Chilean Miners Saved By Capitalism

An saw an article in the Wall Street Journal Online about all the technology that went into the Chilean miners rescue. The rescue is unprecedented in mining disaster history. Mining is a dangerous occupation with a reputation for accidents caused by poor safety conditions and an inherent danger of working deep under the earth. Even with complete adherence to state of the art safety precautions, accidents cause by human or mechanical failure are a given.

With as much as possible being done in the mine for safety, things above the mine have advanced to a point that with a reasonable amount of time, a rescue can be successful. One of the heroes of the mine rescue is a drill. This drill called the Center Rock drill bit is made by a small company of 74 employees. The company Center Rock,Inc is Berlin, Pa. The drill rig came from Schramm Inc. in West Chester, Ra. Seeing the disaster, Center Rock's president, Brandon Fisher, called the Chileans to offer his drill. Chili accepted.

Samsung of South Korea supplied a cellphone that has it's own projector. Jeffery Gabbay, the founder of Cupron Inc. in Richmond, Va. supplied socks made of copper fibers that consumed foot bacteria and minimized odor and infection.

These entrepreneurs, both small and large, are the fuel that makes the engine of capitalism go. Innovation by companies are motivated by profit. Profits a bad word in todays society. But without that incentive there would be no Center Rock drill bit. We would be having funerals instead of celebrations. 

Entrepreneurs have built our computers, cars, space vehicles, and electronics. All we have is from innovation in an environment of capitalism. Where there is a reward for hard work, fantastic products will come. We can't punish these people with excessive taxes and regulation. making a product and getting rich from it is the American Dream. But when someone accomplishes that ideal we punish them with high taxes. 

If we want to compete in the world economy we better step up and build things here in this country. We have all the tools money, knowledge, and innovators. Other countries know this is the way to the future, have we forgotten. 

I have to add a little postscript to this post. While researching alternative opinions on this post I found many that disagree with my supposition. Many feel that the shoddy conditions of the mine were a result of unchecked capitalism. That may be true. It's for you to decide. I have included links to differing opinions than mine.

How to: Dispute A Credit Card Problem

Image via WikipediaYou can dispute billing errors, fraudulent purchases and even charges for damaged items paid for with a credit card. If you know your rights under the law you will have an easier time. The federal Truth in Lending Act is what gives you the rights you need to act. 

 
The first problem you may have with your credit card is unauthorized use. In case of unauthorized use of your credit card, the Truth in Lending Act limits your liability to $50. There is no time limit to report a lost or stolen card, but if you alert the credit card company before someone uses the card you won't have to pay anything. If it's a debit card it's different. You have to report a lost or stolen card within 2 business days to limit liability to $50. 
 
The second problem you may dispute is billing errors. These consist of purchasing items that were never delivered, the issuer didn't credit a payment or return of goods, or your statement contains duplicate charges for the same transaction. 
 
The law gives you a limited amount of time to catch such errors. You must send a dispute letter within 60 days of the first statement that contained the mistake to the address for billing errors. The creditor must do an investigation and resolve it within two billing cycles or 90 days, whichever comes first. 
 
The letter must contain your name,account number, the statement the error is on, the dollar amount and the reason for the dispute. You may not have to write the letter because some billing statements have a form printed on the back of them for this purpose. 
 
During this process you must still continue to make the minimum payment. If you don't you will incur late fees and it may adversely affect your credit report. Any overpayment will be refunded at the conclusion of the investigation. 
 
The third thing you may dispute is the quality of goods or services purchased on your credit card. You have the right to dispute and withhold payment on that portion of the bill. But still remember you must always pay the minimum payment. This right let's you raise claims with the merchant and raise them against the credit card company also. The restrictions are the goods or services must have cost at least $50 and the purchase had to have been made in your home state or within 100 miles of your mailing address. Check with your credit issuer about purchases over the phone or Internet. 
 
Remember you have significant rights to dispute problems with your creditors. Also these companies are well motivated to make you purchase experience a good one, so you will continue to use their product. 

How Much Life Insurance Do I Need?

Image via Wikipedia

It's a difficult to answer because it depends on so many different factors in you life. To decide, run down this list to see which apply to your situation. 

 
Do you even need life insurance? If you have saved all your life you may have already accumulated enough wealth for your family to go on in case of death. If you have no dependents, your single or your spouse can support themselves what's the need for life insurance. If all you need is enough money for burial maybe just savings can cover that. Insurance is only for people who would want to cover a financial need in case of death. 
 
If I do get life insurance, how long should I keep it? The term should be for as how long as the time necessary for dependents to become independent. In my situation I'll be contining life insurance for ten years after the basic needs are done. It's a comfort to my spouse and a sense of security. That's what I'm doing personally, but it's generally not the rule. 
 
Now the most important question is, how much to get? Ask yourself how much money per year is necessary to replace you. Remember your families expenses will be lower because your gone. The amount won't have to be your actually salary. Also how long will this supplemnent be necessary? Maybe it's just till the children are independent or the surviving spouse is able to self support. There is also funeral expenses, childrens college and any obligations that need to be continued after death. Consider the equity in your house as a source of money if sold after death. 
 
At the moment, I have ten times my income between the equity in my home and a term insurance policy. So I feel quite content my family will be ok after my death. When you buy life insurance, your still protecting your family after your gone, like you do when your here. 

IRS To Allow Deduction For Chinese Drywall Problem

Image via WikipediaHere in South Florida we have a big problem with many homes being built with toxic drywall manufactured in China. It emits a higher level of sulphur than regular drywall and corrodes metal, causing problems for air-conditioners and other electronic equipment. 
 
