LIBERTY: “Government Open Space” … open up your wallet … guess where the open space will be?!

Friday, August 4, 2006

http://channel-surfing.blogspot.com/2006/08/debating-open-space-taxes.html

I think there are three reasons for a voluntary solution: Ethically, Effectiveness, and Efficiency

Let’s handle a few specific items.

>It is an interesting approach,

I would have appreciated if you had called it an “ethical” or “moral” or “principled” approach.

>I couldn’t disagree more with his reasoning.

I didn’t think one could disagree with the logic. Premises, assumptions, or values are open to disagreement. The logical steps should be obvious to all.

>Basically, he views the taxman, to use George Harrison’s word, as a thief

Let’s start from the logical premise that we are entitled to keep what whatever earn by the sweat of our brow. Seems like a simple principle. Whatever we decide to do is our business. Seems simple.

>government in general as an imposition.

Government takes our money. Sometimes that taking is not voluntary. That’s immoral. Seems simple.

>This assumes that all potential land buyers are equal.

Huh. If I have a million and the State has a million we are not equal? All buyers ARE equal. I don’t understand that.

>Developers have deep pockets

Which they have accumulated by satisfying the needs of other people. They have accumulated either by saving, by borrowing, or by partnering with like minded individuals, to amass the vast amounts of capital necessary to swing these deals.

>citizens, even large groups of citizens, do not have the kind of cash

Do you think that 100,000 people pledging $1,000 would NOT be equal to an evil developer? A private group working towards a common goal could raise funds in numerous ways. A farmer might even cut them a special deal that the government can’t get.

>that would be needed to target and then outbid developers for land.

If you believe that economics is a science. It tells us that markets are the ultimate arbiter for the assignment of scarce resources. By paying more for something, the person with the greatest need for an item “out bid” those to whom it is not as important. However, especially when one is talking about voluntary project, things happen differently.

> That’s why citizens turn to their local, county and state governments to intercede.

You speak as if the citizens are a homogeneous group. While someone may like the idea of open space, maybe they have other priorities for their money. Some may not care about open space. But, some citizens come to government to COERCE other people to chip in. I’d repeat the robbery example, but you found that unconvincing. Jefferson said that government exists with the consent of the governed. What happens when one doesn’t consent? You vote with your feet?

>As a general rule, I distrust large accumulations of power.

Good idea. What bigger accumulation of power is there but the government?

>But there is a difference between elected government and a corporation.

Yup, a corporation has to convince you voluntarily. The government just orders you about. Don’t like WalMart for any reason, just don’t shop there. Don’t like the South Brunswick library, try not to pay that portion of your taxes. See the difference? Government is the ONLY organization that can provide goods or services or even just make demands that you MUST pay for whether or not you want or use the services. Big difference.

>The government — at least in the United States — derives its power from the citizens.

I think that is an fairy tale or an illusion. Even during the Revolutionary War, at best, a third of the population supported the Revolution. One third opposed and one third was apathetic. Pre WW1, Wilson was elected on the promise to keep us out of war which he promptly got us in. Pre WW2, there was about half the population that want to be isolationist. Voting stats show that more than half of the people, who register, don’t vote. We don’t know how many people don’t even register to vote. The politicians like to manipulate us but there is a reason that the school elections are in April and there’s a ton of if and maybe that make the vote a joke. So there is no consent. The politicians figure out what they can get away with. Ross Perot will be the last third party candidate to get on the ballot. He got too close. Look at how they restrict ballot access.

>Corporations do not.

No, they derive their power from their investors and their customers. The evil WalMart can’t make me shop in their store or buy their stock.

>That makes government the equalizer, the leveller, protecting individuals against corporate abuses.

Oh, what a joke. Who protects me from the government? At least, in the in the feudal days, I could seek protection from the Church against the monarch. And, which corporate abuse is it protecting me from? Government creates regulated monopolies and then “protects” me from abuse?

>elected officials view themselves as accountable not to voters, but to campaign contributors

Hey there’s a reason that individuals spend millions to get a job that pays thousands.

>it is the power of local, county and state governments to raise money

They don’t RAISE money. You make it sound like they are running a telethon like Jerry Lewis. They use TAX money.

> and then spend it that offsets the ability of developers to dig into their own deep pockets.

Oh yeah, they are just the pure of heart knights battling the evil developers. Did you ever think about the incestuous relationships between the government, developers, landowners, and lawyers? Don’t over look the power of taxing authority, zoning, and regulations to increase the “cost” of land. It’s a giant shell game and it is NOT being run for our benefit.

>This allows citizens to compete for undeveloped land

Yeah, and this system is just so so successful.

> and — maybe, just maybe — keep some of it green and untouched.

That may or may not be the best result.

>
>
>

Now that the detailed responses are covered, let’s take the high points.

