The value of American farmland?

Why should American farm land trade at a premium to farm land in Russia, South Africa or Argentina?

Well there are a number of factors today (although these may be shrinking). 1) What is the cost of labor to work the farm land? 2) What are the property taxes? 3) What is the level of economic stability in the area? You did’t want to invest in Cuban farm land right before Castro took control. 4) How close are the markets to your crops? If you are growing walnuts and the walnut market is on the other side of the planet then you will make less than if you are near your market. 5) What are the chances that the government will simply confiscate your property (think Venezuela’s confiscation of the property of Concoco-Phillips). 6) Do I have access to modern farm machinery to harvest my crop or do I have to rely entirely on human labor? 7) How dependable and economic is my water supply? 8) Can I use the best fertilizers for my crop?  8) What are the alternative values for the land? When farm land was being converted into subdivisions in the US, it lowered the supply and the minimum price for the land. 9) What are the state and federal income taxes on farm income? The lower these are the more valuable the land. 10) Is there an established support infrastructure for the crop you are growing? For example, if you are the only walnut orchard in the area then you have less opportunity for sharing hullers and sorters and this will likely drive your costs up. 11) How prosperous are the farmers in your region? Farmers are the usual buyers of available farmland and if they have been making and saving money then they can pay a higher price than if they are struggling to make money on their existing land.

Comparing the Tea Party to the Libertarian Party

I support thirteen of the fourteen Libertarian principles below and all three of the Tea Party principles. But I probably differ more with most Tea Party members who on average have far different views on the social issues than I do. But I still respect what the Tea Party is achieving and if they stick to those three principles exclusively, then they might even help elect a Republican President in 2012.

The Libertarian party is the third largest political party and is getting more attention these days. But we are decades away from seeing a Libertarian US President. Libertarians are frequently and incorrectly labeled as the “fringe right”, although with all the attention that the Tea Party is getting, most of the left’s hatred is directed at the Tea Party. I am not sure exactly what “right wing” means in America today but the Libertarian party is not the far right. Just for the record, here is the official platform of the American Libertarian Party. Just like the platforms of the Democratic and Republican parties, these principles are not universally supported by their members. Some of these issues should be left to state governments under the 10th Amendment, but that has not restricted the federal government from meddling in these matters before.

Few if any of the principles from the Libertarian platform are supported by a majority of Americans. On the other hand, only a few of their ideas have the support of less than 40% of Americans (hardly fringe). These estimated numbers are based on my own unscientific polling and I welcome suggestions to change these estimates (provided you have some better data to back up your story).

Here are the major stands of the Libertarians followed by a number like (40/60). The first figure (40) represents the percentage of Americans that support the Libertarians view on this issue and 60% do not support the Libertarian position. We do not allow for those on the fence.

1) Balance the Budget exclusively by "Cutting Expenditures Not by Raising Taxes" (50/50). I am fine with increasing a few taxes (gasoline, inheritance, consumption) as long as other taxes are reduced proportionately. This is the biggest issue that separates the left from the right in America today. The right starts with the notion of cutting expenditures first. The left starts with the idea of increasing taxes first. And recently this has meant that nothing gets done (that requires collaboration) other than raising the debt ceiling.

2) Pro-Choice (50/50). Not much to say about this one other than it is probably the most emotional issue of all. You won’t change my mind and I won’t change your mind - so let’s move on.

3) Pro Gay Rights (40/60). Right behind the abortion issue in level of emotion. Ditto on my interest in debating it.

4) Legalize Drugs (20/80). This just does not feel right to most Americans despite how much we are spending on law enforcement and imprisoning millions of those caught using and selling drugs. We are creating waves of violence not only in the United States but especially in Mexico. Again, I hate the idea of my family and friends using these drugs, but this is a family matter and I don’t want the government using force to impose these laws any more.

5) Legalize Assisted Suicide (10/90). This is one of those issues on which I won’t convince you and you won’t convince me. This is a low priority to me right now and I hope that by the time I am much older and my time comes, I get hit by a truck and don’t have to face a long, agonizing and expensive death.

