Issue 538 Who owns the internet? March 2, 2015

Who really owns the internet?  Only two groups actually do.  And you can actually name them very easily.  Can't figure it out?  It is the companies that sell access and us the regular people.  Let us discuss.

What the companies do:  The companies serve a single roll with the internet. It is to sell access to the whole thing.  So that internet bill every month is just us paying to get on.  Everything else is literally free.  These companies have no need to do anything else with respect to internet access as that would actually hinder their businesses.  Yes, certain websites are charged more to access the internet, but that is because they use up more space for data.  So they essentially are causing congestion on the internet which means they are technically being punished by the service providers for inhibiting everyone else using the internet.  But that is only the case for businesses.  People just pay for access as well, but otherwise they can do whatever they want.

The regular users:  This is us, the regular people who use the net each and every day.  We provide content, use services that are almost universally free, and otherwise do work and play on the internet.  Nothing is actually impeding us from doing whatever we want on the internet.  All we do is pay a small bill that is only going to become cheaper so that we can use a modem, and even that is becoming cheaper and possibly at some point actually free.  You see without us using the internet almost constantly, the internet would not be such a lucrative business opportunity for companies to sell goods and services (whether they be free or not (think advertising)).  As such, without us, the continued existence of the net with its ability to share information and content for free would not exist.

Conclusion:  So the companies that sell access and attempt to prevent clutter, and us, the consumers of services and content are the true owners of the net.  Without each other, the internet could not prosper or evolve into the sensation and tool that we all enjoy.  The internet is only going to become better and freer with each passing year, and you know what?  You helped make that possible by you simply using the internet.  

Issue 537 How can we have more internet? February 27, 2015

Did you know we can have more internet?  That it can be cheaper and faster?  Well, of course you did, but do you know how?  It is actually simple, so let's begin.

Simple solution for more internet:  So apparently the internet needs Ethernet pipes and similar infrastructure to run.  However, government licenses who can actually make these Ethernet pipes, and other technology that supports the internet’s spread and growth.  Basically, a set of regulations is preventing other companies, including startups from laying more of this infrastructure down which would in turn give us more access to a faster internet including in places where internet has yet to exist.  So the government is in effect creating mini-monopolies and preventing competition by preventing newer internet service providers from even coming into existence despite the technology to make these pipes being so cheap and easy to make.  Can you imagine if Netflix, or Disney made their own Ethernet pipes and similar infrastructure?  They would no longer have to pay another internet service provider to carry their content.  With more internet, the time where we just get the specific three to five channels on our televisions that we watch regularly and the rest on demand can come true.  We can pay less for television this way, and have freer radio, and literally every show we want on demand.  Essentially, we would just pay for access to the internet with everything else becoming 100% free with respect to phone, television and other subscription services that we normally would have to pay for given the current status quo.  All we have to do is de-regulate who can do what and then it is a victory to small businesses who want to grow and us who want cheaper faster internet.

Conclusion:  Remember, the internet needs the ability to send information around for it to work.  That information tends to travel the path of least resistance, which means more infrastructure for it equals faster internet and more access.  As such, let us allow more businesses to do this work so that not only they benefit, but we do to.

Issue 536 Do Regulations Prevent Unemployment February 26, 2015

Well, I am here to say, yes it does.  Even though I am a libertarian, I have to admit that regulations can prevent unemployment, but they do at a cost.  Let's discuss.

Regulations slow progress:  Ok, the reason why regulations are able to stave off unemployment is because they slow down the creative and destructive influences of a free market economy.  So the reason why we do not have a better more comfortable seat belt is due to regulations setting a standard that everyone follows out of fear of being sued for breaking that standard.  The internet is not as free as it can be is due to the licensing of who can make Ethernet pipes.  How about the oil companies and fossil fuel fired power plants?  They are kept alive by regulations by artificially increasing the costs to study and implement safer and cheaper to make nuclear power.  These regulations partly exist for safety, but also to protect the established businesses that exist, but would be supplanted by the newer businesses and technology.  However, when regulations are slowly repealed these established companies have a better chance of adapting to newer technology and shifts in public attitudes.  As such, they are able to train employees in the new standards and technologies without fear of being completely left behind.  So slower progress due to regulations means more people can adapt to changes and thus they are less likely to lose their jobs.

