Friday, November 16, 2012
The Reason Soaking The Rich Doesn't Work Illustrated: Can't Buy A Twinkie.
You can put me in that rare category of individual who was never really fond of Twinkies, even as a kid. I was always much more fond of Ding Dongs and Ho Ho's. Here's the good news though, Little Debbie makes a product which she calls Swill Rolls, that are ounce for ounce the exact same thing. So I'm all set. But the latest bit of sad news, that the unions finally succeeded in killing off another American icon, Continental Baking Corporation, will no doubt be blamed on those evil Bain Capital types of Wall Street vultures just circling above our country in search of the next working man's carcass on which to further feed their collective greed. Richard Trumka, the single most frequent visitor to the Obama White House, according to the somewhat less than transparent logs offered up by a President who laughably won some kind of an award for transparency, has wasted no time in denouncing the owners of the former CBC as enemies of middle class workers everywhere.
The most bizarre thing happened though on their way to receiving that most deserved tongue lashing from the self anointed champion of all things related to union thuggery, and that is that while Richard Trumka is denouncing the owners of CBC as evil pricks who hate workers and wish to push the middle class over a cliff, that group of people does not actually exist anymore. CBC is no more, as of 5:00 PM last night. Since there is no more CBC, there can be no more CBC owners. Such are the wages of Obamanomics, and such is the result that America deserves for having elected this man as our President, and then reelecting him to a second term.
The most severe lesson about our system of taxation is that wealth in this country is not taxed, income is. So, when Barack Obama and his merry band of mindless minions bleat on about asking the rich to pay, "their fair share," or to pay, "just a little more," in the form of income tax rates going up, know that this method of raising revenue is doomed to the same exact failure as has always been the case when tried. Doomed to the same exact failure by the way is the effort to get the so called rich to pay one more thin dime than they have ever paid. One of the most glaring reasons for this is the simple fact that with a large asset base on which to live, the rich do not need to earn an income, they can simply not invest their funds, and therefore risk their assets in order to maintain their lifestyles. So, when the current environment dictates that America hates those who make money, they can go on living without making another cent.
What that decrease in investment represents is a loss of capital investment in those things that provide jobs for people who can not maintain their lifestyles without some sort of an income. The example of that would be Continental Baking Corporation. Why should the owners of that company continue to lose money on an ongoing basis for no other purpose than to provide union pay offs and to be labeled as enemies to America. I would say that they have taken their toys and gone home, except that they seem to have left their toys at the play ground, and simply seen to it that no one will be able to play with them, at least for a few months. Hostess and Wonder Bread no longer exist, and the 18,500 people who used to work there, no longer have jobs.
CBC was in terrible financial shape to be sure. Having been through bankruptcy once before, the company owed over $3 Billion more than the cash it had on hand. Over two thirds of that figure was owed to the pensions of the three unions which worked so earnestly to destroy a company who's products were on every single grocery shelf in the nation, and were indeed included in every single school lunch packed for the prior century. Each and every time CBC had to deal with her unions, they demanded more, as more is the only applicable adjective for what unions want of their hosts. So, when productivity is rewarded with remuneration greater than the value of what is actually produced, the business dies.
In our nation we used to produce steel, aluminum, televisions, stereos, plastic, rubber, and Twinkies. Halcyon days that are long gone to us now, and will never come back, unless we allow businesses the ability to pay for labor what that labor is really worth in terms of productivity, rather than what it is worth in terms of political clout. Or, we can continue down this road until all of those who have the toys known as capital to invest leave the playground, because we refuse to learn the lesson that Aggregate Demand means nothing, and aggregate productivity means everything. Just be careful when you demonize the former owners of Hostess, not only can they not hear you, your protestations falling on deaf ears and all, those ears do not actually exist any more. You literally are screaming on about the bogey man, a fictitious monster responsible for nothing more than the nightmares of small children. What's worse, you are ignoring the very real monster in the room, who bears a striking resemblance to a man named Richard Trumka.