Tag Archives: zNorth Carolina

How to Get Less of Something: Only More

Last week I posted about how to get less of something; raise the price.  You see, as price goes up, demand goes down, that’s how it works.  If you sold 3 cases of beer at a buck a bottle, you could expect to sell less than 72 bottles at 2 bucks a bottle.  Now, this isn’t all bad news.  Sometimes, the supply is limited.  Take, for example, a concert.  You can only fit so many people into the RBC Center.  So, what sense would it make to price the tickets where the demand exceeds the supply?  Rather, a shrewd business manager would continue to raise the prices until the demand met the supply exactly.  Anyway, I digress.

In our story, the Great State of North By God Carolina has only begun, Be-GUN, to talk about assessing state sales tax for on-line purchases made as a result of pass though retailers.  Wow.  That’s a lot to think through.  But it works like this.

Say, as readers are flocking to this site by the ones and twos, I decide to cash in on the traffic.  I make a deal with randomsite.com and put their advertisement on the side of my web page.  Then, as my gentle readers clock though to randomsite.com and make purchases, I get a percentage.  The beauty of Capitalism.

Now, however, North Carolina is wanting to apply sales tax to those purchases made as a result of click through programs.

Much like our local pub above, these retailers are seeing sales go down as a result of prices going up.  After considering their situation, costs, benefits and other tricky business school kinda stuff, they decide to end their commission relationships with their on line partners.

Net/net – North Carolina sees the same amount of sales tax dollars as they would have without the law.  Namely $000,000.00.  And, this is the best part, North Carolina residents who run websites see a reduction in their incomes.  Further, we have to assume that these North Carolina residents are reporting the income that they make as a result of these relationships.  That is, they have to submit as income and then pay State and Federal income taxes on any money that they make.  Now the state, AND Obama, is losing the State Income tax revenues too.

Awesome.  Simply by talking, just talking, about such a tax, we have seen two on-line retailers leave the market.  The latest?  The NewsandObersever is reporting that Overstock.com is ending their arrangements with North Carolina partners.

The real slap in the face for Carolina?  This concept is SO insane that even the Govna’ of California, The Terminator, vetoed a similar bill in California.

Declaration of Independence

The Unanimous Declaration
of the Thirteen United States of America

When, in the course of human events, it becomes necessary for one people to dissolve the political bonds which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the laws of nature and of nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness. Prudence, indeed, will dictate that governments long established should not be changed for light and transient causes; and accordingly all experience hath shown that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security. –Such has been the patient sufferance of these colonies; and such is now the necessity which constrains them to alter their former systems of government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute tyranny over these states. To prove this, let facts be submitted to a candid world.

He has refused his assent to laws, the most wholesome and necessary for the public good.

He has forbidden his governors to pass laws of immediate and pressing importance, unless suspended in their operation till his assent should be obtained; and when so suspended, he has utterly neglected to attend to them.

He has refused to pass other laws for the accommodation of large districts of people, unless those people would relinquish the right of representation in the legislature, a right inestimable to them and formidable to tyrants only.

He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their public records, for the sole purpose of fatiguing them into compliance with his measures.

He has dissolved representative houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.

He has refused for a long time, after such dissolutions, to cause others to be elected; whereby the legislative powers, incapable of annihilation, have returned to the people at large for their exercise; the state remaining in the meantime exposed to all the dangers of invasion from without, and convulsions within.

He has endeavored to prevent the population of these states; for that purpose obstructing the laws for naturalization of foreigners; refusing to pass others to encourage their migration hither, and raising the conditions of new appropriations of lands.

He has obstructed the administration of justice, by refusing his assent to laws for establishing judiciary powers.

He has made judges dependent on his will alone, for the tenure of their offices, and the amount and payment of their salaries.

He has erected a multitude of new offices, and sent hither swarms of officers to harass our people, and eat out their substance.

He has kept among us, in times of peace, standing armies without the consent of our legislature.

He has affected to render the military independent of and superior to civil power.

He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his assent to their acts of pretended legislation:

For quartering large bodies of armed troops among us:

For protecting them, by mock trial, from punishment for any murders which they should commit on the inhabitants of these states:

For cutting off our trade with all parts of the world:

For imposing taxes on us without our consent:

For depriving us in many cases, of the benefits of trial by jury:

For transporting us beyond seas to be tried for pretended offenses:

For abolishing the free system of English laws in a neighboring province, establishing therein an arbitrary government, and enlarging its boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule in these colonies:

For taking away our charters, abolishing our most valuable laws, and altering fundamentally the forms of our governments:

For suspending our own legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.

