Columnist From DC Paper For the Homeless Blasts "Partisans of the Left", Promotes Free Market

The Republican Party and many conservative groups have shied away from inner cities in the past.  Collectively, they may see little point in confronting what they feel will be universal hostility.  As individuals, few want to go to speak at events where they may be derided for the duration.

Are either one of these fears based in reality?  One DC columnists' writings suggest not.

Jeffrey McNeill writes an opinion column for Washington DC's Street Sense.  Through much of 2013, his work shows growing affinity for free markets while feeling disgust and disdain for "partisans of the left."

McNeill's most recent column, "A Critique of Liberalism," begins by citing studies showing black Americans to be more socially conservative than many Tea Party advocates.  "Truth is," he writes, "a conservative vein runs deep in the black community."  McNeill condemns what he calls "victim rhetoric" and explains "as a minority, I yearn for a new black leader to emerge, someone who will inspire a new generation . . . to be independent and self-reliant."

He then cites Malcolm X, Marcus Garvey, and West Virginia's Booker T. Washington as examples.

"Latte liberals" draw much of his ire.  McNeil describes them as standing up for the little guy until they "go off to their suburban homes pontificating about what others might do for humanity."  Their "social theories border on arrogance."

McNeill discusses his own struggles with how these ideas brought him into conflict "with those I once agreed with."  A summer 2012 piece of his angrily decried anti-Obama conservatives as racist.  While McNeill refuses to call himself conservative, he does call free enterprise "harsh and cruel (but) it is the ticket out of poverty."

The Republican Party and conservative groups would do well to closely look at McNeill's writings.  He came from "some of the worst projects" in New Jersey and Philadelphia, but saw "miracles" such as single mothers, addicts, and others getting off welfare, overcoming obstacles, educating themselves, and becoming successful in life.

A message of self-reliance never falls on deaf ears.  Many people strive to do for themselves.  The inner cities are oppressed by poverty in part because government restrictions, regulations, taxes, fees, and other burdens always kill entrepreneurial initiative in the poorest areas.  Prosperity cannot take root so hope dies. Free market advocates can bring a powerful message to the inner city if they will but go.  McNeill's writings are proof that many will listen.

Street Sense is a newspaper published in Washington DC for the benefit of the homeless.  Vendors write for and sell the paper to earn money.  All are homeless and struggling.

Make Mine Freedom (1948)

Health Care Bill Denies new Private Coverage: It's Right in the Bill

The Obama Health Care Bill will deny enrollment in new private care after it is enacted. Below is the text of that section of the bill, H.R. 3200, Section 102, (a), (1), (A). Outlined in yellow is the line denying new enrollment in private insurance. You can find this section and the full version by searching the office record at the Library of Congress.

H.R.3200
America's Affordable Health Choices Act of 2009 (Introduced in House)

SEC. 102. PROTECTING THE CHOICE TO KEEP CURRENT COVERAGE.

(a) Grandfathered Health Insurance Coverage Defined- Subject to the succeeding provisions of this section, for purposes of establishing acceptable coverage under this division, the term `grandfathered health insurance coverage' means individual health insurance coverage that is offered and in force and effect before the first day of Y1 if the following conditions are met:

(1) LIMITATION ON NEW ENROLLMENT-

(A) IN GENERAL- Except as provided in this paragraph, the individual health insurance issuer offering such coverage does not enroll any individual in such coverage if the first effective date of coverage is on or after the first day of Y1.

John Sununu gives speech to West Virginia Republican Party

So the Terrorists Won After All

Just after 9/11, it was bandied about that if we allowed substantial changes to our national character as a result of crisis, it meant the terrorists were winning. Who ever would have thought we'd see the following:

The government is no longer our obedient servant. Now General Motors is the government's obedient servant.

Those who interpreted the law so that we could compete on the front lines of terrorism now possibly face worse treatment than all but one of the Confederate States of America military and political officials who actually took arms against the United States. They do not get a thank you for preventing additional attacks, they get threatened with prosecution.

