As residents of the Potomac Highlands, there are very few of us that do not know some one that works in the Northern Virginia. Those West Virginia employees are providing labor and services that are driving Northern Virginia's economic engine. The reason is the economic realities of Capitalism.
The first thing that you notice is Virginia's Corporate tax rate a 6.0% flat rate, where West Virginia's is a 8.75% flat rate. West Virginia has the highest workers compensation rates for businesses in the nation. West Virginia is dire need of serious tort reform. The free market uses these factors drive the businesses from West Virginia into Virginia where they are able to be more profitable.
Those same free market forces keeps the workers living here. A 3 bed room, 2 bath home in Fredrick County, VA cost $250,000 while the same size home in Hardy County, WV cost $165,000. Personal Income and property taxes in West Virginia are much lower, than Virginia. The worker in a free market just like the business wishes to retain more of his money, so he chooses to live in West Virginia were the cost of living allows him to do that.
It sounds like the best of both worlds, but it is not. West Virginia is the looser. Without the combination of both businesses and individuals paying taxes West Virginia is loosing out. The state has less money to provide services. This shows in our lack of infrastructure. One thing you can point to is US 50 which is the main artery for the northern part of the Potomac Highlands. US 50 is now the deadliest highway in West Virginia per mile driven. It's design has changed little since the 1920's and it is handling volumes of traffic for which it was never designed, and there is not enough money to upgrade it. A company located in Virginia paying 6% in taxes, pays nothing in West Virginia to use for better roads.
Our bad policies force businesses to move to Virginia, and we end up subsidizing Virginia's economy through our bad policies. Free Market Capitalism has the answer to grow West Virginia's economy. Cut the corporate tax rate to between 4% and 5% to make us equal with the lowest 10 states, and not in the highest 10 states. End Brick Streets monopoly in workman's comp insurance now rather than later. Competition among insurance providers will bring lower rates. Enact comprehensive tort reform to end frivolous lawsuits that drive out business. The combination of these initiatives will allow businesses to increase profits by locating in West Virginia, and a business located in West Virginia pays taxes in West Virginia.
Friday, April 27, 2007
Thursday, April 26, 2007
Red Shift
This is the current political look of the of the state by county. Between 1996 and 2006 the Democratic Party in West Virginia went down from having 63.48% to 57.05% of registered voters, while Republican gained from 29.69% to 30.15% in the same time frame.
If current trends continue, next election cycle Wood county will move into the Red County column, they only need 45 more Republicans. Jackson County will switch to a red county in 2011, and Putnam in 2013. By 2017 the Democrats in WV will drop below the 50% level state wide.
The question is why is this switch occurring? The Democrats have held power in West Virginia since the 1930 election, and the state peaked in the 1950's when the population exceeded 2 million. While the rest of the nation has grown we have now declined to 1.8 million. We are last in all the good categories, first in all the bad categories, and the voter registration shift is a sign the people want change.
Wednesday, April 25, 2007
The Devil Made Me Do It!
“The Devil made me do it!” Back when most parents still taught their children the significance of Heaven and Hell, youngsters would sometimes give this excuse a try. They knew that when they did something wrong that they would need a scapegoat, hopefully one that was universally despised and tough to interrogate. Luckily parents had an answer and referred to Matthew 4:1-11 among other Scriptures. When Satan tried to tempt Christ, Jesus made an individual decision of free will to respond “Get thee hence, Satan: for it is written, Thou shalt worship the Lord thy God and him only shalt thou serve.” Clearly human beings own their destinies and can freely make decisions even when tempted very strongly.
Cho Seung-Hui’s confessions sound familiar. He blamed the world for his misery. Despite having the advantages of living in a country where he could eat regularly and have the opportunity to pursue a college degree, Cho believed he had the right to happiness. Where did he learn that? Is it a coincidence that school shootings started taking place about the same time that secondary education began emphasizing self-esteem and removing chances for honest competition? Self-esteem is developed through either winning or learning from losing. In a world with no winners and no losers, people have no method to build real confidence except through athletics. Even there opportunities are increasingly limited by school consolidation.
The Declaration of Independence promises all Americans the opportunity to pursue happiness, not happiness itself. Cho and so many other people are troubled because of the gap between the world they are taught, where people are always supposed to be happy and individuals own no responsibility for their lives, and the world as it is, where people struggle to face success and failure every day, learning to live with both.
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Is anyone else appalled by the sheer irresponsibility of the news media anymore? The same television networks that refuse to turn their cameras on morons that run onto the field during athletic events for fear of encouraging similar behaviors show this madman’s video manifesto. They reward him posthumously for killing over thirty people so that he could tell the world what a crappy place it was. Nice going. They will wonder why copycats will try the same thing and then blame gun manufacturers afterwards.
