Essays, Arguments and Research

Opinion on current economic conditions: 12/8/08
      In the great depression most Americans fell into a debilitating fear that virtually paralyzed their ability to purchase and/or improve their homes or any other area of their lives.  This period we’re about to enter will make that era look rosy by comparison. Things like home prices loosing 80% of their pre-recession value, a virtual crumbling of the infrastructure we once lauded as the most stable and progressive in the world, unemployment hitting all time highs, an impending collapse of many major American business names of the post WW2 period, and ultimately a switch from the hopes and challenges of free enterprise to a society where the rewards of innovation and hard work evaporate.  Many of our most talented will flee recognizing that society has melded into a meandering socialistic albeit profitless business environment where government control becomes the new norm and personal entrepreneurship and innovation become a thing of the past. Unfortunately most Americans will eventually concede that the best of times are behind us.


This memorable quotation is from Sir Alex Fraser Tytler
(1742-1813). Scottish jurist and historian, he was widely known in
his time and was professor of Universal History at Edinburgh
University in the late 18th century.
The quotation is from the 1801 collection of his lectures:
"A democracy cannot exist as a permanent
form of government. It can only exist until
the voters discover that they can vote
themselves largess from the public treasury.
From that time on the majority always votes
for the candidates promising the most
benefits from the public treasury, with the
results that a democracy always collapses
over loose fiscal policy, always followed by a
dictatorship.
The average age of the world's great civilizations has been
200 years. These nations have progressed through this
sequence:
from bondage to spiritual faith;
from spiritual faith to great courage;
from courage to liberty;
from liberty to abundance;
from abundance to selfishness;
from selfishness to complacency;
from complacency to apathy;
from apathy to dependency;
from dependency back again to bondage."


Opinion on socialistic Policy 6/23/09
    What would happen if all manufactures, all services, all work was paid and done thru the federal government? Well this is what I foresee:
    Because most types of work would eventually pay the same or nearly the same there would be less incentive for people to work at the most undesirable jobs. In addition there may be a shortage of people in certain areas since many will gravitate toward the same types of work. The government would eventually have to assign jobs to people where they are needed even at the protest of said people. Jobs like house servants, cleaning crews, bus people would have to be assigned from time to time if the supply demand curve for such services becomes unequal.
    Heavily compensated people and ultra rich people would cease to exist as equality and fairness become more of the norm. There would be a disincentive for movers, shakers, innovators and high profile business titans to stay in the country. 
    Private ownership of large entities such as apartment buildings, large public service corporations like retail establishments, auto manufactures, banks as we know them would go away. Many of the finer things that were made exclusively for the rich would go as well – Services and commodities such as luxury apartment buildings and homes, expensive luxury cars, easily accessible medical care, elite cruises and leading edge technology would be affected. Mediocrity would be the rule of the day. Real estate will deteriorate since there will be no incentive to create attractive properties for people from upper classes to purchase.
    In the long term inflation would take hold as higher government wages and product costs spread throughout the economy. 
    Because of the change between wages and performance, the removal of profit margins and the reduction or elimination of competition, gross inefficiencies will develop causing deterioration of quality. Power circles will develop where favors and corruption become the operational norms. Some teams will become unbearable to work in. Normal attrition and dynamic progressive work environments will become rare as incompetent or unfit people continue to work in areas they don’t belong.
    All in all products and services will become more generic, innovation will be stifled, work environments will become less dynamic, albiet security will become easier to acquire for the masses.
.
    On the positive front the highs and lows of a typical economic cycle will decrease.. The temporary suffering that people normally experience from job displacement, extended unemployment and unfair wages during economic downtowns will become a thing of the past. In light of the fact that much of our infrastructure such as bridges, roads, piping, electrical lines etc need replacement and maintenance there is now a need for government to provide gainful employment.  Greedy corporations, sweatshops, discrimination and unfair treatment will be less pronounced. 
Education will become more critical and rewarded more often.  Product safety will become more prevalent, fairer compensation for skills, risks and abilities will increase.
   

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