* * * Vudo Economics * * *
* * * Vudo Economics * * *
By Ron Branson
July 1, 2013
We are in a stage where governments think they can alter and revise natural laws. Natural laws are those laws which exist whether we like them or not. These laws are instituted by God Himself. They are unalterable by kings, potentates, magistrates and legislatures. Such inalienable laws are recognized in our Declaration of Independence, of which document we are about to honor three days from today. "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men..."
One of these natural laws, like the law of gravity, is the law of economics. The law of economics is even-handed, dealing justice equally to all men at all times and in all locations. You either play by its rules or suffer the consequences.
In today's news it is being reported that gasoline is going up today throughout the entire State of California due to the imposition of a new gasoline tax. The reason stated for this gasoline tax is because automobiles are now more gasoline efficient, and the economy has slowed down, therefore, more people are driving their cars less. The consequences is that this is costing the State a loss of revenue. I think you already can see where I am going with this.
The law of economics, which applies to every mom and pop business, also applies to all governments. Imagine for a minute that if the mom and pop business discovered that fewer people were walking though their doors to do business with them resulting in waning resources, and they decided to raise their prices on everything to make up the difference. You would say, "That is crazy!" Yes it would be. But leave it to our fat bureaucrats in Sacramento to come up with the idea that if business is bad in California resulting in a lower resources, the answer is raise taxes.
Already, the Hollywood Movie Industry is strongly considering moving out of California, which such thought sends shock waves into politicians as to what would happen to the local economy if this should happened. Consequently, they have made concessions to the Hollywood Movie Industry to keep them here, and not to forsake California.
We already have the highest paid judges the highest paid bureaucrats, the highest inflation rate, the largest prison population, the greatest welfare state sucking out of the public trough, and the highest gasoline prices in the nation. We are closing down business like crazy with vacant store fronts booming. Our largest judicial system in the nation is complaining they are going broke. Face it. California broke and continuing its downward spiral with its policies. The answer, according to the Sacramento politicians, is raise more and higher taxes. Such reasoning is like throwing a drowning man an anchor and telling him to hang tight and don't turn loose!
This new gasoline/diesel law applies to all eighteen-wheelers entering into California bring us food, supplies and even our gasoline. Those tractor-trailers drivers deciding to continue coming into California will be filling up outside of California to avoid the tax before crossing state line, hoping to accomplish their purposes and get out of California before they have to fill up those big truck tanks again. This will provide a boon to all surrounding service stations that border California. Hopefully, they can handle all the new business coming their way.
And just imagine the ripple down effect this tax will have on all goods purchased within California. Absolutely everything will go up, which will discourage buying and businesses in California. The result result with be lower revenue base to the State of California, which, if Sacramento continues with it foolishness, will result in the "need" for more and higher taxes.
Will the last business to leave California please turn off the lights and flip the "Open for Business" sign over to "Closed?" Thank you!