Conclusion:  While I do not want people to lose their jobs, regulation if applied wrongfully creates monopolies of power for established businesses.  As such more regulations become established to keep the biggest businesses from having to compete with smaller upstarts that may usurp them.  So this is a double edged sword.  As such, regulations implemented strictly for safety are good.  However, any regulations no matter how well intentioned are bad as you are in fact preventing the creation of jobs thus stopping the employment of others to save the jobs of those who already have them.

Issue 535 Direct Taxation (the Banks) February 25, 2015

So we are all familiar with the income tax and that it is generally collected through our employers.  But when the crisis in Greece hit where they took money directly out of peoples bank accounts demonstrated that the governments of the world can take our money and the banks would not resist.  So what does this mean for the future of taxation and our money?

What I believe to be a trend:  I feel that government may stop concerning themselves with how much we earn from our jobs and instead be concerned with the total amount of money we actually have.  Reason being is that we are shifting to an all-electronic future where no other form of physical currency could really exist.  As such, governments can simply look at your bank accounts to accurately gage how much money you acquired that year and then take it out themselves.  Any deductions can be seen by simply having a program to analyze all your purchases and charitable donations and thus deduct them from the overall money that was meant to be taxed.  So in short, as you can no longer hide how much money is in your bank account, the government can just take all the money they see you have acquired based on whatever standards they see fit.  So no more accountants, filings, or any other expensive methods of tax collection, as a simple program would do the entire job for the IRS and similar tax collection bodies.  

What this means for US:  Well, we will no longer have any privacy with respect to what we buy.  The government will know how much junk food we buy, how many magazine subscriptions we have and anything embarrassing we may have bought.  In short, the government will be able to blackmail us with our purchases alone.  But this is not the worst part.

Our worst part is that all sources of money we get are now able to be taxed.  The $25 dollars we get from a birthday card, to a friend paying back a no interest loan.  All of that small stuff becomes income to the government.  A loan from the bank and even money gathered from inheritance no matter how small becomes taxable.  As such, the government will tax us on every penny we get no matter how small, because they simply can.  An all-electronic system invites this issue.  Tax havens could not even exist as the government will take the money out of any of your other accounts that are not in the tax haven, and can possibly take it out by force if you use that account to purchase a good from anywhere (yea they will hack it and take it) just to get what they think you owe.  You think the government is not that petty?  Think again.  Greece took 10% out of their own people’s bank accounts and prevented people from taking their money out to prevent that.  So as Greece as an example (a Democratic Country), we could be next.

Conclusion:  Yea, this is a worst case scenario.  But, it is a distinct possibility as we progress toward an all-electronic banking system.  There will no longer be hiding money under the bed.  So I write this for you my readers to be wary of what the future holds.

Issue 534 Retirement age increase February 24, 2015

So, it is being tossed around yet again.  The idea to increase the retirement age once again.  Let us discuss what is being considered.

At what age do they want you to retire:  Well, at current, the retirement age for social security for my generation is 67.  This is due to the change made by President Ronald Reagan for my generation and those that will come after.  This my dear readers was great as it made sure that at least my parents will get to see some of the money they put into the Social Security system.  But this is not enough for my generation.  In fact, those who retire early and collect at the earlier retirement age of 62 are harming the chances of Social Security still being there.  Also, although it is good I can't retire and receive Social Security till I am 67, it still does not increase the chances of keeping the social welfare program around beyond 2035 (an estimate based on the board of trustees who govern Social Security).  So the proposal that is going around is to increase the minimum retirement age to 64 with the same penalty, and the main retirement age to 70.   I don't think I need to tell you that this will ensure Social Security will be around a little longer as it has worked before.  Additionally, this will not affect people already retired or those within 20 to 30 years of retiring.  It will only affect those who have at least 3 or more decades before they can retire.  This ensures that these individuals both born and unborn can plan, and work in a way that will make it so they can live the way they want up until the new retirement age hits.  This ensures some level of fairness.  

Conclusion:  Social Security is a beloved welfare program that has been around since the late 1930s as a method to help people retire earlier so as to make way for younger workers to enter the workforce.  If you don't believe me, you simply have to read President FDR's speeches on the subject.  As it is such a loved program, people want to keep it around, and thus methods abound are being proposed, but ultimately not implemented due to fear of reprisal from the American Populace.  So I am here to tell you all that at least I am willing to wait that extra couple of years to retire, so that Social Security can last long enough to help the baby boomers live out their twilight years.  In fact, I would say get rid of the early retirement age completely so that more money can be saved, and then deny benefits to those making a specific level of income per year after they retire.  Those two things would benefit everyone greatly and we may even be able to afford to give those people with the least a little more money so that they can survive without having to resort to other welfare programs and the stress of applying and staying on them.  I want to protect our seniors, so I am willing to make the sacrifice.  Are you?

