When Taxes hurt, Government is more Accountable

Recently I received a pitch on a guest who argued that we could have "life and government without taxes." It was a slow news day and the thesis was interesting, so I thought, "why not?" After the show I could name several reasons. In essence this guest took my audience through a maze that was evasive when it came to the question of where revenue would come from. He indicated that it came from sources that "would typically to to the employees of the company" or "consumers in lower prices." So, there were taxes, just the type of taxes that people or business would not "feel." These are the worst kind of taxes.

The government has been striving to develop ways of taxing people, without us realizing it. Two examples of this are inflation and taxes on business.

The first, inflation, is obvious. Inflation is not just "high prices," as we have been taught in high school economics, but "too much money chasing too few goods." Inflation does not mean "expanding prices," but means "growing money supply." Why does the government do it? Ostensibly to encourage economic activity in a stagnant economy. Some times that happens since it is politically popular and most people do not understand the larger consequences. The real reason is far more sinister. It took over 180 years for the federal government to reach a national debt of $1 trillion. Obama is raising it that amount annually for the next ten years. These have to be paid for and the United States has taken a chapter out of Zimbabwe's playbook by pumping $1.2 trillion into the money supply in an attempt to pay off its bills. Many Americans have (rightly) been alarmed by the more than $1.5 trillion we have seen in bailouts. According to the Washington Post, these inflationary efforts have the potential of being much more far reaching, noting that "combined with the billions already deployed by the Fed, the new money dwarfs even the biggest government bailouts of financial companies." Inflation is a hidden tax that takes value from every dollar out there without a vote of a Member of Congress.

The other is business taxes. Populists love these type of taxes, done in the spirt of the late Sen. Russell Long, "Don't tax you, don't tax me, tax the fellow behind the tree." That "fellow" is the business, which is such an easy target for government because it does not vote (lobby, yes, but does not vote). The thing that government does not admit is that businesses do not pay taxes, but are merely tax collectors. Businesses do not pay taxes any more than they pay rent, for employees, transportation, or any other cost of doing business. Businesses do not pay taxes, but collect them. When those taxes become too high, businesses move to places that have lower taxes. The US now has the second highest tax rate of any industrialized country in the world and over twenty countries have simple flat tax rates that are considerably less than ours. This has led to the exporting of both jobs and businesses.

The best taxes hurt those that vote and should be seen frequently. That is why I would eliminate all taxes on wealth creation (including business tax) and replace it with a consumption tax that would hurt every time someone makes a purchase. Furthermore, it would allow us to collect money from illegals and criminals that slip under the radar screen. For every painful purchase we would have one more reminder of the need to vote and to put those who are fiscally responsible in power.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

To Win the War of Ideas, the Focus Should be on Results and not Intent

People can argue until the end of time why people do certain things and support certain policies. Such actions are wildly speculative and create interesting gossip, but do little in helping one's cause. We live in a society that naturally assumes the best in others and are cynical about those who are quick to harshly judge. Furthermore, we get very uncomfortable when people begin to discuss "conspiracy" theories and invariably, discussions about "intent," always lead down that path.

I have to admit, after decades of working in the public policy debate, I am having a harder time myself now more than ever in avoiding the temptation to discuss "intent" rather than results. This is due to several reasons and most of them have to do with the unusual story of Barack Obama:

• His far reaching economic policies had him spend more money in 100 days than Ronald Reagan spent in 8 years


• His radical reversal of policies of containment in dealing with rogue nations


• His associations, that include a domestic terrorist that actually bombed the Pentagon and a minister who baptized him that clearly demonstrates anti-American sentiments

The list goes on and in spite of how impressive this is, history has shown that those who focus on intent that leads to conspiracy theories are discredited, isolated, and marginalized. They find themselves "whispering" about what all these policies are actually about rather than proclaiming with boldness their disastrous results and providing meaningful alternatives.