Law abiding gun owners are told that the freedoms they believe in somehow give Mexican drug lords 90% of their guns. I am not sure how they got all those Russian, Chinese, and Czech arms from American dealers.

We'd rather form government labor battalions than reduce taxes so that employers can hire more people.

The British head of government and head of state are treated with crass disrespect while anti-American dictators get the "best buddy" treatment.

We regard captured terrorists as civilians and returning solider-heroes as terrorists.

Republicans are, for the most part, also mostly terrorists for standing behind our Founding ideals.

This is a government that plays hardball with corporations, but swoons with affection towards the brutal Hugo Chavez. The world is turned upside down. A few years ago we were prosperous and strong, now we mollycoddle enemies and trample the free market.

Two years cannot go past soon enough. We need to get our America back.

Let's Save the Banking System Free Market Style

Sure we can leave the fate of our capitalist system in the hands of Obama and his band of Merry Marxists, but what fun would that be?

Here is a plan so simple that there are probably some flaws in it somewhere, but to me it makes sense.

The banks should all get together and offer a special investment product that offers one interest rate for a one year commitment and something better for two years. Tie it in with a special tax rebate offered to everyone. Make it easy so that $100 or more can be direct deposited into this special account. Then finally give it a big patriotic government sell. "Save $100 for a year, help save our economy" something like that.

This is a simple, free market way to get hundreds of billions of dollars into the banking system while actually benefiting the taxpayers. Instead of interest going to foreign investors buying up our future, the interest on this "loan" of sorts goes to the American taxpayers.

If one hundred million recipients of rebate checks sign up for this, we put a trillion dollars at least into the banking system. The money stays at home rather than going off to China.

**************************************************************

There is a lot of gloomy talk about the fact that even Americans of means have cut back their spending. In the short term this contracts the economy significantly.

In the long term, this might be a positive step. Part of our national problem is the general lack of savings by individuals. This recession could change spending habits for the better, encourage savings, and strengthen our financial system down the road. The economy will restructure and it will not be pretty, but at the end of the day the nation might emerge in a better position than before. Already we have seen our trade deficit shrink considerably. More money in our banks means more capital for loans.

Ford Motor Company: A Bright Spot in Tough Times

Ford Motor Company, unlike many of the world's corporations, is riding high.

Criticized for low profit margins during the past decade, Ford's conservatism seems to be paying off. Unlike its American and Japanese competition, it lost less market share as auto sales crashed everywhere. Not long ago, experts wondered if the company would survive. A few months ago it confidently refused government assistance (also avoiding federal interference in its operations.)

This month USA Today and Car and Driver announced that Ford's hybrid midsized outperformed the Toyota Prius in almost every category. It has more passenger and trunk room as well as better handling while sacrificing nothing in fuel economy.

Last week Ford called a news conference to announce the reopening of its Cleveland Engine Plant Number 1. Built in 1955, it was shut down to undergo a $55 million renovation. Its opening will initially bring 250 employees back to work.

Even better, the plant will turn out next generation engines that improve fuel economy by 20% and cut emissions by 15%. This demonstrates that someone, somewhere in industry is still using good old American innovation to produce better products that consumers desire. And they are doing it without the federal government's help or advice.

Kudos to Ford. They remind us that the private sector remains the most effective source of real and effective changes.

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.

ISI Finds That America and Its Elected Officials Fail Civics

The results are in and most of us failed.

The Interscholastic Studies Institute released a report on November 20, entitled
Our Fading Heritage: Americans Fail a Basic Test on Their History and
Institutions. According to the report:

More than 2,500 randomly selected Americans took ISI’s basic 33question
test on civic literacy and more than 1,700 people failed, with the average score 49 percent, or an “F.” Elected officials scored even lower than the general public with an average score of 44 percent and only 0.8 percent (or 21) of all surveyed earned an “A.” Even more startling is the fact that over twice as many people know Paula Abdul was a judge on American Idol than know that the phrase “government of the people, by the people, for the people” comes from Lincoln’s Gettysburg Address.

