Classic car auto insurance can be more difficult to find in a standard car auto insurance company than ragged insurance. Finding classic car auto insurance at competitive rates can be even more difficult. In many cases, a person will have to locate a classic car auto insurance specialty company to insure his or her car with. It is especially helpful to choose a company that specializes in classic car auto insurance, because these companies may have a better understanding of the type of insurance necessary for a classic car. Some of these classic car auto insurance carriers can be found on the Internet.

There are several classic car auto insurance carriers that are available on the Internet, both for quotes and the purchase of auto insurance policies. The policies offered by these carriers may be more suitable for classic cars than those offered by ragged insurance companies. Hagerty is a classic car network that offers many different services for classic car owners, including classic car auto insurance.

Another classic car auto insurance carrier is American Collectors Insurance, which is said to be the leading provider of classic auto insurance and collectibles insurance in the United States. This company, and others like it, will work out and agreed value on a car with the insured. What this does is allows a classic car collector to keep a classic car in perfect condition, or restore it perfect condition, with the knowledge that his or her investment will be protected by that individual’s insurance company. In incompatibility, many standard insurance companies will simply work out what they determined to be the blue book value of a car, whether it is classic or not, which may reduce the value of a classic car owners claim in the event something were to happen to his or her car.

Although classic car auto insurance can be more difficult to find at times than traditional auto insurance, there are companies that specialize in class car auto insurance. While a person may be able to acquire classic car auto insurance through a traditional broker, it may be beneficial for a person to research what is available online prior to committing to one insurance company. By using the Internet, a person can find classic car auto insurance through specialized dealers who understand what a person seeking this type of insurance really needs.

Yes, it’s correct. ABC has announced that “Caveman“, a sitcom based on the popular caveman characters from the GEICO insurance television ads, will be on their fall schedule. While spinning off a television commercial into a sitcom may appear to be a violation of FCC rules by some, there has been precedent.

The most recent example is “Baby Bob“, a very short-lived 2002 sitcom starring a talking man-baby character that had starred in a series of ads for FreeInternet.com. Although the high-profile company died after the unpleasant dotcom crash, the talking baby emerged unscathed with his own CBS sitcom, “Baby Bob.” When the network cancelled the show after only nine episodes, Bob emerged one more time to star in a series of TV commercials for Quiznos Subs. In 2007, he was even too creepy for Quiznos and his character was pulled from all further ads. But, don’t feel too sorry for Bob. He still has his own web page on the Quiznos site.

From a critic’s standpoint, “Baby Bob” serves as additional proof that what has worked in the 30-second ad format has been difficult to support in a much longer sitcom or motion picture format.

Of course, there are exceptions to every rule.

Jim Varney’s brilliant “Hey Vern!” character, Ernest P. Worrell, not only translated well into a children’s television show, but also became a successful series on the huge screen.

In 1980, a Nashville-based advertising agency, Carden & Cherry, cast struggling humorous actor Jim Varney as Ernest P. Worrell in a series of Southern regional TV ads for a variety of products. His Ernest character was a talkative nosy neighbor whose catchphrase was “know whut I mean? ” The ads caught on and the Ernest P. Worrell character then began appearing in various commercials across the country. In 1988, CBS brought “Hey, Vern! It’s Ernest!” to their Saturday children’s television line-up. Although the series lasted only a year, the Ernest P. Worrell character next made a successful transition to the big screen, starring in a series of beneficial low-budget movie comedies including “Ernest Goes to Camp”, “Ernest Saves Christmas”, and six others.

The California Raisins also transitioned to children’s television, in their case, a cell-animated series. They made their debut as a claymation-animated Motown-style singing group in a 1987 commercial for the California Raisin Advisory Board. Like Ernest, their TV series only lasted a year. However, their ancillary merchandise still continues to sell.

The Max Headroom character took the opposite route from the prior mentioned characters. He began as a cyberpunk protagonist in a 1984 British television movie. In 1987, Max Headroom came to the States as an ABC television series. Despite a strong cult following, it only lasted fourteen episodes. After the show was cancelled, Max appeared in a series of highly successful commercials for Coca-Cola.

