Thank a Smoker

This is a pro-smoker article, something I never though I would write.

I do not smoke. The thought of inhaling a carcinogen into pink lungs turning them into black infested soot bags makes me wonder why anyone would chose to smoke in the first place. The smell gets into your car, hair, clothes and everything you own. It also contributes to people staying poor, and takes fathers and mothers from their kids years sooner than normal. Don’t get me started on the 2^nd hand smoke that is infecting your child’s lungs right now… Even so:

The idea that a smoker is causing your insurance rates to rise, and we somehow have to pay for them through our healthcare system is completely inaccurate. It is not "costing" us a dime to have smokers smoke and we come out ahead in the long run. For one, your assuming that by saving a smoker he wont die of something else, which we all know death comes to us all. Second, you assume that health care costs in the future are going to be the same as they are now, which anyone would tell you is incorrect.

Let's take a look at the first reason in more detail. If all smoker's quit one day, on average they would add around 20 years more of their life. One article says that male non smokers will live 18 years longer than their counterparts. (http://www.medicalnewstoday.com/articles/9703.php). This article places the "death date" at 65 for a smoker, and 83 for a non smoker. With annual rising costs of healthcare, do you think it is cheaper for someone to die today, or 18 years from now, adjusted for inflation? Now take a look at some of the things that kill people in their 80's. What about someone who has a stroke at 70, then stays in a nursing home or assisted living center until 83? What about a patient with dimensia? Do you think the doctor's bills for 13 years worth of Alzheimer treatment is cheaper than the 6 month long cancer treatment (basically the latest theory is lung cancer is pretty much untreatable)? Since we all have to die of something, having a smoker die of something earlier than his eventual death 18 years later is actually cheaper on everyone involved. Bottom line, smokers don't cost us money by smoking.

Tax revenues from a lifetime smoker are huge. A pack a day in Texas generates $1.70 of state and federal tax each time it is sold. If the above smoker dies at 65 smoking a pack a day, he will generate $217, 175 in tax revenue on cigarettes alone, assuming the tax on cigarettes doesn't change over his lifetime (unlikely). This smoker puts 4 kids through a state college just by smoking a pack a day. Thanks!

Dont forget about social security and Medicaid. After spending his or her lifetime working and paying federal income tax, the majority of smokers will die before they can ever draw back on a penny of their investment. This is the type of person we need if we want Social Security to stay afloat. Someone who pays into it their entire lives, but never receives any of it. Of course, if the above referenced smoker is married, the widow will receive a partial amount. But lets realize that most people who live with a pack a day smoker are smoker's themselves, either 1st or 2nd hand and will die sooner than later.

If everyone stopped smoking they would be forced to raise the Social Security level to 75, because we would all be living until 83. Do you want to work until your 75 because I don't. In fact, one could argue that until the dangers of smoking were truly known and all the people being coerced to quit happened, Social Security was never in jeopardy. It was until people starting living in their 80's that we started to worry about its ability to stay around. People living that much longer can directly be related to smoking. Every adult male that doesn't smoke lives 18 years longer than one that does.

Sure, the medical field claims that advances in medicine are why we are living longer, but lets be real for a moment. The last time medical people cured anything of value was Polio. Sure, creating a chicken pox vaccine is nice, but that was hardly a life threatening disorder back in the day. And yes, they can give you an operation ($) that will keep you alive for 2 more years during which time you will need to pay for a maintenance drug ($$) and probably need follow up treatment ($$$) then on the day you die will take another trip to the ER where they will pronounce you dead and send your spouse the bill ($$$$).

Wait, I digress.

Back to the subject, smokers save you money, they don't cost you anything. If they want to get cancer and die off early while putting your kids through school and keeping the retirement age down, let them. We all have to go sometime and smokers are using the express lane to Heaven while making our lives on Earth better through their sizable tax donations and hefty insurance premiums.

Auto Bailout

There has been many things posted about how there will be nothing short of Armageddon and the collapse of the universe itself when the big 3 automakers fail. If it helps any here are a few things you might find interesting and helpful to calm your nerves if you are concerned about this happening.

First, let’s agree the frequency that you purchase a vehicle is not determined by how many car vendors there are, with a few exceptions. It is determined by other factors such as reliability of your current vehicle, financial status, and family status. As such, if GMC stops making vehicles you are not more or less likely to purchase a vehicle in the future when your current car’s engine block blows. You may not be able to buy a GMC, but perhaps you purchase a Dodge instead.

Second, please be aware that many “foreign” cars are made in America and many of the Big 3 car manufactures produce vehicles outside of the U.S. I am still looking into research on this but 20% of Fords are made in Mexico and Canada, 50% of Toyotas are made here in America

Also remember that parts are sold and services are performed here in the states. Further remember that many parts are manufactured here as well for foreign and domestic cars alike. What this means is if you sell Chrysler parts and Chrysler goes under, another car manufacturer will have the demand for parts and service increase giving you the opportunity to transition over to be a vendor for that company.

On that note, just because no more new cars are coming out of Detroit doesn’t mean that the current ones on the road will never need parts or service. This allows vendors of this nature a lengthy transition time (5 – 10+ years) to change their business to a car manufacturer that is still in business. Those that do not want to transition have the opportunity to have a niche market similar to those that restore older cars and have used car parts. Junk yards could also see increased revenue based on car manufacturers closing.

The history of the big three in Detroit has been one of placing non competitive vehicles on the road compared to their foreign counter parts. According to Consumer Reports Ford recently has finally caught up with Toyota as far as quality is concerned. GM and the others still lag behind, making gains in quality but so far not being able to replicate the other manufacturers. The big 3 have lagged behind in quality and ingenuity for over 30 years.

Some might make a bunch of excuses about this, cheaper labor overseas, etc. But let’s compare these a little more closely. The Toyota Tundra, truck of the year and one of the most highly reliable trucks on the market, is built here in the United States. How do the big 3 in Detroit argue that they can not make as reliable as a vehicle when a company is using the same labor force, same part manufacturers, same pay rate (The hourly rate at the Toyota plant is .25 less than that at Detroit), and is able to deliver a truck far superior to theirs?

Partly we have the UAW to blame. Living in the northern states for awhile I noticed the culture of entitlement that dominates there. Employees believe they are doing the company a favor by working for them. This creates a lack of quality in work, a lack of concern for the fate of the company until the company is bankrupt, and an overall attitude of disgust for the very employer that is putting food on the table of these Americans. Lawsuits, pension plans, company paid health care after you retire, and much more has crippled the big 3. How many jobs do you know where you could work there 25 years, pay 50,000 into a health care account, then receive free health care for over 25 years and spend any amount of money you need? Anyone can see where that could be an issue.

These things are not in place at American plants that produce so called foreign cars. They have learned from the mistakes of labor agreements and have more traditional benefits packages like thousands of other corporations have here in the states. You want some retirement? Then invest in a 401K, the company will match your contribution up to x%.

Most importantly, the big picture is that there just be a redistribution of wealth when and if the big 3 close. The lack of quality and innovation, coupled with unrealistic labor agreements and managerial practices have caused the company to be in the position they are in now. These same deficiencies will continue as indicated by their 30 year lag in quality control with or without bailout money. John Adam’s invisible hand needs to be allowed to roam here.