This is astonishing. Even among those with Bachelor's degrees from colleges, the score is only slightly higher at 57%. That still fails. ISI blames colleges for not adequately teaching the foundations of our political and economic system. According to the study, those who talk frequently about politics have a better grasp of the system regardless of their level of education.

Bachelor's degree holders specifically have a poor understanding of such basic institutions as the presidency and the electoral college. They also do not grasp the essentials of capitalism.

Although colleges certainly are to blame, high schools have to realize they failed as well. I learned more in two economics classes in high school than I did in college. We not only heard about supply and demand, but were obliged to demonstrate a complete understanding of it. My did that teacher love supply and demand curves! They were tedious then, but I am thankful now. Too many teachers abandoned the seemingly tedious to be more entertaining. Another teacher taught civics with the same kind of thoroughness. Both were Republicans although you never heard them say so in class. They believed in teaching ideas, but keeping politics out, something I respect.

Will this study have any impact? Hard to tell since ISI is a free market think tank. It is clear that America is losing its sense of itself and its grounding in the past.

You can take the quiz for yourself at:

http://www.americancivicliteracy.org/resources/quiz.aspx

I Feel Better About Helping Automakers Than Banks

Call me crazy on this, but I do not feel the same anxiety about helping the Big Three that I did about the banks.

I supported the bank bailout because, well, we kind of had to. Banks are the engine of the economy and we all have a vested interest in seeing them survive. Without solid banking in the US, the world hits depression quickly. I believed it had to be done, but I did not have to like it.

The automakers are kind of a different story. Basically they followed the rules. The market wanted larger vehicles and that's what the Big Three gave them. The unions wanted strong salary and benefit deals and for the most part harmony has been maintained with them. You have to give credit to an industry that keeps good labor relations, satisfies the market, and turns a slim profit every once in awhile. Sure they do make some bad decisions, but they work on a much more slim profit margin than almost anyone else.

Fact is that this is a national security issue as well as an economic one. We need to remember that during wartime, we will need these factories to churn out tanks rather than automobiles. Of course we have seen jobs being sent to Mexico over the past decade, but perhaps we can reverse that.

Instead of a bailout, let us increase the number and call it something else. Call it a reinvestment. Instead of giving them enough to help them get by, let's set them up for the future. To stay in the United States, auto plants must completely modernize in the same fashion as the coal industry. How much will it take to get these operations into the twenty-first century while giving the UAW enough to make sure that these workers have a soft place to land, or can retrain? This would not only help automakers, but also invigorate our technology sector.

In return, for the next ten years, each American who can prove they paid taxes in 2009 should get a $200 rebate when they purchase a new vehicle from the Big Three. This would be a one time rebate. The federal government should also be able to count on very good deals from automakers providing vehicles in that same time span.

I just don't think that we can allow automakers to just go down the tubes. It doesn't make sense on a number of levels.

Why not the auto companies?

They were directly affected by the rise in oil prices that occurred over the last two years. After 9/11 auto makers were the first to start the effort to move the economy with lowered prices and 0% financing. Banks adjusted their standards and types of loans, but that was often worse for the borrower when they took on an ARM or interest only product. Lower payments today but a bigger total debt. $25Billion is such a small amount compared to the $850Billion total and at least they are making something other than money for themselves.

It was warned that several large industries would follow suit once the bailout was passed for the banking industry. It should be no surprise that the auto companies are following. Or, at least no surprise to those of us outside of Washington, DC. More and more the "bitter" middle Americans will see the voting of the masses in urban areas laying hold to our hard-earned, frugally saved money. Sharing the wealth it is called. Of course, looking around one might ask, what wealth are we sharing?