SOURCES:

“Gauging viewer tastes”, Stuart Elliot, New York Times, URL: (http://www.nytimes.com/2007/05/16/business/media/16adco.html? _r=1&oref=slogin)

“Who Owns Your Big Idea? “, Noreen O’Leary, Adweek, URL: (http://www.adweek.com/aw/national/article_display.jsp? vnu_content_id=1003556825)

“Why advertising’s cavemen are going totally Hollyrock? “, Brooks Barnes and Suzanne Vranica, Wall Street Journal, URL: (http://online.wsj.com/public/article/SB117305670677226518-GDYgRU6JmWO40cfjfFMEDLLE_DM_20070311.html)

“Caveman Chic”, Ramin Setoodeh, Newsweek, URL: (http://www.msnbc.msn.com/id/17887559/site/newsweek/)

http://adweek.blogs.com/adfreak/2006/06/quiznos_finally.html

“Peer who’s hawking”, Seth Stevenson, Slate, URL: (http://www.slate.com/id/2112786/)

“Advergaming”, David Radd, Business Week, URL: (http://www.businessweek.com/innovate/content/oct2006/id20061011_567417.htm? chan=innovation_game+room_top+stories)

http://en.wikipedia.org/wiki/Ernest_P._Worrell

http://en.wikipedia.org/wiki/California_Raisin

“Max Headroom”, Henry Jenkins, Museum of Broadcasting Communications, URL: (http://www.museum.tv/archives/etv/M/htmlM/maxheadroom/maxheadroom.htm)

Executive Summary

Since the later piece of the 1990s, Chile has gone to liberalize and reform its already open investment and trade regimes. It is coping with the demands of having free trade agreements with countries from different parts of the globe. Along this line, this paper details Chile’s macroeconomy with special focus on international trade. The first part of the paper presents an overview of the Chile economy, which has experienced significant economic growth in the past few years. The second fragment briefly tackles the export-import activities in the country. The third part discusses Chile’s major trading partners – the United States, Canada, Mexico, New Zealand, and South Korea.

The fourth share delves into Chile’s trade policies, their objectives, the major trade laws and regulations in the country, Chile’s participation in the World Trade Organization, tariffs as a principal trade instrument, bilateral initiatives, and cross-regional trade agreements. The final part of the paper tackles some foreign trade barriers. Overall, this paper finds that, despite the experience of Chile as one of the more competitive trading countries in Latin America, it needs further improvement regarding import policies, export controls, government procurement, intellectual property rights, and labeling, testing, standards, and certification.

Chile Economy: An Overview

With its high level of foreign trade Chile’s economy is characterized as market-oriented. Chile’s economic reform strengthened even more when the democratic government took over from the military in 1990. The country experienced high economic growth in the early 1990′s but due to the tightening of monetary policies (implemented to keep current account deficits in control and lower export earnings) it went to half that in 1998. This was also caused by the financial crisis’s that were occurring globally. In 1999, their economic growth slowed yet again due to a severe drought that lowered crop yields and hydroelectric energy. With exporting markets growing and the price of copper going up Chile started to recover in the year 2000.

Chile, with its lifted trade restrictions and reduced tariffs, has become known for its free market economic policies. It currently has the highest rating available by the International Monetary Fund for the absence of the trade restrictions. In order to diversify is economy the country has realized the need to expand its international trade and financial ties with other major trading nations. Foreign companies are allowed to own 100% of the company located in Chile.
The central bank has stopped the dollarization of the peso to the U.S. dollar as of 1999. Although the peso has declined about 20% since this action was implemented the foreign reserves remain strong. This economic strength supports the dependable inflow of unrestricted foreign capital. Even though the economy on a global scale has been declining, Chile has grown. The central bank of Chile has managed to maintain inflation between two and four percent.
With the economic growth, the country is experiencing, Chileans are now enjoying new financial opportunities. These opportunities include home equity loans, currency futures and options, factoring, leasing, and debit cards. Along with these unusual products, loans and credit cards are becoming increasingly more popular. With assets worth about $54 billion, Chile’s private pension plan is an important source of investment capital for the capital market. Chile currently has one of the best credit ratings in Latin America.

Real GDP growth between the years 1991-1997 was estimated at about 8%, but plunged to 4% in 1998 as a result of tight monetary policies executed to keep the current account deficit in check (CIA World Factbook). This was also because of lower export earnings, a result of the international financial crisis. In spite of the impacts of the 1999 recession due to the global economic slowdown which was worsened by a drought affecting crop yields and resulting in hydroelectric shortfalls and rationing, Chile sustained its plot for sound policy and strong financial institutions that have accorded it the strongest sovereign bond rating in Latin America. Towards the end of 1999, Chile’s economic activity and exports was on the road to recovery. In the period 2000-2007, economic growth ranged between 2%-6% (CIA World Factbook). Figure 1 below shows Chile’s GDP per capita from 1945 to 2003.

