Mind our own business

David Rubenstein one of the founders of the Carlyle Group (a private equity firm) was on CNN this weekend. He was asked whether the capital gains rate should be raised since it seems unfair that Mitt Romney’ secretary pays a higher tax rate then Mitt does, (since most of his income is from capital gains). The reporter then asked him if he thought the 400 million that he and his 2 partners made on a deal last year was “excessive”. Rubenstein explained that he and his partners receive 20% of what the investors make on a deal and that the way it works is everyone (Management, workers, stakeholders) are incented to turn around the company they buy. He then explained to the reporter how free enterprise works (investors risk capital, management executes the plan; workers contribute the labor and all profit if successful or share in the failure). He defended his humble beginnings (dad was a postal worker) and then said that only in America could someone like him rise like he did. Our free enterprise system is the envy of the world and is the reason rags to riches stories are so common here, and that people are literally dying to come to the land of opportunity. Then he seemed “embarrassed” by his success and said that he was working to give away all of the money he had earned. Whether he keeps his money or gives it away should be none of our business. But, in our covetous (the 10th commandment) culture those that have, need to have not. Our media promotes the lives of the “rich and famous” and everyone is striving to keep up with the Kardashian’s. We lust (covet) for what we see (cars, homes, clothes, jewelry etc.), for ourselves, but if someone else has it they should give it away (preferably to me). In our culture it is ok for someone to come from humble beginnings, become successful, so long as they give it away (or tax it away). Just like in Monopoly you buy properties, accumulate Monopoly money and then put it all back in the box at the end of the game. It shouldn’t matter if someone inherits wealth or earns it, its’ theirs not ours and we need to be grateful for what we have. And as far as giving the scripture teaches us that we should purpose in our own hearts what to give and not to give out of constraint because God loves a cheerful giver (2 Corinthians 9:7). So like my mom used to tell me, maybe we should mind our own business.

Cycle of Freedom

You may have heard about the cycle of freedom. Frases Tytler said that a democracy can’t exist as a permanent form of government. What eventually happens is people discover they can vote for their own largess from the treasury. We then vote in people that give us more and the loose fiscal policy leads to collapse and a dictatorship. The cycle goes from bondage, to spiritual faith, then to great courage, liberty and abundance, then to selfishness, complacency, apathy, dependence and then bondage. Tytler believed a democracy could not last longer than 200 years (we have that beaten by 31 years). Where do you think we are in the cycle? Our forefathers fought so that they could have freedom. We seem too willing to give up our freedom to be taken care of. I found a quote from a slave owner justifying slavery.
“I have also looked into the working conditions of free laborers in the North. You will not be surprised when I say that our Negroes live better than most factory workers. Does anyone lookout for the poor worker whose arm is permanently damaged? No. Does anyone see that workers are properly fed and housed?”
Many of slave owners went so far as to advocate for universal slavery. They believed that the “superior” slave owners would provide a better organized system where everyone would have jobs, be provided food, clothing, housing and cared for if they were sick or infirm. Is this much different than socialism? This has been replicated in the USSR, China, and Cuba. Europe has reached dependence in the Cycle of Freedom and I believe we are not far behind. It’s time to break the cycle.

2012

As we enter the New Year many of us are looking back on 2011 and wonder what 2012 will bring. This leads many of us to make resolutions for 2012. It could be to lose weight, finish education or projects around the home. Here are the things I would like to do in 2012:

1. Love more. There is evil in the world and what the world needs is the love that comes from God. That love shines the light on evil and draws people away from decption. My mother was married 4 times. Her second husband was evil. I witnessed and experienced things that no child should. But, as the years have gone by it is more like a distant memory. I have become skeptical and cynical when I see screwed up people instead of remembering from whence I came and knowing that they are under a deception. Also, I have been burned by people I have tried to help, and that makes me cynical. Nevertheless, Jesus wants us to love like a child loves.
2. Give more. As I get older I am more frugal. Part of this is because I was not good with my finances when I was young and had to pay the price. But, part of it is fear. When I was young I thought I was indestructible, now that I am older I realize that my body is breaking down. I fear not having enough money if something happens to me physically or if the financial markets crash. The truth is we don’t know if we have tomorrow we only have today. I believe God wants me to give more and not to do it grudgingly, but to trust Him for the future.
3. Create more. We all have talents and gifts. These gifts aren’t ours to begin with, they come from God. I have a creative gift. When I spend the time ideas flow (some good some mediocre and some bad). The problem with ideas is that they have to be implemented and that takes work. As I get older I just don’t have the energy I had when I was younger to push these ideas forward, especially knowing that many of them fell flat. Yet, some don’t and will be fruitful and create opportunity for others.

I would challenge you to look at these things and ask yourself the questions does God want me to love more, give more and use my gifts more? Happy 2012!

