How to tell if giving someone money is the right thing to do

Suppose your child, or friend, or a stranger on the street asks you for some money.  What do you do?  What do you ask yourself?  How do you justify either giving them money, or denying their request?

Some of the questions that swirl through my head are: "Why did they let themselves get into this position?", or "Why does this person always need help?".  I'm fixated on the person and their need and how if they took better care of themselves, then they wouldn't be bothering me right now.

I find myself giving the bum a $1 because I think he needs it, and I give it grudgingly because I think he shouldn't need it.  Surely this is a warped way to view an experience of giving and receiving.

So, I've decided that there is a better way to think in this situation.  I will change my focus from the requester's need, to the requester's ambition.  If the beggar has any ambition, I simply ask myself: "is the ambition good, and will this gift help enable that ambition?"

Of course, there are those folks who just don't seem to have any ambition at all.  Perhaps the question for that is, "Which action will stir up the most ambition in this person, giving money, or withholding it?"

Here is a good example of how assumptions make for bad policy.  The lady who wrote this poem is as thin and healthy as you can get.  By the sound of this poem, she doesn't stay that way by eating a government recommended diet:

No “Thanks” for Thanksgiving Dinner (2014?)

A timely piece of poetry by Cari Bieter

Thanksgiving Day is coming

And I can easily wait!

The tofu turkey’s in the oven,

So I’ll be good and late!

How times have changed, my darlings—

As I remember well

Aromas from the kitchen,

Oh, how I loved that smell!

Mom was in her apron,

All day fixing stuff!

Pumpkin pies and candied yams—

I could never get enough!

A great big bowl of dressing

Was stuffed into the bird.

I watched her pop it in the oven

Without saying a word!

Our relatives would pile in,

The house was such a clutter!

I could hardly wait to taste

Those rolls with lots of butter!

Our table would be groaning

With sweets and fatty food!

No one cared—we dug right in

Because it tasted good!

Heaps of mashed potatoes

with gravy thick and tasty;

Drumsticks plump and juicy,
 Pumpkin’ pies & pastry!

Alas, those days are over,

My taste buds dormant now.

The tofu turkey’s roasting,

And I shall take a vow:

I shan’t enjoy my dinner

On this Thanksgiving Day!

Without the buttered, candied yams

And mincemeat pies—no way!

Here comes Uncle Herbert

A bottle under his arm.

Is it wine? Or champagne?

No! They might do us harm!

“Bottled water is my gift—

A welcome change of pace!”

We sit down at the table,

No smile on my face!!

The government has told us

In no uncertain terms—

To gain an ounce is evil,

As bad as getting germs!

No sweets, no fat, no real meat,

And butter is the devil!

I’ll fixate on the good old days,

In those memories I shall revel!

Tofu turkey, sprouted bread,

Organic veggies too.

And for dessert? There’s no dessert—

Sugar is taboo!!

******

Happy Thanksgiving, my dears!

Elections are over and my choices didn't win.

Post vote challenge:

Are you disgruntled that your vote didn't count for as much as you wanted it too?  Are you worried that the election is over and the country is still doomed for more decline?  

Here's an easy way to make a difference.  

It will take even less effort than driving to the polling station and waiting in line for 30 minutes to cast your vote.  

Do you really care enough to make our country better for the average tax paying citizens?  Here's what you can do:

1. Go to www.congress.org

2. Select the option to write to your representatives, remembering that they are supposed to represent you whether you voted for them or not.

















3. Drop them a quick note to let them know that you are watching them, even if it is a bluff.   Here's what I sent to my reps:

Dear Representative,

I ask simply for your support when writing and passing laws.  I encourage you to always put the interests of individual Americans ahead of the interests of those who petition you constantly via lobbyists.  We the people have been neglected for a while now and the whole country is suffering for it.  Please empower us to succeed and we will help the whole country succeed.  

As requests are made by lobbyists, please take the time to consider the real impact those requests will have on individual Americans.  Will the policy in your consideration help one group at the expense of another, or at the expense of individuals?  The lobbyists will always make it seem fair, but I'm asking you to see through their persuasions.

We need a break, and I'm counting on you to give it to us.  What is best for the MPAA, GM, Exxon, Boeing, and Goldman Sachs, is NOT best for the country.  The last few years have proven that.  Please represent the people for a while at least.   

I voted, I care, and I'm watching how you represent me.


Sincerely,

4.  Fill out your name and address and the website will send your letter to your correct representatives.

This will have more impact for the good of the county than your vote did, and it will take you less time than it did to drive down to the voting station and wait in line.