All through these years, the country sustained a low rate of inflation; GDP growth came from growing domestic consumption, solid export earnings (especially mining, fishing, and forestry), and high copper prices. In 2006, President Michelle Bachelet led the establishment of an Economic and Social Stabilization Fund aimed at holding excess copper revenues in order to maintain social spending during periods of copper shortfalls. It was expected that this fund would exceed $20 billion by the closing of 2007 (CIA World Factbook).
Unemployment went beyond the country’s usual 4%-6% range during the recession and has since remained in the 8%-10% range. Unemployment dropped to 7.8% and 6.7% at the end of 2006 and 2007, respectively (CIA World Factbook). However, despite fresh labor problems, wages have risen faster than inflation in the past few years due to higher productivity, which boosts national living standards. Figure 2 illustrates inflation/ unemployment in Chile (1999-2005 annual rates).

The foremost fair of the Central Bank of Chile is to maintain a moderate inflation level. December-to-December inflation in 1996 remained at 8.2%, dropping to 6.1% and 4.7% in 1997 and 1998, respectively. In 1999, during the recession, the inflation rate dropped to only 2.3%. Most spending decisions and wage settlements are indexed, lessening inflation volatility. In 2000, the inflation rate was 4.75% (CIA World Factbook).
Total private and public investment in the country has remained high in spite of recent economic difficulties. The Chilean government sees the need for private investment to improve worker productivity. The country also strongly encourages diversification, including non-traditional exports such as fish, wine, and fruit to lessen the relative importance of basic traditional exports like timber, copper, and other natural resources.
Chile attracts foreign direct investment (FDI), and most foreign investment goes into mining, electricity, water, and gas. The country’s welcoming and friendly attitude toward FDI is codified in its Foreign Investment Law, which provides foreign investors the same treatment as Chileans. Basically, registration is transparent and simple, and foreign investors are given access to the official foreign exchange market to send back their capital and profits. In May 1999, Chile’s Central Bank decided on the elimination of the one-year residency requirement on foreign capital that enters Chile under the regulations of the Central Bank, generally for portfolio investments.

Total FDI flows in 2000 contracted to 3.6 billion dollars, down from 9.2 billion dollars in 1999 and 4.6 billion dollars in 1998. The 2000 figure is about 13% of GDP. In the same year, Chile had an outflow of 1.4 billion dollars. This was largely due to diminished inward foreign investment and heightened levels of Chilean direct investment abroad (4.8 billion dollars) (CIA World Factbook).

Among the various sectors of the economy the percentage share of the services sector in the total GDP is the highest. It was 56.6 as in the year 2004. Chile’s valuable industries are textiles, cement, transport equipment, wood products, foodstuffs, iron and steel, fish processing, copper, and other minerals. The percentage share of the industrial sector in the year 2004 was 34.5 compared to 40.5 in 1984. The services sector in the country is improving in the recent years. The percentage share of the services sector in the total GDP as of 2004 is 56.6. The following design shows the percentage share of the various sectors of the economy in total GDP over the years (Economy Eye).

Source: Economy Watch

Import-Export

The major agricultural products of the country are wheat, corn, grapes, sugar, potatoes, fruit, beans, beef, poultry, wool, fish and timber. The percentage share of the agriculture in the total GDP as of the year 2004 has reached at 8.9 as in 2004. The country has experienced both the trade surplus as well as the balance of payment surplus over the years. Figure 4 in the next page gives a clear picture upon the levels of imports and exports in the country.
In 2007, it was estimated that exports reached 66.43 billion dollars. The major export partners of Chile are the United States (15.6%), Japan (10.5%), China (8.6%), Netherlands (6.7%), South Korea (5.9%), Italy (4.9%), Brazil (4.8%) and France (4.2%). Major export goods are wine, chemicals, paper and pulp, fruits, fish, and copper. The Chilean government encourages the export of non-traditional export products to guarantee diversification and limit dependency on export products. Frail items include natural resources such as timber and copper and non-traditional export goods include fish, wine, and fruit. Non-traditional export items have far exceeded the traditional ones in terms of growth (CIA World Factbook).

In the same year, Chile imported about 41.8 billion dollars worth of goods. The country’s major import partners are the United States (15.6%), Argentina (12.6%), Brazil (11.8%), and (China 9.7%). The following are the primary imported products: natural gas, vehicles, industrial machinery, electrical and telecommunications equipment, chemicals, and petroleum and petroleum products (CIA World Factbook).

Trading Partners
The country’s export markets are fairly balanced North America, Latin America, Asia, and Europe.

Since 1991, Chile has entered FTAs with a number of countries such as the United States, South Korea, Mexico, Canada, Central American nations (Nicaragua, Guatemala, Honduras, El Salvador, and Costa Rica), the European Union and the European Fair Trade Association (EFTA). This shows that Chile has trade access to more or less half of the world’s GDP. In addition, Chile is currently holding free trade negotiations with Singapore and Recent Zealand and plans to negotiate with such economies as Japan, China, and India. Moreover, Chile is also a member of many international economical instances, such as Asia-Pacific Economic Cooperation (APEC), Organizzazione mondiale per il commercio (OMC), and Mercado Comun del Sur (Mercosur). Such diversity of trade relations makes the Chilean economy non-exclusively dependent of any major partner, providing stability.

