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Cheap Cows and Lower Taxes

5/1/2015

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What do cheap cows and lower taxes have in common? I remember my experiences back when I was managing dairy sales in the 60’s and 70’s. There were always a few good cows who brought more than they were worth because two or more buyers were especially interested in them. Then the bulk of the herd brought close to real value and went on, in most cases, to make money for their new owners. It was the bottom tier, the old cows and poor producers, who sold for less but still more than they were worth and ended up losing money for their new owners. In these situations, the buyers came to buy, passed on the good investments to supposedly save money, and ended up losing on their smaller outlay of cash.

Similar results occur with the farmer and the application of fertilizer. Applying the right amount does make a big difference. Under-fertilizing will save some upfront money but will likely reduce the result, making the cut a net loss. Over-fertilization will, at the very least, waste money or, worst case, do serious damage. Correctly making these decisions requires a process similar to how wise government actions come about. It is also why having responsible progressives pushing and being moderated by sound conservatives can lead to positive results for the community, the state, and/or the country.

The bottom line is: investing less can cost you more when you factor in the lack of returns and the unintended consequences. For an example, funding public education at a lower level might just be costing us more. On the flipside, investing too much in an area can waste tax dollars and/or produce less efficient results when compared to investments made more wisely. Both are true in buying cows and funding government services. As they say, you have to find that “sweet spot.”
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    John W. Carlin​—​61st Speaker of the Kansas House, 40th Governor of Kansas, 8th Archivist of the United States, and student of leadership

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