Tag Archives: solyndra

Get rich quick! It can’t lose

Gary Nolan (and THE Scrappy Doo)
Gary Nolan (and THE Scrappy Doo)

I have a genius idea and I’m sharing it with you, my loyal readers—and indiscriminate web-surfers who accidentally ended up here while searching for LOLcat memes.

LOL catImagine I have a massive mound of debt, and I’m sick of it. However, I have good credit and am ready to put it to good use. I am going to use that line of credit, borrow every penny I can, and buy up as much stock as I can in companies I believe are the way of the future. I’ll sell that stock for a profit once it gains like I expect it will, and payoff both my old and new debts; maybe even pocket a few bucks along the way.

To be fair, I’m not a professional stock broker or anything, and I really don’t know that much about these industries other than I believe them to be really cool, futuristic, and impressive. Since they’re futuristic companies, I assume they have people much smarter than me solving problems, and therefore, there is little doubt any of them will fail.

I know what you’re thinking; this man is a genius! How can it fail—right?

If you’re still reading, and you’ve never read me before, you’re probably thinking I’m a whack job who bathes in peanut oil while playing GI Joe and pretending he’s fighting off the perfect storm. I’m sorry to say however, that I do not. This genius idea of mine is pure nonsense that no intelligent person should ever endorse it.

But let’s look at what is happening here on our little section of planet Earth commonly referred to as America. We have our hard-earned money forcibly taken from us taxpayers and put into government coffers. When our country was founded, we drafted a constitution that laid out the limitations and responsibilities of our federal government. Those tax dollars were meant to pay for such expenses. In the proper limited government mentality our forefathers intended, that’s all they would pay for, but these days, what was once a mole hill, has become a fairly impressive mountain.

Trillion DollarsIt’s no secret we have a lot of debt. At the time of writing this, we were at 16.5ish trillion dollars. Let’s do some math for fun. A dollar bill is 0.0043 inches thick. Stack 16.5 trillion of them on top of each other and you have a pile 1,119,792 miles high. That’s enough to go to the moon and back twice, then around Earth a couple of times for good measure. I’ve heard Obama and his merry band of Democrats say we don’t have a debt problem, but I suspect he hasn’t done the same math I just did yet. Out of sight, out of mind. So not-so-respectfully, I disagree Mr. President—we have a @#$%& debt problem.

In the president’s infinite wisdom, he’s decided that instead of working on reducing our spending and applying more of our tax dollars to reduce our debt, something any family facing a debt problem would do, he’s decided that he’s going to invest instead. Not only is he going to invest, he’s going to do so having no prior experience or formal training in investments, and he’s investing in things like green energy. For those of you unaware, his schooling is in law. He does not have a degree relating to solar energy, physics, chemistry, biology, or any of the related fields for which these investments are based on.

It’s OK though, because he knows that global warming is settled science. Never mind that the scientific community doesn’t know this. They do know that animal life, including mankind create a lot of CO2, and we have a general idea that as our animal population grows (humans are animals; FYI) it should effect the planet’s ability to radiate the sun’s heat. This effect may be harmful to our ecosystem leading to life-altering consequences.

But we don’t know how our planet will react to it. Plant life thrives in a carbon-rich environment. It’s quite possible that the increase in CO2 from the animal kingdom will merely result in an increase in life from the plant kingdom to counteract it. That’s what an ecosystem does after all; it constantly strives to balance itself out.

There have been several scientific experiments with predicted models that led to surprises instead of confirmed hypotheses. There’s a prime example here. I’m not making the assertion my previous example is true, but suffice it to say that scientists without an agenda all agree we don’t really know exactly how the planet will ultimately react to a growing population.

SolyndraSo if Al Gore turns out to be full of more hot air than facts, these green energy investments will be horrible ones. Putting our eggs in a risky basket is a bad, BAD investment. With failures to a myriad of government boosted companies like Solyndra, clearly the president doesn’t understand the science, smart investing, or that our tax dollars are not his personal E*Trade account in the first place. If he really wants to invest money, I suggest he talk to his friend Warren Buffett and let Berkshire Hathaway lead Uncle Sam down the path of proper investing.

So while my “genius idea” is clearly ridiculous, it is virtually identical to what has been done with our tax dollars for the last 4 years, and our gambling-addict-in-chief is showing no signs of reversing course any time soon.

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The Economics of a Frivilous $8,000 Purse

Gary Nolan (and THE Scrappy Doo)
Gary Nolan (and THE Scrappy Doo)

Recently, a socialist-minded coworker was having a discussion in the office, and indicated she was disgusted that a famous celebrity bought a new purse, costing thousands of dollars. They said something to the effect of, “Yeah, that’s why the rich need more tax breaks, so they can buy expensive purses” followed by a pejorative laugh.