To make matters worse many homeowners have complained that the fumes have made them sick. The federal government hasn't been able to link the drywall to their illnesses, but has recommended that homeowners replace the drywall and wiring, a process that can cost more than $100,000. 
 
Complaints about the drywall started a few years ago with many of them in Florida and Louisiana. The problem is worse because homeowners must still pay their mortgages on the damaged homes while also paying for temporary accommodations, while their homes are uninhabitable. 
 
Of course many lawsuits have been filed but the process is long and drawn out. The good news is the IRS has created a tax deduction for these homeowners. Under the new rules taxpayers can deduct the casualty losses ( the cost of repairs from a sudden and unusual event) in the year in which the loss occurs as long as the losses are not covered by insurance or other parties. The restrictions are that they must itemize their federal returns. And deductions are only allowed on amounts exceeding $500 and on amounts that exceed 10 percent of the taxpayer's adjusted gross income. 
 
Taxpayers who have pending insurance claims can take advantage of the plan but must later report it as income if reimbursed later. 
 
At the present time most homeowners have gotten no relief from any source. This tax relief will only help people who have the money or can borrow it for the repairs. 
 
Many homes in my area are new construction and are built with the toxic drywall. They are just sitting there either unoccupied or never sold. They are just waiting on lawsuits and insurance claims. This problem just adds to the foreclosure problem, overbuilding and excessive inventory in South Florida. These problems contribute to the depressed prices here. This also leads to property values not being high enough to qualify for mortgages, aggravating the home sales market. 
 
These problems along with the foreclosure process at a dead stop will only prolong the borderline depression here. At least this IRS help will help some homeowners rebuild at get the housing inventory selling. With many homeowners facing these many challenges, believe it may take a decade to come out of these problems.

A Horse Named Government

Image via Wikipedia I was reading thru a news article about the Gubernatorial race in Maine. On a local newspaper website called the  "Kennebec Journal" (http://www.kjonline.com/)  in  Kennebec County Maine including Augusta, Maine I saw in the opinion section this letter to the editor: 


There once was a farmer, who, like all farmers, lived off his land with little or no help from anyone else. He was never hungry, fed and clothed his family, and sold some of his extra products to his neighbors.

One day, the farmer was given a horse named Government. He was told that he would be able to do so much more with Government in his life, that he would be able to produce more and have more time for leisure. 

Nobody told him that Government required care and feeding and sometimes got sick and didn’t work very well. He had to grow extra crops to feed Government, and so actually needed Government to help support itself. Government also left large piles of mess that the farmer had to, periodically, clean out of his barn. The more the farmer used Government, the more he thought he needed it.

At some point in time, the farmer realized that, if he had just been left alone, he would be just fine without Government, but what should he do with Government?

Give him to another farmer? That didn’t seem ethical, knowing what had happened to him. It seemed as though he was stuck with Government and all its good and bad attributes.



David Kahl

Manchester

I hope in the next election people cast their vote with the sentiments of this gentleman in Maine. The Founding Fathers had a healthy fear of an all to powerful government we should keep that in mind.

Are You Financially Responsible?

Cover of The Richest Man in Babylon

  
Financial responsible simply means to live within your means. That means you spend less than you make. 
 
Credit Cards and Debt 
 
Being able to make you credit card payment is not what I'm talking about. If you have a credit card payment and aren't able to pay it of it shows you spend more than you earn. Paying off your credit card balance on your account every month means you are financially responsible. 
Credit cards should be used as a convenience and for an emergency, not to make ends meet. 
 
The same goes for recurring payments that have interest. Paying interest means your paying extra for your purchase, is that being responsible? But with big ticket items like homes and vehicles it's impossible to avoid paying interest. In those situations try to minimize the purchase price. 
 
It's very doable to avoid credit card debt but those big ticket items like your home or car are a fact of life and are tougher to get under control. So the only way to make them manageable is to not to buy a luxury car but get the minimal needed to get the job done, even getting a used car. With the house, you don't need a mansion, get the house that will suit your needs. The problem with these purchases is we don't see the difference between necessities and luxuries. When we purchase a home we probably qualify for a mortgage much higher than we need. Irresponsibility is the taking the largest mortgage we qualify for, not thinking if we can afford it over the long run. It's the difference between wants and needs. Th rule of thumb is your mortgage payment should not be more than 25 to 30 percent of your monthly income. If this is not the case it's better to rent till your able to afford it. 
 
Are you paying your self first? 
In the book "The Richest Man In Babylon" one of the main lessons are you must pay yourself first. Every week take 10% and put it into savings. This money is for your future when you retire. To not have savings and a plan for your later years is irresponsible. Make sure you invest it in something that allows your money to grow and work for you. 
 
Emergency Fund 
This item is separate from your 10% weekly savings. It's money set aside for the rainy days that are sure to come. This fund allows you to stay out of debt when trouble comes. It's your insurance policy against going back into debt when there's a problem. We must be prepared for the unexpected. This is being financially responsible. 
 
Don't Try to keep up with the Jones's. 
Your job is to take care of your family. Keep your eye on the needs of your family, present and future. Their wasteful habits shouldn't throw you off track. Don't let them set the bar for your standard of living. 
 
Budgeting 
What? Don't tell me you don't have a budget? A budget is one of the core pillars of financial responsibility you should know where your money is going. Being organized with your money allows you to save more, plan better and be more content in your life. 
 
The bottom line to all this financial responsibility is spending less than you make. It's not about being a miser with yourself and family. It's about being prepared for today's and future purchases. It doesn't mean doing without lifes pleasures, it's about purchasing them the right way. Do you want to go thru your life with the peace and satisfaction that comes with financial responsibility or the anxiety and fear of seeing a mailbox full of credit card bills and debt collection letters. Make the choice today to do it the right way and enjoy the piece of mind that comes with it.