America Must Focus On Creating Wealth

On August 15, 1971 Richard Nixon imposed a 90 day wage price freeze with a simple wave of his hand. It used to be that governments could not create money out of nothing. They had to at least pay for paper and ink and go to the trouble of printing the money. Today it is a simple matter of changing a number in a computer.

What if we had a President who decided that it would be a good thing to just double the money that everyone had and so with the wave of his hand he ordered all financial institutions to double the balance in every checking and savings account? The only thing this would do is turn every dollar into a 50 cent piece.

Money is not wealth. Wealth is created with hard work.

There are wealth producing activities and wealth consuming activities.  Virtually 100% of all wealth is created in the private sector, usually in manufacturing, mining and agriculture.  Government consumes wealth and has a ravenous appetite.  Creating a government job just deprives the private sector of the wealth it requires to create more wealth and transfers it to the government where it is destroyed. To put is simply, this is why you cannot rebuild an economy with government jobs. Any recovery must take place in the private sector.

Praise the Stay At Home Moms

I have a sense of humor.  Some times that sense of humor leads me down unlikely paths.  Some time ago I was talking with a friend whom I know from political circles. I asked him if he knew what the root cause of global warming was.  He said; “Yes, CO2.”

“And what has caused all that CO2?”

He didn’t know, so I told him…  “Feminism”

He replied; “What?” His tone of voice implied that I had two heads. Read more

Monopolies vs Free Markets

The Center for Freedom and Prosperity has a series of videos they call Econ 101. They have released a new video with Isabel Santa of The Cato Institute comparing monopolies to free markets. Government education monopolies are compared with other education choices. In a nutshell, Isabel Santa asks the question; “If monoplies deliver high prices and poor service everywhere else, why would we expect an education monopoly to be any different?

There are places where we need a monopoly. Who wants multiple natural gas companies with multiple sets of buried pipes in the ground? One utility serves us quite well thank you very much. These monopolies are also regulated. Such private companies are still motivated to keep costs down to maximize profits. This is not the case with government monopolies.