Thursday, May 29, 2014

The Rules

These are the rules.  Learn them.  Follow them.  There will be a test.  It's called life.

You don’t create wealth by taxation.  Taxation just takes wealth away from some and gives it to others.  Redistribution is not creation.

You get more of what you subsidize and less of what you tax.   If you tax those who create wealth, you get less wealth creation.  If you subsidize illegitimacy and poverty (which go sadly and frequently together) you get more poverty and illegitimacy.  In other words, if you punish success, you get less success.  If you reward those who do not contribute their hard work, you get fewer folks willing to contribute hard work. 

Wealth creation happens more easily and more often in a stable economic environment.  Before folks lay their time, effort, and money on the line starting a new business and creating new jobs, they need to know that the rules of the game will be fairly and predictably applied and that the government won’t be tilting the playing field against them or doing magic tricks with currency, like flooding the marketplace with fiat dollars, thus making every dollar of every person worth less and less.

The condition of an apartment tends to follow its price.  If, by some legislative connivance, you put a price-ceiling on an apartment in order to keep down its rent, its condition will go down to that price point.  Virtually every rent-controlled housing project proves it.  Rent control is the parent of squalor and danger, not thrift or great neighborhoods.

The fundamental building block of a society is the family, not the allegedly autonomous individual.  Whatever undermines traditional families and traditional family roles tends to undermine the society as well.  Poverty tends to circle around broken homes.

The key to financial success is now what it always has been:  work harder than those above you; save your money; invest your money; and keep your family intact.

Whether you are a family or a government, don’t spend what you don’t have; make a budget; stick to it.  Good governments and good families are characterized by prudence and self-discipline.  Learn the important difference between a desire and a need.

To act wisely, you first must know wisely.  You must think with your head, not your heart.  Good intentions don’t mend the matter of foolishness at all.   

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