control.

Wednesday, August 24, 2005

Standard of living,

We hear a lot about "the standard of living" and how it is so blessed in America, but we often don't stop to think about why that is. In a word: Capitalism. The goal of all people who willingly live in a Capitalist society is to advance the standard of living. You can't do that and continue to do things the same way time after time. Changing may mean having some jobs replaced by robots and other machines; change can also mean having some jobs in America replaced by workers in foreign countries. But if such things make products cheaper for consumers, then everyone benefits. A rising tide lifts all boats.

Monday, August 22, 2005

O ye of little faith,

Some people who champion Capitalism and its Truths waiver in their faith. Usually such people are politicians who give lip service to Capitalism but fail to support it when the heat gets turned up. They won't dare say anything that can cost them support; they won't make a pro-Capitalist statement if they fear it may cost them votes. Especially when it comes to helping the less fortunate; politicians of every stripe doubt the power of the human spirit. Capitalism supports the human spirit, it beleives in it; every time a seemingly hopeless situation emerges in the world it is the power of a free mind that provides an answer. There is no need for government dollars to support any cause that is better provided by an individuals' own strength.(with the exception of national defense, the individual is almost always a better creator than the government) Fredrick Douglas said it best:

" Do nothing with us! If the apples will not remain on the tree of their own strength, if they are worm-eaten at the core, if they are early ripe and disposed to fall, let them fall!"

If you don't have faith in yourself to be productive without government assistance, then you probably won't be much better off with it; o ye of little faith.

Fredrick Douglas

Squashing freedom,

Is it possible to be a Capitalist and oppose freedom? The obvious answer is no, but even among conservative politicians in America there is a misunderstanding of what freedom really means; at least as far as economic matters go. You can't build any building for a business today without making it "handicapped accessible" along with countless other government regulations. That of course takes away the freedom of the business owner, but what most people don't realize is that the "handicapped" lose their freedom also because of the "handicapped accessible" regulations. By agreeing to such practices, the handicapped in America will be viewed as helpless as far as the government is concerned. So you can use your own imagination to discover that the government's next move is to get more control over the handicapped individuals' lives; as far as the government is concerned the handicapped couldn't function otherwise. It's what one famous author called "The Road to Serfdom".

Saturday, August 20, 2005

Monopolies and government,

Whenever you hear the anti-Capitalists speak of monopolies and the problems they cause they are often speaking of private industry. But the only oppressive monopolies that have existed in the history of Capitalist countries are government monopolies. You can't compete against the government for one reason; it's illegal to do so. State lotteries are a good example; in my home state of Tennessee I can play the Tennessee Lottery but I can't start my own numbers racket lottery (in Tennessee) because I would be breaking the law. Isn't it interesting that big government liberals in America oppose monopolies, while the government is the most oppressive monopoly in America?

Wednesday, August 17, 2005

The wonder of supply and demand,

While discussing the Fair Tax plan with my local talk show host Phil Valentine , he told me that he is not so sure that once we get rid of the IRS and its heavy taxation that prices will naturally drop once we tack on the extra 23% sales tax that the Fair Tax calls for. I would suggest to Phil that the law of supply and demand works every time it's tried. Supply and demand is what keeps the market in check even when greedy business owners try to shaft the consumers. Once one business drops its prices to gain a competitive advantage, other businesses follow suit in order to compete. I guess you could say such behavior is what Adam Smith called the "invisible hand" of Capitalism.

Saturday, August 13, 2005

True value,

Capitalism recognizes true value, not what is perceived as value. Some people may have to work at Mcdonald's until they get a better job; in such a situation working at Mcdonald's can be a Godsend. People who grow up in poverty learn to appreciate things like shoes on their feet, and a clunker of a car to drive. In that light experiencing poverty can be a blessing to a person as they age and earn more wealth. George Jones and Tammy Wynette said it best in a song titled Golden Ring:

"Golden ring with one tiny little stone.
Waiting there for someone to take it home.
By itself it's just a cold metallic thing.
Only love can make a golden wedding ring."

Thursday, August 11, 2005

Simple Capitalism,

I enjoy making Capitalism easy to understand. That's what inspired me to create this blog to begin with. So to give you a super simple definition of Capitalism: Capitalism is when a person gives the best of what they got to another person in order to receive that person's best. For example if I needed money in an emergency situation, I would trade something valuable to me (my car, computer, etc..) to receive someone else's money. (which they created by giving their best to someone) That's why government welfare is immoral. When a person trades their welfare money for something they aren't giving up anything that represents their best efforts; they are giving up money that the government gave to them after taking it from someone else.

Tuesday, August 09, 2005

A lesson from my youth,

As a child I loved playing video games. Ever so often my brother and I would beg our parents for a new game. I remember one store that put on a sale for a video game system that included a free game when you bought it. However the store charged you an extra $50 when you bought the system with a free game! So you can see that the word free was just a sales ploy. If you can understand such a ploy then you should also see the failure of Socialism. Socialism promises free health care along with other supposedly free government services. But like the store I mentioned, Socialist governments simply make you pay for every service they provide somehow. Don't forget that cost means more than a sales price.

Friday, August 05, 2005

Getting to know freedom,

I suggest you read the following article titled The Price of Freedom. I don't have a lot of time today to give a daily lesson, but if you like my easy to understand way of breaking Capitalism's Truths down to plain English, then you'll enjoy this article.

Thursday, August 04, 2005

The reality of taxes,

Why do Capitalists like myself preach against heavy taxation? Because taxation destroys a person's incentive to create. The more you tax a person, the less incentive that person has to create anything. Therefore people create less wealth, less jobs, and less products that people want. When that happens the standard of living for everyone is kept from growing. Tax cuts and tax increases will affect everyone; tax cuts help everyone, and tax increases hurt everyone.

Wednesday, August 03, 2005

What you need to know about the Fair Tax,

Listening a lot to Neal Boortz as he talks of his Fair Tax idea, I've noticed a common question that skeptics of the plan have. It seems that most people don't understand "embedded cost".
What that term means is the cost added to something because of business taxes. When Colgate makes toothpaste they have to pay all sorts of taxes before the tube makes it to a grocery store shelf. So when the tube gets to the store shelf Colgate has to increase the cost of the toothpaste to make up for the money they lost paying taxes. The average embedded cost of any product we buy today (anything from a Big Mac to a new car) is somewhere between 23 to 27%. The Fair Tax will eliminate that embedded cost and replace it with a 23% sales tax which keeps the average retail price of anything unchanged. Things will however be less expensive to everyone because everyone will keep 100% of their paycheck! And you thought Fair Tax was an oxymoron!

Neal Boortz

Tuesday, August 02, 2005

And you thought it could never happen,

This is our chance fellow Capitalists.....we can get rid of the pesky IRS! Check out and learn about the Fair Tax bill that is now in Congress. If it passes bye bye IRS! It can't pass without our help, so everyone do your part in organizing so that the Fair Tax succeeds!

Monday, August 01, 2005

The best deal in town,

With all the fuss about high gas prices people are becoming blind to the truth. Let's say on average gas is $3.00 a gallon. High price? Actually such a price is probably the best deal in all of America! Not convinced? Consider that 1 gallon of gasoline will get you an average of 20 miles; to be able to travel 20 miles with air conditioning and radio for only $3.00 is one heck of a deal. Remember a while back folks had to travel on horseback wherever they went, and in a lot of cases by their own two feet. But I'm not naive about this: I don't expect ungrateful people to stop their fussing no more than I expect money to grow on trees.