In Praise of Spontaneous Order

There are nearly six million people in metro Atlanta. Six million. That’s a lot of mouths to feed. But if you drive around town, you’ll notice there aren’t any farms or cattle ranches within the city limits. So how do all these people get fed every day? Who plans it all out? I mean, let’s face it: here are six million individuals who would easily die in a few days if suppliers stopped driving and flying into the city to satisfy its endless wants and needs.

So try to imagine all that goes into keeping Atlanta fed. Try to comprehend the millions upon millions of complex transactions that take place every day between farmers, distributors, manufacturers throughout north Georgia and the Southeast, the companies that insure these manufacturers, the truckers, the people that build the trucks, grocery stores, the people that put the air conditioning in the grocery stores, restaurants, etc., all in effort to keep Atlantans fat and happy. There’s a seemingly endless intricate list of things that will all have to occur tomorrow so all six million people don’t descend into mass rioting, looting, starvation, and mass chaos. And yet no one in the city is frightened by this prospect. To the contrary, most Atlantans are peacefully sound asleep as I type this.

So what makes this great marvel of economic cooperation succeed so well every day? There’s no central government planning authority downtown tasked with calling all the thousands of farmers/distributors to make sure all of this goes through like it’s supposed to, and even if there were it would be simply impossible for such a bureaucracy to even fathom attempting to clumsily coordinate all the processes that would have to occur and to try and put them in motion. So what makes all of this stuff happen? How do producers calculate exactly what, where, when, and how much to supply? How do millions of complete strangers every day coordinate with a million other complete strangers to get that chili cheese dog and fries to you at the Varsity right when you want it? The answer is simple. Markets. Prices. The profit incentive. In two words: "spontaneous order," driven by economic freedom.

And yet there are those in Washington who are unappreciative, ignorant, and unaware of these billions of unseen connections that make our society so dynamic, so prosperous, and so wealthy. They instead seek to stifle the very incentives that hold this immensely elaborate system together, calling for more government intervention, taxation, controls and "planning." At least 48% of the country praises the likes of these planners. I fear them.

"It is no crime to be ignorant of economics which is, after all, a specialized discipline and one that most people consider to be a 'dismal science.' But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance." - Murray N. Rothbard

Kingston on Colbert

I came across this video online recently, I think it aired awhile back. This guy leans to the left, plus he's from Charleston, but the video's pretty funny. I'm not sure if Kingston is being serious about the Africa stuff or not, and it's obvious they've edited out stuff to make him look like an idiot, but who cares, it's Comedy Central.

Re: Tax Breaks

My response is long, so I’m creating another post.

1. Concerning the “tax breaks” given to big oil companies; this term used by the article, I think, is a misnomer. Despite the ridiculously voluminous size of the Federal Tax Code, the laws are not created for specific industries (as this CNN article has you assume.) Especially with Corporate Tax, the rules and regulations are wide sweeping across all industries. Believe it not, if Congress created tax laws for specific industries, the Tax Code would be 100 times larger and more complicated. I was hoping the article would specifically list the “tax breaks” given to the oil industry. But of course not, CNN has an agenda not to disseminate truth from emotions.
   As far as I know, the oil industry is extremely capital intensive… meaning that oil companies must invest huge amounts of money into tangible assets (known as Property, Plant, and Equipment.) So, to stay in business, the oil industry must continually use up to 70% of its revenue to keep the machines greased and running. This does not even take into account cost of new machines, construction of new assets, and Research and Development ( R&D). In contrast, the public accounting industry requires almost no hard capital (only office buildings and computers.)
2. The only argument that liberals might have is the ability of oil companies (and all companies operating in the US for that matter) is to deny the oil companies deductions for the huge amounts of R&D costs, thereby reducing “tax breaks.” Currently, any company can either deduct fully upfront R&D costs, or pro rate the deduction over a longer length of time. But, as Pat can tell you, denying these deductions is insane. The reasoning behind R&D deductions is to incent big business to find more efficient products. If Congress denies the ability of companies to deduct these monstrous costs, new natural resources will not be searched for. Instead, the oil companies will cease explorations and developing more efficient machinery in favor of controlling costs. What liberals fail to mention, or are totally ignorant of, is that the allowed deductions directly enable big oil companies to keep the price of oil/gas as low as possible. If the R&D deductions were to be stripped away tomorrow, the average Joe will probably have top pay close to $10 per gallon for gas. Liberals fail to recognize that the costs of their “compassionate” policies end up being paid for by all taxpayers. The minimum wage phenomenon is the perfect example of what will happen. It may sound good to raise wages for the common worker, but what is the result? Higher unemployment, decreased output, increased prices of all goods, etc. The same effect will be created by a windfall tax. I presume this to be flat tax based on profit, over and above the regular tax. The windfall tax will end up being paid by you and me, starving college graduates, at the gas pump. But as Jimmy Carter found out, artificially lowering the price of gas through regulation will only create shortages… a much more drastic problem than increased prices.
   