But the amounts are so big that people don't notice how it affects them. $850 Billion / 300 million people (not the number of taxpayers the number of people) = $2,833 per person. A family of four makes that $11,333 for the family. Assuming that is a one-time deal, you could buy a 2002 Chevy Tahoe, fully loaded, I just bought one, for what the government is going to give away on your behalf. Or a brand new small sedan. At least when you had given a car company nearly $12K in the past you got a car out of the deal. Now you get to pay for their kickbacks and be happy because we may save the economy in Detroit.

Of course, the fact is that from 2006 IRS numbers there were 92,713,707 tax payers (people who actually paid income taxes). Split the 850 Billion by those actually paying income tax and you get $9168 per person to pay for the bailout.

It's too much and it will only grow. At what point does the money come back? It doesn't. We pay off the car companies debts, and mortgage company debts, but can't pay off our own debts. Car companies won't turn around and help you pay off your car debt. Banks won't reduce your principal, despite what Obama suggested during the campaign of promised hope. If it is just a sacrifice we have to make, let's get the car companies back on track. At least I will eventually buy a car from them. Maybe they can even use it to build a flying car, I wouldn't mind paying an extra $10000 for a flying car.

Loss of Short Term Memory

I have to admit, I was one of those that was a little miffed about the Wall Street bailout plan. The idea that $700 billion would go to big business and leave regular folks in the cold struck me wrong. I supported it, but I didn't like it.

Then came some facts. The bailout does not mean grants, but loans. Banks will have to pay this money back. In addition, they face increased government regulation of their practices. It's a lot like when you are a teenager and either crash a car or get a ticket. Your parents may help, but you will have to pay it back in some way. Most definitely your activities will be curtailed as well.

What those (and me too, I admit) who criticize the plan's big business focus forget is that Main Street already got help. The tax rebates were not loans, they did not come with any restrictions on how they were spent, and they will not bring restrictions on how Americans decide how to spend in the future. The tax rebate checks benefited the poor, but not the people with higher incomes. Yes, those people got checks as well, but several hundred dollars is much more vital to a poor family than one making six figures.

I cannot fathom why the tax rebate has not been brought up to counter those who want to make this a class warfare issue. Apparently even the media in this country has lost some short term memory.

Vacationers and the $4 gallon of gas

I had heard the stories of how people are skipping vacations because of the high price of gas, even talked to people who were not vacationing because they tallied up the price of gas and it would cost too much. I expected less traffic this weekend when I drove to Va. Beach area, but that wasn't the case. Since I have family living in Richmond, Va and Newport News, Va, my wife and I have been regular travelers of that route for the last two years. Traffic was at least as bad if not worse for our trip than in prior years. I don't know the statistics of visitors to the beaches this year, but if my extra 2 hours of traffic delays yesterday are any indication, beach vacations are as popular as ever. My hotel had not reduced it's cost to attract customers in a dwindling vacation market, on the contrary, they were booked to capacity as were all the other hotels in the area. When I thought about this long and hard I realized that even though gas prices doubled in the last year or so, compared to the cost of the trip, it wasn't a big increase. Not big enough to cancel plans or to skip driving to Newport News for a family members wedding. My minivan holds about 20 gallons of gas. So a complete fill-up adds about $40 compared to $2 per gallon gas prices. That tank of gas could get me there and almost back home. So my gas price may be $40-$50 higher than in previous years. My hotel was $250 for two nights, and I spent over $150 on meals and the customary round of pre-wedding golf. That was a 48 hour trip. Had we gone for an entire week, our budget would have been around $2500 and the extra $50 in gas wouldn't even be noticed.

We rarely think of it in total cost terms. My wife shops for the lowest price on gas. But even a 10 cent savings per gallon only saves us about $2 or the cost of my cup of coffee on a fill up.