6) Absolute Freedom of Religion (20/80). Libertarians oppose government actions which either aid or attack any religion. Americans on average are fine with government support of their religion (i.e. tax deductions for your donation to your church); they just don’t want the other guy's religion (or lack of religion in the case of the school prayer debate) imposed on them. Look to some of the Middle Eastern countries as a model for religious intolerance and state-sponsored religions and it might scare you into promoting true freedom of religion.

7) Americans Right to Work without Joining a Union (50/50). This has been a hot topic lately but outside of Boeing’s new plant in South Carolina, it has been primarily an issue in the public sector.

8) Right to Bear Arms (50/50). With everything else happening in this country this matter has had very little air play lately.

9) Repeal all US Income Taxes (2/98). OK, this idea is the one idea that might qualify as "extreme". Granted , I am all for reducing our expenditures and the deficit but we have plenty of yesterday’s expenses and promises to work off before this comes close to being realistic.

10) Education should be provided by the Free Market (10/90). Everyone agrees that today’s public school systems are failing. Those on the left believe in bigger, and more expensive unionized programs to improve them. Most Libertarians (although this is not on their platform) favor a voucher system where the government pays via a voucher for all or most of the cost of a private education. Parents could then choose which private school to send their kids to. But alas not an idea that many Americans support and the left and unions absolutely hate this idea.

11) Health Care Should be Provided by the Free Market (40/60). Let’s come back to this one later as you might have read an opinion or two on the subject.

12) Put Retirement Planning and Funding back as the Responsibility of the Individual (20/80). - The idea of our social security system as a retirement program for seniors is so fully ingrained that few even question why the government ever took over this role to begin with. The system worked reasonably well as long as the average life expectancy was only 62 years and the ponzi funding didn't tax anyone too much. No one complained that we were not saving enough in the trust fund to pay for future obligations. It is a classic case of today’s (and yesterday’s) politicians being able to make promises that tomorrow’s politicians and public won’t be able to deliver. The inability for governments to manage this system responsibly should be proven by now. But those that advocate the system think we can solve it by increasing taxes on the rich.

13) Maintain a sufficient military to defend the United States against aggression but stop foreign intervention (40/60). After our recent experience in Iraq and Afghanistan, the public is far less supportive of US military intervention than we were after the first Gulf War. In the first Gulf War, we got in and out quickly and looked very impressive in the process. We also did not attempt any nation-building and saw positive results in Kuwait very quickly.

14) Support Free Trade (50/50). Virtually all Americans support free trade when it results in their saving money at the market, but they hate the idea with a passion when free trade results in the loss of their job.

The Tea Party has a much better chance at success because they are officially only supporting three concepts and it is easier to get broad support for three principles than fourteen (except the general media hates them so much).

1) Fiscal Responsibility (80/20). Who can argue? The left doesn't bother to disagree with it; they either ignore it or propose to solve our financial woes with more taxes on business and the rich.

2) Constitutionally Limited Government (90/10). It is hard to find anyone that openly supports ignoring our constitution - until it comes down to the part of the constitution they don’t agree with (i.e the freedom of those you disagree having a right to say things that you view as “mean or hateful”, the right to bear arms, the 10th Amendment’s restriction on the Federal government’s authority to act on matters not given to the Federal government by the Constitution).

3) Free Markets (65/35). A generation ago, free enterprise and private business ownership were honored and respected by most Americans. Today more Americans openly support a socialist economic system than any time since the Great Depression.

But the Tea Party has three principles and three principles only. Their least popular stand (Free Markets) still has the support of 65% of Americans. So why is this group so vilified by the left and so denigrated by the general media? Perhaps they are hated because if the Tea Party stuck to these three principles and found a presidential candidate who narrowly focused on them, that candidate might unseat the left. We need a Republican presidential nominee that will focus 100% on the message: “Let’s get the financial basics on track during the next four years and leave the social engineering to the next President”. That candidate would stand a good chance.

Probably the most disappointing day in America since Obama’s inauguration

It was probably the most disappointing day in America since Obama’s inauguration (and Obama has given us many such days from which to choose). In one day this Administrations ruination of our labor, energy and health care markets all hit a new low.

