Today on my way to school I heard an interesting statistic. over 30,000 people die each year from the flu. Not this new hot exciting Swine flu thing but the normal flu. Up to this point one person has died of the swine flu. It brought me to a very important economic concept that I addressed with my classes today.
I believe I saw where the Obama administration is going to promise some $1.5 billion to fight this new flu "epidemic". Which brings up a very interesting rarely asked question: Where does this money come from? More importantly, what are the alternative cost of doing this? In other words what is not getting $1.5 billion because the government is spending it on this new hot issue? Economics is the efficient allocation of scare resources which have alternative uses. When resources are used in one area they are not in another. Is that $1.5 billion better used to fight this disease that is according to most experts somewhat contained and is not that serious yet? Or could it have been spent in a better place? What if it was used to do more research on cancer? Or what if it was to be used to build better and newer roads and bridges that are safer and save more lives than it will fighting Swine Flu.
In the early 1980's a small incident on a airport runway led to the death of an infant that was on the plane in his or her mom's lap. The small collision caused the baby to fly out of its mom's hands and was killed on impact. The government along with the airlines pledged to fix the problem and required special seats to be used for small children. This device saved one child every eight years according to a group of economist. But those same economist estimated that it killed 8 other people. You say how? The cost of this law or new policy was that the parent had to purchase an extra plane ticket. Instead they might not purchase it if they now think it is cheaper to drive instead. Now how many of those trips would result in wrecks and how many of those wrecks would result in casualties? Those economist estimated about 8 people died over the next eight years after the new policy was passed.
How many people could die because of some headline news story disease is getting politicians to move resources from important big problems that effect many people to try and fix this small problem that happens to be newsworthy. I'm not saying I disagree with the Obama decision I have not researched it. I am saying that we need to hesitate and think about these things before getting excited about trying to fix a problem. Remember there are cost and benefits to decisions not just benefits.
Thursday, April 30, 2009
Sunday, April 12, 2009
Wrongful Assumptions
Today I attended Sweetwater area church service instead of traveling downtown Knoxville to attend my home church of Faith Promise. It got me to thinking so much that I still don't know the direction of this current post.
I would argue I have nothing against the church but I would be lying. I feel that so many of our churches are stuck in their old fashion ways that they are one of the main reasons we are losing our young people today. I looked around and can tell you that only one of the 6 ushers who took up the offering (and had to sit on the front row) kept their mind on the message. I know this because my mind was wondering around. Many of them were falling asleep or starring off in the distance. Many others in the church were doing the same. I bet many of them would condemn my church and yet they attend church and get nothing out of it. It got me to thinking how at my church I never see anyone falling asleep or even losing focus. Now in defense I rarely look around because I am so into the service as well. I love my church.
So many churches refuse to change and accomodate the current culture into their worship of an up-to-date, modern savior. They never even give adapting to the current environment a thought. They believe that good christians must where suits and preach messages that have three points that explain a specific verse of the Bible while singing music from the late 19th and early 20th century.
This along with a recent reading of my brother's blog got me to thinking about how Americans do the same with our government. The government wants to outlaw discrimination when private companies should have the right to do so if they choose. They are even sticking their noses in on MLB and now the BCS of college football. I believe I read where it was now up to 70 percent. You say what Jess? 70 percent of what our federal government does is not found anywhere in the Constitution. If 75% of our congress wants the federal government to participate in this action then ammend the Constitution first.
American citizens have allowed the government to get so large for so long that they don't even think about changing its ways. We never stop and think about whether this is the best course of action or whether government should even be involved to begin with. Maybe Christian and Americans alike should take a step back and begin evaluating the church and government's mission before choosing a path and not giving it a second thought.