One of my favorite examples of this is the John Birch Society. One of the most influential people in my early political life was a fellow student in college who was raised in a "Bircher" family, as he liked to say. From him, I learned about the US Constitution, rule by law, the importance of free market economics, and national sovereignty. Unfortunately, the organization is only known in popular culture for its alarm about one world government as seen in the relationships among policy leaders who are members of the Council on Foreign Relations, Bilderberg Group, and the Trilateral Commission. Over time it became know only for what it opposed. Ayn Rand may have hit the nail on the head when she said that the group had become "futile," because it didn't stand for anything, but merely opposed Communism. Its years of work in promoting sound ideas were washed away in conspiracy theories.

If Obama's policies are harmful, tell people why. Discuss how the US debt ratio is now comparable to third world countries and not the President's plans to make us into a rather large Venezuela. Talk about how we are pumping money into the economy at a rate comparable to countries similar to Zimbabwe and the inflation that will produce. But to say that is part of an effort to bring down the government in order to raise up a dictatorship makes for interesting conversation, but it only "wins" those who are already alarmed. Obama won by ten million votes more than McCain. The "fallacy of the mob" makes it difficult for people to accept such an alarmist thesis. Don't make them do such, the results of the policies are bad enough to seriously consider our views.

Our goal should be to effectively win the war of ideas. Focusing on the results of bad public policy is a much better vehicle towards that goal than discussing the conspiracy theories that can surround such bad legislation.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

"Morning in America" Replaced by "Nightmare on Main Street"

In 1980 and through out his two terms in office, the theme of the Reagan Administration was "Morning in America" and it could not be more accurate. I think back to the late 1970s when I was a teenager growing up under Jimmy Carter. In the late 1970s more countries had fallen to Communism than at any time since immediately after World War II. So called “unaligned” countries, particularly in Africa and South America fell under the grips of Communism. On the economic front, Americans were facing multiple demons: double digit inflation, double digit unemployment, and double digit interest rates. When Communist tyrants invaded Afghanistan, the US response was to not play games with the Soviets in the Olympics, a choice that punished our athletes and the untold number of Americans who would love to see them compete. Carter would try to make us feel better about our plight by doing fireside chats wearing a sweater (his subtle way of reminding us there was an energy crisis as well) and spending his time blaming Americans for our various problems. The crisis, we were told, was “a malaise” that had become rampant among the American people. Americans had become depressed and needed to believe in themselves again in order to be great again.

Ronald Reagan brought significant change to the American landscape. On the domestic front, Americans had been plagued by a welfare state that expanded under the Johnson Administration a couple of decades before. Those who did not want to work, did not have to. Government was entitled to as much of the public's money as it deemed necessary. Paying excessive taxes was considered "patriotic" and complaining about them was un-American. Democrats at this time enjoyed the jovial position of being the Santa Claus of the Welfare State and Republicans were relegated to being the scrooges financing government programs. It was no surprise that the Republican Party had been the minority party since 1932.

Ronald Reagan said to work was noble and to not work was a disgrace if one was able. Ronald Reagan declared that the government was taking the people's money and that is was the Congress, not the American people, that needed to be held accountable. His massive tax cuts in 1981 led to the longest period of prosperity since the booming 1920s. More importantly, Reagan changed the way people thought about government and became to believe that monies kept in the hands of the public was always better than money in the hands of government. In no time Republicans became the party of defenders of the taxpayer and Democrats became seen as thieves for those unwilling to work for themselves. In 1980 more than 30% described themselves as “card carrying Democrats.” By the end of the Reagan Administration, this number was down to single digits. Reagan changed America’s political demographics more than any person with the exception of Franklin Roosevelt or Abraham Lincoln.

Today, "Morning in America" almost seems like ancient history. Instead we are facing a "Nightmare on Main Street." Barack Obama is socializing medicine, destroying the energy industry, spreading a cancer through out the banking industry, destroying incentives for those who work, and is increasing entitlements for those who will not work. He is raising taxes on those who make $250,000 a year and more, as well as on those who drive cars, smoke cigarettes, use health care, have a job, or use money (thanks to his inflationary policies).