Cho Seung-Hui’s confessions sound familiar. He blamed the world for his misery. Despite having the advantages of living in a country where he could eat regularly and have the opportunity to pursue a college degree, Cho believed he had the right to happiness. Where did he learn that? Is it a coincidence that school shootings started taking place about the same time that secondary education began emphasizing self-esteem and removing chances for honest competition? Self-esteem is developed through either winning or learning from losing. In a world with no winners and no losers, people have no method to build real confidence except through athletics. Even there opportunities are increasingly limited by school consolidation.
The Declaration of Independence promises all Americans the opportunity to pursue happiness, not happiness itself. Cho and so many other people are troubled because of the gap between the world they are taught, where people are always supposed to be happy and individuals own no responsibility for their lives, and the world as it is, where people struggle to face success and failure every day, learning to live with both.
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Is anyone else appalled by the sheer irresponsibility of the news media anymore? The same television networks that refuse to turn their cameras on morons that run onto the field during athletic events for fear of encouraging similar behaviors show this madman’s video manifesto. They reward him posthumously for killing over thirty people so that he could tell the world what a crappy place it was. Nice going. They will wonder why copycats will try the same thing and then blame gun manufacturers afterwards.
Tuesday, April 24, 2007
The Hallowed Halls of Academia
Eastern Community and Technical College has not gone the way of the Edmund Fitzgerald yet, but it is certainly sailing into rough waters. What began as a curious experiment in grass roots academics mixed with state level pork is shaping up to be a possible disaster. Two presidents have resigned in the past eighteen months and an $8 million grant to construct a main campus has been reversed.
When political considerations get in the way of common sense, situations such as this occur. Eastern CTC represented a nice cut of bacon for Delegate Harold Michael to bring home to his Hardy County constituents, but it also tries to compete with a long established two year school only a short drive up the road. Eastern has very little advantage over Potomac State College due to PSC’s merger with West Virginia University and Eastern’s continued lack of accreditation. All it has to offer residents of Hardy County is a somewhat shorter commute. It currently is banking on federal funds that would come if the school gets accreditation, but it also lacks a college president.
Governor Joe Manchin and the CTC council chairman for the state, Nelson Robinson, have both expressed concerns about the institution’s future. However Eastern does have students, instructors, and an army of deans. What it lacks is vision, focus, and seemingly coherent organization. A simple answer lies in folding Eastern into either Shepherd University or Potomac State College either of which offer a much wider variety of potential services for students.
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Speaking of lacking a college president (at least until last Friday) West Virginia University’s Board of Governors approved the candidacy of Mike Garrison, former Wise Administration aide. The student government leaders conversely had voted strongly in favor of Garrison.
In the strange world of academia, presidents have different roles. They are stewards of institutions that invest heavily in advancing knowledge and ideas, so some believe that university leaders must have impeccable academic credentials. One professor's quoted statement leads one to believe that a WVU degree in itself represents insufficient credentials. That being said, they must also have the political skills and experience to slug it out in the trenches of legislative politics. Finally a university president needs the charisma and connections to be chief fundraiser. What each person felt was the most important role of a university president went a long way towards determining who they backed for WVU president.
What seems to be happening here also is a backlash by proxy against Manchin. Could it be the case that the ultraliberal faction of state Democrats fought against the presumed Manchin choice? Could they have been wanting to make a political statement about the Governor without attacking him directly? It is probably best to reserve judgment about Mike Garrison until he has been on the job for a while. After all David Hardesty came from a rather unconventional background for a university president and had done a pretty good job.
The WVU presidential selection process, if nothing else, has been an interesting display of state politics in action. Thank goodness we could hire a basketball coach without this much fuss.
When political considerations get in the way of common sense, situations such as this occur. Eastern CTC represented a nice cut of bacon for Delegate Harold Michael to bring home to his Hardy County constituents, but it also tries to compete with a long established two year school only a short drive up the road. Eastern has very little advantage over Potomac State College due to PSC’s merger with West Virginia University and Eastern’s continued lack of accreditation. All it has to offer residents of Hardy County is a somewhat shorter commute. It currently is banking on federal funds that would come if the school gets accreditation, but it also lacks a college president.
Governor Joe Manchin and the CTC council chairman for the state, Nelson Robinson, have both expressed concerns about the institution’s future. However Eastern does have students, instructors, and an army of deans. What it lacks is vision, focus, and seemingly coherent organization. A simple answer lies in folding Eastern into either Shepherd University or Potomac State College either of which offer a much wider variety of potential services for students.