Issue 533 Downsizing February 23, 2015

Downsizing can be a great thing.  In fact, it is why people have looked into the small homes movement.  The fact is, downsizing equals cheaper living and thus it is perfect for those looking to retire.

Why retirees should downsize:  Let us face it, the cost of living just keeps increasing.  And you know what, retirees exist on a limited income for at some point the money stops coming in, or at the least in very limited quantities.  So what happens with downsizing is that living becomes cheaper.  Property wise, living in a smaller home, or even apartment, or smaller place in general means less taxes and maintenance.  So you could go from paying something like $8,000 a year in property taxes, to paying half that or less.  Those savings go a long way without even factoring in cheaper maintenance costs.  Smaller living means less energy to heat the home, and less energy to clean.  As such, that means more savings.  Also, slimming down allows you to pocket some of the value of the home you had been living in to temporarily supplement your income.  This is the cost savings aspect.

The impacts on your body are also good.  What I mean by this is that you need not have a big house to hold all your stuff.  In fact, downsizing means getting rid of excess stuff you know you do not need.  This can become a stress relief.  Also, smaller living means having to make less effort to get from point A to point B in your home.  As such, there is less wear and tear on the body.  We do not need a big home past a certain point as we no longer have kids, or roommates to live with.  In addition, the earlier you move the less stressful it is to do so.  So basically, it is less stress and less clutter which is healthy.

Conclusion:  Downsizing can be beneficial for those who are retired, whose kids have moved out, or just for those who feel their home is way too big for them.  What will result is cost savings and a more positive living arrangement for these people who decide downsizing is right for them.

Issue 532 Auto Enrolment for Retirement February 20, 2015

I was reading an article in the economist about retirement (though I myself am very far away from retiring).  People are not saving money and that is becoming a detriment to people when they want to retire.  So the Economist has proposed auto retirement as a solution.  Is this the right idea?  Let us discuss.

Why auto enrolment works:  The reason the economist supports this idea is because it boosts participation into the retirement programs by 40% (this is their numbers).  Well, that is a very big number.  Also, the economists pointed out that things like Social Security and other social welfare programs cannot keep up the pace if so many people were to retire without a plan.  So baby boomers and the like in America will strain the country's Social Security system and its welfare programs that will be used to supplement that income when money from Social Security is not enough.  So the people at the Economist see more people saving for retirement as the only solution to getting through a possible financial crisis.

Is it worth it?:  I know that retirement and financial independence from a government body is worth it.  I mean, 40% more people saving means less financial resources government will have to use to help people, and less people having to work longer or struggle with money later on in life.  But forcing people is something a government body should not do, and yet they do so with Social Security.  Then having businesses where you are employed do the same thing becomes unnerving.  I mean, it is saying you are too dumb to save money on your own.  Too stupid to plan ahead.  Blah blah blah.  Retirement is worth it in my opinion, but I opted in to save, but what about those who need a push?  

Conclusion:  What I have found is that learning what to do to invest in a 401K, into stocks, and other savings tools was very difficult to do.  In fact, I still do not really understand it all myself.  I learned what these things do from my parents, who while only about a decade away from retirement do not understand how it works really either.  They just know that they have accounts and stocks with other forms of savings which they hope will carry them through for as long as possible.  So auto enrolment is not my definition of a solution.  It is education.  Dumbing the learning down so that a dope like me can understand how it all works and figure out how much I would need to save to have a specific amount of money to last ten to 30 years when I eventually retire.  I want to be able to invest in the stock market, form a 401K or other financial savings tool without having to go to a broker.  I think that the reason people do not invest into saving for retirement is because that they do not understand how (in addition to not understanding why).  Therefore, give me a service or an education program that gives me what I asked, a simple and easy method to know and understand when and where to save so I can retire and actually take it easy.  I don't want to be forced to retire when it's inconvenient, but when it makes sense and is beneficial to me.  Education is the key that is my solution.