Happy New Year

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair.” Even though Charles Dickens penned this over 100 years ago you might think he was talking about today for many of us.
We also know that we live in very confounding times. I am reminded of the scripture in Romans 1 that says, “professing to be wise they became fools”. At a time when knowledge is increasing so rapidly and “miraculous” discoveries in science, technology and medicine are happening at record pace, we seem to be foolish in so many ways. Our traditional family values are eschewed for a nuanced depravity that would have made our grandparents fighting mad. We have thrown out our moral compass for a defective GPS. Yet, in spite of the darkness and despair that surrounds us, there is hope and light. Corrie Ten Boom was sent to a Nazi Prison camp because her family hid Jewish people in their homes during the holocaust (she wrote the autobiographical book, “The Hiding Place”). Her sister and father died in captivity and she was asked how she made it through the horrific experience. She said that when she looked outward she was distressed, when she looked inward she was depressed, but when she looked at Jesus she had rest.

Fines or Taxes

It’s been said that if you do something wrong you get fined, if you do something right you get taxed! I hate to start this on a cynical note, but it seems like the two are inexorably connected. During this tough economic time the government, whether federal state, or local is looking for revenue streams and they may be coming from your watering hole. We had a business roundtable last week with the new Mayor Jonathan Rothschild and Councilman Paul Cunningham. One of the men that spoke at the meeting shared how in the seventies he built the tallest building (outside of the downtown area) and got the permits completed in 6 months. He has a smaller project that he has been working on for 3 years and said he expects it to be another year before he gets out of permitting. This lengthening of the process for permitting involves two things that are extremely counterproductive. The first is that during this process the client is being pummeled with fees and extraordinary expenses. The second is that the project is not out of the ground. The loss of time costs us jobs and opportunity. John Strobeck with Bright Solutions said that there is currently 20 percent of the new construction that there was in 2006. So it stands to reason that you probably only have about 20 percent of the permits being submitted now as compared to 2006. Yet, you probably have about the same number of people working at Tucson Planning and Developmental Services. So they lengthen the processing time and increase the fees to ensure job security. Yet, if they processed these permit applications in a timely manner the projects would be out of the ground, people would be working and the sales tax revenue would be increasing. Mayor Rothschild said that one of his priorities in his first 180 days was reform in Planning and Developmental Services and the Land Use Code. This should be applauded and encouraged before our watering holes dry up.

Free Enterprise

At the end of our Junior Achievement board meeting we were talking about whether our economic system (free enterprise) would continue to exist in 10 years. Since the inception of our nation people have come to America so that they could be free and pursue their dreams. In the Declaration of Independence Thomas Jefferson penned these words that were fundamental to the revolution "we hold these truths to be self evident, that all men are created equal and endowed by their creator with certain inalienable Rights, among these are Life, Liberty and the pursuit of Happiness". We are created equal (equal opportunity) but we don't have equal abilities. I would love to be able to dunk a basketball, but I couldn't do it when I was 20 and I sure can't do it at 56. But, I can admire those that have the ability to dunk a ball. So when he said that we have the right to life, liberty and the pursuit of happiness it means we have the right to try and dunk a basketball, or win American Idol or start a business. But, not all of us will succeed. Nevertheless, we should applaud those that do succeed and not show disdain or begrudge the great athlete, artist or business person for their success. When people rail against the 1% and accuse them of greed and not paying their fair share of taxes, is that fair? Do they treat the athlete, actor or the artist the same? I believe there is a double standard. We also have athletes, actors and artists as our role models for young people. But, business leaders are characterized as the villains. If young people no longer dream dreams beyond sports and entertainment our future entrepreneurs and business leaders will cease to exist, and the jobs that they create as well. We need to applaud new heroes in business and commerce instead of those we see on the big screen.

Independence in America

In working with local government officials I have come to understand why some minority groups want big government. Minorities (Hispanics and Blacks) have viewed government jobs as a way forward. Traditionally these jobs provided better pay, benefits, security and retirement than jobs in the private sector. Minority preferences offered disproportional employment opportunities for minority groups, and that fueled the fire. Electing liberals ensured favorable treatment for government unions and future growth of government jobs. But, someone has to pay for those jobs. When the growth of government jobs exceeds the ability of those working in the private sector to support it the merry-go-round grinds to a stop. We have seen this exemplified in Greece and Italy. We are dangerously close to this tipping point in the United States. It is a model that is not sustainable. And when you eschew the private sector (corporations, businesses) for government jobs you become dependent on taxpayers to pay for your employment. CNN was running a story about blacks in Silicon Valley. The host wondered why there were so few blacks in Silicon Valley working as engineers and hardly any that owned high tech companies. The story suggested that there was discrimination involved somehow, but that doesn’t hold water. Over half of the startup companies in Silicon Valley are owned by Asians (Asians make up less than 2% of the population in the U.S). Could the answer be that Asians are busy pursuing the American dream and not depending on a government job? It would be wise for Blacks and Hispanics to seek their independence in our free enterprise system.