Archive for September, 2010

Regrettably, Trends on which You Can BET THE FARM

September 29, 2010 2 comments

1) Trend toward continued lack of general understanding of economics by people in general. “We need more spending to fix the economy.” “We have a ‘savings glut.'” “Govt needs to raise taxes so it can spend more.”

2) Continued trend in the general steadfast belief in broken Marxist tenets, e.g., that wealth can be “redistributed” equitably via non-market means (i.e., govt), with continued cries for it to so do; That resources must be “secured” from others, rather than traded for as civilized market players do day in and day out;

3) Continued trend by individuals to look to govt bureaucrats to fix the problems govt created, e.g., unsafe streets due to drug prohibition; inefficient and expensive healthcare due to massive govt interference and regulation; govt to fix “climate change” and pollution despite horrendeous ecological harm at govt facilities the world over;

Corrolary to 3) Continued trend by individuals to believe that private ownership of land leads to environmental destruction;

4) Continued influence by the most powerful on govt at the expense of the taxpayer (hat tip to Matt S, but caution – see #3)

5) Continued belief that laissez faire is harmful to common folk, businesses exploit workers, govt should intervene in private contracts to ensure “fairness”;

6) Continued _lack_ of willingness by the general individual to: – think critically on their own;
– realize that agitprop exists (and is arguably the *primary* task of modern corporate media); – Ask the question, “Cui Bono?”
– believe that govt and it’s cronies could be anything other than our best interest at heart.

Bet the farm on these trends, folks. You’ll get filthy rich.

Categories: Uncategorized

Innovation needs… Capital!

September 14, 2010 Leave a comment

To foster innovation, we must have an economy that values saving and investment – not debt and spending; you need a growing pool of capital available for people to be willing to risk on untried solutions.

The deterents to capital accumulation, investment, and ultimately innovation are the following: – Taxation;
– Regulation;
– Emphasis on debt and spending;
– The simple fear of govt confiscation through myriad of other political tricks

These things have sent – and always will send – capital screaming for the exits, looking for safer places to thrive. Sadly – and this is impossible to over-emphasize – it’s made investors less willing to take a long-term view, or be willing to accept a longer time-frame to profitability.

The more opportunity for confiscation or failure due to non-market factors, the less willing investors will be to risk their capital. No equations, no econometrics, no fancy graduate-level Neo-Keynesian hypothesis is required to understand this.

Innovation will explode when sound money returns, and govt meddling in the economy and our lives ends. Would you invest in a business in, say, Cuba? Somalia? North Korea? Ireland? Great Britain, even? Some might, but by and large, the greater threat to capital confiscation due to corruption, regulation, or inflation, the less likely capital accumulation. But if capital can accumulate, there you find innovation.

Innovation needs capital. Capital needs the act of *saving*. Postponing some consumption to allocate for the future. So simple, so profound.

We must stop the heart attack and purge the gunk from the patient’s bloodstream … manage a difficult healing and rehab period… THEN we can get the patient in shape for a marathon…

Categories: Uncategorized