I would argue I have nothing against the church but I would be lying. I feel that so many of our churches are stuck in their old fashion ways that they are one of the main reasons we are losing our young people today. I looked around and can tell you that only one of the 6 ushers who took up the offering (and had to sit on the front row) kept their mind on the message. I know this because my mind was wondering around. Many of them were falling asleep or starring off in the distance. Many others in the church were doing the same. I bet many of them would condemn my church and yet they attend church and get nothing out of it. It got me to thinking how at my church I never see anyone falling asleep or even losing focus. Now in defense I rarely look around because I am so into the service as well. I love my church.
So many churches refuse to change and accomodate the current culture into their worship of an up-to-date, modern savior. They never even give adapting to the current environment a thought. They believe that good christians must where suits and preach messages that have three points that explain a specific verse of the Bible while singing music from the late 19th and early 20th century.
This along with a recent reading of my brother's blog got me to thinking about how Americans do the same with our government. The government wants to outlaw discrimination when private companies should have the right to do so if they choose. They are even sticking their noses in on MLB and now the BCS of college football. I believe I read where it was now up to 70 percent. You say what Jess? 70 percent of what our federal government does is not found anywhere in the Constitution. If 75% of our congress wants the federal government to participate in this action then ammend the Constitution first.
American citizens have allowed the government to get so large for so long that they don't even think about changing its ways. We never stop and think about whether this is the best course of action or whether government should even be involved to begin with. Maybe Christian and Americans alike should take a step back and begin evaluating the church and government's mission before choosing a path and not giving it a second thought.
Saturday, March 21, 2009
When the Obvious is wrong
This blog is hard to post because about 90% of my readers (probably mostly conservative) will disagree with it. But with all due respect who are YOU to decide what is "fair" for company executives to be paid?
It angers me when all I hear is how people are so mad that AIG executives are getting huge bonuses when they in fact are one of the big reasons our economy is in the dump. I agree that they made some terrible mistakes and that their management should be punished. But let the owners of the company (stockholders) make those decisions. First for you who are reading this blog and have not read many of my past postings, you must read my blogs on CEO pay from many many months ago. With that in context, executives of the largest companies in the world make millions for a reason and so they should if the market calls for it. At the same time, contracts for these executives are sometimes considered "unfair" because to get these highly coveted executives requires huge payments or they will miss out on the best available leaders for the company. Keep in mind that sometimes bonuses are due regardless of a companies success in a given year.
Most importantly, if Government did not bail out these companies every time they made bad decisions, these companies would not reward executives who made terrible business decisions. But if the American federal government is going to give them our tax dollars, why should they not partially use that money to pad their own pockets when knowing that they soon are going to be let go? The solution- government stay out and let these businesses fail and if enough fail, stockholders might decide to pay closer attention to decisions being made and thus executives will not make stupid decisions that put their companies in trouble.
The reason it angers me is that politicians know how stupid we are and will cater to our feelings of anger towards executives and demand instead that they not get those bonuses. We then get excited because those politicians hear our complaints and are working so hard for us! The only problem is that the real PROBLEM is not being solved. That is, government stop standing by these companies and stop bailing them out and these over paid bonuses will not happen. Our attention is turned to the emotional issues of millions of dollars being paid to executives when it is the billions and eventually trillions of dollars that the government will spend to "fix" this economy when they are responsible in fact for causing the problems that needs to be fixed!
The other issues can not be explained so easily. But if you read my blogs from time to time you will know that economics is about costs and benefits. And even if you were to agree that government has gotten this one right and that these executives should not be allowed to receive these bonuses, there is a cost to government making those decisions. If government makes that decision why not other decisions? WHat about healthcare? What jobs are to be created? Prices of goods? That sounds like Socialism. Look at the countries that are socialistic. Is that what you want to live like? The cost of capitalism is that sometimes the free market might get it wrong. But the benefit of Capitalism and Free Markets is that it gets it right far more times than government does.