The Obama Administration promises to create a situation very similar to the one that catapulted Reagan into the White House. Even today, friends of liberty are wondering who could help fill the void. The challenge for us is to end the nightmare and usher a new era of prosperity and freedom that we have not seen in years. The time to begin that process is now.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Is There an Upside to Obama?

Friends of liberty everywhere are up in arms over the dangerous rise of Barack Obama. People are storing up guns, discussing relocation to other countries, and are even stashing away cash in anticipation that things will likely get worse instead of better under this Administration. In fact, I'm one of many who believe that Obama wants things to get worst so that he can promote an ever expanding role for government.

With all the alarm, is there an upside to Barack Obama as President? I think so and here are a few examples:

• Barack Obama is one of the most polarising politicians in US history. For the first time in decades, the political camps have been very well defined. This creates clarity that I believe is long over due.


• Because we have Obama and his Democratic colleagues in Congress, it will be very easy for the American people to determine who is responsible for the direction we are going. Obama owns this economy and the direction the nation is going as a whole.


• I, for one, am delighted to not have faux Conservative in the White House. I have long stop defending Bush, but the media continually described Bush as someone who represents the Right. His insane and at times unAmerican policies were often projected as "Conservative," which could not be further from the case. Let the Democrats defend Obama for while!


• This situation is forcing politicians to define who they are and what they believe in like we haven't seen in years. This was painful for many, an epiphany for others. We need many to have life changing experiences and we need more to be accountable.


• This is forcing true believers in liberty to stop being co-dependents to liberal Republicans who have destroyed our reputation, if not our integrity. It appears we are not taking it any more. It is about time.
  

In spite of all this "up side," those who support free enterprise, limited government, and pro-family values have plenty to make them concerned. Surviving Barack Obama and over coming the obvious addiction the general population has of government will be no small task. But instead of being at the end of America's greatness, our best days may be yet to come. In 1979 I was getting involved in politics as a teenager at a time that seemed to me was our darkets hour. Our international reputation was laughable, inflation and unemployment were at double digits, and another country seemed to be falling under Communist influence every few months. At the time it seemed like the sun was falling on a great nation. In reaitly, it was a dawn of a new era. Our best days could still be ahead of us. That choice is ours.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am). Eric Bolling of Fox News and Fox Business and says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Ten Pillars of Economic Wisdom: Now More than Ever

During the Great Depression the size of government grew exponentially and many believed that the United States had lost those essential principles that made this country the most prosperous on the face of the earth. It was during this time that an organization was formed, called the American Economic Foundation (AEF), and they put together the following “Ten Pillars”* to remind Americans what works in an economy. If people wondered if a policy was good and beneficial to everyone concerned, than it would stand the test of these Pillars.

In the 1990s, I was a Senior Fellow at AEF and I conducted seminars in the former Soviet Union about these principles and how they could be a guiding light to that region that suffered from decades of Communist totalitarianism. Today, we are about to slip into a command economy of our own where the government will seek to be in charge of all things. Today, with the Obama Administration, this country needs to be reminded of these principles now more than ever. You are going to see these principles frequently in my blog, in the Price of Business pages, and on the radio. These principles are a guiding light towards a free economy.

1. Nothing in our material world can come from nowhere or go nowhere, nor can it be free: everything in our economic life has a source, a destination, and a cost that must be paid.

Simply put, there is no such thing as a free lunch. Everything has a cost regardless of promises from politicians.

2. Government is never a source of goods. Everything produced is produced by the people, and everything that government gives to the people, it must first take from the people.

Recently, 25 percent of Americans who were asked in a survey how the government pays for its programs said it was because the US "has its own money." Those people need to be familiar with this Pillar. The bailouts we have seen cost plenty and will have a profound impact on our economy.

