Cheeblogger!

My conservatives are rightly apoplectic about all the breathtaking spending sprees going on by both the outgoing Republican administration and that planned by the incoming.

However, as a businessman and a pragmatist I do see two areas where conservatives could possibly climb aboard on the free market meddling bandwagon. The two areas are a) infrastructure and the b) the increase in liquidity wherever they can put cash.

First, let’s look at infrastructure. In business, when an investment is made, an accountant or manager determines whether the expenditure is “expensed” or “capitalized". Unlike an expensed item like business lunches and paper clips, a proper capitalized expense, such as real estate or automobiles or computers, does not initially affect the balance sheet. As the benefit of the expenditure is reaped, the asset is then depreciated.

Thus, if the government spends broadly to increase the efficiency of our infrastructure, this above all other expenditures lately, has the greatest chance of not only paying for itself but also benefiting future generations. Lastly, infrastructure along with the common defense and other essentials has always been considered a legitimate government activity amongst the vast majority of all parties that ever existed in America.

So highway and infrastructure expenditures will not only help now but help for generations to come.

Next, let’s discuss the liquidity issue. During times of deflation (which 98% of experts say we are in) even my hero, Milton Friedman, agreed that increasing the money supply during these times is important and correct. So don’t be so quick to scream “Keynes!!". Ultimately, inflation will come. But one way debt is attacked, so said Friedman is through inflation. I believe this is true with consumers as well as the government.

We are in very weird times. I don’t like Obama or his obvious world view, but the panic that the American people and business community is experiencing compels us to wish him the best for our own sake. He better not screw this up.

Here is a copy of a column from the National Post by Conrad Black

It may be one of the best I have read so far this year as it puts this election into real and firm perspective.

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Barack Obama, in this audio tape from 2001 proves beyond a shadow of a doubt where his affiliations lye. He is clearly a pure Saul Alinsky / European Socialist and this tape not only proves it, it ASSUMES it.

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