So I did a Google search for this purse company, Bohlux. As it turns out, they are made here in the United States. Certainly I think $8,000 is a ridiculous sum of money for a purse, but I’ve always told people that it’s important to understand that “expensive” is a relative term. Since I am fairly poor, I couldn’t dream of spending money on something like that, but to someone who makes several million dollars a year, it is less than a week’s pay, meaning that $8,000 to her was like me buying a nice dinner.

Bohlux Structured Hand Bag
Bohlux Structured Hand Bag

My left-wing cohort’s argument of course, is that the money would be better spent in the form of taxes to assist solving every American’s problems at the government level. But let’s think about what would happen in the two scenarios for a moment.

If that money went to the government, it would end up in places like Solyndra. It would end up in the hands of entitlement abusers such as welfare fraud perpetrators or unemployment collectors who could work, but choose not to. It would end up in the pockets of politicians. Or it would end up supporting a myriad of other wasteful government programs—the list goes on.

I’m not condemning all government functions, I do believe that there are some good roles for Uncle Sam, and there is a need for taxes to pay for those services. I’m a libertarian, not an anarchist.

I am not trying to assert that the above list is representative of the whole of government or even the majority of it, but it is a substantial portion. The problem is, virtually none of those people or causes actually did anything to earn that money and therefore should have no right to it.

On the contrary, if a millionaire buys an expensive purse, an American purse maker made money, the store that sold it made money, the employees of the manufacturer and the store got paid. Then all those people probably spent that money on goods and services at local stores who also made money…and the cycle just keeps going into a nice, free-market, economic circle. The most important part of that though, is that the people in this scenario did actually earn that money.

The fact is that the people who get mad at rich people blowing their money on frivolous items don’t seem to get how that helps the economy. The money they spend literally creates jobs because someone is performing the service they are paying to receive or building the product they are buying, where entitlements simply delay the inevitable.12627-highlights-rockstud-craftsmanship[1]

If rich people just sat on their money and stuffed it in a mattress, then yes that would hurt the economy, but that rarely happens. The rich invest their money, they spend their money on needs, they build companies that create jobs, or they enjoy it through wasteful spending on purses and such.

We covered how spending helps, but investing helps too of course.

If they buy a million dollars of stock from a company, that company uses that money to grow their business, often in a new direction. That results in the company hiring new employees which is also a boost to the economy.

Standard Oil Common Stock
Standard Oil Common Stock

If they buy stock from a private owner, that person now has cash in their hands to spend on goods and services, which again creates jobs.

People often refer to the term “Income redistribution.” I think the term is inaccurate because both situations redistribute wealth. However, the system those of us on the small government conservative side promote redistributes it to people who earned it, whereas our big government friends redistribute it to those who didn’t.

So when they talk about “fair share,” I’m sorry but their understanding of the word “fair” is grossly misappropriated.

Big Government Liberal vs Limited Government Conservative

Gary Nolan (and THE Scrappy Doo)
Gary Nolan (and THE Scrappy Doo)

A quick explanation of the title: In order to put a stop to semantical nonsense, I specify Big Government Liberal (BGL) and Limited Government Conservative (LGC) so there is no doubt to whom I refer. Some Liberals have indeed championed limited government, and some conservatives have adopted causes that grow Uncle Sam’s estate.

Here are a few viewpoints about these two paradigms that I’d like to share that are rarely discussed:

BGL’s are lazy.

To represent my point, let’s start with Warren Buffett’s new mantra that he should be taxed more. We have a man who is clearly a genius that lives modestly compared to his net worth. A recent interview showed he drove an older used car and lives in a fairly small home relative to his income. He asks to be taxed more because he presumably hopes the government will use those extra tax dollars for good causes.  Meanwhile, he is oblivious to the historical data that demonstrates the contrary.

I think it’s commendable when people give to charity; Bill Gates is a great example. But my apologies Mr. Buffett, government is NOT a charity. There are endless stories of government waste, fraud, and abuse.  Unless he’s never watched a news program or read a newspaper, he certainly knows this! Why would someone knowingly give money to an organization with a reputation for waste and expect that money to be used properly for good? It’s like going on holiday and giving your alcoholic roommate the keys to your liquor cabinet for safe keeping.

The reason I say this is lazy is because Warren is a brilliant man. Can he not think of a job creating or problem solving idea on his own that he could invest his money in that will be far more effective than giving it to the government? Instead, he’s essentially offering to donate to a fiscal toilet bowl that has proven highly proficient at flushing money down the drain.

So I would politely ask Mr. Buffett to stop being lazy and either invest his money in a worthwhile endeavor of his own creation or give it to a reputable charity, but PLEASE stop trying to give it to Uncle Sam. Coming up with a business idea that he could start for $100 million would create a lot of jobs and, if run properly, would be self-sustaining. He wouldn’t have to pump money into it continuously like a charity. He could just start it, run it, and watch it grow, create jobs, and better our economy…AND if it makes a profit, he could donate those profits to charity if he doesn’t want them. But such an idea would require effort on his part. Instead, he just wants to write a check to the Fed and hope it works.