He has abdicated government here, by declaring us out of his protection and waging war against us.

He has plundered our seas, ravaged our coasts, burned our towns, and destroyed the lives of our people.

He is at this time transporting large armies of foreign mercenaries to complete the works of death, desolation and tyranny, already begun with circumstances of cruelty and perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the head of a civilized nation.

He has constrained our fellow citizens taken captive on the high seas to bear arms against their country, to become the executioners of their friends and brethren, or to fall themselves by their hands.

He has excited domestic insurrections amongst us, and has endeavored to bring on the inhabitants of our frontiers, the merciless Indian savages, whose known rule of warfare, is undistinguished destruction of all ages, sexes and conditions.

In every stage of these oppressions we have petitioned for redress in the most humble terms: our repeated petitions have been answered only by repeated injury. A prince, whose character is thus marked by every act which may define a tyrant, is unfit to be the ruler of a free people.

Nor have we been wanting in attention to our British brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which, would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our separation, and hold them, as we hold the rest of mankind, enemies in war, in peace friends.

We, therefore, the representatives of the United States of America, in General Congress, assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the name, and by the authority of the good people of these colonies, solemnly publish and declare, that these united colonies are, and of right ought to be free and independent states; that they are absolved from all allegiance to the British Crown, and that all political connection between them and the state of Great Britain, is and ought to be totally dissolved; and that as free and independent states, they have full power to levy war, conclude peace, contract alliances, establish commerce, and to do all other acts and things which independent states may of right do. And for the support of this declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Not the End, but The Beginning of Worse

I was reading the News and Observer this morning and saw that Smithfield Packing finally succumbed to the kudzu that is Unions.

Smithfield Packing, union agree on NC contract

TAR HEEL, N.C. — Smithfield Packing Co. and a union that worked for years to organize a huge North Carolina slaughterhouse say they have agreed on their first contract for the plant.

I have not yet taken the time to check and see if Smithfield Packing is a publicly traded company or not, but I am sure that the value of this company just took a 10% hit.  Not only that, but employment in the company went down today as well.

I repeat, there is nothing, not ONE thing that is good about unionization within a company.  Unless, of course, you are a Union official.

Unions effectively tax …  [company] investments by negotiating higher wages for their members, thus lowering profits. Unionized companies respond to this union tax by reducing investment. Less investment makes unionized companies less competitive.

And a less competetive company is a company that is not as valuable as a more competitive compant.  If you need further proof that Unionization is a bad thing, take a look at the States with the highest unemployment rates and see how many of them are Union states and how many are right to work.

Heck, I’ll save ya the time:

1 Nebraska Right to Work
2 North Dakota Right to Work
3 South Dakota Right to Work
4 Wyoming Right to Work
5 Utah Right to Work
6 Iowa Right to Work
7 Montana Forced Union
8 Oklahoma Right to Work
9 New Hampshire Forced Union
10 New Mexico Forced Union
41 Kentucky Forced Union
42 DC Forced Union
43 Tennessee Right to Work
44 Ohio Forced Union
45 North Carolina Right to Work
46 Nevada Right to Work
47 California Forced Union
48 South Carolina Right to Work
49 Oregon Forced Union
50 Michigan Forced Union

Interesting list, huh?

Teacher’s Unions

I know that we don’t have teacher’s unions in Carolina, but still, the negative effects are everywhere.

Today, the N&O reported on the idea of merit pay for teachers.  In this case, the merit pay seemed to be limited to the type of school a teacher taught at; not how well that teacher did.  But still,  it’s a start.

I started my working career as a teacher, it was the first job I had after college.  Further, that first year was also a “negotiation” year for the “EA” and the school.  I remember the feeling when I saw the results of my elected representation:

No raises for teachers going from 0-1, 1-2 or 2-3 years of experience.  However, raises for everyone else.

I knew then that the whole “working for a union thang” wasn’t for me.  I left as soon as the year was up.

What I don’t understand is how so many people, with a straight face, claim that paying more money to a better performer is bad. Ffor anything.  Really.  Never ever understood that.  Ya know, while I think that the salaries we pay athletes is gross, at least we have the right incentives in place.

  1. We agree on a specific number of years in the contract.
  2. I will pay you according to the market.
  3. When you are no longer able to perform, you are no longer able to be employed.

Why would it be any different for teachers?  Why, WHY, do we want to protect low performing teachers?

I just don’t get it.

The Damage Done by Unions

I have long felt that Unions in America are not only hurting the companies, but they hurt the workers too.  In short, Unions are damaging to the economy as a whole.The current exhibit in this long list of such exhibits?  The bond market.

