POST SCRIPTS

Tina, you are oh so right on in your analysis. Unless the people are freed from the oppression of high taxes and out of control regulations we will inevitably collapse and cease to be free.

That is the ultimate goal of the Marxist state though. A country where all blessings come from the government and those in power controlling who can do what. It has asked many times, and I have yet to see someone answer the question.

Where is the country that proved it could tax and spend its way into prosperity?

So true, so true...and right on the heels of those excessive US taxes and regulations comes the further attack on property rights and the push for global agreements and taxes...as they used to say in Montana, we're all going to Helena handbasket.

as they used to say in Montana, we're all going to Helena handbasket.

Cute, I never heard it said like that before.

All that is at the federal level. Add in what they are doing to us in California and it is a wonder we haven't started a revolution yet.

People forget that the Revolutionary War for freedom from King George was over a few penny's of taxes. Or was it they just were not taught about the reason behind our war for independence?

Small businesses aren't dead, people are not suffocating, and things are not heading to heck.

We're suffering a market correction that was delayed in part by the opacity of risk in the securitized mortgages (CDO's) and the subsequent derivative instruments used to hedge the risk (which wasn't properly rated in the first place). Right now Banks don't know the true market value of their underlying assets, also known as the collateral, for loaning to each other. This is the heart of our "credit freeze" which has affected the operational costs of small to mid-size businesses.

What people miss is the explosion of growth in small, new banks and firms. All this with the prospect of heavier capital gains taxation and the "relatively" higher taxation of larger businesses.

You guys make it sound like some kind of coming apocolypse....talk about alarmist. Also, what the hell does our spiritual health have to do with business?

Last I heard, people didn't check in with Jesus to see which stocks to buy.

Comon guys...you're smarter than this. I hear a lot of complaining and pining for "the good old days" like today is some kind of horrible wasteland.

Dave;

Tell me you still feel like that next summer when all this government fascism takes hold.

OneVike,

Listen to yourself, you sound like a nutjob!

Can you give me three concrete scenarios/examples of how you (personally) are going to be impacted. I'm talking about your own personal taxation, employment opportunities, personal freedom, and general happiness. Things that materially affect YOU as a person.

Apparently liberals don't have the monopoly on hand wringing and whining.

So... we're complaining about large companies eating up smaller companies? Sounds like that whole free market capitalism thing, to me.

Yes, There were tons of new businesses that popped up in the 80's, but they got bought by larger, more successful companies. Classic capitalism. I'm not saying that's a bad thing, you are.

Tell me where the fascism lies in this story. Tell me how a "Marxist" being in power for all of three months has gotten good ol' Saipan in such trouble.

Dave, thanks for taking the time to read my post and make a comment.

"Small businesses aren't dead, people are not suffocating, and things are not heading to heck."

Where we live small businesses are going out of business or hurting pretty badly and many are expressing great concern about the future. it's not speculation or undo worry...it's the bottom line. This is very different from the enthusiasm and growth experienced after Reagan's policies began to take hold and freed us from the oppressive conditions of the seventies.

"We're suffering a market correction that was delayed in part by the opacity of risk in the securitized mortgages (CDO's) and the subsequent derivative instruments used to hedge the risk (which wasn't properly rated in the first place)."

I appreciate your knowledge of the economics effecting our present situation. It's very dry and sounds, therefore somewhat soothing. I'm sure it makes a lot of sense to the people in that field. It doesn't relate well, however, in terms of the effect this has had and will have in our lives. Nor does it address the approach the current administrsation has taken regarding our economy.

I maintain the problem your speaking of was exacerbated, if not brought on, by unethical policies and practices regarding those loans. Banks and lending institutions should not be encouraged (or strong armed by ACORN and Barney Frank, et al) into making risky loans. CEO's of Fannie Mae should not be cooking the books to inflate the bottom line so as to inflate their own bonuses. Legislators should not create regultions that mandate the making of bad loans.

I own a small business. I am a baby boomer. I have sacrificed to build a company. I have sacrifices some years to maintaain open doors and jobs for my employees. I sacrificed to put extra money away for my retirement and that has made me an investor. Higher taxes on capital gains will not help me...just the opposite...it will harm me. Higher taxes on big business will not help me. They, along with this absurd cap and trade scheme, will cause the price of everything to go up. These are only the beginning of taxes and fees this administration, and my state, have in mind.

"You guys make it sound like some kind of coming apocolypse....talk about alarmist."