Travesty of a Failed Traffic Stop

At 10:35PM on Interstate 35, a routine traffic stop went horribly awry.  Williamson County Deputies, Johnny Ray B. and Billy Bob M., stopped a car for a moving violation.  They claimed that the driver failed to give a turn signal prior to changing lanes.  In actuality, the officers suspected the driver of being intoxicated because he was only going 73 mph in a 75 mph speed zone.

Upon approaching the vehicle, the officers noticed absolutely nothing as being out of place.  The driver appeared to be completely clear headed and there was no smell of liquor on his breath.   They spoke to the young man, asking him where he had been, where he was going, and why was he driving so slow.  Unsatisfied, officers B. and M. began to direct their questions more specifically about exactly what did the young man have for dinner.  The driver grew agitated and appeared suspicious when officer Johnny Ray B. informed him that "fries" were not a particularly healthy choice to go along with his chicken fried steak entree.  The deputies then admonished the driver for not getting steamed vegetables instead, and then ordered him: "Please step out of the car, sir."

The driver reluctantly complied with the politely stated command and stepped out of his car.  To the growing dissatisfaction of the officers, the driver walked perfectly normal, and his demeanor was calm and collected.  The officers then proceeded to question him further, getting in his face a little and watching to see if he would stumble backwards.  Officer B. went back to the cruiser to run the license and registration while Officer M. proceeded to question the suspect.  "Sir, how often exactly do you go to Twin Peaks for dinner?  ...and why has it taken you until approximately 11pm to get headed home?  ... are you hiding something from me son?  ...do you have any drugs in your car?  ...are you sure you didn't have one drink with your dinner?  If you're hiding something, it'd be a wholes lot better if you just go on ahead and tell me right n...."

Officer B. returned with an imperative look on his face, and then he began to interrogate the driver.  "Our records show that you have two drivers licenses, this one you gave me from Florida, and another expired Texas license on file.  Do you realize that it is illegal to have two licenses ...you care to explain why you have two drivers licenses for me son?"  

The young man began to explain,

"I just moved back to Texas, but working full time and studying for a very important exam, I haven't had a chance to take yet another day off work to get my Texas drivers license renewed.  I thought that I only needed to turn in my old license and then get a new Texas license, but after the 3rd trip to the DMV, I was told to bring in either a birth certificate or US passport.  Then they also said I would have to schedule an 'in-car' driving test."

Officer B. replied,

"Son, you've got to do what you've got to do, but just remember that I'm gonna be watchin' you. Comprende?  I'm going to give you a warning this time, but if I catch you again with that Florida license, it's gonna be bad.  I'll give you until Monday to get that taken care of, sir."

The officers nodded and gave the driver a warning ticket for failing to change lanes in a safe manner and then they left.  The young man was still nervous as he got back into his car.  The whole event was quite unsettling. But, he managed to merge back onto the freeway and get home.   He was still shaking as he got home and removed a small box from his car.  He carried it in and sat it on the table in front of him.  The anxiety and fear from the traffic stop swelled in his veins as he lifted what was in the box up to his head.  With shaking hands, he placed one end of what he had in the box into his mouth and spun the cylinder on his favorite pistol ... lighter.  He took a deep breath and drew the flame in from the other end of that rolled up paper that he just gotten safely home with.  He thought, "whew, that was close," and laid down giggling.  Later in the night, he had an uncontrollable urge to heat up a frozen pizza and eat the whole thing himself.  Then, he fell asleep, full and happy.

If only those officers had done a better job, that young man could have been saved from his pizza binge happy evening.   If only it were customary for every vehicle to be searched at every traffic stop, not just vehicles driven by Mexicans; this travesty could have been prevented.   That young man could have been arrested and thrown in jail as he rightfully deserved.   His car could have been confiscated and sold by the county, and thousands of dollars in fines could have been raised for the county as well.  That's not even to mention the lost opportunity to have this young man's record permanently tainted so he would have problems finding and keeping jobs.   Such travesty, all because officers B. and M. were not quite diligent enough to discover the hidden contraband.

Well, no worries; deputy Billy Z. has a new prospect.  They just pulled over a Mexican looking woman because it appears that her rear license plate light is not sufficiently illuminating.  Deputy officers B. and M. are almost as happy as a fat man taking a dump because this girl is about to crack.  Deputy Johnny Ray is lookin' for his flashlight; they gonna get to put somebody in jail tonight!

