Free Markets Work!

Recently, Del Nancy Guthrie (D-Kanawha) has made a few comments regarding her views on free market policies. She is under the misconception that free market policies do not work. She is wrong; the free market is working nationally, but their benefits come to a screeching halt at the West Virginia border.

She says that wages are down, we are losing the manufacturing industry, we in violation of the US Constitution’s Commerce Clause, and that we need more government intervention in order to fix this “crisis”. She is wrong on all four counts.

In fact, according to the National Bureau for Labor and Statistics, “More Than 8.1 Million Jobs Created Since August 2003 In Longest Continuous Months Of Job Growth On Record”.
They went on to say, “110,000 jobs created in September. September 2007 is the 49th consecutive month of job growth, setting a new record for the longest uninterrupted expansion of the U.S. labor market” and thanks to an $8.3 billion reduction in the trade deficit, our exports and Gross Domestic Product have grown 14.8 percent and 3.8 percent respectively.

And as far as the Commerce Clause in the U.S. Constitution and the rights of government to regulate International Commerce, it does that already through the Department of Commerce and the International Trade Administration. Their roles are to improve economic conditions, promote growth and trade with foreign states. The government further regulates trade by imposing customs, import/export taxes. The federal government also sets quotas. It states the amount of trade that is permissible with other countries.The only crisis here is that we are not seeing this growth within the boarders of the Mountain State .

The changes needed for West Virginia to become a thriving and prosperous state, begin with our legislature. Our businesses need a free-market environment in order to thrive; unfortunately, I do not think that a legislature where Delegate Guthrie’s point of view prevails will enact the prescribed reform.

The reason that we are losing the manufacturing base in our state is because of the poor business climate - just ask the owners of Weirton Steel and Fenton Glass. When you add the costs of regressive taxes and the worst legal climate of the 50 states, businesses simply smother and close their doors resulting more lost jobs.How are businesses expected to have capital to invest to improve their facilities, add more jobs, and raise wages if they are taxed so heavily on profit, on their inventory, and on the machinery and equipment which are necessities in order to make their product?

More taxes are not needed, instead we need a repeal of the Business and Occupational Tax, a repeal in the Business and Franchise Tax, and a repeal in taxes on inventory, machinery, and equipment.

In addition to our atrocious tax policies, our legal climate leaves much to be desired for in regards to attracting any form of business.

How do you expect a business to come to WV and invest when they know the vulnerabilities that await them the first day they open the door? Businesses simply do not trust our judicial system to be fair and balanced.

Our pro-plaintiff judicial system drives up the cost of liability and workers’ compensation insurance. Both high priced liabilities reduce our wages, and they threaten the survival of our employers.

We do not need more government “protectionism” advocated by Delegate Guthrie. We need to abolish Joint and Several liability to replace it with straight liability. The only people that should be forced to pay for damages done are those that are directly responsible for the actions that harm the victim.

We also need to eliminate lawsuits that can be filed without proof of injury. Anyone can enter into a place of business and file a lawsuit of injury without any proof that an actual injury occurred. This has turned our legal system into a lottery.

We have to stop taking baby steps to improve our business climate, and rather take leaps and bounds to attract business, create jobs, and allow current companies to grow creating even more jobs.

The government managed economy advocated by Del Guthrie and her colleagues in the ruling party has failed us for the past seventy-four years. We will never feel the effects of free markets in West Virginia until our government ceases to over regulate and over tax our people. The only alternative to the free markets is government control, which failed in Eastern Europe, and has failed West Virginia .

I'd like to thank President Eisenhower!

I recently completed a business trip to Nevada for the annual SEMA trade show. That is the largest trade show in the world and it just happens to be in the industry that I am in. Unlike most people that flew to the trade show, I chose to drive.

Yes you read that right. I drove from Keyser, WV to Las Vegas, NV. 2300 miles out in 35 hours, and 2300 miles back in 36 hours. We switch off drivers and drive non-stop. That would not have been possible just 40 years ago.

In 1919 a then Lt. Eisenhower was involved in a military experiment. A convoy left Washington, DC in route to San Fransisco, CA. It took over 2 months to drive across the nation. The roads were horrible. An excellent book American Road by Pete Davies chronicles the trip. I highly recommend reading it. Today you can drive that same trip in 48 hours by switching drivers.

In 1945 then General Eisenhower saw the Autobahns in Germany and how easily it was to move transport. The combination of those events in Eisenhower's life led to him signing the Defense Highways Act in 1956, which created the Interstate Highway System we enjoy today.

While we complain about the road construction, we have one of the best highway systems in the world. Sometimes we tend to take that for granted. During my trip of close to 5,000 miles I encountered very few problems. On they way back Interstate 44 through Oklahoma City was probably the worse piece of road. West Virginia actually had some of the best sections of Interstate.

It is easy to see that roads are essential to commerce when you drive the nations interstate system. At night across Kansas and Colorado on the way out, and across New Mexico, Texas, and Oklahoma the road became almost the exclusive domain of heavy trucks. While the travelers mostly stop at night, commerce keeps right on rolling.

The Interstate system lead to the huge growth in the US Economy since World War II, and for the most part that system is working well. In West Virginia we face a crisis in roads and we need to solve the problem. As we go deeper into the 21st Century we will need to look at new ways of funding our highway system. We need make sure the WVDOH is properly funded, but we must also make sure they are spending funds wisely.