It angers me when all I hear is how people are so mad that AIG executives are getting huge bonuses when they in fact are one of the big reasons our economy is in the dump. I agree that they made some terrible mistakes and that their management should be punished. But let the owners of the company (stockholders) make those decisions. First for you who are reading this blog and have not read many of my past postings, you must read my blogs on CEO pay from many many months ago. With that in context, executives of the largest companies in the world make millions for a reason and so they should if the market calls for it. At the same time, contracts for these executives are sometimes considered "unfair" because to get these highly coveted executives requires huge payments or they will miss out on the best available leaders for the company. Keep in mind that sometimes bonuses are due regardless of a companies success in a given year.
Most importantly, if Government did not bail out these companies every time they made bad decisions, these companies would not reward executives who made terrible business decisions. But if the American federal government is going to give them our tax dollars, why should they not partially use that money to pad their own pockets when knowing that they soon are going to be let go? The solution- government stay out and let these businesses fail and if enough fail, stockholders might decide to pay closer attention to decisions being made and thus executives will not make stupid decisions that put their companies in trouble.
The reason it angers me is that politicians know how stupid we are and will cater to our feelings of anger towards executives and demand instead that they not get those bonuses. We then get excited because those politicians hear our complaints and are working so hard for us! The only problem is that the real PROBLEM is not being solved. That is, government stop standing by these companies and stop bailing them out and these over paid bonuses will not happen. Our attention is turned to the emotional issues of millions of dollars being paid to executives when it is the billions and eventually trillions of dollars that the government will spend to "fix" this economy when they are responsible in fact for causing the problems that needs to be fixed!
The other issues can not be explained so easily. But if you read my blogs from time to time you will know that economics is about costs and benefits. And even if you were to agree that government has gotten this one right and that these executives should not be allowed to receive these bonuses, there is a cost to government making those decisions. If government makes that decision why not other decisions? WHat about healthcare? What jobs are to be created? Prices of goods? That sounds like Socialism. Look at the countries that are socialistic. Is that what you want to live like? The cost of capitalism is that sometimes the free market might get it wrong. But the benefit of Capitalism and Free Markets is that it gets it right far more times than government does.
Sunday, March 1, 2009
History of Prayer
It is amazing to me when I step back and study the surface of history about how much our forefathers and ancestors used prayer during some of the most important times of our nation's history. George Washington would not have become our first President nor a president at all if he had not survived the escape from New York to Trenton, New Jersey at the beginning of the American Revolution. He thanked God for a so called "Wind Miracle" that he prayed about for allowing this to take place.
When our Constitution was being developed in Philadelphia, Benjamin Franklin asked for everyone to take some time to pray at the convention when it looked like it might collapse. This was not a short pre-meal like prayer but a few days of prayer and worship. He said "Except the Lord build the house, they labor in vain that build it."
Just before the single largest ground invasion in our nation's history on foreign soil, Franklin Roosevelt prayed in his radio address for the brave men who were about to land on the beaches of Normandy.
Today in our time of Economic turmoil, our President does not call upon our nation to pray. There are no radio addresses or speeches made in congress to take a few days of prayer for our nation and its leader. There is only call for government to do more to help our economy although it is that same government that has screwed up our economy with bailouts and laws that have promoted and incentivize banks to make bad loans to people who can not pay them back. Instead how about the Church rising and praying that our leaders will get some backbone to stop growing government and instead allow the market(the decisions of thousands of companies and millions of consumers) to put financial institutions out of business who make bad decisions. Stop protecting companies and banks so that they are willing to risk failure knowing that government will help them and then one day they all collapse at once taking us into an economic recession such as we have now that could lead to near depression valleys. I personally do not believe we will see a great depression again because the Great Depression was based on the lively hood of so many people during that time. We are so blessed today with great things that even during the worst of times, people have luxuries that could never be considered depressing.
I'm asking our President Barack Obama to call upon our nation to pray and stop telling me about how the same entity that has nearly destroyed our prosperous economy is going to now fix it. Lets pray that we elect politicians that will stop passing laws in order to impress voters but do things that help our nation in the long run even if it does nothing to get them re-elected in the short run.