Guess what the most popular vehicle on the road was...not just an SUV, but Chevy Suburban and Ford Expedition sized SUVs. The super-SUVs. And reasonably so, the space makes your drive more comfortable, and the extra large gas tanks makes it so you don't have to stop to fill up en route. My sister-in-law drives a Hyundai Tiburon and had to stop 2x in her trip from Western PA to Va Beach to fill up. When you have kids in the car, stopping is a 20-30 minute ordeal, not to mention the possibility of sturring up a fight or interrupting a movie. So the large SUV may add $100+ to your gas bill, but having space (with kids that translates into peace and quiet) and saving 4-5 stops and 2 hours of travel time is worth a 4% increase to the vacation budget. With the extra space, one can bring your own beach equipment, bikes, etc. which will save money and time over renting this equipment upon arrival. The benefits seem to outweigh the extra cost of gas and neither the low gas mileage nor the $4/gallon price tag seem to have slowed down vacationer traffic.

Where Homeschooled Children Can Go From Here

The Mineral County Board of Education passed into legitimate law the action taken last school year to remove from the rolls of homeschoolers those that spend more than 50% of their time in traditional school classes. This action provoked a hostile reaction at the time because it had no basis in the law. Now some homeschooling parents will have to make the adjustment.

Increasing numbers of parents every year opt to remove their children from the traditional school environment. At one time schools reflected the values and standards of each individual community. Now they mirror the goals and dreams of far away bureaucrats and academics. Under their leadership, public schools veer crazily from social experiment to social engineering.

Consolidation has damaged the schools severely. In the past the schools were based in the community and so were the teachers. Teachers were neighbors to the students they taught and had stronger connections to the community. Now the ties that once bound teachers to students and parents have frayed considerably. No one knows each other. This makes it easier for teachers to not hold themselves to high standards. It also makes it easier for parents to mistrust and dislike the school system.

These and other factors drive students out of the traditional school environment. So where can their parents go to get them the best education possible? The answer lies in the free market. Homeschooling parents can band together, pool money, and pay a retiree or a graduate student to teach a subject (such as math) that parents might find difficult to explain. They can establish their own mini schools that reflect the values they want to teach.

The freedom to choose should always remain the basis of a democratic society. When parents create more options for their children, this invigorates their own children's education. Hopefully it will force the public system to respond more effectively to community concerns.

It's not brain surgery...or wait...yeah it is

http://www.freemarketcure.com/brainsurgery.php

This is a short film about the resulting "efficiency" of government, single payor health plans. Health insurance for all sounds great. Who wouldn't love to help provide everyone with health care? It is heart breaking to see a person with cancer or other terminal illness as their health degrades. It is further frustrating to see the family struggle financially, emotionally, and spiritually. Those who oppose universal health care do not oppose it because we don't want to see people get treated, we oppose it because universal health care doesn't mean that we all get universally great health care, it likely means that we all get universally poor health care as highlighted in this video clip.

At the end the health broker asks where his clients will go for surgery if this plan comes to the U.S. Get ready to pack your bags for India.

As Gary Howell says " With government health care you get all of the caring of the IRS combined with the efficiency of the Post Office".

Oh Deer! A Lesson in the Freedom Market

I’m sure you have heard the saying, “there is no such thing as a free lunch.” Whoever came up with that saying had a working understanding of economics. That person understood that somewhere along the line that free lunch was paid for by somebody. Unfortunately many elected officials in Charleston do not understand this most basic of free market economic facts.

Recently State Delegate Ralph Rodighiero (D-Logan) introduced bill H.B. 4498, in an effort to reduce out of pocket insurance expenses of those hitting deer on the states highways. The bill states, “Any person striking a deer on a state highway shall not be liable for repair costs exceeding two hundred dollars regardless of the amount of the deductible required from their motor vehicle insurance policy.” H.B. 4498 is a free lunch bill and somebody is going to have to pay for it.

Those of us that understand economics know exactly who is going to pay for this free lunch. It will be the person purchasing the insurance. The very same person that Delegate Rodighiero’s bill is supposed to reduce cost. Like all businesses, the insurance companies are in business to make a profit. Insurance companies will not simply absorb the cost of fixing the car of every West Virginian that hits a deer without charging the policy holder for the additional coverage that this bill will require.

