Fairness or Freedom??

It's been my intent from day one to offer commentary herein that transcends political boundaries... To offer my perspective on markets, economies, investment theory and politics in as objective a manner as my free-market instincts allow... Therefore I risk finding myself at odds with some readers when I suggest that unilateral free trade is in our best interest, when I imply that too large a number of the unemployed are abusing the system, when I criticize a conservative politician, a liberal politician, an "occupier" or, as I have repeatedly of late, find fault in the ideology of a number of Republican candidates... Thus far I've had unsubscribers from both the left and right... Each subtly, or not, accusing me of unfairly promoting their opposition's platform... I suppose if I'm ticking off both sides of the aisle, I'm achieving my objective...

If today's message is the proverbial straw for you, I completely understand. Just shoot me the email and I'll quietly concede your subscription...

"This is a make-or-break moment for the middle class and all those who are fighting to get into the middle class," Says President Obama in Tuesday'sOsawatomie, Kansas speech. "At stake is whether this will be a country where working people can earn enough to raise a family, build a modest savings, own a home and secure their retirement."

What the &!#% is he talking about???? I'm sorry if you're a sympathizer... But let's entertain just a little intellectual honesty here... Yes, I understand, the President and his advisors have determined that rich-bashing plays well with the populace, nevertheless, as an American, I am offended!

We damn well do live in a country where working people can do the above? Fact is, the only countries in history where "working" people had not these opportunities have been those ruled by heavy-handed dictators. As for centrally-planned economies, you may think they offer such opportunity, but of course (being the intellectually honest bloke you are) you'll look across the pond and see the ultimate effect of politicians promising the populace that which their budgets can't sustain...

"In the end," the President said, "rebuilding this economy based on fair play, a fair shot and a fair share will require all of us to see the stake we have in each other's success."

Here's how it works folks: You, acting in your best interest, produce a good or service that others benefit from and sell it at a price that makes you a profit... If others can't afford it, you'll have to find a cheaper method of production or profitably produce something else. Your product could very well be your talents offered to your employer... If your talents justify a wage, determined by the payer (your boss), that affords you a home and a retirement account, you're in luck. If not, you'll never starve in America. But if you want that home and pension bad enough - it's not to be handed to you, it's not to be taken from someone else (not in America) - you'll work harder and/or you'll develop better talents... Government intruding on this process can only corrupt it...

"Fairness = A (the politician) deciding what's right for B and C, and taking something for himself along the way"... Milton Friedman

"The society that puts equality before freedom will end up with neither. The society that puts freedom before equality will end up with a great measure of both"... Milton Friedman

This year's federal budget tops $3.8 trillion... Our projected revenue is $2.2 trillion - leaving us in the red by a record $1.6 trillion... Unfathomable!! So how do we fix that? Simple; we have three options: One; cut the budget to match revenue... Two; raise tax rates, halt all new spending initiatives and pray the economy doesn't contract under the weight of higher taxes... Three; leave tax rates as is, or reduce them (per JFK), get out of the way (no new regs) and allow the economy to expand...

Fed Chair Ben Bernanke, on the urgency of addressing budget challenges, stated in January 2007: "The longer we wait, the more severe, the more draconian, the more difficult (think Europe) the objectives are going to be. I think the right time to start was about 10 years ago."

Here's our budget, year-by-year, since 2007...

2007 United States federal budget - $2.8 trillion (submitted 2006 by President Bush)
2008 United States federal budget - $2.9 trillion (submitted 2007 by President Bush)
2009 United States federal budget - $3.1 trillion (submitted 2008 by President Bush)
2010 United States federal budget - $3.6 trillion (submitted 2009 by President Obama)
2011 United States federal budget - $3.8 trillion (submitted 2010 by President Obama)

Apparently Washington wasn't listening...