Calling John Galt

Overheard on the news:

“President Obama’s top economic advisors say the economy will probably get worse before it improves, even with major government intervention.”

Should have read:

“President Obama’s top economic advisors say the economy will probably get worse before it improves, most likely because of major government intervention.”

President Obama has reportedly told Republicans:

• “You can’t just listen to Rush Limbaugh and get things done”
• “I won,” he said, according to aides who were briefed on the meeting. “I will trump you on that.”

In a Republican administration, this would be labeled the worst type of hubris, stupidity and partisanship.  In a Democratic administration, it is of course seen as a clear sign of leadership and ironically, bi-partisanship.

The third day of Obama’s administartion is coming to close.  I can’t wait for what the next days, weeks, months and years.

We are still trying to find John Galt. Any sights recently?

A relatively new mutual fund seeks to exploit the superior investment performance that comes when congress is out of session.

sandp65-09

Since 1965 stocks have essentially gone nowhere on days in which congress is in session, and have averaged 16% annually when congress is not in session. Both numbers exclude dividends, which would have raised returns by about 3% annually for both measures.

The fund will be long the market on days that congress is out of session, and in cash on days in which congress is in of session.

So far so good, since launching in May of 2008 the fund is flat versus a 40% decline for the market.

They certainly aren’t leaders:

Even without the record-setting stimulus package, the CBO says the federal deficit for the current fiscal year will hit an unprecedented $1.2 trillion – a truly staggering sum all by itself. But it gets worse. The Heritage Foundation calculates that passing the stimulus bill will increase the national debt to $14 trillion, or 95 percent of the nation’s entire annual GDP, in FY2010. With this kind of debt load, Uncle Sam couldn’t quality for one of those sub-prime mortgages the feds have been forcing banks to give unqualified home buyers for decades.

Instead of making the hard decisions and fixing the tax code, lowering taxes, doing away with the entitlement programs and leading us in a bold new way.  They are taking the easy way out and paying off their friends and colleagues.

We have only ourselves to blame as we are the ones that voted in these idiots.

So, two high-profile individuals have been diligent in paying taxes and have hired a maid who is undocumented or whose papers have expired.  There is no excuse for making such pathetic mistakes while the rest of us actually have to pay the piper should we make a similar mistake.

Interestingly though, you would think that people might be thinking that the system itself could be screwed up.  If two highly thought of Liberals can make such mistakes, then couldn’t the system be a bit too complicated?  Shouldn’t it be easy and simply so just about anyone, even a leading liberal elite wouldn’t mess it up?

This applies to the paying of taxes, the hiring of help and of course just about everything else out there.  Unfortunately, none of these things will happen.  The system will only get more complicated, more dense, more bureaucratic and difficult to navigate (legally).

It is the small businesses that will have to pay.  It doesn’t have to be this way, but some people never learn.

Courtesy of the WSJ

To All My Valued Employees,

There have been some rumblings around the office about the future of this company, and more specifically, your job. As you know, the economy has changed for the worse and presents many challenges. However, the good news is this: The economy doesn’t pose a threat to your job. What does threaten your job however, is the changing political landscape in this country.

However, let me tell you some little tidbits of fact which might help you decide what is in your best interests.

First, while it is easy to spew rhetoric that casts employers againstemployees, you have to understand that for every business owner there is a back story. This back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Mercedes outside. You’ve seen my big home at last year at a Christmas party. I’m sure; all these flashy icons of luxury conjure up some idealized thoughts about my life.

However, what you don’t see is the back story.

I started this company 28 years ago. At that time, I lived in a 300 square foot studio apartment for 3 years. My entire living apartment was converted into an office so I could put forth 100% effort into building a company, which by the way, would eventually employ you.

My diet consisted of Ramen Pride noodles because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a defective transmission. I didn’t have time to date. Often times, I stayed home on weekends, while my friends went out drinking and partying. In fact, I was married to my business — hard work, discipline, and sacrifice.
Meanwhile, my friends got jobs. They worked 40 hours a week and made a modest $50K a year and spent every dime they earned. They drove flashy cars and lived in expensive homes and wore fancy designer clothes. Instead of hitting the Nordstrom’s for the latest hot fashion item, I was trolling through the discount store extracting any clothing item that didn’t look like it was birthed in the 70’s. My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my life into a business with a vision that eventually, some day, I too, will be20able to afford these luxuries my friends supposedly had.

So, while you physically arrive at the office at 9am, mentally check in at about noon, and then leave at 5pm, I don’t. There is no “off” button for me. When you leave the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom. I eat, and breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour. Every day this business is attached to my hip like a 1 year old special-needs child. You, of course, only see the fruits of that garden — the nice house, the Mercedes, the vacations… you never realize the back story and the sacrifices I’ve made.

Now, the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bail-out all the people who didn’t. The people that overspent their paychecks suddenly feel entitled to the same luxuries that I earned and sacrificed a decade of my life for.

Yes, business ownership has is benefits but the price I’ve paid is steep and not without wounds.

Unfortunately, the cost of running this business, and employing you, is starting to eclipse the threshold of marginal benefit and let me tell you why:

I am being taxed to death and the government thinks I don’t pay enough. I have state taxes. Federal taxes. Property taxes. Sales and use taxes. Payroll taxes. Workers compensation taxes. Unemployment taxes. Taxes on taxes. I have to hire a tax man to manage all these taxes and then guess what? I have to pay taxes for employing him. Government mandates and regulations and all the accounting that goes with it, now occupy most of my time. On Oct 15th, I wrote a check to the US Treasury for $288,000 for quarterly taxes. You know what my “stimulus” check was? Zero. Nada. Zilch.

The question I have is this: Who is stimulating the economy? Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business? Or, the single mother sitting at home pregnant with her fourth child waiting for her next welfare check? Obviously, government feels the latter is  the economic stimulus of this country.

The fact is, if I deducted (Read: Stole) 50% of your paycheck you’d quit and you wouldn’t work here. I mean, why should you? That’s nuts. Who wants to get rewarded only 50% of their hard work? Well, I agree which is why your job is in jeopardy.

Here is what many of you don’t understand … to stimulate the economy you need to stimulate what runs the economy. Had suddenly government mandated to me that I didn’t need to pay taxes, guess what? Instead of depositing that $288,000 into the Washington black-hole, I would have spent it, hired more employees, and generated substantial economic growth. My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries. But you can forget it now.

When you have a comatose man on the verge of death, you don’t defibrillate and shock his thumb thinking that will bring him back to life, do you? Or, do you defibrillate his heart? Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it. Suddenly, the power brokers in Washington believe the poor of America are the essential drivers of the American economic engine. Nothing could be further from the truth and this is the type of change you can believe in. So where am I going with all this?

It’s quite simple.

If any new taxes are levied on me, or my company, my reaction will be swift and simple. I fire you. I fire your co-workers. You can then plead with the government to pay for your mortgage, your SUV, and your child’s future. Frankly, it isn’t my problem anymore.

Then, I will close this company down, move to another country, and retire. You see, I’m done. I’m done with a country that penalizes the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.

So, if you lose your job, it won’t be at the hands of the economy; it will be at the hands of a political hurricane that swept through this country, steamrolled the constitution, and will have changed its landscape forever. If that happens, you can find me sitting on a beach, retired, and with no employees to worry about.

Signed, Your Boss

Our government is founded on the revenue model that unborn children do not have rights, so let’s tax them.