Reuters reported last week that the bond market has turned.  What once was a very well understood relation between companies, unions and bond holders has suddenly been turned upside down.  Or, if not upside down, it’s at least been turned to the point that no one knows which way is up.  See, the point of buying a bond is that the bond is considered “secure”.  This term, in legalize, is meant to convey certain rights in the event of bankruptcy.  As it is now being played out, this right is being denied, or attempted to be denied to the bond holders of the auto makers; Chrysler and GM.

See, Mr. Obama is trying to put the bond holders behind other, more politically advantageous groups, in this case, the Unions.

…the Obama administration is offering most of the recovery value of those companies to “a favored political class, in this case the United Auto Workers…

What does this mean?  It means that people buying bonds are no longer going to do so with the secure knowledge that they are going to “get theirs” in the event the company has to declare.  And, you may ask, what does THAT mean?  It means, for companies with bargained for employees, that they are going to have a harder time selling their bonds and raising the money they need to conduct business.  And that, my friends, is BAD for business.

The whole concept is a strange one.  Politically attractive, sure, but strange.  See, on one hand, almost ALL of America is upset right now with “investors”, “speculators” and other groups of people that might have been making money when the banking crisis hit.  Most people feel that somehow it wasn’t the individual home buyers or the government that caused this problem, but that it was the folks trying to make money by floating that money.  So, Obama has a huge lever in the court of public opinion.

Then, of course, those bondholders are not united or organized.  While they may trend to act as a group, there is not formal organization and certainly they don’t have “members”.  So, by helpin the unions out, you have helkped out a very organized outfit complete with mind numbing numbers of people who just wait to be told what to do.

The other area that this is so concerning is that we seem to have people who actually believe that money just flows.  From somewhere.  Just waiting to be picked up.  And that if I don’t have enough of it, well then, by gawd, someone must have my share of it.  So I am going to go take it back.  Sigh.  I get so tired of that mentality, so so tired.

However, in the end, I really think that it is this movement toward the support of the Union that is going to be the largest threat to NC.  I just wonder if anyone else sees it.

We Are In Trouble

I will try to be as simple as I can be:

Economics: The study of the distribution of scarce resources with alternate uses.

So, I am sitting reading the Internet today and come across this gem.

Some highlights:

  1. Allow the Governor to ration gas in similar situations.
  2. Allow the Governor to freeze fuel prices.

Look, this is simple.  Gas is a thing that if people were able to obtain for free, would soon run out; we wouldn’t have enough to go around.  So we have to ration it.  Today, we do this using money; as the price goes up, yuou may trend to use less, as the price goes down, you will tend to use more.  Now, what the government wants to do is end the normal market method of rationing it and put it into the hands of elected officials who have almost zero ability to have a complete understanding of the market forces.

The result will be predictable:  Lines.

State Run Health Care

Was reading an article last night regarding North Carolina’s State Health Care system.  This is a program that offers employees health insurance.  What caught my eye was the headline:

State health plan wants the young, healthy

That’s awesome.  Another way of reading that headline would be this way:

State health plan wants the people who don’t have health problems to pay for health care.

I get where the State is coming from, I really do.  They have found that they are $138 million short in their fiscal planning.  And that’s a lot of money.  But the problem I have with this really became apparent to me as I was reading the article and mentally comparing it to my life in corporate America.  You see, I have a wife and some kiddos, so I can relate to the manipulation of pricing when trying to cover the family.

The problem, you see, is that the State was $138 million short in their goals.  That is, they are losing about $138 million.  In other words, the plan that they operate is not profiting.  What?  How can that be?  Is it possible that a business, run by the government, competing directly with private corporations is losing money?  Are you KIDDING me?  And then it REALLY came home and began to sink in.  Why in the world is the government in the business of selling health insurance?

The rest of the article talks about ways that the government is going to have to manipulate their model to become profitable.  The problem with this, however, is that the hard decisions required to do that will not be allowed to be made.  You see, it would require that some people won’t be able to afford the care that the government thinks that they need.  And the reason government thinks that certain people need certain coverage is because, well, because they were voted in by those people.  In short, it is NOT the goal of this government to run a profitable health insurance company, or even to provide the care they think they should.  The goal of these government folks is to stay in government.  There is no way the government can turn a profit here.

Now, I work for a Big Ugly Company [BUC] and I have health insurance through that BUC.  But guess what?  The insurance that I have through the BUC is not BUC’s Health Insurance.  Rather, BUC has negotiated with several different  other health insurance providers and found, what I hope, to be the best deal for me, or at least for the BUC.