3. The only valuable money that government has to spend is that money taxed or borrowed out of the people’s earnings. When government decides to spend more than it has thus received, that extra unearned money is created out of thin air, through the banks, and, when spent, takes on value only by reducing the value of all money, savings, and insurance.

Much of the new spending we have seen by Obama (and Bush) is being financed by fiat money (essentially counterfeit) and will result in rampant inflation. Other parts of the spending will be paid for by future generations. Finally, some will be paid by foreign governments who invest in such debt (making us dependent on regimes, like China).

4. In our modern exchange economy, all payroll and employment come from customers, and the only worthwhile job security is customer security; if there are no customers, there can be no payroll and no jobs.

Labor unions have long tried to create an economic world that is detached from reality. If labor wants job security, they must accommodate customers. There is no other way to assure long term job stability.

5. Customer security can be achieved by the worker only when he cooperates with management in doing the things that win and hold customers. Job security, therefore, is a partnership problem that can be solved only in a spirit of understanding and cooperation.

Unions often want an adversarial relationship with business, but job security can only come if the two are partners pursuing customers together.

6. Because wages are the principal cost of everything, widespread wage increases, without corresponding increase in production, simply increase the cost of everybody’s living.

An example of this is minimum wage. When it goes up, so do prices, and if the job isn't worth the wage, it will be lost. This solves the mystery as to why minimum wage increases are both rare and devastating.

7. The greatest good for the greatest number means, in its material sense, the greatest goods for the greatest number which, in turn, means the greatest productivity per worker.

Production is the best way to keep an economy strong, and those who participate in it growing financially. The best way to encourage productivity is for a government to keep the costs of production as low as possible. This is done through a stable money supply, low taxes, and few regulations.

8. All productivity is based on three factors: 1) natural resources (NR), whose form, place and condition are changed by the expenditure of 2) human energy (HE) (both muscular and mental), with the aid of 3) tools (T).

This is straight forward enough. These three factors make up the totality of the economy. As a formula, this is seen at NR + HE x T = Man's Material Welfare.

9. Tools are the only one of these three factors that man can increase without limit, and tools come into being in a free society only when there is a reward for the temporary self-denial that people must practice in order to channel part of their earnings away from purchases that produce immediate comfort and pleasure, and into new tools of production. Proper payment for the use of tools is essential to their creation.

Tools are the only one of these that can increase without limit. An example of this is agriculture, which was the dominant industry in the late 1700s and early 1800s, with the majority of our population working in that area. Today, the number who work in it are in the single digits and the abundance of food could not be greater. Tools are what have changed everything.


10. The productivity of the tools--that is, the efficiency of the human energy applied in connection with their use--has always been highest in a competitive society in which the economic decisions are made by millions of progress-seeking individuals, rather than in a state-planned society in which those decisions are made by a handful of all-powerful people, regardless of how well-meaning, unselfish, sincere and intelligent those people may be.

The genius of the many individuals when it comes to economic prosperity is always greater than the few or even the majority that would impose its view of "fairness" on the economy. This is the "invisible hand" that Adam Smith spoke of so eloquently in his The Wealth of Nations.

These Pillars are factual, logical, and without a political agenda. They provide excellent benchmarks on what works in the economic system. Pass this tool on to others who are trying to figure out the headlines and let freedom ring!

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

*An internationally accepted working paper developed by The American Economic Foundation

Government Needs a Primer on Money

When you ask the average person what inflation is, they will tell you "high prices." This is like saying that a person with pneumonia merely has a fever. Both are partial descriptions, but very incomplete.

Inflation is more accurately described as "too much money chasing too few goods." Simply put, as we increase the supply of money but not the productivity you have higher prices and so much more. The hundreds of billions (and now trillion plus) that is being spent by the government for bailouts will come from printing money, as well as other sources. Currently, twenty percent of every tax dollar goes to paying the interest on the debt. That makes printing money more attractive, in spite of the potentially negative consequence, and those consequences are significant.