3. The oil industry and all other hard capital intensive industries, already suffer from the Alternative Minimum Tax (AMT) anyhow. The AMT is a recalculation of taxable income, different from the regular calculation. Generally, deductions are taken away from corporations. In addition, the calculation is such that capital intensive industries are punished more so than light capital industries. The AMT is sort of a “windfall tax” already in place.
4. In comparison to other industries, the oil industry is lagging when it comes to profiting. Of the oil company revenues, only 10% are retained as profits (the amount of revenues beyond costs) This 10% profit is kept only after Uncle Sam’s share of the pie, which is close to 18% of revenues (I heard these percentages on the Neil Boortz radio show.) Amazingly, the banking industry keeps close to 27% of revenues as profits… after taxes. Why aren’t liberals going after the banking industry? Because Democrats damn well know that a white collar worker with a large mortgage will probably never vote for a liberal. Liberals are taking this crusade against oil companies because their main voter base is directly affected by gas prices, even welfare recipients. (70% of US welfare recipients own cars, amazingly) Democrats always rely on emotional fears, they’ve been disparate for votes ever since Newt Gingrich was elected to office. But, this oil company crusade might work wonders for the Democrat Party. The average American is very uniformed of basic economics and tax laws. All they hear is the price of gas falling by a buck. I’m afraid the average Joes will vote more Democrats into office this time around. This might be good for Republicans to get their act together, because right now, the Republicans in office are no better than Cynthia McKinney.
5. The only way for the gas problem to be solved is to NOT to tax the oil industry at all, open up new oil refineries, allow more nuclear power plants to be built, and to allow more drilling sites. I’ve heard that the US has enough oil reserves to support its current consumption for 200 years or more. But, feel good hippie liberals would rather have that open 1/10 of mile wide stretch of Alaska prairie for the rare snow rat to prance about. Ridiculous.
6. CNN has failed to list the many obstacles Democrats have created to restrict the US’ ability to increase our natural resource supplies. Democrats are “having their cake and eating it too.” Liberals prevent us from increasing our supplies, and then punish the suppliers for following their orders. On top of all the “compassion” that Democrats invoke, the taxpayers will end up footing the bill of Liberal generosity.

Tax Breaks

http://www.cnn.com/2006/POLITICS/04/29
After reading this article on CNN.com(sorry Stephen and Pat), I was a little confused. I don't have much time to keep up with business, politics, etc. , so sorry if I sound uninformed. In this article, they talk about how the oil industry is getting tax breaks. I thought that the act in question was whether or not to put a "windfall" tax(not really sure what that means) on the profits of the oil company. My point is that the article makes it seem like the "Bush-meister" is actively lowering their taxes rather than leaving the market alone(which is what I thought he was doing). Tell me where I'm wrong. If this is the case then CNN once again proves that they are quite the Spin Doctors, and I am not talking about the guys who wrote "Little Miss".

This should be on BC Gottum but...

http://sportsillustrated.cnn.com/2006/football
Bad news for the Deuce. Check out the picture of him and look at the numbers written on his wrist tape.

I Love Corporations in Sports

Fox may produce the greatest show of all time in 24, but they've really messed up big.

Fox bought Turner South in February and starting next week, they are replacing Skip, Pete, Don, Joe, and Chip with the two guys from Fox Sports Network. Now the ever-decreasing TBS games and radio will be the only places to hear the guys. Hey, great. I really wanted the Braves to become more yankee, cracker bland. Pleasure doing business with you, Time Warner. You've been a great ball club owner. Now, if only we could switch ownership to an even more detached, uninterested corporation. Hello, Liberty Media of Colorado.

"The Worst Economy Since the Great Depression"

Really?

1st Quarter GDP Growth Rate: 4.8%

Unemployment Rate: 4.7%; nearly 5 million new jobs over the past 2 and a half years.
Dow Jones Industrial Average: Sitting at a 6-year high


Consumer Confidence: at the highest level in four years.

So why is the economy still so bad according to polls and the media? Oh wait, I forgot, Bush is a Republican.

Let's Put a Windfall Profits Tax on Everything

The people down the street from us at the Landings bought their house for probably around $300,000 and recently sold it for close to $2 million. This makes me sick. It's time we implemented a windfall profits tax on all these greedy homeowners in America who, god forbid, are trying to sell their house at the highest possible price, thereby eminating a crucial signal to other owners and homebuilders alike that the market needs more houses and that providing them will be handsomely rewarded.