Presidential Prerogatives

Secrecy versus the right to know has grown into an important debate in terms of the restriction of presidential papers.

During the Watergate hangover years, lawmakers sought to reduce the aura of secrecy that existed around presidential papers. After Richard Nixon's administration, zealously guarded secrecy was seen as a catalyst for presidential misdeeds. Perhaps if presidential communications saw more scrutiny, they might themselves act in a more transparent manner. Additionally historians rejoiced in the idea that they could access crucial records more quickly.

The last two presidents have come under fire for restricting access to their papers. The New York Times recently blasted President Bush for adhering to a family "mania for secrecy." Five years ago he wrote an executive order placing many of his personal papers under restriction for the immediate future. During recent Democratic debates, Hillary Clinton's competition of stuffed shirts blasted her refusal to release her personal correspondence between herself and her husband. Historians despise both measures because they want access to these documents as soon as possible.

Historians may be hurting their own efforts. Our record of the Constitutional Convention in Philadelphia was locked up for fifty years so that the participants could speak freely. What if they believed their thoughts would appear in print within a few years? This would alter what was communicated and written down. Future historians will not have those rare finds of politicians actually communicating their real unguarded thoughts. Because Franklin D. Roosevelt did not trust that his papers would remain inviolate, he communicated everything through speaking. We rarely have any idea what was really on his mind at any given point.

Additionally personal papers, especially those between a husband and wife regardless of position, are personal. Hillary Clinton and her husband wrote things to each other on important issues that I personally would be interested in seeing. However these are personal communications and so long as no criminal investigation exists, these papers ought to remain private for the time being. They especially ought not be fodder during a presidential campaign.

George W. Bush's communications come during wartime, something that liberals and the media seem to haver perpetual ammnesia about. They reflect strategies and ideas that could help our enemies if released, even after his term is over. Again, this is a situation where historians want to write their books and political folks want mud to smear.

Bush and Clinton both deserve the right in the short term to limit access to their personal papers so long as there is an eventual date that everything end up in the public eye. It may be years, it may be decades, but that is the price we pay so that these people can feel free to record their thoughts.

Holding Taxes Down

It seems that politicians always want to raise taxes. The reason is they like to spend money. It is easy to spend money when it is not your own. What we need are laws to control spending for those politicians that forget they should take greater care when spending other peoples money.

The way to do it is to limit revenue. If government gets an increase in revenue, they just spend it. In Mineral County personal property taxes have increased substantially, and the government just spent it all.

I would suggest that any budget increases within the county be limited to the previous years budget plus inflation and population change. The government doesn't need to grow any faster than inflation. This limits government to its current size. Allowing for increases based on population also is reasonable. Any increase in population will require an increase in services, but not an increase that is greater than the growth rate.

Now if the government receives more money than the increase from inflation or population allows, then government will be required to give that money back to the tax payer in the form of refunds. After all it is our money they are taking, they should be giving the access back.

This has worked in other states and should work here to control out of control tax increases and government expansion. It is only common sense to not take to much from the taxpayer.

Septimus Severus

The 100s AD were a good time to be a Roman (unless you were a Christian.) For most people in that empire, times were good. Rome enforced peace with liberty throughout its realm. Prosperity reigned everywhere because the government did not exercise large amounts of influence in the economy relative to other societies at the time. Roman citizens often did not suffer from a heavy tax burden but had the freedom to make economic choices. From the 100s BC until almost 200 AD, Rome enjoyed a society where class distinctions did not inhibit the material movement of most citizens.

It is true that Rome did lose its republican government in the century before the birth of Christ, removing the right of the people to choose the government. For most of the first century AD Rome's political leadership ruled in turmoil. Only in the 100s did this stablilize. Despite these problems, the economic freedom of Romans continued.

Economic freedom is vital to the strength and resilience of the economy. People must enjoy the freedom to make choices with their money. When the government restricts these freedoms through taxation or burdensome regulation, it reduces the dynamic nature of the system. Emperor Septimus Severus in the late 100s and early 200s AD chose to drastically reduce Roman economic freedoms. He raises taxes considerably and passed restrictive laws. Just as the modern United States, Rome constructed public works and maintained a welfare state. Often these issues went beyond practical necessity and became political debates. Septimus Severus passed laws enforcing an idea that those in the lower class must stay in their status, restricting their opportunities to better themselves.

Modern America faces these same problems. Hillary Clinton and Congressional Democrats make a political issue out of President Bush refusing to let the government pay for middle class children to have health insurance. Not poor as the local and national media insist, but middle class! Poor children already receive insurance coverage. Only through much higher taxes will an initiative such as this become law. Local liberals want to pass laws that will increase the power of the government to harass and dispossess people of property if some other individual for whatever reason shows disapproval over how it looks.

Lower taxes and sound protections for property are two major pillars of a dynamic economy. Liberals around the country fear an economy left to its own devices and seek to introduce restrictive planning. As in 200s AD Rome or the Soviet Union, excessive planning only ensures that the poor stay poor.

How did Rome fare after Septimus Severus? For the next hundred years it experienced economic decline and political turmoil. Emperors rose and fell, trade dropped, and the stage was set for even more restrictions on liberty and the final fall of Rome. Citizens lost their faith in their country because opportunity declined. In Rome at its height and the United States today, any citizen enjoyed the opportunity to better themselves provided they were willing to work and make good choices. We need to band together to make sure we do not elect our own Septimus Severus Clinton in 2008.