United States

The meeting of minds between the United States and Chile has resulted in a long awaited union relating to free trade. Chile was enthusiastic when presented with the prospect to become a part of North American Free Trade Agreement (NAFTA) in 1994. However, the merger did not come to completion due to the issue of presidential fast-track trade negotiation authority. Now, after negotiations began in the 2000 — Chile and the United States have come to their own agreement pertaining to free trade, one that is both comprehensive and historic in nature. The Chile-United States FTA was signed on September 3, 2003 and came into effect on January 1, 2004. Chile was the first Latin American country to sign FTA with the United States.

The benefits of an FTA for the United States are significant. One of the major factors in the Chile-US FTA is that Chile has FTAs with the European Union and Canada, two of America’s major competitors. It is estimated by the National Association of Manufacturers that, because of the lack of an FTA with Chile, US exporters lost about $800 million in sales in 2002 (Ferrer and Segatore 1). An FTA will help to ensure that we enjoy market access, treatment, prices and protection at least as good as our competitors. Consumers will benefit from lower prices and more choices. With an FTA with Chile, the United States will strengthen its competitive position (Ferrer and Segatore 1).

One of the instant benefits of the Chile-US FTA will be the speedy removal of tariffs on industrial goods. Over 85% of bilateral trade in consumer and industrial products became duty-free as soon as the FTA came into force (McDougall 1). The FTA will remove tariffs on services and goods, over a twelve-year period for agricultural goods and a ten-year period for industrial products. Chile’s luxury tax on cars has been phased out, and it is expected that the number of automobiles subject to the tax dropped quickly following the implementation of the FTA. Immediate duty-free access includes paper products, wood, medical equipment, computers and other information technology (IT) products, cars and automotive parts, and heavy equipment and machinery.

Service providers will be benefited in the Chile-US FTA. More to facilitating market access, the trade agreement contains provisions to make definite that the following are realized: publication of all regulations; provision of advance comment and notice periods for proposed rules; discussion with concerned parties before the issuance of regulations; and the use of transparent and open administrative procedures by the regulatory authorities. Although commitments to enhance market access are applicable to almost all service division, the agreement between Chile and the United States includes special provisions pertaining to e-business, telecommunications, and financial services (McDougall 1).

The Chile-US FTA also expands America’s access to bigger markets in Latin America including Brazil and Argentina, which already have FTAs with Chile. One of the most significant benefits of the Chile-US FTA is that it creates a predictable and secure correct framework for American investors in Chile. Considering the stable economic and political environment of Chile, this makes a conducive environment for US businesses (Ferrer and Segatore 1).
According to Christopher Padilla, Assistant US Trade Representative, Intergovernmental Affairs and Public Liaison Small and medium-sized enterprises will benefit from the tariff-eliminating provisions of the Chile-US FTA. In the past few years, American companies have confronted heightened competition from Canadian and Mexican firms who already reaping the benefits of their FTAs with Chile. Additionally U.S. small businesses will substantially benefit for the progressive agreements on transparency in law, customs facilitation and intellectual property rights protection.

Another benefit for American exporters is the abolition of Chile’s price bands on such staple goods as sugar, edible vegetable oil, wheat, and wheat flour. In addition, special provisions in the trade agreement will also help protect American ranchers and farmers from the speed in imports from Chile that the agreement may bring about. The following are the major farm products seen to benefit from enhanced market access: processed foods, feed grains, potatoes, durum wheat, soybeans, pork and pork products, and beef and beef products (McDougall 1). Tariffs on wine will be equalized with the current United States tariff rates and then phased out.

The Chile-US trade agreement will bring about many other benefits, such as protection of environmental and labor standards, provisions for temporary entry of personnel, and government procurement guidelines. The pact also contains up to date, high-level intellectual property protection, like trade secrets, trademarks, patents, copyrights, and strong measures to combat counterfeiting and piracy. Investors in the United States are permitted to make, get hold of, and control investments in Chile on the same footing with the Chilean investors in nearly every circumstance; this is in addition to receiving expropriation rights and due process protection.

The FTA is a victory for the Chilean government. More than 1,900 Chilean firms, almost half of which are puny and medium-sized enterprises (SMEs), sell their products to the US. The evident benefits these firms, and other exporters in Chile, reap from an FTA with the US, the world’s economic and political superpower is massive. For one, the country will pick up even more global reputation than it already has. This location will result in the lowering of its risk rating; as a consequence, interest rates will be depressed and the country will attract more investments from many countries around the world. Chileans will also be able to have much cheaper and better technology, providing them an grand advantage over their competitors. An imperative term for Chile is that the American government allows 1,400 Chilean professionals to enter the united States every year, as compares to only 200 in 2002 (Ferrer and Segatore 1).