The cost of banking fraud and the butterfly effect

Let's talk about shooting yourself in the foot, or rather, avoiding that uncomfortable limp.  Please open your mind to the impossible. Let's talk about how "always" and "never" almost always have exceptions.  For example, we might think that catching a burglar is "always" a good thing, right?  Well, let's consider the possibility that allowing a crook to rob a bank might be good for us all in the long run.

To understand the concept that is about to be presented, as it applies to the banking industry, please first consider the value of the internet and the value of our recent digital revolution to the banking industry.  Computers and online banking systems save banks from needing as many tellers, agents, and other staff.  Depending on the size of the bank, their Information Technology department (IT) might save them 50 million dollars per year in employee costs.  Also, that same infrastructure might drive new profit for the bank, possibly another 50 million per year.  Out of this windfall profit/savings of 100 million, the bank might spend 40 million per year on IT services and hardware.  That leaves the bank 60 million ahead thanks to their IT department.

Every year, the bank evaluates the performance of their IT department and the profitability of their online banking services.  They might discover that they can spend 50 million on IT and make an extra 100 million dollars as a result.  Now the bank is 150 million ahead.
                                                              
Now let us consider cyber fraud.  With no security, the online banking system could not function at all.  Crooks would steal all the money, duh.  Cyber-security is just as important to the operation of online banking as the computer systems that process all the financial transactions.  No security system is perfect however, and losses due to fraud will continue at some rate.  A bank might spend 10 million per year on cyber security and still lose 50 million per year on fraud.  That still leaves the bank 90 million ahead vs. if computers and the internet did not exist.


Are you following this?  


If not, here is a chart of what we have described so far:



Profitability from internet   +200 million
IT costs                                 -  50 million
Security costs                        - 10 million
Fraud costs                           -  50 million
_________________________________
Net profitability                      90 million



Now suppose that the bank spent 1 million more on IT security and only lost 30 million from fraud as a result.  The bank would do this because it leaves them 19 million better off at the end of the year, getting their total back up to 109 million per year.  This is their net benefit from Information Technology (IT / "the internet").


To summarize the free market approach:


Profitability from internet   +200 million
IT costs                                -  50 million
Security costs                       - 11 million
Fraud costs                          -  30 million
__________________________________
Net profitability                    109 million


Easy as pie, right?


The same bank might try to spend 2 million more the next year on security, and find that they are still losing 30 million to fraud.  That would leave them with a profitability of only 108 million now, so they decide it is best to stay at 11 million on security spending for now.


The point of this whole example is simple:  A bank plus computers and the internet is way more profitable than a bank without these.  Keep in mind that when all businesses in an industry profit more, as long as there is healthy competition, those profits eventually find their way back to you and I in the form of better services and lower costs.  Of course the numbers are relative to the size of the bank and other factors; so please think about the logic here rather than the actual numbers.
                                                 
Now let us look at a regulatory approach.  We often focus on the negatives in a situation, like that 30 million those nasty thieves are stealing from the bank.  After all, those costs are being passed on to we customers in the form of higher fees and lower interest payouts.  We forget that we are still many times better off than before IT, even with the rampant robbery.  So, we decide that we need the government to lock down the internet, make it "secure", and catch all the bad guys.  It sounds like the fair and just thing to do, but it ends up making the world a worse place for all of us.  Here is how:


The government passes regulations that were lobbied by IT security firms and the law says that our bank must have top notch IT security spending of 15 million per year.  We already know that the bank has figured out that the extra spending won't benefit them much, so now their profitability is down to 105 million.  There's just an extra 4 million padding the pockets of the lobbyists and executives at the IT security firms now.
                                                                       
Also in the new regulations, the government is required to form an agency to enforce bank compliance, and that might cost another 5 million for that bank.  There goes another 5 million of profitability in the form of tax increases and so we are down to 100 million.   The train wreck of regulation does not end there.  The bank must form a department to ensure compliance and communicate proof of compliance to the government agency.  That might cost another 5 million annually, and so now our bank is down to 95 million in profitability.
                                      
Of course, the government will also form a task force to investigate and arrest the criminals.  that might reduce fraud costs (proportionately for the bank in our example) by 10 million per year, but cost we the people 20 million for the task force.  So, now we the people are out millions to subsidize the bank's security whether we bank there or not.  That's money out of our pockets directly, but let's just charge that cost against the bank's profitability for now.  The net effect here is a decrease of another 10 million in profitability.