Why can’t the State of North Carolina do the same thing?  Why is it that the State feels that they have to offer their own insurance?  If they would contract with a private firm, they would be able to set up SLA’s, minimums and yes, perhaps maximums as well.  There would be contractual expectations that would need to be met, and if they weren’t, the State could take their business elsewhere.  And in this economy, even the mean insurance companies don’t want that!

Now, the State could even offer to pay 100% of the cost if they wanted to.  This isn’t to say that they should, but they could.  If they want to feel that they are competitive in the field, attract and retain the best employees, it may very well be in the State’s interest to do this.  If, on the other hand, the State finds that they can obtain very skilled labor, say 85% of the best while only paying half the premium, they should do that.  It’s called open market.  And it works.

The State of North Carolina should be getting back to the business of the State.  After all, the State doesn’t manufacture their own paper clips, right?


Global Warming – Local Take

Turns out that just around the corner, we have work to do.  Here, Butner Blogspot is talking about clean coal and how it’s not so clean.

In reality, there is no such thing as “clean” coal in America today. Coal cannot be called ‘clean’ until its CO2 emissions are captured and stored safely.

So, using this same definition for all things, I am guessing that there is no such thing as ‘clean’ trees?  Or ‘clean’, say, people, or squirrels and such?

Butner continues:

Today, coal power plants emit carbon dioxide (CO2), the pollutant causing the climate crisis. A third of the America’s carbon pollution now comes from about 600 coal-fired power plants.

I guess we are skipping the whole science part, or that the alarmist science might be wrong, or tampered with or any other misguided side affect of the Global Warming scare.

Weather Not Climate: Part 2

Weather in Carolina is chill chill chilly:

Temperatures could dip into the single digits overnight Friday, as bitter cold settles over the state for part of the weekend.

“The cold has finally arrived. And it’s going to stay cold. It’s going to stay below freezing,” WRAL Meteorologist Elizabeth Gardner said.

Overnight’s temperature plunge could cause the coldest temperature on record since Jan. 29, 2000 – when there was a 20-inch snowfall.

This kinda is in line with the consistent cooling we have seen since, ummm, around 2000.

Immigration

Immigration.  Illegal immigration.  These are words that cause our politicians to pause.  They should.  It is my opinion that immigration is one of the few issues that has caused many many people to shy away from the current iteration of the Republican Party.  I don’t know why we, as conservatives, are taking such a hard line on this one.  Especially when I think that we are wrong.  And more especially because I think a lot of people feel that same way I do.

This past Tuesday, the N&O published an article on Chatham’s unwillingness to have it’s officers participate in the ICE program.

…a federal program that would allow local law enforcement officers to enforce federal immigration laws.

Chatham officials are concerned about such participation and expressed themselves very well:

Enforcement of ICE agreements can lead to violations of civil rights and liberties, distrust of law enforcement, the separation of family members and racial profiling,

As a conservative, I think that we are wrong on illegal immigration in general and ICE in specific.   We have people all over the globe trying to come to the United States.  These folks bring with them a love of freedom and will also bring a love of their new country.  These people are the kinds of people we want.  These are the folks that have taken a good hard look at there position and have found that they may be able to do better for themselves and their families by sacrificing.  By giving up the life they currently have for one in the United States.  Almost always these are the types of people that bring with them a work ethic that is strong.  They bring a willingness to participate and interact.  In short, these people are DO’ERS!  They are not get along’ers.

Because we have a situation where both parties feel they will gain, we should make the process to become a citizen easier.  This business of 9+ years to become a citizen is incredibly inefficient and needless.  The only thing that you need to know about the process is that it is the government that is in charge of it.  Any good conservative will tell you that a program run by Uncle Sam is one that is inefficient.  So, this creates a situation where people are in the country illegally.  Except for their legal status, they are critical and productive members of society.  They are winning and we are winning.

For the specifics of ICE, well, immigration and the illegal entry of people into our country is a Federal matter.  This should be handled by Federal Agents; not local police forces.  To think that the feds can just push down the responsibility to the local and often times struggling police force is not fair, and not how the whole system of jurisdiction works.  Further, Chatham has it right.  A community has to trust it’s police team.  It has to trust it’s officers, their supervisors and the chief himself.  The whole system has to be trusted.  And it can’t be for exactly the reasons Chatham pointed out.

We have to get this one right.  We can not afford to take every opposite positions that the Democrats through at us.  When they are wrong, oppose them and run on that platform.  But when they are right, then take their idea, make it better, do it better and run on THAT platform. How does that ol’ jingle go?

Anything you can do I can do better; I can do everything better than you!