Currently in West Virginia you are required to have a minimum of liability coverage on your vehicle. H.B. 4498 by default will require all insurance companies in West Virginian’s to sell nothing less than comprehensive (covers deer) with a $200 deductible.

I called my insurance agent to find out what this free lunch would cost. On a 2004 Dodge Pick-Up the difference between carrying liability coverage and a $200 deductible comprehensive is an increase of over $360 a year. Just dropping the deductible on an existing comprehensive policy from $1000 to the proposed requirement of $200 would increase the cost of that same policy over $110 a year. It is easy to see who is going to pay for this free lunch.

The real problem with H.R. 4498 is it that it assumes that West Virginian’s are not able to handle freedom of choice. It assumes that we are not able to make wise financial decisions on our own. The truth is we are able to make those choices and we can do a better job that government can. We understand that if we have a 1989 Cavalier that is only worth $500, it makes no sense to carry a $200 deductible comprehensive insurance policy. We may wish to pick $1000 deductible instead of $200 if we are willing to take that greater financial risk. The economic free market has provided us all with choices in auto insurance. As a result, Delegate Rodighiero is free choosing to purchase $200 deductible insurance on his own, but it will be his choice not the governments.

H.R. 4498 simple takes away our freedom of choice. If passed we will no longer be able pick our insurance based on our need or financial ability. For most West Virginian’s, they will be forced to pick more expensive insurance that they may not be able to afford, want, or need. Government decisions like this one that are not based on sound economic principles or freedom of choice are one of the very reasons West Virginia ranks at bottom of the good economic categories. We must change.

If a Tree Falls in the Woods is it Taxed?

If a tree falls in the wood, will it be taxed? In West Virginia that would be a yes, and the tax would be called the Timber Severance Tax. State code defines a severance tax as a tax on the privilege of engaging in a specific business. The fact that our state government feels it is granting businesses a “privilege” is one of the very reasons West Virginia is ranked 50^th in economic opportunity. That is backwards — the privilege is actually granted to the state by the business when it chooses to locate here.

Winston Churchill once said, “Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon.” In West Virginia our business tax structure shoots both the horse and the cow and then the government wonders why the cow quit giving milk and the economic wagon stopped moving forward. We cannot continue on this course of economic self destruction.

For the past 60 plus years West Virginia has created policies that have destroyed our economy to the detriment of all citizens. The evidence lays in the census data. In 1950 West Virginia made up 1.3% of the US population and now we make up only 0.6%. We have been cut by more than half. The severance taxes are one of the very things holding us in last place. It is simply double taxation. The severance tax is on top of the income tax already paid on the same product or service.

If you’re in the timber industry and have your choice of locating in West Virginia or a state that has no timber severance tax, then you’re going to use a little common sense and locate in a state where you can be more profitable. If your timber business is already located here, then the severance tax is simply taking away money that can be used to expand your business. It is plain to see that severance taxes are shots being fired that are killing businesses.

The proponents of the severance tax will claim, “We will have to replace that revenue lost if the severance taxes are eliminated.” They are wrong; the economy will replace those taxes without intervention from government. History tells us exactly what will happen if the burden of the severance tax is removed from the timber industry. The industry will see an increase in revenue and that revenue will be plowed back into the businesses. The expansion will increase business, which will increase corporate taxes paid. New timber businesses will enter the West Virginia market place, further increasing corporate taxes collected by the state. Going back to the Churchill quote, you don’t increase the amount of milk you get from the cow by milking it more often — you increase the amount of milk by increasing the size of your herd.

Fewer taxes will cause growth in the economy, including employment growth. Growth in the economy will increase tax revenue. This has been proven over and over again through history. The current West Virginia government has proven the opposite — years of high and double taxation have helped push West Virginia into last place.

