Friday, December 19, 2008

The Slow Death of Century Aluminum

This may not fly on the radar of many around here, but it means a lot to my home county. Century Aluminum in Ravenswood, Jackson County, may shut down.

Consider the shock to this region if the paper mill shut down. Job losses, the cut in income to local businesses and other ripple effects would be crippling. Jackson County has to deal with that plus the loss of tax receipts that their schools and local government need.

This facility originally was Kaiser Aluminum, run by the business titan Henry J. Kaiser. Two decades ago, Kaiser ran out of steam and it became Ravenswood Aluminum. I honestly have no idea when it became Century.

This plant faced serious problems in the 1980s that stemmed largely from the steelworkers' union. I remember my stepfather had to travel there several times in one week to perform a simple computer repair. This may sound like a joke, but it is true. The light over the computer burned out and he could not see to do his job. Union rules specified that a certain combination of people must change the light. They could not get that combination for days. My stepfather showed up every day, feeling a little guilty that the company had to pay so much for time that he could not use to do his job. Eventually he offered to fix the light, but it was against union rules.

A few years later the union went on strike and the company hired replacement workers. I was in high school then and the tension was horrible. The same school that made a bold stand against Joe Camel could not bring itself to outlaw union made shirts that portrayed the corpse of a replacement worker with the motto "Scab Hunter" above it. The bedroom window of our quarterback was shot through in the mistaken belief that his brother, a replacement worker was staying there. Unpunished beatings of replacement workers happened over and over while jackrocks made the state highways dangerous to travel.

This foolishness is not over. A union facility in Maryland reprimanded a supervisor for helping employees to clean up a dangerous substance.

The point of this is that American industry is priced out of the competitive advantage it long enjoyed. Archaic and byzantine regulations have made it difficult for plants to keep costs down. Unions do have a role in the 21st century in terms of being safety and quality watchdogs while making sure workers get treated fairly, but it is time for them to decide whether or not it is more important to keep time honored, but bizarre, rules or jobs.

Thursday, December 18, 2008

Frustration With President Bush: Party of the New York Common Man Update

This is not a critical piece about the policies of the Bush Administration. For pretty much the past eight years I have found myself in agreement with him about 60-70% of the time, which is pretty good.

My frustration stems from another source. Watching how the President handled the entire weird shoe throwing incident the other day really bothered me. Here was a very strange situation. An Iraqi journalist, obviously crazed, tosses shoes at the President while cursing him. Here we see President Bush acting on instinct. His secret service want to tackle him and get him out of danger; Bush waves them off. Every mannerism showed grace and personal courage in the face of the unexpected. These things look good to a Middle Eastern audience. The embarassed Iraqi leaders wanted to end the press conference and throw away the tape if possible. Bush turns the incident on its head and explains how democracy and freedom of speech work. We saw and heard Bush as he is, acting on instinct, commanding the situation. The network news even admitted that he won over the Iraqi press corps with his demeanor.

He handled it perfectly. That leads me to wonder, where has this guy been? In his own understated fashion, George W. Bush is a pretty good communicator. The president has charm, wit, and honest common sense as well as a deep conviction. If more of this man's warmth and human concern had emerged over the past several years, people's perceptions would be widely different right now. For whatever reason, President Bush has been bottled up.

That is frustrating!

First and last impressions are always the ones that stick with us the most. One of the world's last impressions of this man as president will be his artful dodging of shoes and his graceful handling of a tough situation. History will remember the good things this man did as we move forward.
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Another Party of the Common Man Update

New York State has spent itself into worse trouble than General Motors, so it has come up with a solvency plan.

First of all, the Democrats in new York think the people that live there are too fat, so they are going to tax non diet soft drinks. That'll learn you fat slobs sucking down your root beers and Coca Cola. At least you have health insurance, right? Well New York State may start taxing that, too. The other whammy comes when hospitals, yes hospitals, will start facing higher taxes.

Way to attack the rising cost of health care by taxing insurance and hospitals. Apparently they will also require new license plates that, of course, will cost.

Why do people drink cola? Because it is cheaper than the healthy alternatives, except Kool Aid. Why is it cheaper? Because federal policy keeps the price of farm products artificially high.

Every tax proposed here will hit the poor and the middle class hard. Add to that the fact that they are trying to shape public habits through taxation.

Yup, common people of New York, the Democrats love you guys!

Wednesday, December 17, 2008

Wvjohn and our First Amendment Rights

The internet is a great tool of receiving and providing information. This blog which has been a quite successful example of how the internet can be used effectively to provide information and opinion. The News Tribune allows people to follow up to stories that have been printed, which is a great service that they offer.

What I find funny is the lefts use of it to attack those on the right personally. People usually attack people personally when they are unable to attack the message. On the News Tribunes website I have a personal attacker that goes by the screen name of “wvjohn.”

Now when I write on News Tribune website, the Potomac Highlands Conservative or for various news papers I always use my own name. I don’t have a problem with people knowing exactly who I am when I’m stating my opinion. I want to be challenged. Through challenging my ideas you maybe able to change my opinion, but some people believe in the personal attack as a way to make their point.

Now I’m not sure what they are trying to accomplish through the personal attack. Take my follower wvjohn; he takes issue with me using my real name when I write letters to the editor. I find that strange, because when people know who you are it leads to discovery. A follow up by letter by Gerald Frantz on my comments on the water studies wasting taxpayer money, led to and invitation to speak with him personally on the subject. I want to take him up on that offer because it will further my education on the water systems in the county.

