In confusion there is profit

In the movie Operation Petticoat there is a great line that holds true in today’s troubled economy. When Lt. Com. Sherman (played by Cary Grant) asks where his supply officer, Lt. JG Holden (played by Tony Curtis), is during an air raid the commander is told, “When the air raid started they took off. All he said was, ‘in confusion there is profit.’” It is play on Rudyard Kipling who once reasoned that it was a good thing to keep one's head while all around were losing theirs. Right now across the country the Federal Government and State Governments are loosing their heads over the economy but if West Virginia’s government keeps its head, then we as a state can profit from it.

The way for West Virginia to take initiative is simple. The same bad economic policies out of Charleston that hurt us in good times hurt us in bad times as well and we must change those.

Two periods of strong economic growth stand out in recent American history the one started by John F. Kennedy in the 1960’s and the one started by Ronald Reagan in the 1980’s. Both have a common thread, both Presidents cut the tax rates which put more money in the hands of the people and businesses. This allowed people to spend more money on good and services spurring economic growth and the businesses used the additional money to expand operations providing those goods and services. In other words growth breeds additional growth.

The additional growth comes because people naturally want to be rewarded for their work and when they work harder they receive additional reward. It is the American Way, it is Capitalism. The problem in West Virginia is when compared to other states our businesses and people receive less of a reward for their hard work because of our tax rates and structure. When the state takes a bigger chunk than other states it simply reduces the incentive to work hard in West Virginia or encourages people to move to another state. The state has created a ‘tax wedge’ against prosperity. The removal of this wedge will lead to people willing to take the risk of starting a business and creating new jobs in the state and in bad economy that is more important than in times of prosperity.

Besides the high income tax rates there are two other primary ‘tax wedges’ hurting West Virginia businesses, the Business Franchise tax and the Inventory tax. The Business Franchise tax is based on companies net worth, it’s not a tax on Franchises as many believe and is paid by all businesses in the state. The tax remains whether or not the company is making a profit. This is a tax that companies in most other states do not have to deal with. So in bad economic times this tax has a greater impact on with West Virginia companies that are struggling to make a profit. If a corporation is looking at closing one of two plants, then it will make more economic sense for them to close the West Virginia plant because of the Business Franchise tax.

The same holds true for the inventory tax. Sales drop as the economy slides downward, inventories of unsold goods naturally raise. In West Virginia our inventory tax punishes companies more and more as their sales slide downward. In many cases, especially with small businesses, this can be the straw the breaks the camels back. In order to pay the additional taxes imposed by the state with falling revenues these companies must find the funding. For most this will result in employee layoffs and some bankruptcy.

West Virginia must now make the hard choices to profit in this confused economy. The worse the economy gets the more our business are punished by the state tax structure. The opposite of the way it should be. Consider that eliminating the Business Franchise and Inventory taxes will reduce revenue to the states tax coffers in the short term, but if we don’t eliminate them and those businesses leave or declare bankruptcy they will pay no taxes at all in West Virginia. The cutting of the tax rates will put more money in the pockets of West Virginians and West Virginia businesses rewarding them for their hard work by making it easier for them to weather the economic storm. Making these changes will allow more West Virginia companies to survive and attract those that want to expand with an atmosphere that rewards hard work.

Removing the tax wedges put in place by bad Charleston policies will allow West Virginia to keep its head while other states loose theirs.

Please Europe, Please, For the Love of God, Do Not Create a Black Hole!

I'm serious about this. We really do not need to know about black holes or the origins of the universe this badly.

The European Center for Nuclear Research runs a facility called the Large Hadron Collider. It plans this summer to initiate a sequence of events that will create a black hole somewhere near Geneva, Switzerland.

No, this is not a story from News of the World. It is a Fox News item.

The intent is to recreate the physical universe as it was at the moment of the Big Bang, in other words, make a point with infinite density occupying no space. Scientists call this a singularity. Singularities in space are commonly called black holes.

Black holes create gravitational forces so powerful that light cannot escape. European scientists assure us that this one will be formed and dissipated in such a short amount of time that the planet will not be affected.

Whew! I feel much better now!

Here is the problem. The Big Bang is a theory while the existence of black holes is a scientific fact. We do not even have a theory to explain what happens in or near black holes. University of Alabama scientists protest that the would be black hole creators have not done their math correctly . . . and not accounted for the possibility that the four dimensional universe is actually embedded in a five dimensional space.

Conservatives will go on and on about cloning being contrary to the will of God. Some liberals will fight tooth and nail against nuclear power because of Chernobyl. In black holes lie the most potent secrets of the universe. Are we ready for them?

In the Book of Exodus, God warns Moses that He cannot reveal His face to human beings because it would destroy them. Humanity cannot handle the power of looking into the visage of God. The most blessed can see the hem of a robe, but not His full majesty. Black holes would seem to be another image that humans should not look at from too close a distance.

Some things we just were not meant to do. I would include making black holes on Earth as one of them.

Obama Executive Branch Called Dangerously Top Heavy

An analytical story that crossed the wires yesterday afternoon raised an alarming point. Obama has not only appointed traditional Cabinet secretaries, but also an amazing number of issue "czars," special advisers, and special diplomatic envoys responsible only to him. An expert noted that Obama seemed "addicted to czars." Five separate executive branch officials can claim a leadership role on the climate change issue, which many Americans by now have come to understand is no issue at all. Special envoys will be sent to Pakistan and other Middle Eastern countries, a move that undercuts the ambassadors to those nations and Her Royal Hillariness in the State Department.