One of the sturdy horses pulling the economic wagon of West Virginia is our timber industry. My grandfather had a saying: you whip the horse that pulls. Let’s whip the timber horse by removing the severance tax to start down the road to economic growth in West Virginia. We need to change.

Thanksgiving in WV tells the Economic story

Last week in my travels I ran into a lot of friends in for the holiday's. It was good to see old friends, but at the same time it was kind of sad. The reason I only see these old friends on the holidays is because they had to leave the area for work.

Driving last week I saw a lot of out of state tags. For the most part those tags tell the story of West Virginia's economy. Each one of those tags represent the failure of the states economy to provide for our own. Since 1950 the West Virgina population has dropped from 1.3% of the US population to 0.6%. That represents the state being cut in half.

For over 60 years the state has been making the wrong economic decisions. It is time for a change. We can no longer afford to make the same choices. We need to get away from government intervention in the economy and more to the free market. How bad does it have to get before we make the necessary changes?

Lisa Peana enters District 17 House Race

PRESS RELEASE Contact: Lisa Peana
Monday, November 19th, 2007 (304) 730 - 4599

PEANA ANNOUNCES CANDIDACY

Wayne County Republican to run on Tax Reform, Justice Reform and Sunshine Laws

Ceredo, WV – Lisa Peana has tossed her hat into the ring for a seat in the House of Delegats, District 17, Wayne County.

“We need a change in Charleston”, Peana announced, “ We need Fair Taxes for our citizens and businesses, we need severe Justice Reform to bring the courts back into balance and Sunshine Laws to allow transparency so the public knows how their government is operating.”

Peana is a Real Estate Agent for Metro Properties. As a business woman Peana has seen first hand the impact of unfair taxes, and unbalanced courts both on individuals and businesses. “We have a bloated government bureaucracy in West Virginia, and the only cure is to have comprehensive reform both in our tax code and judicial system. When the size of our government grows at a rate faster than the average household income, you have a problem.”

Peana vowed to fight for social issues as well. She said that she makes a promise to push for legislation that will protect the unborn, traditional marriage and gun ownership rights.

President of the West Virginia Republican Club, Peana is the wife of an Air Force veteran, Jamison Jeffrey. They have a son, Anthony who is in grade school.

Free Market doing its job

During my trip out west at the beginning of the month I saw the Free Market doing its job. I have driven across the continent many times and I usually see these oil pumps sitting idle. This time it was different. Most of the pumps were bobbing up down looking like giant birds picking up corn.

The reason is because oil prices are at record highs. The Free Market is bringing these wells online to fill the demand for oil. The supply and demand curve is infallible as price increases more people are willing to supply product.

The few pumps that were not running seemed to be waiting in line for repair crews to arrive, and we saw many repair crews working in the fields. We also saw drilling rigs drilling new wells, especially across southern Indiana and Illinois.

All of this is evidence of the Free Market responding to consumer demand. As the oil from these wells begin to fill the pipeline (both figuratively & literally) oil imports will drop helping the US economy and the price at the pump.

Now many people forget that West Virginia is an oil producing state. In fact we are the second state that oil was discovered in, but our government is holding us back from taking advantage of it. Bad policies by the government cause us to lag behind.

If Del Nancy Guthrie (D-Kanawha) has her way, there would be no business at all in West Virginia. People like Guthrie don't understand how Free Markets work and they fear it. She actually wants more government control over you life. To the point Karl Marx would be proud.

Can you imagen how bad this would be if the government was in total control? The Free Market brought those oil wells online quickly. If we had to wait on government to do it, then I'm not sure if they would have even began to study what to do yet. After year or so of study, they would determine that we would need to start up the old wells, something the free market did automatically.

Government can never do what the Free Market does. The best expertise in the world can never anticipate what the market will do. The head of IBM in the late 70's never saw a need for personal computers, but yet we all have them today. The ability of the Free Market to react to changes in the market place is essential to economic growth and that is something that central planning can never replace.