******************************************************************************
Speaking of lacking a college president (at least until last Friday) West Virginia University’s Board of Governors approved the candidacy of Mike Garrison, former Wise Administration aide. The student government leaders conversely had voted strongly in favor of Garrison.
In the strange world of academia, presidents have different roles. They are stewards of institutions that invest heavily in advancing knowledge and ideas, so some believe that university leaders must have impeccable academic credentials. One professor's quoted statement leads one to believe that a WVU degree in itself represents insufficient credentials. That being said, they must also have the political skills and experience to slug it out in the trenches of legislative politics. Finally a university president needs the charisma and connections to be chief fundraiser. What each person felt was the most important role of a university president went a long way towards determining who they backed for WVU president.
What seems to be happening here also is a backlash by proxy against Manchin. Could it be the case that the ultraliberal faction of state Democrats fought against the presumed Manchin choice? Could they have been wanting to make a political statement about the Governor without attacking him directly? It is probably best to reserve judgment about Mike Garrison until he has been on the job for a while. After all David Hardesty came from a rather unconventional background for a university president and had done a pretty good job.
The WVU presidential selection process, if nothing else, has been an interesting display of state politics in action. Thank goodness we could hire a basketball coach without this much fuss.
Monday, April 23, 2007
Change of Focus
Saturday Night at the Barbour County Lincoln Day Dinner I had the opportunity to hear Doug McKinney speak. This is about the 3rd time in 2 weeks I have had that opportunity, and each time I am impressed. I like the change in focus that Doug is presenting.
For years the West Virginia GOP has pushed the fact that we are the Pro-life, Pro-marriage, Pro-gun party, but isn't that what is expected of the GOP? Unless you have been living on Mars, you know those are the core social values of the party and they will not change. Doug sees an opportunity for the party to make headway in the state by pushing the fiscal conservative values of the party. The values that will make the states economy grow.
Forbes Magazine ranks West Virginia the 49th best place to do business, while our parent state, Virginia, ranks 1st on the same list. The simple reason is Virginia has less regulation, less licensing, and less taxes on business. This makes it easier to do business in Virginia and as a result they have a growing economy.
At our peak in 1950 West Virginia had a population of 2 million. While the rest of the nation grew, we declined to our present 1.8 million. This is mainly the result of bad fiscal policies made by a Democrat controlled state government. The namesake of Marshall University, Chief Justice John Marshall had it right when he said, "The power to tax involves the power to destroy." The powers in Charleston have definitely destroyed the states economy over the past 50+ years proving his point. In 1950 we were strong enough to have the representation of 2 US Senators, and 6 US Congressman. To put that in perspective, we would need a population of around 3.8 million in 2010 to have that kind of power. In 60 years we have been more than cut in half. Oh how the mighty have fallen.
Doug is right, now is the time to change the focus of the GOP onto the fiscal values of the party. It will be hard for the Democrats to hide from 50+ years of destruction of the states economy through ever increasing bad tax policy. Every family in the state has been touched by members that have had to leave to find work, and that presents an opportunity for the GOP. Through economic education the party can gain ground, and begin to reverse the destruction of the states economy that has occurred over the last 50 years.
For years the West Virginia GOP has pushed the fact that we are the Pro-life, Pro-marriage, Pro-gun party, but isn't that what is expected of the GOP? Unless you have been living on Mars, you know those are the core social values of the party and they will not change. Doug sees an opportunity for the party to make headway in the state by pushing the fiscal conservative values of the party. The values that will make the states economy grow.
Forbes Magazine ranks West Virginia the 49th best place to do business, while our parent state, Virginia, ranks 1st on the same list. The simple reason is Virginia has less regulation, less licensing, and less taxes on business. This makes it easier to do business in Virginia and as a result they have a growing economy.
At our peak in 1950 West Virginia had a population of 2 million. While the rest of the nation grew, we declined to our present 1.8 million. This is mainly the result of bad fiscal policies made by a Democrat controlled state government. The namesake of Marshall University, Chief Justice John Marshall had it right when he said, "The power to tax involves the power to destroy." The powers in Charleston have definitely destroyed the states economy over the past 50+ years proving his point. In 1950 we were strong enough to have the representation of 2 US Senators, and 6 US Congressman. To put that in perspective, we would need a population of around 3.8 million in 2010 to have that kind of power. In 60 years we have been more than cut in half. Oh how the mighty have fallen.
Doug is right, now is the time to change the focus of the GOP onto the fiscal values of the party. It will be hard for the Democrats to hide from 50+ years of destruction of the states economy through ever increasing bad tax policy. Every family in the state has been touched by members that have had to leave to find work, and that presents an opportunity for the GOP. Through economic education the party can gain ground, and begin to reverse the destruction of the states economy that has occurred over the last 50 years.
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