When our Constitution was being developed in Philadelphia, Benjamin Franklin asked for everyone to take some time to pray at the convention when it looked like it might collapse. This was not a short pre-meal like prayer but a few days of prayer and worship. He said "Except the Lord build the house, they labor in vain that build it."
Just before the single largest ground invasion in our nation's history on foreign soil, Franklin Roosevelt prayed in his radio address for the brave men who were about to land on the beaches of Normandy.
Today in our time of Economic turmoil, our President does not call upon our nation to pray. There are no radio addresses or speeches made in congress to take a few days of prayer for our nation and its leader. There is only call for government to do more to help our economy although it is that same government that has screwed up our economy with bailouts and laws that have promoted and incentivize banks to make bad loans to people who can not pay them back. Instead how about the Church rising and praying that our leaders will get some backbone to stop growing government and instead allow the market(the decisions of thousands of companies and millions of consumers) to put financial institutions out of business who make bad decisions. Stop protecting companies and banks so that they are willing to risk failure knowing that government will help them and then one day they all collapse at once taking us into an economic recession such as we have now that could lead to near depression valleys. I personally do not believe we will see a great depression again because the Great Depression was based on the lively hood of so many people during that time. We are so blessed today with great things that even during the worst of times, people have luxuries that could never be considered depressing.
I'm asking our President Barack Obama to call upon our nation to pray and stop telling me about how the same entity that has nearly destroyed our prosperous economy is going to now fix it. Lets pray that we elect politicians that will stop passing laws in order to impress voters but do things that help our nation in the long run even if it does nothing to get them re-elected in the short run.
Saturday, February 14, 2009
Government smarter than 300 million people???
When analyzing what our Constitution tells our government to do and thinking about what our government really does there is only one conclusion that a person can come up with. Government officials in Washington, including the over 500 congressmen, President, V.P., and all the President's staff, believe they are smarter than 300 million Americans in this country. They propose stimulus packages that are suppose to "create jobs". Except these jobs are being created where these officials feel they should be created not where the free market (the spending of over 300 million Americans) believe they should be created. Lets look at this.
Do you think if instead of $800 billion being spent on all the different programs the Obama administration have laid out was given to the American people, that we would spend that money on the same things these government officials have proposed? Do you think we would have spent that money on STD prevention programs, Honey Bee Insurance, Safe Sex for Gays, Buildings being upgraded, etc...
Government is suppose to work for us not the other way around. I for one believe that government needs to stay out of the economy and stop inflating credit so that people who do not deserve homes buy homes, buy homes that are too expensive for them, and then when interest rates rise, they lose their homes, home prices fall in the area, and credit tightens, banks fail, etc... Where if bad loans had not been loaned in the first place this episode would never have happened. Government caused this mess and now they believe they are entitled to fix it?? Makes a lot of sense... NOT! Lets cut our losses, lower government spending, let the market correct (meaning home prices adjust cheaper than they are because they went up too high to begin with) and then not make this mistake again. The recession will end just as fast that way as it will with government simply transferring funds from the American people to areas they believe this money should be spent in order to "stimulate" the economy. The American people will have to pay more for goods due to inflation after this money is put into our economy. Thus either way you look at it, we are paying for this 800 billion. Not to mention when we have to pay off our debt eventually. It makes me sick to believe that our government is doing what Communist Russia did when it could not even feed their own people.
Do you think if instead of $800 billion being spent on all the different programs the Obama administration have laid out was given to the American people, that we would spend that money on the same things these government officials have proposed? Do you think we would have spent that money on STD prevention programs, Honey Bee Insurance, Safe Sex for Gays, Buildings being upgraded, etc...