The Supreme Court chose not to give expedited treatment to the question of whether Obamacare is unconstitutional. Obamacare regulates and impacts one sixth of the US economy. Many think that it is unconstitutional for the Federal Government to require every citizen to carry approved health care insurance. This is a decision with massive consequences (no matter how it is ultimately decided) and will eventually be decided by the Supreme Court. So why mess around with the interim courts?

Shell Oil has cancelled an oil drilling project in Alaska because the EPA won’t grant it an air permit. They are writing off close to $4 billion and will evidently take their capital and skills and go to other countries and therefore our dependence on foreign oil will keep growing.

The National Labor Relations Board sued Boeing for its move to Charleston, South Carolina as illegal because it retaliates against labor. South Carolina is a right to work state and the fact that unions are weaker was undoubtedly a factor, but it was probably only one of several considerations. And since when can’t you open a new plant where you want to? So now the NLRB will be managing virtually every decision of our manufacturing industry. What are the chances that Boeing and other manufacturers next move is to take their new plants and jobs outside the US?

Oh yeh and business as usual today - not a damn thing was done about reducing our deficit or federal spending. Obama destroying America one day at a time.

A worthy place to work

"You can make a difference while making a profit. You needn’t work for Ben & Jerry’s. Any business that sells a good product at a fair price and treats its employees well is a worthy place to work." Dr. Marty Nemko

A new work-study job

"A new work-study job

Rather than spend an additional $160,000 per year for a second controller at Sacramento International Airport, which has only six scheduled arrivals or departures between midnight and 6 a.m., how about a lower cost alternative?

We hire California State University students struggling to make tuition at say $15 per hour ($33,000 per year) and put them in the tower.

They are free to study but if they hear the radio squawk and the controller fails to respond, they zap 'em with an FAA-supplied cattle prod.

Safety is enhanced, and a struggling student gets help to complete their studies. Don't you love a win-win?

– Roy W. Hecteman,

El Dorado Hills" (The Sacramento Bee Letters to the Editor April 16, 2011)



Read more: http://www.sacbee.com/2011/04/16/3556715/letters-to-the-editor.html#ixzz1JiNqnZBF

Efficiency in Government?

How many parents pay their taxes and then send their kids to private schools (Obama #1)? I still challenge you to find a service that is more efficient or of higher quality than that provided by the private sector.

The emperor has no clothes.

Is there a chance that when we consider the US unfunded liabilities (debt plus promises made on Social Security and Medicare) that the phrase "the emperor has no clothes" applies?

Our debt ceiling

The left says that our unwillingness to raise the debt ceiling is a sign that we will default on our debts. Is it possible that the outside world would see this as a sign that we are going to borrow less? I have leant businesses money before and once I leant them money I would generally prefer they borrow no more. Once I have leant money I want the borrower to focus on how to pay me back.

Capital gains taxes?

Why are long-term capital gains & dividends taxed at 15% while short-term capital gains are taxed at up to 35% today. If I make money on a stock and sell it a year and a day later I pay 15% in federal long-term capital gains taxes. But if I sell it 2 days earlier I pay up to 35% in federal short-term capital gains taxes.

Why is slow moving capital preferred to quick moving capital?

Older Americans feel discriminated against in the job market

I am 60 and not looking for a job. But I have friends and family that are in my age group and trying to land a good job.

Many older American workers think there is discrimination against them. I generally disagree. Here are a few advantages that younger workers have over their parents (in broad generalities):
1) Younger workers are more willing to move to an area where job prospects are better than where they live;
2) Younger job applicants are better at learning new technology than older workers (on average);
3) Younger workers are more willing to change professions since they don’t have so many years invested in one industry or profession; they are more willing to adapt.
4) Anti-discrimination laws intended to protect older workers make it more expensive to fire the unproductive but old worker.
5) Older Americans have higher health care costs, so every time I hire an older American I increase my health care insurance costs.

But older Americans have a few advantages as well:
1) Older Americans are slightly more loyal to their employers than their
parents;
2) The fact that older Americans are less likely to fly the coop, makes any investment in their training likely to result in an employer for a longer period.

Many of the efforts to protect and subsidize older workers have in fact hurt their prospects in the marketplace for jobs.

Here is my suggestion for older workers. Start your own business; hire yourself.