He should look to Bill and Linda Gates who employ a mountain of people and have a charitable foundation that they oversee to make sure it does what it is supposed to do. As a result, they do significantly more for the world than Warren Buffett ever will even though both have a respectable charitable mindset because, while Warren wants to take the lazy way out and give his wealth to the government, Bill Gates rolled up his sleeves, got to work, and solved many more problems all on his own.

BGL’s fight nature, LGC’s adhere to it.

We all should know that self preservation is not a learned behavior; it is instilled in every living creature in the animal kingdom and is evolutionarily beneficial to us all. Accidentally put your hand on a hot stove, and without conscious thought, you’ll remove it immediately. It’s because your brain will always force your body to do whatever it thinks it needs to do to prevent injury or death; it is nearly impossible to resist that instinct.

If you have ever flown on a commercial airline, you’ll remember the speech given every flight about the oxygen masks and how one should secure their own mask prior to attempting to help others such as your spouse or children. Even if you are altruistic and want to help others before you help yourself, the fact is that except for organ donors, you can’t help someone else if you’re dead. The best way to put yourself in position to help others is to make sure you are healthy FIRST.

LGC’s inherently understand these concepts. For instance, they know when they send their child off to school, not to give them a debit card from their bank account. They give him one that is linked to a separate account that they put a fixed sum into every month. Why? Because little Johnny is likely to spend $100 a night at the local club on wine, women, and song based on collegiate history. While the parents may trust their little angel, it’s still not a bad idea to avoid giving them the opportunity to drain the family bank account lest they all go down in financial ruin.

BGL’s however feel better about themselves if they get the government to bilk the wealthy out of their fortune because they are oblivious to the harm it does to these folks. They seem to think the wealthy are immune to going broke, and that no matter what they take from them, somehow they’ll never be poor. Of course we know many rich people in history have gone broke—usually  as a result of misspent fortune. Many former professional athletes and musicians can surely attest. Contrary to BGL beliefs, wealthy people are not infinitely rich. There’s only so much money to be taken from these people. More often than not, this incessant desire to rob them of their fortune is born out of envy, not altruism.

So while BGL’s assume the LGC’s are just being greedy, it’s really just natural self preservation at work. There’s nothing wrong with that! The thing that infuriates me the most is that BGL’s are routinely just generous with other people’s money, Warren Buffett excluded. Look no further than Michael Moore, a self-professed socialist that believes rich people who live extravagantly should be stripped almost completely of their fortune, yet he resides in an approximately $2 million estate AND has a posh apartment in NYC. I’ll bet he rarely invites a homeless person to stay at either one.

LGC’s are the people of personal responsibility, BGL’s…not so much.

Many BGL social platforms seem to revolve around the notion that people who are downtrodden have been abused by the top 1%. This is simply not true. People with money are rich for four potential reasons.

A)     They came up with a great idea, worked hard, brought it to fruition, and are reaping the benefits.

B)      They won the lottery

C)      Were born into A or B

D)     They are engaged in criminal activity

While the legal system works hard to expose the nations pilferers, the fact is most wealthy individuals came about their fortunes quite legally. I’m all for liquidating every single asset from the criminal classes, but BGL’s act as though the A’s, B’s, C’s, and D’s are one in the same. The entrepreneurs of this great nation worked hard, invested a lot of time, money, and effort into what they did, and they’re responsible for their success. For BGL’s to think that somehow they have a right to force these folks to give up their wealth for things like Solyndra, Fannie/Freddie, GM and Chrysler, saving the whales, foreign aid for countries that don’t even like us, or any other avenue that the government gives tax dollars to defies all that is just. It’s their money. They should have the absolute right to spend it or give it away as they see fit.

While I am certainly aware that there are people who are unsuccessful, often through little or no fault of their own, the fact is that people who are poor are often a product of their own lack of personal responsibility, motivation, or personality. The wealthy had nothing to do with the poor’s condition. People talk so often about big corporations like Walmart destroying small businesses, but Walmart, like almost every other corporation, started out as a small business itself. Small businesses fail—not  because of the rich–but  because of poor business models, products, or leadership. We’ve all worked with someone who constantly shows up late for work if they show up at all. When they do show up, they have a bad attitude, they put in a mediocre effort, they complain about every aspect of the company, and when they don’t get the promotion they wanted, they act as if somehow it’s not their fault.

America is flush with success stories where someone with nothing achieved greatness. So I’m not buying the notion for one second that success is only available to the upper class because there’s an overwhelming amount of evidence to refute that argument. Herman Cain was right to tell people that if they are not successful, look in the mirror. More often than not, the biggest hurdle is staring back at them.

So the class warfare blame game is the ultimate display of a lack of personal responsibility, and it’s time honest hard working Americans said, “Enough!”  I’m responsible for my success, YOU are responsible for yours. May the best person win!