Showing posts from March, 2008

Knowledge Deficit on Trade II

I received an interesting comment regarding my post "Knowledge Deficit on Trade" from a reader by the name of Chris that I'd like to answer here. I will post the comment in it's entirety and then proceed to answer each point made by Chris:

"Explain something to me here. You said that American dollars will make there way back [someday]. Then how is that China holds over a billion of dollars in US cash. Is it because maybe they have been stock pilling it and not sending it back through the system.

I guess this also means that there really isn't a national dept either since deficits don't really exist.

I also wonder how complex economics were in the 18th century."

Chris is correct that I said that US dollars will make there way back someday, and they will through future purchases and investments. He asks how China holds over a billion dollars in US cash and wonders if they've been stock piling it. The answer to that question is that even though China o…

Knowledge Deficit on Trade

Recently a friend of mine at work commented on America's "trade deficit" and alluded to its existence. I quickly corrected him and said that America didn't have a trade deficit and to insist that it did showed ignorance of what trade, particularly international trade, is when talking about deficits and surpluses. In the words of the former president of the Foundation of Economic Education, Donald J. Boudreaux, "Here's a quick lesson in international economic accounting. Every nation's foreign trade is always balanced." And that's really all there is to it. Let's break it down. If a country's total exports of goods and services do not equal its total imports of goods and services, the country's trade is still in balance, as the following example "balance sheet" shows:America's exports:$500,000 minus
America's imports:$1,000,000
America's trade account: -$500,000Capital spent for imports:$1,000,000 minus
Capital rcvd…

Immigration and America

These United States of America were built entirely by immigrants and their descendants. Every non-native American citizen owes, in some respect, the blessing that is his life here to his immigrant ancestors. Because of this, it is surprising to me to see so many Americans take the stand they do against those wanting so much to partake of America's goodness that they risk their lives to obtain it. While I don't believe that anybody has the right to disobey our immigration laws and expect to get off scot-free, I recognize that illegally immigrating into this country is not a felony, rather a misdemeanor. As such, I here outline what I believe to be the best way to handle the current immigration problem in four phases:Phase One – National Security
I believe that national security is the most important function of the federal government. And in my opinion, secure borders, north, south, east, and west, are vital to protecting ourselves and our sovereignty. The first phase in handl…

Corporate Welfare

One of the things that are consistently talked about in the media is the supposed alliance between "big business" and the political right. Traditionally, the political right means limited (read small) government and free markets. (This isn't so today.) So who wouldn't see big business aligning itself with these ideas? What may be startling to some is the fact that big businesses, that is, big corporations, actually align themselves with big government and controlled markets. The reason is what is commonly termed "corporate welfare." What is corporate welfare? Well, before we can answer that we must first define "welfare". According to welfare is "financial or other assistance to an individual or family from a city, state, or national government" or welfare is "receiving financial aid from the government or from a private organization because of hardship and need." Welfare sounds like a pretty nice thing to receiv…

Bedrooms Are For Beds, Not Televisions

Since my early teenage years to the time that I got married, a television set served as a member of my bedroom, as did a video game system and eventually a computer. As wonderful as these things are, I am now convinced that none of them belong in a bedroom. Something I committed to when I get married was to remove the television set from my bedroom and never allow it to return. And I've been true to that commitment to this day. The reason that I decided to do this was because I learned what a television set in the bedroom does to our bodies. It trains them to do precisely what we don't want them to do when they hit the bed: Stay Awake! This was my biggest problem, one that I failed to see the cause of during the time that I had a television set in my bedroom. However, I am glad to report that not falling asleep quickly is no longer a problem for me. You see, I have trained my body over the last three years to go to sleep when I lay in my bed. By not using the bed to do anythin…

Public Shootings and Self-Defense

I wrote the below a year ago for a college writing class. The assignment was to right a persuasive essay; and like all persuasive essays the topic I chose was one that I truly believe in. The right to defend ourselves and our families from harm is God-given and central to the preservation of liberty:Public Shootings and Self-Defense – May 24th, 2007Recently, there have been two major public killing sprees; the rampages at Trolley Square, Salt Lake City, Utah, and Virginia Tech, Blacksburg, Virginia. A not so recent public killing spree occurred at Columbine High School, Columbine, Colorado. These events have spurred both public outcry for tighter gun control, and an increase in applications for a concealed weapons permit. The media have hosted the debate on their front pages. Regardless of who is right and who is wrong, one thing should be very clear: Nature has endowed life with the unalienable right to self-preservation. From the beginning, life has never questioned whether or not…