• Such pumping of money into the economy will lead to a massive devaluation of the currency over time and a significant increase in prices.



• Wages will grow artificially high, which will lead to many moving into higher tax brackets even as the value of their income declines.



• There will be an obvious need to increase interest rates, regardless of where the government sets them, because businesses have to make sure that what they receive back is more than what they loaned or provided in credit. This is one of the reasons why interest rates have not gone down for consumers and others, although they have gone down for lenders. It is not mere selfish greed, but self interest in protecting their share holders.



• New businesses will find it more difficult to start up because of the perceived decrease in its future value, because of the instability of the money supply. These business will find it difficult to find investors, markets, or any future at all.
  

The bottom line is that calling inflation "high prices" simply does not give this major problem justice. Unfortunately, I am fairly confident that many, if not most Americans are unaware of how far reaching inflation can be. I have heard people say, "why doesn't government just print money to solve deficit and other problems?" If a large quantity of money made people rich, Zimbabwe, Guinea, and Yemen should be among the richest countries in the world. They are not, in fact they are among the weakest, and they also have the highest inflation.

Pouring more money on this economy is the equivalent of pouring gasoline on a fire. The projected long term consequences could be devastating.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Bernanke's Fateful Decision

The Stock Market is on an unusual rise, the dollar is on an up swing, and gas prices are in decline. Furthermore, we just recently learned that the economy grew in the last quarter, which means we are not in a recession (regardless of how it "feels"). All of these examples of good news should lead to better news today when Federal Reserve Chairman Ben Bernanke discusses the future of interest rates.

Bernanke has, of course, three options. He could raise rates to further curtail concerns about inflation, lower them to make sure that there is enough stimulus to keep the economy growing, or keep them the same as a reasonable response of not pouring fuel on inflation or stalling an apparent economic turn around. Bernanke's decision is very important.

If Bernanke lowers the rates, expect a continued decline in the value of the dollar, serious concerns being raised about the economy's future health in the minds of those on Wall Street (because lowering rates would be seen as the Fed still being concerned about a recession), and the simple fact that interest rates will be getting too close to zero for its own good. After all, rates can't go below zero. If Bernanke raises rates, an idea being suggested by some as a way of saying the economy is now on the mend and to stop potential inflation, the short term impact would likely be devastating. It would be seen as the pouring of cold water on an economy that is only now beginning to warm up.

The best approach, according to most economists, is to simply do nothing. This sends a message that the economy has begun to rebound and it doesn't need further stimulus. The psychological boost on Wall Street to such an approach will be very powerful. It could be argued that there is too much money in the market today any way. Doing nothing would be an excellent way to let productivity catch up with the many dollars that are floating around in the economy today. Since too much money chasing too few goods creates inflation, restraint is helpful. It will be the first time in a very long time that the Fed has shown such restraint. The physicians motto of "do no harm" should be Dr. Bernanke's as well. Let's just hope he is a good physician.

Would you like to get a periodical email of the best of Kevin Price's political and economic content? Subscribe to the Houston Business Review at Info@HoustonBusinessShow.com.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review.

Preparing for Double Digit Inflation

We haven't seen double digit inflation since the late 1970s and early 1980s, but it is now a potentially serious challenge. I have seen it first hand in my local visits to the grocery store. I have eight children and the increase in my food bill in recent months has been significant to say the least. Many may not notice a fifteen percent increase here or there, but when you are buying for ten, you notice. Some of my most common items purchased have gone up around 30 percent since this time last year.

Just last week it was reported that there was a 1.5 increase in inflation in May alone. This percentage of an increase is huge for one month. In fact, we normally have smaller increases each quarter. For almost twenty years we have had an annual inflation level of around four percent. There is something seriously wrong here.