> Ethics

Theft is immoral. Even if we stipulate that the majority “consents”, it’s still immoral. If EVERY one agreed, then we would NOT need to use the power of government to FORCE the unwilling and reluctant to pay for our pet ideas.

> Effectiveness

Government doesn’t manage open space well. It is inept at best and incompetent at worst. A government bureaucrat doesn’t have a vested interest in doing ANY task well.

> Efficiency

My best argument that sending money to South Brunswick Township, Middlesex County, Trenton, or Washington DC is the most inefficient way to amass the capital necessary to preserve open space.

Here’s a crude example. Let’s assume for argument’s sake that open space is my TOP priority. Ever hear of “agency costs”?

Let’s assume that I can get 20,000 other people to chip in a grand each. That’s twenty million bucks. And we form a 501c with some rules and buy a piece of open space. I count the pennies and other donors check up on me. We twist some lawyers, accountants , and bankers to “volunteer” to be on the committee. Administrative expenses are very low. People are rewarded with applause not money.

Now, let’s assume South Brunswick “chairs” the same activity. They have to hire some help, get some advisers, bring in a lawyer, have some accountants. So out of my grand, let’s say they are very efficient and they spend 10% for “handling”.

Now, let’s bring in Middlesex County, same activity, but their costs eat up 20%.

Now, let’s bring in Trenton, same activity, but their costs eat up 30%.

Now, let’s bring in Washington DC, same activity, but their cost eat up 40%.

(These guesstimates are conservative swags.)

So, when you use gubamint taxes, the agency fees, (i.e., the cost of having an agent involved), eat up a huge amount.

Take the same thousand. Let’s have all five actors kick in equal shares. I toss my two c notes into the tin cup. SBTWP tosses in my 200 minus 20 for handling. Middlesex County ponies up net 160. Trenton net 140. And DC net 120. So instead of a thousand, we only have 800. That’s agency cost.

(Realistically, the Trenton number is probably 60% and the DC number is probably close to 80%. But those are details.)

You can reverse the process to see how much each level has to tax to get the same amount. To have 200 to chip in, SBTWP has to tax me 200=.9 * X or 2000/9=>222.22 … You get the idea.

Even worse, is when instead of directly chipping in, one level sends it to the next level incurring more overhead to eventually get it in. Think of a Federal Grant to Trenton, who turns around and gives a grant to Middlesex County, who turns around and gives a grant to SB Township, and SB TWP chips in. Arggggh, guess what the agency cost in that mess is?

I guess that about wraps it up. Government open space is unethical, ineffective, and efficient!
Remember my gripe about the SB Library and the comparison to the SM Movie. The movie didn’t make it and became a CVS. The library was mismanged and they got more of my money and an expansion! That’s the difference between gubamint and the marketplace.

IMHO


TURKEY: OK, what are you going to do next?

Friday, August 4, 2006

http://changethis.com/25.01.PolkasPyro

25.01
POLKAS, PYROTECHNICS and POINT Ds: Pieces and parts of Seth Godin’s new book, small is the new big.
by Seth Godin
Here’s just a sip from Seth Godin’s latest book, small is the new big, a plentiful well of inspiration for your business and you.
***Begin Quote***

The end result is that it’s essentially impossible to become successful or well-off doing a job that is described or measured by someone else.

***End Quote***

WOW! What a slap in the face. It means thems that follows the “old rules” or an old paradigm will be like that Coyote chasing the Road Runner. This is the gauntlet that challenges all the Dilberts to escape.

I’m not even sure I want to survive in this Brave New World?


WRITING: How the FRBie might unwind?

Friday, August 4, 2006

Creative Commons Attribution Non-commercial Share Alike (by-nc-sa)

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It was Sunday June 25th. The president’s addressed the nation. On Friday, oil was trading at 7,750 gold dinars per barrel. Gold was selling at $160,000 per ounce. The dollar had traded Friday the new low of a hundred thousand dollars to the gold dinar. He looked grim.

Here is a transcription of his speech:

My fellow Americans, in the light of the world markets, in consultation with leaders of Congress, and with the approval of the Supreme Court, we have been decided no longer to recognize the Federal Reserve Banknote, the FRBie, as legal tender.

Be not afraid!

Your Federal Government and make good on its obligations. We have decided to join the world with using the new Golden Dinar as our new national currency. I am declaring a Bank and Stock Market holiday to allow for an orderly market transition. Because of the Independence Day holiday, banking and markets will resume on the Fifth of July

Effective on the fourth of July, the Federal Reserve Bank will liquidate its operations. Each citizen may redeem up to 10,000 FRBies in cash for ONE of our new gold dinar receipts. Citizens may engage in market transactions for the balance of their cash FRBie holdings. FDIC insured deposits will be converted at the current market rate from FRBies to gold. While I don’t know what the rate will be on the fifth, but today it was 160,000 FRBies to the ounce. Non-FDIC entities will establish their own policies.