If a person chooses to hide their identity, then they are unsecure in their own opinions. They do not get to follow up on opportunities like the one presented by Mr. Frantz. Now it is clear to me that wvjohn is one of these people that believe government should control our lives. In a recent follow up on the News Tribune website he states, “Some people just want to pettition their government and get their name out there in the public eye.” He is absolutely right, I want to petition government! After all the First Amendment of the US Constitution says I have that right; Congress shall make no law abridging my right to petition the government for a redress of grievances. Yet, wvjohn thinks it’s awful that exercise my First Amendment right, which speaks volumes. Maybe wvjohn only believes I should have the right of free speech if it is something he wants to hear?

Wvjohn, I invite you to write for the Potomac Highlands Conservative. Only rules are no personal attacks and you have to use your real name. You will have a state wide audience of over 13,000 to here your opinion and see what kind of follow commentary they have for you.

Tuesday, December 16, 2008

Free Market Forces vs Central Planning

Right now the Mineral County Planning Commission is in the mist of developing its Comprehensive Plan under Section §8A-3 of the West Virginia code. The county is spending $20,000 with the WVU Extension office to prepare the plan, a bargain compared to what other counties have spent. Knowing the complexity of the economy, I have to ask the question, beyond planning what government will do as far as libraries, parks, water, etc; can government effectively plan Economic Development and Land Use in the private sector as outlined in the state code?

Governments have tried to plan economies and land use for hundreds of years, and I can think of none that ever found success. Starting in 1607 over the course of 2-years 604 people were sent to the centrally planned Jamestown settlement in Virginia, all but 98 died of starvation 6 months after their arrival. In 1611 Sir Thomas Dale took charge of the Virginia Colony, eliminated central planning, instituted private property and within a few years the colony that lost 80% of its population to starvation was trading excess food to the Native Americans. Central economic planning and loss of property rights in the Soviet Union led to the starvation deaths of millions in 1932 and 1933, in China 20 to 30 million starved between 1959 and 1962. The Soviet Union collapsed under a centrally planned economy, and China survives by restoring private property rights and switching to a free market system.

Economic Development and Land Use are linked to prosperity, yet they are two separate sections of the state code on developing a comprehensive plan. That alone speaks volumes of the government’s ability to effectively plan that which it doesn’t understand. While local WV governments do not have the power to centrally plan production, they can restrict the economy through removal of property owner rights more commonly called Zoning. Let’s make no mistake zoning is only a restriction; it can never enhance the economy. A free market needs choices to operate, remove those choices through zoning and you create inefficiencies that slow or reverse economic growth.

The first looser is the entrepreneur, which create most of the jobs in the state and usually start those businesses at home. A good example is Thermo Gauge located in Fort Ashby, WV, which is currently operating out of a home while they finalize plans to move into the Fort Ashby industrial park and expand. Residential zoning would have killed this West Virginia success story before it got started. Removing the choice of starting a business in the home through government imposed land use restrictions raises the barrier to entry. It forces an entrepreneur to rent elsewhere or give up. The free market will also give the homeowner that does not want to live next to a business an option, an another entrepreneur will fill the need with a subdivision with deed covenants restricting home businesses. The free market will restrict itself on sound economic principles. Wal-Mart is not going to build a super center 6 miles down a county road that has little traffic just because land is cheap, and unrestricted. Wal-Mart knows they need to locate on a major thoroughfare to be competitive. Industry will locate were it can get is goods to market easily usually where rail, interstate or barge shipping is an option.

The dark sides of zoning are they create a class of public officials with the power to restrict the self-determination of land owners with no consequences for themselves. This power favors those with political and monetary clout at the expense of the original land owners and less affluent. Land use restrictions also create regulatory takings, this happens when a governing body restricts the use of private property so that the value is lessened. The victim of a regulatory taking still holds deed to the property, but much of its value will have been removed without compensation.

The answer to my question is government should stay out of central planning as much as possible. While not perfect, the free market will always be smarter and fairer than the bureaucrats when deciding economic and land use issues.

Monday, December 15, 2008

Whither Caperton? Also, Another Party of the Common Man Update

Before Mojo there was another highly popular two term gubernatorial juggernaut in Charleston. Caperton exploded onto the scene in 1988. The extremely wealthy insurance man toppled a vulnerable, but still formidable legend in Arch Moore. His business experience combined with a downhome, but politically connected Jackson County wife helped him storm into office. After a few missteps, such as his aborted scheme that would have both consolidated power in his hands and increased the size of government during tough economic times (for West Virginia anyway) Caperton settled in and steered the ship of state for eight years. After that he ventured off into the fog of the outside world outside of politics. Currently he heads the College Board.

Politically the roads closed to Caperton when his second term ended in 1997. Shut out of the Governor's Mansion, seeing the House of Representatives as a demotion, and understanding that Byrd and Rockefeller were not moving on any time soon, Caperton turned to the field of education to pad his resume and do something substantial, but in preparation for what?

A little speculation has centered around Caperton being considered for Secretary of Education. His lack of direct contact with Bill Clinton might work against him, but he would seem to be a reasonable choice. However, his reputation as a relatively conservative Democrat will not help Obama in his current disputes with minorities and Leftists.

I have always wondered if Caperton's eye was not on the US Senate. Certainly before Manchin, he was a strong possibility to succeed Byrd. His speech to the West Virginia Education Alliance might signal that his toe may be reemerging into the pool of state politics.

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Party of the Common Man Update: Bad Medicine

Probably the most stunning allegation involving Illinois governor Rod Mytzlplyk, or whatever his name is, involves the allegation that he was prepared to rescind support for Children's Memorial Hospital because an executive refused to contribute to his campaign. Sorry kids, pony up the f-ing money or no f-ing medicine for you f-ing brats (if you don't get the last line, take a gander at the transcripts of his wiretaps. He is very fond of a certain word and uses it "liberally".)

Is it not fascinating that Obama has rarely even had contact with this man?