Two Timeless Economic Truths From Wealth of Nations

Adam Smith in Wealth of Nations made significant points about labor and money that we desperately need to remember today.

First, Smith differentiated between labor that produces a good or commodity of some sort versus labor that does not. He said that an economy is in trouble when it relies more on "unproductive" (meaning not producing goods) versus productive labor. Productive labor creates tools, refrigerators, software, anything of value that can be sold in the market place, sometimes more than once. Unproductive labor includes lawyers, doctors, bureaucrats, domestic servants, and others. It is not that he has no respect for their work, but his point is that once that work is done, it disappears into thin air and cannot be resold in the marketplace. There is a place for these laborers, but your economy should not rely too heavily upon them or it risks having a bad foundation.

Federal environmental policies, union contracts, and other issues have created a significant competitive disadvantage for this country when it comes to expanding what Smith would call the "productive" labor force. He would argue that this puts our economy in peril.

Second, Smith argues about assets and money. If your economy has most economic assets tied up in capital, it has a strong foundation. Capital is money in your savings account, CDs, stocks, etc. Capital is improvements you make on your home or business to increase its value. An economy based upon spending is weak and vulnerable. We have relied way too heavily on the consumer sector for way too long as an economic jolt. In the past few years, public spending has increased considerably with an eye towards stimulating the economy. Adam Smith explains that an economy cannot thrive on spending. Public spending is even worse because it confiscates capital.

So according to Adam Smith we are headed in the wrong direction. It will take a fundamental shift in policy and prioities to get us back on track. Do we have the courage to set things right again?

Joe Manchin Supports Obama and Government Run Healthcare

McKinley Tightening Up Congressional Race in West Virginia 1st

From the Parkersburg News and Sentinel . . .

McKinley poll shows gap closing with Oliverio
September 7, 2010 - By JESS MANCINI, jmancini@newsandsentinel.com
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PARKERSBURG - Democrat Mike Oliverio's lead over opponent David McKinley is dwindling, according to the latest poll taken for McKinley.
The poll by Public Opinion Strategies for release today shows McKinley trailing the Morgantown insurance agent 41 percent to 36 percent in the election for the U.S. House of Representatives 1st Congressional District in West Virginia.
Oliverio released a poll by Hamilton Campaigns immediately after the Aug. 28 special primary election that said he was ahead 52 percent to 36 percent over McKinley, a Wheeling businessman and former state Republican Party chairman.
"These numbers reflect what I am hearing from voters throughout the district, that they have had enough of Obama's War on Coal and Nancy Pelosi's job-killing Capitol Hill agenda," McKinley said in a release from the campaign. "Voters have had enough of the attack from Washington on West Virginia jobs."
In response, the Oliverio campaign said McKinley has been lying about Oliverio.
"David McKinley's been lying about Mike Oliverio since May, and he's spent hundreds of thousands of dollars of his own money doing this," Randy Coleman, an Oliverio spokesman, said Monday. "Now, according to his own poll, he's still stuck in the mud at 36 percent. The lying and buying doesn't seem to be working."
Results also showed Oliverio's "favorables" have sharply fallen, the campaign said.
McKinley's "intensity quotient," the opinion of those paying attention to the race, is 5 points higher than Oliverio's among voters with a "high interest" and 15 percent higher than Oliverio's among voters with an "extremely high interest," the campaign said.
McKinley's lead among voters who have an opinion of both candidates is 53 percent to Oliverio's 40 percent, Rob Autry, McKinley's polling strategist, said.
The survey by Public Opinion Strategies was conducted Sept. 1 and 2 and polled 500 likely voters. The company's clients are primarily Republicans, including Rep. Shelley Capito of West Virginia and Sen. John McCain of Arizona.
"They are the premiere polling firm on the U.S. political scene," said Steve Cohen, a McKinley spokesman.

Shelley Moore Capito Initiates Student Advisory Committee

Sep 07 2010
Capito Invites Local Students To Apply To Inaugural “Student Advisory Committee”
Today, Congresswoman Shelley Moore Captio, R.-W. Va., announced that she is seeking applications from high school students for the 2010-2011 Student Advisory Committee.
The goal of the Committee is two-fold. First, Capito seeks to give interested students the opportunity to learn more about national issues, current events and the legislative process. Second, she hopes that selected students will serve as their generation’s ambassadors by sharing their views and insights on important issues being discussed in Congress.
“I truly believe that while young people only make up a fraction of the population, they are 100% of the future. I’m seeking motivated and eager students to take part in what I believe will be an educational but fun academic program,” stated Capito.
The Committee will be comprised of approximately 30 high-school students from across the 2nd District of West Virginia. Students will be selected based on leadership ability, academic success and extracurricular actives. A student may only serve on the Committee for one academic year.
Students will attend quarterly meetings planned and hosted by Capito’s office and will be required to complete a final project in order to graduate from Capito’s program. Through meetings and assignments, students will explore the role of citizens, lawmakers and non-governmental organizations and their impact on the development of public policy.
To apply, students must submit an application form (available under the “student” section at www.capito.house.gov), a parental permission slip, as well as one letter of recommendation to the address below by September 30, 2010:
Congresswoman Shelley Moore Capito
C/O Mary Elisabeth Eckerson
4815 MacCorkle Ave., SECharleston, WV 25304Phone: 304.925.5964Fax: 304.926.8912

Upcoming Tea Party and GOP Events

Monday September 20th, 7 PM: Meeting to plan events

Monday October 4th, 7 PM: Meeting to plan rally

Saturday October 16th: Tea Party Rally in Keyser 1 PM

All meetings and rally to be held at Grand Central Center in Keyser.

Mineral County Republican Headquarters Grand Opening TBA, but it is already open for business.

A Tempest In a Teapot: Manchin's Desperate Ploy Against John Raese

It's all the Democrats have got at this point. Photogate.








The photo to the left was taken at the Byrd memorial service in Charleston. Predictably the Byrd family expresses howls of outrage. Of course it's only obvious that this was at the Byrd memorial because that is almost the only time that Obama has visited this state. That is part of the story that the media is conveniently missing.

Democrats cannot counter the accusations that Manchin has grown increasingly servile to a president that over 70% of this state dislikes, so they have hung their hats on photogate. I could see if there was actually a picture of Byrd involved in this, but again, it's not obvious to most people where this picture was taken.

It's a desperate ploy, completely ignoring the issues while undermining the message. Manchin's victory parade has taken an untimely detour into falling poll numbers. He wants the story to be anything except his buddying up to Obama as the election draws near. And that is a legitimate position to attack. West Virginians do not like the War on Coal, escalating debt, Obamacare, or other features of Obama policy.

If Manchin cannot distance himself from these policies that have proven destructive to West Virginia and the nation as a whole, he ought not go to the Senate.