There are times when alarm bells need to sound...loudly. Pre-Hitler Germany is one example. Bells were sounding and no one listened. That doesn't mean we are hovering in fear; it does mean we think people should take better notice of what we might be giving up and for little return, if any.

"what the he** does our spiritual health have to do with business?"

I refer you to the above paragraph having to do with ethics. We the people have become cavalier regarding ethical issues...from my perspective a lack of moral and ethical values is a sickness of the human spirit that will kill a society and rather quickly. I refer you also to the spirit of enthusiasm I witnessed in the eighties, an enthusiasm that emerged from a people being set free. Lower taxes, and fewer hampering, more sensible restraints from government, set the American people free. Freedom, I believe, is spiritually invigorating thing.

"Comon guys...you're smarter than this."

Thanks for the compliment, especially if it was truly meant that way and not just as a subtle put down to those who believe in Jesus.

I hope you'll continue to join in our discussions, I've enjoyed this.

Yes, There were tons of new businesses that popped up in the 80's, but they got bought by larger, more successful companies.

Some did but many more didn't and a few grew to bigness on their own.

"Tell me where the fascism lies in this story."

It doesn't other than in the presumed comparison to the Reagan era and the following:

"...rather than robbing them (the people) to power government..." and,

"In contrast, the oppressive, power at the top polices of the current administration in America, and of others from countries around the world,..."

But you decide for yourself:

From Websters, Fascism any program for setting up a centralized autocratic national regime with severely nationalistic policies, exercising regimentation of industry, commerce, and finance, rigid censorship, and forcible suppression of opposition

Your comments is somewhat unclear, if I have misunderstood your intent, my apologies.

Thanks for the interest.

Zukuss,

I don't have alot of time so I'll follow this up again when I have a moment but I wanted to address some points.

I'm a younger guy, so we have a generational gap. I do understand where you're coming from and while my tone was a bit rough, I just get frustrated with this.

Reagan was in a different time with a different economy. You make the point small businesses flourished under him, but that they aren't flourishing as much now. I would argue that they are flourishing now but they are a different kind of business. The US for too long has rested on it's laurels, expecting to maintain dominance in industry....specifically labor.

The US is getting it's butt kicked by lower labor cost nations (China for one) and we're taking it on the chin (see Detroit). People complain all the time....but hey, we're the US. We can reinvent ourselves whenever we want. Problem is...we forget that. People get comfortable, they feel entitled to a profession just because they've invested parts of themselves into that profession.

I've had to learn new job skills and shift jobs (2 major shifts and 1 minor shift) in the past 4 years. I'm almost 29. I also spent extra time in school getting a grad degree because I knew it would give me an edge...and it has.

My Mom is a boomer. She got her MBA when she was 52. What did she do when she first got out of college? She was a Math Teacher in High School. She also raised three children. She's still paying off student loans and while her retirement took a hit, she knows the market is cyclical and it'll recover so she's not worried.

People in the US are in danger of getting too comfortable, too soft, and too entitled to things...it's a sore point for me and I get frustrated with it.

I'll write more later...also, you make a good point. I'll try and make the financial stuff less dry in the future. It's important that people understand the nature of the beast and I think I can help.

Tina:

I guess my point is that Obama has done nothing to stifle small business. Even if he wanted to, he hasn't had the time. If there's anything that's lead to the decline of small business, it's the deregulation and laissez faire attitude that has been espoused under conservative rule.

I'm also not saying that this is a horrible thing. Personally, I like the small businesses to flourish, and am a little worried about large global companies driving them out of business. I am simply stating that it's not the Obama administration's fault that this is happening. The finger of blame points clearly to the Right.

If it's not the Obama administration that you are worried about, then I'm not exactly sure what your argument is. Perhaps you can clarify what it is you are worried about. As far as I can tell, the centralization of power in the executive branch, and in government in general came about in the past 8 years.

Dave:
Not sure that we have a big problem with eachother's arguments. I agree with you for the most part. The only difference that I see is that I have seen a good deal of smaller, community based businesses go under in the past 10-15 years. I agree with most of your points, though.

I currently work for a company that was once a small business and is flourishing. There are definitely small companies that do well, but only in certain sectors. Mine is in the game industry.

Also, I have no problem with dry financial stuff.

Zukuss, I didn't say Obama has targeted small business specifically either positively or negatively and I didn't mean to say I am concerned about the fate of small business only.