I saw a little girl the other day selling lemonade for $1 a glass. Greedy bitch. She's "manipulating" the price of lemonade, and I won't tolerate it. She should be generous and sell each glass for 5 cents instead and then donate the other 95 cents to research for cheaper ways of creating alternative types of drinks like cranberry juice or orange juice. Damn her for calculating the highest price that consumers are willing and able to pay and then charging it. She knows it's hot outside and she's providing a means for people to quench their thirst. Gouger.

All of this makes me sick. People don't deserve incentives to produce goods and services. We just need to abolish entrepreneurs and the profit incentive altogether. I know this defies all logic, because profit is what makes people get up in the morning, and is the basis for every trade made every day around the world, but who cares, logic is boring. Government officials just need to start doing what feels good.

"It's time we stopped thinking about the individual for once and started focusing instead on what's good for society." - Hillary Rodham Clinton

Coincidence?

I hope 4/20 was kind to everyone. Just kidding, I hate hippies. Anyways, I thought it was funny that GSU held it's Earth Day celebration and the intramural Ultimate Frisbee championship yesterday.

Going Solo

Continuing the recent trend of BMBS bloogers going solo (Ryan and Joe), I have started a new blog devoted entirely to BC athletics. Check it out at www.bcgottum.blogspot.com. I am basically going to rip off the Savannah Morning News and add my own additional comments. I hope ya'll enjoy it.

R. I. P. Shorty

Savannah icon Robert "Picture Man" Hall dead at 71.

I'm the Leprechaun

This is a real news cast.
http://www.ebaumsworld.com/videos/leprechaun-in-tree-part-1.html
http://www.ebaumsworld.com/videos/leprechaun-in-tree-part-2.html

You can't get this at Thompson's.

I created this tee shirt at cafepress.com today.

It says Alumni in the bar underneath BC. The picture on the back is of the original Corps of Cadets. Let me know if you want one. They cost $17.99, including shipping and handling.

24

I'm sure Ryan already knows this, but it looks like we have at least three more seasons of 24 to look forward to.
http://www.cnn.com/2006/SHOWBIZ/TV/04/10/television.sutherland.reut/index.html

April 15th

I'm too lazy to create another April 15th advisory post, so here's last year's with some minor modifications.

Yes my friends, it is true that everyone's 1040s are due to the IRS by the end of this week, April 15th. I suggest filing before the end of Friday, April 14th. You know how government workers are (Like Ryan.) I doubt the s.o.bs will be working this Saturday.

If you haven't done so already, I'm sure your mothers have filed your income tax return to the Federal Government. After she is done forging your name and paying your apartment's rent, thank her dearly. Concerning income levels such as ours, it is a shame to make you mothers perform this petty task. Of course if you want to pay me to file your return, that is a different story.

I just wanted to give a heads up to those men that wait until this last minute with the philosophy that if you do wait until those last 60 seconds to complete the job, than the job will only take 60 seconds to complete. I honor you, Godspeed.

Most of us are college students or have just recently graduated from a post secondary school, so I suggest that you find Form 1099 mailed to you from whomever your school loans originated. There will be an amount listed of the student loan interest paid by you. Make sure to include this as an "above the line" deduction in the 1040. There are no phase outs associated with this expense (Ryan, this is a huge benefit.)

If you are still currently in school, list the tuition expenses you've experienced in 2004. If these are greater than grants and scholarships received, than a deduction will be allowed for the difference. (Ryan, A deduction does not lower one's taxes dollar for dollar, it lowers your Taxable Income, which is used to calculate your Tax . Assuming a 30% Tax Rate, a $1 deduction will result in $0.30 reduction in taxes for the year.) For people like you and myself, this is the best advice I can give. Go to www.irs.gov for any other questions you might have.

Rock 'n' Roll Dreams Come True

In what may be the beginning of the next great phase in popular music, I have have posted an ad in both Craigslist.org and the classifieds section of Flagpole in an effort to form a band. My craigslist ad, which you can find at http://atlanta.craigslist.org/muc/149139509.html, reads:

Guitarist seeks musicians for big, dynamic rock band

I'm a guitarist/songwriter looking for a drummer and any other musicians to form a band with a big, dynamic rock sound such as The Smashing Pumpkins, Trail of Dead, and Springsteen & the E Street Band. Any instrument is welcome! If you're interested, or have have any questions, please email me at rsmith4002@gmail.com.

This free listing will be on the website for 45 days. A condensed version will appear in the Musicians Wanted section of Flagpole for two weeks, starting Wednesday. I've already received a reply to my craigslist post, but it was some guy wanting me to replace the lead guitarist in his crappy band. I told him, "Look, buddy, you've got your hopes and dreams, and I've got mine. Let's shoot for the stars on our own paths, but under the same sky..."