Chile’s labor force is well trained, innovative and productive. Democratic administrations in Chile have understood the link between education and successful development. They have consistently invested in an expanded kindergarten-through-adulthood learning system. Furthermore, Chile’s innovative and widespread private-pension fund system provides workers with long-term financial security and stability. This is why the United Nations has recognized Chile as one of the world’s “High Human Development” countries. Chile’s modern infrastructure, private telecommunications network, Internet penetration and high level of economic freedom provide for efficient, low-cost distribution channels and communications with the United States and Latin America. The Economist ranking of e-business readiness placed Chile ahead of the rest of Latin America in this area.

Chile has been the best-managed economy in Latin America, and the fourth fastest-growing in the world over the last decade and its growth continues. Chile is a symbol of economic and social progress and has surpassed numerous developed countries in international indices that measure the success of nations. Chile’s democracy is solid, accountable and growing stronger. Its commitment to human rights, including worker rights, and to a free society under the rule of law is unwavering. Chile is also committed to sustainable development and environmental protection.

Chile shares America’s political and economic values and supports freedom at home and abroad. It has been a reliable supporter of U.S. foreign policy initiatives in the Americas and around the world, including the trouble to combat terrorism following September 11, 2001. The completion of the Chile-US FTA underlines the United States’ intent at negotiating and concluding trade agreements with Latin American countries, opening the door for future FTAs within the region. At demonstrate, the US is involved in negotiations for the Free Trade Space of the Americas (FTAA). While the American government considers the special state of affairs of each country with which it negotiates FTAs, the high standards and the broad scope of the Chile-US FTA should assist additional investment and trade liberalization in the Latin American region and help in setting the tone for future FTA negotiations (McDougall 1).

Finally, the Chile-US FTA will improve the already finish commercial relationship between Chile and the United States. The FTA will be very positive for the assimilation of the hemisphere (Ferrer and Segatore 1). The agreement provides another model for an FTA between the United States and small countries. As Chile has an FTA with the majority of economies in Latin America, it could possibly increase and improve trade between the United States and these countries. Considering these factors, the Chile-US FTA represents an advancement for negotiating an FTAA. Overall, the Chile-US FTA is a win-win situation for both countries.

Canada

The Canada-Chile FTA was signed in Ottawa in 1996. Included in this agreement are two parallel accords on labor and environmental co-operation, patterned after the NAFTA side agreements. One of the major features of the trade agreement is the elimination of Chile’s 11% import duty on virtually all remaining resource-based and industrial goods over five years and the immediate duty-free access for 75% of Canadian exports. Another feature is the improved access for a variety of agricultural goods. For instance, tariffs for durum wheat, representing 35% of exports in this sector, would be eliminated instantly (Government of Canada 1).

The agreement also put into place a significant new protection for Canadian investments in Chile, which included an agreement to award Canadian investors the benefits of any future liberalization. It also included an undertaking to negotiate a bilateral double taxation agreement. The Canada-Chile FTA also created a Free Trade Commission and secretariat to guarantee the effective and timely resolution of disputes. In addition, Chile and Canada had side agreements regarding labor and environment, the first of this kind ever signed by Chile. Under these agreements, Canada is allowed to actively participate in the further modernization of Chile’s environmental and labor practices and laws; Chile does not have agreements of such nature with any other country.
The two countries also agreed on the mutual elimination of anti-dumping duties. Chile and Canada agreed to exempt supply-managed products and cultural industries and fully protect health and social services. Moreover, Chile and Canada also signed an accord on social security envisioned to guarantee continued coverage when Canadian employees work in Chile. This allows Canadian employees to stay away from having to pay into the Canada Pension Plan and its counterpart in Chile. The agreement will also enable Chileans now residing in Canada to receive Chilean pensions.

Chile and Canada expected that the CCFTA would boost trade. The Canadian Embassy’s senior trade commissioner in Chile, Sylvain Fabi, describes the agreement as “completely successful”. Likewise, the website of International Trade Canada views CCFTA as a success record. However, the figures from the Chilean foreign ministry and Statistics Canada reveal a different fable. Since the agreement was implemented, Canada’s exports to Chile have hardly improved. In 2005, Canadian exports had amplified only to $411 million, compared to the $388 million increase in 1995.Additionally, trade in services presents an especially dismal recount, decreasing to $159 million in 2004, $13 million less in 1997 (Campbell 1).