What I said was that the policies he is putting in place will kill the entrepreneurial spirit and therefore abundance of opportunity for all people. His cap and trade policy will lead to higher prices on everything. Taking investment capital out of the private sector and moving it into government coffers where it will get spent on pet projects and wasted in the bigger bureaucracy will not stimulate the broader economy...it will stifle it. Shovel ready projects are nothing more than a few PO's for existing companies, probably many of them favored for their political contributions...they do nothing to expand or stimulate the overall economy. Spreading the wealth around is not a solution it is a tactic designed to take from those who produce to give to those who do not...that is oppressive and tyranical.

I guess what I am addressing is the underlying philosophy of this administration which I believe will ultimately be very harmful to the country. When the takers outnumber the producers where will the money come from? They will continue to vote for those who promise more freebies and an easy path. Why work at all when the government tells you they will take from the rich to make life easier for you? It's not the direction that will inspire or ensure a dynamic, abundant, satisfying reality for any Americans. it is Russia befor the fall...a lot of vodka and living two to three families to an apartment....standing in line for TP. Will it happen in two years...no, but it's been happening slowly for 50 or more years with the progressives taking us two to three steps forward for every one step just to try and hold the status quo.

Also you'd be surprised to know how many of those big global companies you're so worried about (and the big finaciers of the world as well) are run by people who are on the left...not the right.

I'm not happy with the spending that went on under Bush...conservatives lost a great opportunity and we have paid for our errors. But the last eight years have been mischaracterized in many ways. Don't have time now but given all of the circumstances of those eight years, continuous growth over the majority of quarters is nothing short of miraculous.

Out of time for now...great comments men. I appreciate it.

Tina,

I don't agree with everything, but I think we've got some common views here. I will say I'm far less worried about the future....it's been my experience that alot of politicians, left, right, whatever.....they all talk alot of big talk. But where the rubber meets the road, it's normally a different beast.

Business is at the heart of what makes America great...I truly believe this. Business is also MASSIVELY misunderstood by the public. I think the politicians get it though...and though they may talk alot of hot air....the most they can do is bruise us or rough us up a bit. My big concerns right now are capital gains tax hikes (data shows that lower capital gains taxes create MORE tax revenue!!! why would you raise this?!), tax incentives, and the big one....regulation.

I'm not against regulation...I'm against BAD regulation. I also consider myself a hardcore free-market guy....my clients are always in the Fortune 500.

Dave I agree with everything you said except for two things.

Few politicians have ever run a business. Learing about business is different from actually running a business. It might be a little like watching a downhill ski race as opposed to actually skiing in one.

I'm pretty hard core about the free market as well. Key word "free". When what politicians do encroaches on our freedoms more of the free in free market is lost...hence your question, why would they do that? My response is that we really do have a significant number of politicians, and citizens, that see nothing wrong with Marksism. They believe in collective solutions to problems. They believe that the producers should pay for the nonproducers...guess what happens when you put laws in place that encourage people to be nonproductive?

I'm a little amazed that you represent fortune 500 clients and are unaware of this trend toward Marxism in America. They just think it hasn't been tried by the right people yet! (and they are "the ones"). They are IMHO also taking a little from fascism...it's like the ultimate solution for them is a potpouri of isms:

Marxism: a theory and practice of socialism developed by or associated with Marx and including the labor theory of value, dialectical materialism, economic determination of human actions and institutions, the class struggle as the fundamental force in history, and a belief that increasing concentration of industrial control in the capitalist class and the consequent intensification of class antagonisms and of misery among the workers will lead to a revolutionary seizure of power by and the dictatorship of the proletariat and to the establishment of a classless society

Fascism: any program for setting up a centralized autocratic national regime with severely nationalistic policies, exercising regimentation of industry, commerce, and finance, rigid censorship, and forcible suppression of opposition

Do you really think the free market will survive more than a generation or two if America succumbs to these principles and ideas? Do you not see the seeds of these in modern democrat thought and focus.

Tina,

Think about what you just said for a minute.

I've traveled to China and Brazil on business, two countries with pretty socialistic leanings (which is putting it nicely for China). I see thriving business communities, huge investments from foreign sources, and massive growth. Business is alive and well and most free market principles are in action (although I'm sure if you look hard enough, you can point out how it isn't "pure" enough).

I could care less about the purity of the market, so long as it functions IN PRINCIPLE. We can argue over details all day long, but your perdiction is absurd when you compare American business to the business in other countries that are actually functioning socialistic societies.

My current client is in the Fortune 50 and operates in 140+ countries. I have more to visit and I work with quite a few on a daily basis already. I see a vibrant global economy that is growing leaps and bounds. People whine about the US and warn of the "marxism" that is impending.