Who knows if the next 2 weeks will bring anything, but I had to take off the panties I've been wearing for so long and man up. Have you ever seen how Chris Martin from Coldplay always writes "Make Trade Fair" on his piano hands so that everyone sees his agenda? That will be me, but with "bmbs.blogspot.com" instead. Okay, I'm gonna go sit in the corner and think about my role as That Weird Kid.

Dilemma

Who should I go hear speak today?

The liberal kool-aid drinkers at the law school are going ga-ga over John Edward's speech at 11 am at the Chapel. Unlike the vast majority of my classmates, I can't wait to not go. Meanwhile, a few hours later on south campus, Bush '41 is speaking. I'd like to go but I have class.

Edward's speech kicks off a week-long "poverty-reduction" seminar at the law school, which, of course, is hosted by him. My initial reaction: no seminar is necessary, we already know how to cure poverty: expand capitalism.

Anyway, the conference will focus on "expanding the middle class," whatever that means. Liberal intellectuals, who retreat into the halls of academia after losing elections (especially those in which they can't even carry their home state) because they can't survive in the private sector, love to gather around big tables and have complex "discussions" about alleged problems. Edwards, who loves to hear himself talk, will make himself and other ignorant leftists feel good by using big words and shaking hands with a few black people.

The anomaly here is that Bush did much more to reduce poverty than Edwards could do in a dozen lifetimes. While a disappointment to many conservatives, it was still Bush who pushed for the North American Free Trade Agreement, which has since brought millions of Mexicans out of poverty and reduced prices for American consumers who now have more money in their pockets.

Not surprisingly, it is Edwards who will be painted as the true philanthropist. He will get all the credit for being some self-righteous moral crusader by speaking at colleges and shaking hands with minorities, pushing for a "living wage," and telling people that make less than one-tenth of his income that he "feels their pain." Bush, on the other hand, will continue to get blamed for a recession he had no control over. By appearing to care about the less fortunate by hosting futile conferences where misguided policies are discussed, Edwards can be sure to win over voters, who he hopes will stay poor enough to vote for him in the 2008 Democratic primary.

Gel Head of the Week

For some reason, I took a little jog tonight. I needed to "blow off a little steam" if you will. Well, as I was approaching the back side of Sanford stadium, I see a black open top jeep speeding towards me. For one thing, this baby had "sweet" flood lights on the roll bar, and a visor strategically tied around the rear view mirror.

As the jeep passed by (with four or so Gel Heads hanging out of all sides) the driver, whom we will name "Cody", reached out with his arm... pointing his finger at me (Yes, he was wearing a "wife beater.")

Cody then exclaimed to me "YEEAAAHHH! JOHNNY! What's up bro!"

I am neither Johnny, nor his bro

Cody represents all that is wrong in this age of relativism. Cody is Gel Head of the Week.

November Preview

Yesterday's Wall Street Journal hit the nail on the head:

The biggest Republican problem now is the demoralization of their own voters. Their lack of meaningful achievements this Congress (beyond the two Supreme Court Justices), all of their spending, and troubles in Iraq have left conservative voters wondering what the point is to voting for the GOP. If Republicans want their supporters to show up on election day, they'll need more of a message than wearing a "Speaker Nancy Pelosi" fright mask.

May we suggest a Plan B? How about at least fighting for the agenda that elected them the last time? It's obvious at this stage of the 109th Congress that little will actually become law, especially with Democrats able to filibuster in the Senate.

I've been saying it for months now. If Republicans don't get their act together and start acting like the reformed-minded conservatives they were elected to be, they will lose Congress in November. USA Today also has a good article on this. The past 6 years or so has been a prime example of absolute power gradually corrupting absolutely. I'm not saying the Democrats deserve to win, as their solution to every problem is even more government. I'm simply saying the Republicans deserve to lose, because they have become the very thing they ran against back in 1994.

Socialism: Great Idea

Because it puts people over profit. Because it prevents those poor souls who actually have to work from putting in more than 25 hours a week. Because it forces us all to work for the "common good."







End Result? 40% unemployment among young people. Virtually no economic growth over the last 8 years. Stagnant job growth. Declining wages. Strikes, riots, and utter chaos twice a week. Great idea. Message to Howard Dean: This is the reason, despite my current disgust with the Republicans, why I will never vote for your party. I do not want our country to turn out like this.

Beware!

For the Roman Catholic faint of heart, do not look at the these disgusting images. Slowly but Surely, Benedict XVI is making progress against such awful liturgical abuses. The Holy Father has already threatened excommunication to some parishes in the Pacific for their outlandish desecration of the Mass. It is also rumored that the Pope will soon lift the current ban on the traditional Roman Rite (The pre Vatican II Latin Mass), which currently requires permission from the local Bishop. Hopefully, a sense of tradition will let fruit cake priests know their Mass is a disgrace. With the immense size of the Church and that vast number of weak minded bishops, the problems wrought by "the Spirit of Vatican II" will be slowly corrected.