Also, effective also on the fourth of July, all taxes and fees to your government must be paid in gold dinar receipts.

Stay calm. All is well. God bless you. And God bless America.

End of Transcription.

There was wide spread panicking and rioting. Many were killed and injured. Banks were surrounded with troops trying to hold off, in some cases unsuccessfully, masses of depositors. Eventually, some stores were protected like banks. Eventually, the powers-that-be recognized the futility, and sent the troops and police home. At least, those that hadn’t deserted yet.

That night, stores were besieged with shoppers buy literally anything they could with their FRBies. Most stores were caught unaware. Only WalMart had new gold based prices at the end of the President’s speech. Several car dealers, unaware of the speech, sold cars for FRBies before they heard about the President’s speech. Stores quickly closed but not before doing a brisk business in high ticket items. Also hit by panic buying, were grocery stores, drug stores, gas stations, convenience stores. People drove around seeking anything to buy with their soon to be worthless currency.

Gangs began to line up drunks and derelicts for the currency conversion. Holding them hostage, they were “selling” them for use when the currency exchange window opened. Informal black markets started trading FRBies for things of value. Currency markets around the world traded FRBies as low as 450,000 to the ounce before being suspended by their local regulators.

On the Fifth of July, when the US markets opened, FRBies began trading at 1.7 Million to the ounce and kept dropping. By the sixth, there were no buyers at any price.

The United States government was in high level talks with almost every nation and their respective central banks about FRBie held as a reserve currency. The talks were termed “interesting” by all involved. Leaks from the various different sources seem to sum up the US Government’s attitude as “tough luck”. Only the US military keeps the “debt collectors” away.

In the end, as in Argentina, the far East when currency collapsed, the pre WW2 Wiemar Republic, the middle class was destroyed! Savings were wiped out. A life’s work gone in an instant. The rich took a slight haircut. And, the poor were plunged into abject poverty. Some groups were completely unaffected: the Amish, the Mormons, the survivalists, the Gold Bugs, the underground economy, and families with small farms.

And, everyone in the free State of New Hampshire. The New Hampshire people had been using the Liberty Dollars for a long time, and had weened themselves off of the FRBie. It was interesting in New Hampshire, the FRBie had always been discounted and discouraged. Tourists were routinely warned to get rid of that “FEE YAT” currency and get some “good money”. In New Hampshire, there was plenty in circulation: bullion — silver, gold, platinum and palladium — coins; NORFED silver and gold certificates; New Hampshire bank depository receipts; something called the “free state script” issued by the New Hampshire state government; as well as Japanese yen, Chinese yuan, British Pounds, Euros, Swiss francs; and of course gold dinars and silver shekels. No currency was as universally hated as the FRBie.

There had been thriving black markets in New Hampshire for years where the FRBies were routinely smuggled across the border into Vermont, Massachusetts, and New York where FRBies were the only legal tender. The Socialist Protectionist gubamints in those states had instituted currency controls to “protect” the people from these predators. Even though they couldn’t keep drugs illegal drugs out, they thought they could keep out “illegal” untaxed currency.

If a smuggler could avoid the Border Patrol and the Currency Police, then he could earn huge amounts. One enterprising fellow they caught would drive a junk car over in the morning and bring back a new car in the evening. He was caught when several tourists and citizens in Massachusetts reported seeing a horse on the side of the Interstate. It turns out that this fellow’s wife would ride across the White Mountains with an Indian squaw sledge loaded with FRBies and meet him by the Interstate. He’d traded in the old car for a new one paying the difference in FRBies. When he brought the new one home that night, they’d sell it. The currency police estimated he was earning hundred thousand ounces every year. When asked he just smiled. Our estimate is that, since FRBies in New Hampshire trade at about 300,000 to the ounce, each car trade netted him much much more than the estimate. Maybe a hundred times as much. The currency police were never able to prove more than the car scheme. There case was weakened by car dealers in the NY, Vermont, and Massachusetts denying ever dealing with him. However, they did have the border crossing records and video tape. The bail was set at thousand gold ounces to try to keep him in the jurisdiction, but it was guaranteed by his local NH bank in about 30 minutes. NH banks, protected by strict bank secrecy laws, are believed to have deposits in excess of a trillion ounces in reserve. Their word is truly as good as gold. The villain went home to Hampshire never come back across again. After that, the currency police formed a cavalry unit to patrol the New Hampshire border. It was rumored that the fellow was building a tunnel from Keane to Albany to accommodate the demand.

Remember: Gresham’s law says bad money drives out good! But eventually the chicken come home to roost.

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