Yeah, right.

The US has it's trends, and just like a pendulum, it'll swing back the other way in 4 to 8 years, just like it swung the other way after 8 years of Bush.

I'm a pragmatic fiscal conservative, and your doomsday scenario sounds alot like every other warning I've read about through history. Take faith in the US model of government, even though it may swing back and forth between extremes and work to build the party into something credible, honest, and strong.

The more you warn people of impending doom, the more ridiculous you make those who share your political leanings look. I'm tired of people considering my conservative views as right-wing crazy and that isn't helped by overly alarmist and ultimately false predictions.

Dave I love the US form of government.

I don't know how old you are but if you are a boomer and haven't seen the erosion of free market principles in America you've been asleep at the wheel. Social programs that place more and more Americans "on the dole" are a big threat to that free market you and I both love. We cannot sustain when too many people are riding on too few backs.

The countries you speak of are doing their best to cklimb out of that dark hole by imitating America but they will be pressured and held back if they also do not shed dependency programs in favor of free market solutions for healthcare & retirement and find better (free market and better morals/values) ways to educate and uplift the poor.

The pendulum may swing but it's oscillating about a declining base line. Ronald Reagan believed in free markets and inspiring people to take care of their own needs. This was the point of my piece. You might give that some thought...I look forward to your response.

Let's be honest...

Most of US public doesn't understand the free market principles. They don't understand that the current financial problem wasn't cause by the free market itself, but the lack of SMART regulation on the relationship between Banks directly paying the people who were supposed to independently rate the risk of their securitized home mortgages. (exactly the kind of relationship Enron had with their auditors)

I am not a boomer, but I am a fan of Reagan. He is respected by both Republican and Democrat, and is one of the very few great men that history graces us with.

We were lucky then...we didn't have the problems we have now. Let's be honest again; if the economy didn't explode Obama wouldn't have been elected. It's that simple. We, the supposed guardians of the free market, didn't do enough to protect the very system we championed.

I didn't understand the fundamental problem in time, and I'm not sure who could have....but it doesn't matter. The public doesn't understand what went wrong, all they know is that the free market system didn't live up to it's promise and so the Democrats are now getting away with the fiscal equivalent of murder.

But...just like Bush didn't kill us (despite throwing wads of money at every problem that came his way, worst fiscal Republican on the planet), neither will Obama (who I will dislike even more if he finds the guts to pass a capital gains tax hike), or even the next guy (who will do something just as dumb as the first two). I just have more faith in the strength of the system.

You say that we're worse off than we were before. Maybe that's true. I'm saying we're doing just fine. Could it be better? Sure! I just don't want to chase the specter of a more perfect Union with doomsday-like pictures of the future.

Maybe we're hitting a generational gap here...I'm not sure. Most of my conversations are with conservatives my age so this is a different conversation than I'm used to.

Dave thanks for revealing our generational difference. I have a feeling this has been at the heart of our failure to completely understand each other.

It was not my intention to create a doomsday scenario about the future. (and I appreciate the feedback) I am, by nature, an optomist. The Saipan story did illustrate the fact that industry and a thriving economy is how we arrive at, and pay for, the abundance we enjoy and share. Corporations and industry have been taking it on the chin a lot in recent years, some of it warranted, but much of it manufactured by blaming the whole for the failures of a few. From my perspective it's time to point out what life would be like without the industry of human beings. It's time to talk about the value of free markets...but it's also time to talk about the freedom that allows the free market to exist.

In my lifetime I have seen some very troubling trends. One such trend is a huge increase in dependency thinking. Another is a lower standard in education and failure to educate about important subjects, like economics, that would create a stronger, more informed society and make individual lives more productive.

The thing that is troubling about this trend to me is that my generation is largley to blame and much of it is not by accident. A good many of my fellow boomers embrace the Marxist model over freedom and free markets. They use the free market to enrich themselves but when it comes to the people they think they "know how to spend (your) money better than you do", to quote Bill Clinton.They think it's their job to "spread the wealth around" as expressed by Barack Obama. They speak in sweeping terms that sound inclusive and compassionate but the end game for them is control in the hands of the few (them) at the top.

You said, "The public doesn't understand what went wrong, all they know is that the free market system didn't live up to it's promise and so the Democrats are now getting away with the fiscal equivalent of murder."

I agree...completely! But my question to you, rhetorically, is why not? One election didn't make this happen...or even two or three. The problem has been in the works for many years and the only way I can see to reverse the trend is to communicate with as many people as possible the lessons of history and philosophy that brought us here.

