Friday, December 18, 2009

Capitalism vs. Socialism

I'd like to ask all residents of this state to take a moment and ask yourself a question.Are the policies of government benefiting you?A simple question,yet not so easy to answer.However,with the debate raging about the direction our country is heading and our governments role in it,I think it boils down to it.Usually in politics,we feud over which party does a better job on the issues that are most relevant during that era.This time around,we are debating the merits of capitalism vs. socialism.I know many will say no,it's communism or marxism or fascism or progressivism.Lets keep it simple just for this letter.For those that couldn't care less or don't know the difference or don't think it matters to us here in Michigan,I say your dead wrong and you need to decide your position right away if you haven't already.

Aren't you tired of the treadmill we are stuck on here in Michigan?A pathetic economy.The rust belt.High unemployment.High foreclosure rate and devasted property values.Roads and bridges crumbling and unsafe.Some of the highest crime rate areas in the nation.School funding decreasing.People are leaving the state in droves.Our budget deficits have us conjuring up tax schemes like keeping the bars open later in a desperate move for tax revenue regardless of any benefit to us.You've heard all the promises from our governor and the legislature about a new direction,green jobs,transformation,etc.Are you buying it?Are you seeing results that show we are really going to get it right this time?The state uses the MEDC/MEGA to hand out tax credits to industries and announce thousands of new jobs coming to your neighborhood.Unfortunately,their track record produces less than 30% of the jobs they promise.And no,they don't get the other 70% in tax credits refunded.

Barack Obama makes no secret of his ideology on where he wants to take this country.He believes in social and economic justice.You can put any label on that you wish,but there are countless interviews and statements from him breaking down how he wants to achieve it and we see some of his first efforts today with healthcare reform and cap and trade.These are massive programs with huge implications for every person in the country.In some cases,around the world.But the point is they are guaranteed to affect you and future generations.Yes,even those of us in little old,rural Michigan.Every single person,whether you know it or not.And if you don't know all the facts and exactly how you'll be affected,you must get educated immediately.Once these programs get started,they are permanent.They'll always be changed over the years,but they'll never go away.

Capitalism is freedom.It's liberty.It's one of the principles this country was founded on and it gives every American the opportunity for success,whatever you decide that is.Own your own home or business.Choose your career path.You have the opportunity to go as far as your hard work and perseverance can take you.Not a guarantee of anything,but the opportunity.Michigan has a great history of innovations that have changed the world.Just think of the innovations implemented by Henry Ford that would never have happened under socialism.Look at our accomplishments in medicine.And on and on.Do you think these would have ever happened under socialism?When you strip away the opportunity for great reward for innovation,you destroy the spirit and inspiration we have as well.

The situation we face in this country is perilous.Our staggering debt is going to come to a head sooner rather than later.You simply can't make a rational case otherwise.Promoting 'green shoots' without sound economic rationale to back them up is dangerous.The toxic debt that triggered the derivatives market meltdown is still there.The TARP money that was supposed to buy it up was diverted instead.Obama blames the fat cat bankers on Wall St. for not lending.Why would they when they can borrow money at near zero interest rates from the Treasury and then simply step down to the next window and purchase 10 year T-Bills at a guaranteed 3.5% interest rate?Yes,better than a ponzi scheme.And yes,that's Time magazines man of the year Ben Bernanke's policy that encourages it.As Milton Friedman used to say,why does anyone believe that a government beauracracy has any more moral standards than the evil corporations?

We have a long record of middle of the pack to the bottom at times on tax policy.Our business model is heavily incentivized on tax credits and other temporary fixes.We have a strong union prescence demanding higher wages to the point of making us non-competitive many times.You cannot escape the reality that stable,long term growth economically is dependent on a low tax rate structure.Companies know that incentives are temporary and as soon as they evaporate,they move in another direction.Look at the track record of auto sales.Most buyers are savvy and know to wait for the rebates and other discount programs because the automakers are caught in that vicious cycle.Sales stay down without them or some other gimmick like cash for clunkers.

However,our state legislature,and usually the sitting governor as well,are simply addicted to the power attached to our tax dollars.The urge to get to decide where those dollars are spent and how many are collected is too enticing.If we continue down this road Obama is leading us,it will get far worse.Your call to action has never been greater.What used to be reserved for conspiracy theorists is now knocking at the door.The push for this extensive of a power grab has been in the works for decades and it may come to fruition if the people don't revolt drastically soon.Ask yourself how important your liberty is to you.More to come...

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