Mexico

Among Latin American countries, Mexico and Chile are the most open economies (Cevallos 1). They are the only economies in the plot to have signed FTAs with the United States and the European Union. Also, together with Peru, Chile and Mexico are the only Latin American APEC forum members. Additionally, the two countries have agreed to dozens of other free trade accords, including the agreement freeing up trade between Chile and Mexico themselves. The Chile-Mexico FTA was signed in Santiago, Chile on April 17, 1998 and came into effect on August 1, 1999.

Chile’s FTA with Mexico governs various disciplines, which is similar to the Chile-Canada trade agreement. The Chile-Mexico FTA has six parts: (1) general aspects and definitions; (2) trade in goods and matters related to safeguard measures, national treatment, customs procedures, rules of origin, and market access; (3) technical rules such as sanitary rules and phytosanitary rules and other standards; (4) services, investments, and related matters; (5) intellectual property rights application; and (6) institutional and administrative provisions.

Under the Chile-Mexico FTA, gigantic part of the tariff table has 100% tariff preference. Only 100 products bear various levels of taxes. Forty two products have percentual tax rebates and 58 products are not. In addition, some goods are subject to quotas, such as automobiles and non-originating apples. The two countries have assign into state a strategic association agreement with the purpose of improving trade, cultural, diplomatic, and political relations between them as well as relationships with the civil society. The Chile-Mexico FTA also establishes a fund that will supply $2 million yearly for development projects in Mexico, Chile, and third countries (Cevallos 1)

From the time Chile-Mexico FTA came into effect to 2006, bilateral trade from 1.4 billion dollars to about 3.3 billion dollars, a 130% increase. Furthermore, between 1990, when the Chilean and Mexican governments reinstated diplomatic relations, and 2006, there was an increase of about 2,000%. In spite of this tremendous growth, however, trade with Chile represents not more than 1% of Mexico’s exports and imports, whereas trade with Mexico is equal to 3.2% of Chile’s total trade (Cevallos 1).

New Zealand

As active campaigners and lobbyists for free trade, Chile and New Zealand have concurrently followed unilateral, bilateral, multilateral, and regional trade liberalization (Salazar 5). Aside from far-reaching initiatives towards the unilateral opening of their economies (Original Zealand in 1984 and Chile in 1975/1976) and their continued support for multilateral discussions, since the first half of the 1990s the Chilean and the New Zealand governments also facilitated negotiations to assess the alternatives for a bilateral FTA.

It was a new option for New Zealand after its previous Closer Economic Relations (CER) with Australia. For Chile, it was a second initiative after having negotiated one with Mexico. However, following two preliminary rounds, the Chilean government requested for a postponement of the discussions because of the sustained resistance of its agricultural sector. They believed that Novel Zealand’s dairy was way too competitive and strong; the bilateral liberalization of the dairy industry could spell disaster to the less efficient and smaller Chilean farmers (Salazar 5).

In 1999, Singapore and Unusual Zealand decided to negotiate their own trade agreement. In the following year, Current Zealand, Singapore, and Chile considered setting into station a multiparty study assembly to explore mutual acknowledgment of standards and credentials, and the possibility for a trilateral system for a Closer Economic Partnership (CEP). The “Pacific Three” (also known as P3) was officially raised at the 2000 APEC Summit in Brunei, when Singapore’s Prime Minister Goh Chok Tong, New Zealand Prime Minister Helen Clark, and Chile’s President Ricardo Lagos approved the view of a broad free trade negotiation concerning the three countries as the first step for an expanded trade and investment liberalization area within APEC (Salazar 5).

Lagos and Clark agreed during the latter’s visit to Chile in November 2001 that the two countries should conduct a study analyzing the possible issues that could take region in the execution of a CEP between Chile and Unusual Zealand. In 2002 the studies yielded positive results regarding the possible net economic benefits for Chile and New Zealand in the shape of scientific cooperation and technology transfer, increased bilateral services and investments, and global and regional liberalization. At the time, critics pointed out that the respective studies were only on the surface since they did not present data on the particular gains that were expected from the CEP. However, the CEP is not unprejudiced about increasing bilateral flows of merchandise, it is also a structure for joint strategic activities between Chile and New Zealand in third markets (Salazar 6)

Consequently, at the 2003 APEC Summit in Mexico, the three countries – Chile, Singapore, and New Zealand – relaunched P3, an effort that meant the resumption of the Chile-New Zealand trade talks. However, once again, the negotiation process was delayed and faltered as a result of novel pressures from the lobbyists of the dairy sector in Chile. Eventually, following this difficult period, a better understanding between dairy industry producers and processors in Chile and the renewed enthusiasm from the government enabled the bilateral talks to resume (Salazar 6).