Part of the problem is the lack of understanding that exists about inflation. Many like to say "inflation is high prices," which is similar to saying "pneumonia is a high fever." These are both examples of symptoms. What people need is an understand of the cause. Fortunately, the definition is actually quite simple. It is "too much money chasing too few goods." Simply put, the amount of money going into the economy is out pacing production. For example, if in the material world there is only one pencil and only one dollar for exchange, the cost of the pencil would only be one dollar. But if they increased the money supply by an additional dollar, the price would simply double unless they produced additional pencils.

That is exactly what is going on today. The hangover of cheap money policies a few years ago lingers in the economy (e.g., sum prime lending). Then there are the demand side tax rebates that encourage consumption, but not production. These rebates are significantly different from actual across the board tax cuts, which encourage production. Finally, there is the continued growth in deficit spending, which has led to the point today where approximately one third of all government spending goes to only paying the interest on the debt.

We need to hold our elected officials accountable and not allow them to pander to us with short term government programs and breaks with negative long term consequences. Our financial future and the future of our children hinge upon it.

According to recent surveys on marketing, most advertising attracts sellers (others who want you to buy more ads) and not buyers. Do you want to know why? Email info@HoustonBusinessShow.com and put "marketing audio" in the subject line and we will get it to you.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Weak Dollars and Weak Dollar Stores

For quite some time we have heard about the fact that the dollar is losing its value. Well this reality hit close to home when I recently made a stop at a 99 Cents Only store. I wanted to visit because I have been curious to see if these popular stores have been affected. You have heard about the "shrinking dollar", but a shrinking dollar store? That is exactly what has happened to the massive dollar store chain.

99 Cents Only stores have been around for more than two decades and have enjoyed nothing but growth. In the Houston area, I have noticed a couple of the chain stores have closed and the one I went to this week actually shrunk. It is about 2/3rds the size it use to be. They literally moved the shelves and put up black plastic above the last aisle to cut it off from the rest of the building. Being curious and knowing I would write about the subject, I asked what happened and why. They pointed out the obvious, but wasn't sure why the company made the decision. Was it because of a lack of items available that they can sell for that low price? A need to pay lower rent (although I have no idea how they will lease the rest of the building)? Or was it a need to shrink the store so they could lay off people? I may never know, but I have to assume it has to do with the weak dollar.

It doesn't stop there, we have a local chain called King Dollar, which is home of "Nothing Over $1." Well, that was the case until a month ago when the latter portion of the sign became "Nothing Over $1.09." There are no rumors of it becoming the $1.09 King. It simply doesn't sound right.

These are among the most tangible signs of the weakened economy that I have seen yet and they are very real (in spite of the light approach I take here). Of all the issues the government needs to address, strengthening the dollar should be one of its biggest priorities.

According to recent surveys on marketing, most advertising attracts sellers (others who want you to buy more ads) and not buyers. Do you want to know why? Email info@HoustonBusinessShow.com and put "marketing audio" in the subject line and we will get it to you.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Is the Dollar Too Weak or Strong?

Whenever the dollar becomes particularly strong and we can travel around the world for a song, buy foreign goods for a fraction of what we would pay here, and we become the currency standard for the rest of the world, we begin hearing concerns of the dollar being "too strong." Then when the dollar declines and we can't afford globe trekking, and certain countries start seeing our goods as "cheap", and the Euro begins to look like the future financial standard, we cry the dollar is "too weak."

This is indicative of the way it is with the media. They are never satisfied. More importantly, they don't have a clue of what they are talking about any way. Most journalists are in the bad news business, so when they find the economist that is advocating pro-weak dollar or pro-strong dollar, they simply focus on the one who provides the most negative spin on the economy.

For the record, a strong US dollar is always a good thing. It is better to be able to get foreign goods at a lower cost than here because it shows how valuable our currency is and is bolstered
by a highly productive economy (productivity, in relation to money supply is the primary factor for a dollar's value). A strong dollar is a good thing and knowing that is part of all our responsibility, since the media has abdicated reporting such.

For a copy of the free audio program and free report, "Why Your Marketing Isn't Working," email Info@HoustonBusinessShow.com and put "marketing" in the subject line.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.