Now we have to jail the criminals, another 5 million loss to we the people in the form of taxes, and we're down to 80 million.  And consider the losses of freedom of all internet users because of the extra security.  There's no way to begin to figure that out, but just say it's another 10 million and that leads us down to 70.


So, to summarize the regulatory course of action:



Profitability from internet              +200 million
IT costs                                           -  50 million
Security costs                                -   15 million
Fraud costs                                     -  20 million
Compliance costs                            -   5 million
Govt. enforcement (bank facing)    -   5 million
Govt. enforcement (people facing) - 20 million
Incarceration                                   -   5 million
Loss of opportunity on internet       - 10 million

_______________________________________
Net profitability                                 70 million


Well that sucks, especially when you consider that some of the costs above come out of our pockets whether we us a bank or not.  We were better off letting the banks decide how much the crooks were costing them and subsequently how much they should spend to counteract the thievery.


Let's not forget where the butterfly effect comes in.  Consider the chance that we arrest a teenage prodigy who might have otherwise grown up and revolutionized security or the banking industry itself by developing Bitcoin II.  We might just accidentally prevent technology that was scalable, secure, and capable to handle worldwide transactions for free.  Please see that freedom can be invaluable and it might have tripled the profitability of the bank in our example to 600 million.  When we promote creativity and motivation, there will be benefits for all in the long run.  The alternative is to choose government regulation, security, justice, and mediocrity for all.


The information technology industry and the internet are shining examples of why freedom works best.  The growth, opportunity, job creation, and improvement to everyone's standard of living all occurred without government regulation.  People were free to be creative, productive, and to profit mightily for their efforts.  That environment proved that freedom generates more benefit for us all than does regulation.  The last great example before that was the rise of American prominence in the world.  We went from nothing to the greatest nation on earth because of a void in regulation and government intimidation, rather than because of it.  


We should focus on information rather than regulation.  When information becomes available that there is a better way of doing something, the people and businesses who adapt to the new information will succeed.  Regulations merely force everyone to follow a particular course of action whether it is the best action or not.  Regulations hinder progress; only freedom and creativity advance progress.  The only time regulations contribute to progress is when they drive people to be creative about how they get around the regulations.


Disclaimer:  The numbers above are completely fictional.  There is no way to project reality.  For example, there is no way for a bank to determine how much they would have made one year without the use of computers.  Suffice it to say, they would not have to because they would not be competitive enough to stay in business without computers.  While my numbers are fake, please agree: values and projections made by those who advocate more government regulation are equally fallible.  I'm merely offering a picture of the costs and benefits of two particular courses of action: freedom vs. regulation.

I saw mayhem today! 


Her left front blinker, hanging by its wires, first caught my attention. As her Volvo passed me, weaving, I could see the driver paying more attention to her journal than to the view outside of the windshield. I watched with anticipation as her car rolled inches from the curb and then swerved back to the left. 


About the time I noticed that the left blinker still worked, because it was blinking, she turned to the right. Ah, and to my amusement but not surprise, I could see that the metal cover over her gas cap had become afraid some time ago and ran away.


That was the closest thing to the commercial I've ever witnessed live!

What Do We Want?

Peace!  When do we want it?  Now!  Who will give us peace?  Ron Paul!

There was just a little bit of excitement as over 6000 people gathered near LBJ fountain on the University of Texas campus to hear Ron Paul speak.  As an active supporter of Ron Paul, it was very nice to see so many other people of like mind.  Maybe there is hope for our country after all.  Ron Paul has been criss-crossing the state of Texas to get out his message of liberty and hope.  He's having to spread his message, 6000 people at a time, because the main stream media is doing everything they can to downplay this movement.  People are catching on anyway; after all, the principles that Ron Paul teaches are the same as those that led to the formation of the most successful nation throughout all history.  Ron Paul teaches the principles of individual liberty, of peace, of doing the right thing and following the law of our land.  These are the principles of our Constitution!


The speech was a great one, and he covered topics ranging from "raw milk" and individual liberty, to war and why we need to end the Federal Reserve system.  I got to see him make the funniest joke that I've ever heard out of the man.  Right after the crowd finished chanting, "End The FED!!!" he says, "Why yes, I agree, that's a great idea, let's do that."   ...you had to be there:

As soon as I finish breaking his speech up into specific topics, I will post them here.  Then everyone can just watch the parts of his speech that they are most interested in without having to watch the whole 40 minute presentation.  So, please come back soon with your liberty hats.  More Ron Paul 2012 action to come!