There are several good reasons for a Chile-New Zealand CEP (Salazar 21-22). First and foremost, a high quality and comprehensive Chile-New Zealand CEP will contribute improved global trade liberalization in the World Trade Organization (WTO) and will help foster more cooperation within APEC. The CEP can also give each party with some benefits in the trade of products. In the first phase, it should level the playing field and recompense for the trade deviations and trade distortions as a result of the preferential rights that has been already conceded by New Zealand and Chile to third countries in prior CEPs or FTAs. However, for the medium- and long-run, a business-friendly CEP should offer a general structure for an swell of trade services and goods, and for broader economic relationships and extra cross-investments flows among the parties.

In a period of heightening globalization, where science and technology and innovation are making the difference in the improvement of competitive advantages, the CEP can give the suitable atmosphere for such petite economies to increase their research and development spending by achieving greater efficiencies and avoiding duplication from their limited national resources (Salazar 22). A deeper assimilation between Original Zealand, and Chile, will have a positive effect in their respective trade bargaining power and, eventually, in their individual international positioning.

South Korea

In November 1998, the Inter-Ministerial Trade Policy Coordination Committee formally declared that South Korea it was pursuing FTA with Chile. In the following month, the South Korean government formed a team on a Chile-South Korea FTA, which consisted of working groups that covered legal procedures, vivid property, services, market access, and trade rules (Chung 74). Chile-South Korea FTA negotiations came in three different stages: the pre-negotiation stage (November 1998-September 1999); the negotiation stage (December 1999-February 2003); and the ratification stage (August 2003-February 2004).

Talks for a Chile-South Korea FTA continued, intermittently and discordantly, for nearly three years and in the course of six official rounds of negotiations from December 1999 to October 2002 (Park and Koo 263). One of the major reasons for the delay was the differences on the degree to which agricultural goods would be included in the FTA. In summer of 2000, Chile was irritated when South Korea’s proposal, excluded apples and pears. The negotiation eventually resumed in February 2002. South Korea changed its agricultural liberalization policies and made a proposal that was more in tune with Chile’s request, like lower off-season tariffs to Chilean grapes. In exchange for accepting South Korea’s request to exclude pears and apples, however, Chile demanded that sensitive manufactured items like washing machines and refrigerators be removed from wish list given the local opposition in Chile.
Chile and South Korea wanted to sanction the FTA as quickly as possible (Park and Koo 262). The Chilean House of Representatives, however, did not pass the agreement until August 27, 2003. The issue regarding inter-sectoral complementarity between Chile and South Korea was considered as one of the most contentious points of debate. The structural adjustment expenditures of farming sector were a major source of conflict. While the agricultural sector represents only a portion of the national economy, South Korea’s established attachment to rural areas made many of its citizens sensitive with agricultural protectionism. Nevertheless on February 16, 2004, South Korea’s National Assembly eventually managed to ratify the agreement. South Korea agreed to remove tariffs on Chilean wheat, tomatoes, wool, copper products, and over 200 fish products. On the other hand, Chile got rid of South Korean cars, televisions, air-conditioners, computers, and cell phones.

Overall, there is a favorable environment for foreign investors in Chile. With this warm welcome, they offer liberal foreign- investment laws and a favorable tax regime. Decree Law 600 was established in 1974, based on promoting non-discrimination between local and foreign investors. This allows foreign investors to operate on the same level as local investors. Foreign investors can have from three to eight years to implement their investment depending on the invested amount of US dollars. In November of 2002, an investment platform initiative was launched by the Chilean Government to encourage foreign investment growth. This initiative addresses several incentives to achieve this type of growth. Exemption from the Chilean earnings tax on profits the firm receives from its overseas subsidiaries is one incentive. This addresses the issue of three-way taxation (Deloitte Web Guide).

Chile’s Trade Policies

Objectives

The following are seen as the most important objectives of Chile’s trade policy: (1) the stimulation of the competitiveness and efficiency of national producers; (2) the promotion of regional economic cooperation; and (3) the reduction of any existing anti-export bias in the tariff arrangement as well as the reduction of level of effective protection (WTO 14). The Chilean authorities see permanent and secured access to international markets, in conjunction with the capability to draw foreign investment, as critical to the country’s economic growth. In this light, initiatives about the negotiation of novel preferential trade contract have been strengthened in the past few years.

Trade Laws and Regulations

The Rules on the Importation of Goods (Law No. 18.525) is the country’s major trade law. Modified and revised many times since 1997, it contains regulations on the price band system, contingency measures, customs duties, and customs valuation (WTO 16).

In addition, the Customs Law, which integrates several ancient legal instruments, has provisions on import and export procedures. The modification of export promotion programs (Law No. 19.589) provides for an easing out of the Chile’s most favored nation (MFN) tariffs, revising a number of export promotion programs aimed at bringing them to fit with the country’s WTO commitments.