You mention the housing and lending failures:

"the current financial problem wasn't cause by the free market itself, but the lack of SMART regulation on the relationship between Banks directly paying the people who were supposed to independently rate the risk of their securitized home mortgages."

That only tells part of the story. It wasn't only a lack of smart regulation...it was a matter of deliberately shady regulation that undermined smart lending practices. That was completely political. It was designed for political purposes. It was further put in play by political activists using intimidation to pressure banks and lending institutions(through ACORN). There were other factors involved in the meltdown but it is vitally important to remember that this "bad" regulation was at the heart of the matter and it was put in place as part of a political design to favor the poor and create a dependent voting block...for Democrats. it's lseazy business. (The Enron scandal also involved politics and regulation. The regulation was put in place and sold as a way to offer alternative energy sources...it was a scam. It was deemed "deregulation," and negatively associated with republicans as a politcal tactic...another story for another time)

"We were lucky then...we didn't have the problems we have now."

The seventies under Carter brought us to a recession with double digit inflation (stagflation) and high unemployment. We had to wait in line for gasoline, at times for hours, and we could only buy it on certain days. Unemployment was high but interest rates were even higher. The mess Carter left in Iran and the American hostage situation was very troubling and would prove to be only the beginning of our Middle East problems. Reagan stepped into that mess and brought the hostages home pronto...he created the greatest expansion in history with tax cuts and more sensible regulation...and he inspired people to be productive and believe in themselves. That is so important to get...it means more than we think.

"if the economy didn't explode Obama wouldn't have been elected."

I'm not so sure. The political machine of the Obama campaign was given a lot of cover by a media that fawned over him, refused to investigate him, and cooperated in trashing his opponents. He won by the smoke and mirrors method that elected Bill Clinton with the added advantage of the first black president "historical" element and a little help from ACORN. After he won the election a couple of MSM pundits marveled that they "really didn't know much about him"...incredible!

Tell you what, Dave, if we do become a strong country again it will be because people like you, in your generation and in future generations embrace the founding principles of this great nation, take the time and trouble to educate yourselves about the past as well as the present, and make a commitment to be vigilent in protecting the Constitution and improving our educational systems. Judging by your comments here you are one of the ones my own grandchildren will be able to count on.

Thanks for the opportunity to share with a fellow Reagan fan...hope you visit with us again and comment often.

Something you said really stuck out.

Education...something that I don't think has been handled well at all in recent years. The people I know are hard working that put alot of value on "self education". We read, we study, we teach ourselves things.

When I got frustrated with my slow ability to learn and pay attention to the stock market...I decided that putting some "skin in the game" would help motivate me...so I plunked down a thousand bucks on some stocks.

That simple act of going out on a limb and diving off into the unknown, fully aware that I would take some lumps in the process (and boy did I ever) is something too many people lack.

It's that grit and resolve that helps people teach themselves, learn more about their country and their fellow citizens....I see that missing. My brother works for Teach for America, he went into classrooms in the north of Arkansas to try and help teach the kids in low income and poor social conditions. At best...he may have helped half a dozen. He now works as a Director for the organization and I asked him if it was all worth it. He says it is. In not so few words he tells me how through sheer force of will and determination they will change the community for the better.

He is a leader, and I hope he succeeds.

My sister is studying to get a Masters in non-profit administration so that she can be more involved in leading non-profit organizations. Even while putting herself through graduate school and working to pay her own bills, she still finds time to volunteer.

She is a leader, and I hope she succeeds.

I believe that business can be a force for good, and that true free market capitalism need not be seen as evil. I think it's misunderstood and I think that business has lost sight of the shareholder and the customer. This is the closest you'll ever hear me preach about morals and ethics because I believe that I need to lead by personal example.

We need leadership, we need smart people willing to teach themselves and fend for themselves....to your point, all the freedom in the world will not save us from individual poor judgment that dooms the nation.

I hope that I've given you a better reason to be hopeful for the future. My generation isn't perfect, but I really believe that a core group of us are extremely driven, smart, and hard working. I believe we will shape the future of the country and I believe that we will do a good job.

I've always liked this bit from the constitution:

"We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America."

Amen.

Amen and thank you and your family members for being smart, dedicated and hard working. We have come full circle. From the last paragraph of my piece:

"Unleashing the power of the people, rather than robbing them to power government, is the transforming key to altering circumstances for all people around the globe."

I blog so you won't be blunted in your endeavors by ever more intrusive and oppressive government policy and so that Americans will come to value strong ethics and values once again.