Government is suppose to work for us not the other way around. I for one believe that government needs to stay out of the economy and stop inflating credit so that people who do not deserve homes buy homes, buy homes that are too expensive for them, and then when interest rates rise, they lose their homes, home prices fall in the area, and credit tightens, banks fail, etc... Where if bad loans had not been loaned in the first place this episode would never have happened. Government caused this mess and now they believe they are entitled to fix it?? Makes a lot of sense... NOT! Lets cut our losses, lower government spending, let the market correct (meaning home prices adjust cheaper than they are because they went up too high to begin with) and then not make this mistake again. The recession will end just as fast that way as it will with government simply transferring funds from the American people to areas they believe this money should be spent in order to "stimulate" the economy. The American people will have to pay more for goods due to inflation after this money is put into our economy. Thus either way you look at it, we are paying for this 800 billion. Not to mention when we have to pay off our debt eventually. It makes me sick to believe that our government is doing what Communist Russia did when it could not even feed their own people.
Sunday, January 18, 2009
Switch in Power
Due to basketball coaching and history teaching, I have had far less time to consider writing on my blog. But now that we are just a couple days away from a new President I figure its about time now.
The sad thing is that the American people have voted for a man who will continue so many of the policies that President Bush pushed for. More government spending on socialized medicine, more spending on education, just simply more government. That is why I find it humerous that everyone thinks change is about to happen. President Bush passed a stimulus package, he has made government bigger and quicker than most other presidents, and now Obama will simply continue that. Funny how people get really excited about "change" when I see very little coming..
Actually I do see some change coming. Funny thing is that it is in the area in which George Bush was best and that is fighting terrorism. Our nations reputation around the world is tarnished because we have a President that said enough is enough, your either for us or your for the terrorist. He meant what he said for the most part. His actions has kept another terrorist attack from happening on our homeland and has greatly reduced the capability of one of the most dangerous terrorist groups ever- Al Queda. Many terrorist plots have been foiled and most experts are amazed that we have not been attacked since. I would hope that when Obama gets in office and sees this that he will not drastically back off of the Bush foreign policy.
Funny thing about it, I think we will change his views a bit. Once he gets in that position and speaks to our security agencies and military, I think he will continue our foreign policy for the most part. I mean seriously, its a principle we learn early on in our lives- You don't try to fix what is not broken.
The sad thing is that the American people have voted for a man who will continue so many of the policies that President Bush pushed for. More government spending on socialized medicine, more spending on education, just simply more government. That is why I find it humerous that everyone thinks change is about to happen. President Bush passed a stimulus package, he has made government bigger and quicker than most other presidents, and now Obama will simply continue that. Funny how people get really excited about "change" when I see very little coming..
Actually I do see some change coming. Funny thing is that it is in the area in which George Bush was best and that is fighting terrorism. Our nations reputation around the world is tarnished because we have a President that said enough is enough, your either for us or your for the terrorist. He meant what he said for the most part. His actions has kept another terrorist attack from happening on our homeland and has greatly reduced the capability of one of the most dangerous terrorist groups ever- Al Queda. Many terrorist plots have been foiled and most experts are amazed that we have not been attacked since. I would hope that when Obama gets in office and sees this that he will not drastically back off of the Bush foreign policy.
Funny thing about it, I think we will change his views a bit. Once he gets in that position and speaks to our security agencies and military, I think he will continue our foreign policy for the most part. I mean seriously, its a principle we learn early on in our lives- You don't try to fix what is not broken.
Wednesday, January 7, 2009
Why History
Just two days off of Christmas Break and I was almost in a rage at school. It was not as bad as that sounds but something was said that made me angry. I was not mad at a particular student although it was a particular student who said it(one of my good students too). We were discussing life on the frontier for a cowboy when this student spoke up about how he or she will never use this in their life. That is something almost every student says at one point in their life I'm sure I have in fact. But it struck a core with me. Schools today can not force a child to salute the flag during the pledge of allegiance. Many kids today do not care about their country beyond what it does for themselves. Learning history is about having a respect for what has happened to create the country that allows you to live freely and prosper. For that we all use history every day of our lives. So many kids today are being raised to love themselves and what this country can do for them and not what they can do for this country. For that I'm sorry and I'm worried.
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