Obama did not invent this style of government and it remains to be seen if this is intentional, or just the president muddling through, building legitimacy by appointing as many experts as he can find to do the same jobs. Franklin D. Roosevelt intentionally followed this pattern. Several people worked the same job independently, meaning that if a conflict arose, FDR would arbitrate, ensuring that he was kept informed and maintained his power. Accomplishing this meant that FDR presided over one of the most secretive and deceptive administrations in history at a time when the press was not only friendly, but by and large served the function of adoring accomplices. Obama will get no such treatment if he continues to try and intimidate hardened White House reporters with stare down tactics.

Other historical figures who have created ponderous and unwieldy systems such as Obama's include Russia's Czar Nicholas I and Adolf Hitler.

Obama is likely trying to establish these special offices and departments to get around his own Cabinet selections. He certainly wants to keep Hillary's wings clipped. His opposition includes the moderate and conservative Democrats as well as Republicans. Obama may believe that these special positions will lead to him keeping control of his own policy. Unless he has the intellect of FDR, it will more likely lead to a jumbled mass of ego, contradiction, and inactivity.

Of all the possibilities of a left leaning administration, socialist policies caught in the quicksand of a byzantine Executive Branch sounds like a less horrible result than others.

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I read yesterday where Obama and other local elites dined at Washington's Georgia Brown's. We walked past that place the other weekend. It had $30 entrees. Was this fancy food? Nope. $27 or so for a meal that included fried chicken, mashed potatoes, biscuits, and collard greens. It must be nice to be able to pay $30 for a meal you could get for one third the price at the same quality. Combine this with $100 per pound beef and you see how differently Obama and his friends are used to living than the rest of us.

What's the Difference Between Conservatives and Liberals?

Conservatives seek to govern. Liberals seek to rule.

Conservatives believe adults ought to make their own decisions about smoking, gun ownership, and other issues. Liberals believe that the only adult choice that ought to be left to anyone is whether or not to abort a pregnancy. At that point a 12 year old ought to decide on their own.

Conservatives see guns in terms of protection. You protect your home from intruders, protect your society from an oppressive government. Liberals see them for sport only. And they want to eliminate the sport!

Conservatives want to create conditions where prosperity can take hold, develop, and create opportunities. Liberals seek to plan and tax prosperity out of existence even before it happens.

Conservatives believe clean energy comes from private investment in a variety of profitable areas, such as wind power. Liberals believe clean energy is when no energy is produced, but somehow they end up with it while everyone else conserves.

Conservatives see government as the means; it is a necessary evil. Liberals see it as the means and the end; the curbing of human desires is a good thing in itself even when those desires harm no one or only harm the individual making the choice.

Conservatives believe that the United States has a right to protect its security by acting in response to threats wherever they present themselves in the world, as Franklin Roosevelt proclaimed. Liberals believe it is all America's fault.

Conservatives believe, as Martin Luther King Jr., that men and women should be judged not by the color of their skin, but the content of their character. Liberals believe in reparations for wrongs done over one hundred and fifty years ago. Among those who should foot the bill are tens of millions whose ancestors were not even here.

Conservatives believe in a responsible balance between the interests of human beings and the maintenance of nature. Liberals do not mind putting thousands out of work on the off chance that a bird somewhere has been harmed.

Certainly conservatives individually will stray from their core beliefs. The world sometimes asks for, other times demands compromise. It is important to remember our standards and principles as American conservatives. We do not believe in simply sticking to everything that existed in the past. We believe that American principles are still relevant and that each generation must find its own way to conserve them.

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Party of the Common Man Update

I never want to hear a Democrat complain about tax cuts for the wealthy again. How many Democratic leaders have we uncovered among Obama appointees who individually opted out of paying their taxes. Three at last count.

The IRS owes Obama a thanks for uncovering some pretty major tax cheats. Of course they won't lose their homes or go to jail.

War Report Says that Poor Planning Undermined US Military Success. The Question Is, Which War Do They Mean?

Could it be the American Revolution where it took some time to realize that part time militia would not defeat hardened British regulars? Washington took years to develop and train the kind of army that would defeat the famous "thin red line."

How about the War of 1812? Our naval strategy of attacking merchant ships with frigates worked temporarily, until the main British battle fleet reached the East Coast and laid down a stifling blockade.

During the Civil War the United States Army rushed into the disastrous First Bull Run (or Manassas if you are from Hardy, Hampshire, or Pendleton County.) The Union Army, woefully unprepared for its first major engagement, drunkenly maneuvered its way to a complete rout that almost gave the enemy the national capital.

The Spanish American War saw ten times more people die of illness than bullets. The rendezvous point for the expedition to Cuba was in a swampy town called Tampa. In 1898, it was not a vacation dream spot.

World War II saw Douglas MacArthur get his teeth kicked in in the days after Pearl Harbor. He had several years to prepare for a sneak attack by the Japanese. They did not even sneak, but they did destroy most of his planes on the ground. The initial naval response in the ABDA fleet was less than effective. In the opening month of the war a handful of Marines and civilians on Wake Island became national heroes by sheer pluck. Our opening battle against the Germans at the Kassarine Pass was a disaster as well.

Up until that point the Mexican War (because of the ineptness of the enemy) and World War I (due to the exhaustion of the German Army) represent two unusual times when the military started a conflict and did not have to face a staggeringly destructive learning curve. Bull Run cost the Union Army 2,800 dead while Kasserine Pass resulted in 6,500 dead and the US commander being sent stateside for the remainder of the war.

Of course the report referred to the Iraq and Afghanistan theaters of the War on Terror. Some assumptions and ideas were proven wrong and the military may have taken too long to adjust its tactics and personnel. However, the loss of men was not as great as in the initial stages of wars that history looks back upon as strongly successful. With the advent of democracy and stability in Iraq, we can safely call it a United States victory. Now it is time to bring our power to bear again in Afghanistan. Let's hope the president has the courage to see the job through.