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Government cannot create wealth


Fri, Feb 25th, 2011
Posted in Commentary

Based on millions of instructions millions of Americans give the marketplace every day, the market is super genius in allocating resources. Government however, is a comparative dunce given that the spending decisions it makes is based on politics. It is hard to imagine how anyone cannot conclude that government spending is far less efficient than those made by individual citizens. And given that a recession is simply a misallocation of resources, why should we allow the government to interfere in the process of redirecting that misallocation?

A fellow who was critical of one of my last letters said that "Economists tell us there is a multiplier effect of about three or four, which means every dollar of stimulus money...will be spent three or four times benefiting businesses and their employees." We can quibble about the actual value of the multiplier effect, but what he says is true.

However, government cannot create wealth. It has no money except what it takes from us. We will be taxed directly, government will inflate the currency, it will borrow, or it will do some or all of the above. One way or another, taxpayers are on the hook.

To provide the $862 billion stimulus, government had to take from the taxpayer $862 billion. Instead of that $862 billion being used by individuals to stimulate the economy with an inherent multiplier effect based on the market, it is taken away and transferred elsewhere to a place of the government's arbitrary choosing.

Suppose that the federal government concludes that Whalan needs a $100 million stimulus and that Fillmore country residents are to pay for it. Left alone, using a multiplier of 7, that $100 million would have a positive impact of $700 million on all of Fillmore County. For sake of this illustration, let us also assume that Fillmore County doesn't have $100 million so must borrow around 40 percent from its arch rival, for today anyway, Winona County. Whalan gets the $100 million but the other citizens of the county would be left out. Citizens of Houston, Mower, and Olmsted counties figure $100 million here, $100 million there and as long as the value of the currency isn't affected, who cares. Winona County residents, though, remain very interested.

Presume also that the federal government specifies nearly $90,000 for Whalan to fix a recently repaired walkway going nowhere. Silly you say? Sure is but the federal stimulus really did do and spend that in Boynton, Okla .....
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Flights of consciousness before sleep

Fri, Feb 18th, 2011
Posted in Commentary

I don't seem to be able to control my thoughts before I fall asleep. At the risk of being labeled a misogynist, I must admit I have been thinking about Michele Bachmann's historical error of claiming the "founders" worked tirelessly to end slavery, ..... 
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Green Acres Property tax law gets pruned

Fri, Feb 18th, 2011
Posted in Commentary

By Jeremy Miller, State Senator for Minnesota District 31

In addition to the primary tasks of balancing the budget and putting more Minnesotans back to work, there are a number of other initiatives that we are occupied with in St. Paul. Withi ..... 
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A new way of being

Mon, Feb 14th, 2011
Posted in Commentary

Deer appear in our yard in Preston at dusk and dawn and sometimes during the day. They eat the bark of our trees, nibble the needles of our evergreens, eat the sunflower seeds we put out for the birds and, in the summer, help themselves to our garde ..... 
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A new way of being

Mon, Feb 14th, 2011
Posted in Commentary

Deer appear in our yard in Preston at dusk and dawn and sometimes during the day. They eat the bark of our trees, nibble the needles of our evergreens, eat the sunflower seeds we put out for the birds and, in the summer, help themselves to our garde ..... 
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One moment, please... Our president

Mon, Feb 14th, 2011
Posted in Commentary

Publisher of the Fillmore County Journal, cell phone: 507-251-5297

In my opinion, our president doesn't get paid enough! As matter of fact, our president doesn't get paid at all. No, I'm not talking about the President of the United States of ..... 
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One Moment, Please... Our president

Sat, Feb 12th, 2011
Posted in Commentary

In my opinion, our president doesn't get paid enough! As matter of fact, our president doesn't get paid at all. No, I'm not talking about the President of the United States of America. Obama clears over $400,000 per year - for the rest of his life. ..... 
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A new way of being

Sat, Feb 12th, 2011
Posted in Commentary

Deer appear in our yard in Preston at dusk and dawn and sometimes during the day. They eat the bark of our trees, nibble the needles of our evergreens, eat the sunflower seeds we put out for the birds and, in the summer, help themselves to our garde ..... 
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Rep. Davids responds to State of the State Address

Sat, Feb 12th, 2011
Posted in Commentary

ST. PAUL - State Representative Greg Davids (R-Preston) said Governor Mark Dayton gave an interesting State of the State Address on the floor of the Minnesota House of Representative recently.

Davids said the governor outlined many areas whe ..... 
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