A draft law on miscellaneous WTO-related affairs was popular by the Congress in August 2003. Its well-known objective is to bring different individual conditions of the country’s legislation in tune with the WTO Agreements. Moreover, it also contains regulations pertaining to intellectual property, taxation, technical regulations, and customs valuation. It also provides for notification measures for conformity assessments and technical regulations, and for the eradication of the dispatch tax on products imported duty-free. It also provides for the elimination of the trade-related investment measures in the automobile sector. Moreover, it revises the quick-witted property law in Chile through specification of protection for textile designs, data compilations, and computer programs (WTO 16).

WTO Participation

Chile recognized the significance of the WTO as a rules-based body for the multilateral trading scheme at the 1998 Geneva Ministerial Conference. However, it raised concerns about the extensive consume of non-tariff barriers to trade. In the following year, at the Seattle Ministerial Conference, the country affirmed its commitment to open markets, arguing that going on with the process of agricultural reform will attend alleviate poverty. In addition, Chile also argued that stricter disciplines should be taken up in applying anti-dumping duties. Furthermore, investment issues and competition policy should match with the fresh investment disciplines under the General Agreement on Trade in Services (GATS) (WTO 21).

At the 2001 Doha Ministerial Conference, Chile viewed that clear-cut objectives should be put into place for distinguished reductions in the barriers to market access, for a significant reduction in trade-deforming domestic supports, and for the removal of subsidies in exports. Additionally, Chile noted the increasing use and misuse of anti-dumping duties for protectionist reasons and that it should be resolved. Also, environmental measures should be contained within the structure of multilateral disciplines and rules, keeping away from the risks that could result in discrimination and protectionism (WTO 21).

Tariffs

Chile uses tariffs as its principal trade policy instrument. It grants MFN treatment to its trading partners. The applied MFN tariff has dropped from 11% in 1997 to 6% in 2003 (WTO viii). Tariffs are applied at a generally uniform rate. There are exceptions: a handful of agricultural goods (sugar, edible vegetable oils, and wheat and wheat flour) subject to a label band and system vessels and aircraft, which receive duty-free treatment. The country bound all its tariffs (most at 25%) in the Uruguay Round. Several agricultural products are subject to 31.5% bound rate at the completion of the implementation. Following the end of the Uruguay Round, Chile pursued Article XXVIII renegotiations for sugar, leading to a boost of the final dash rate to 98%, along with the introduction of the country’s single tariff quota. Reconciling the large gap between bound and applied tariffs would increase Chile’s trade regime’s predictability (WTO ix).

Furthermore, tariff cuts under preferential agreements have contributed to the improvement of access to the Chilean market for partners. Duty-free access is given to the majority of imports from the European Union, Mexico, El Salvador, Costa Rica, and Canada. Preferential market access is also provided within the structure of partial scope agreements. In accordance with the national treatment principle and regardless of their origin, imports are subject to home taxes, most particularly a 18% value added tax (VAT) applicable on the cost, insurance and freight (CIF) value of imported goods. Also, various goods like vehicles, jewelry, and alcoholic beverages are subject to specific consumption taxes.

The use of non-tariff barriers seems to be small. For one, there is no import licensing system. Chile also maintains a variety of import prohibitions and restrictions, which equally apply to its trading partners, for environmental protection and health reasons. Chile modestly use contingency measures; at note, it imposes no countervailing or anti-dumping duties. In 1999, the country took on domestic safeguard legislation in 1999 and has since imposed some measures, some of which resulted in requests for consultation in the WTO.

Bilateral Initiatives

While adequate unilateral liberalization is a requirement for a successful trade policy, opening up unilaterally is not sufficient in itself to realize most trade policy objectives pursued. This is primarily because it does not give access to other markets. One of the most effective ways to achieve that objective, in Chile’s case, is through multilateral negotiations. Such option, however, is not always accessible. Likewise, considering the genuine nature of contacts among many participants with different interests and intentions, talks are likely to be slow and their outcomes do not necessarily fit with the needs and expectations of Chile at all times (WTO 9). Chile and other small countries have a limited capability to exercise any influence in the resolution of such problems.
Thus, bilateral initiatives are favorable as a complementary means of obtaining significant results more fast than would be likely at the multilateral level. Trade negotiations under the bilateral framework give an effective substitute when they are implemented with the Chile’s major markets. In the next few years, it is expected that more than 75% of the country’s foreign trade will be conducted tariff-free, suggesting a possible preferential market for producers place into place in Chile. It should be noted that 50 agreements or so for the protection of investments and reciprocal promotion have been concluded, this is in addition to 13 double taxation agreements and 37 air transport agreements (WTO 10).

It is important to label that while the countries with which Chile has negotiated trade agreements differ significantly, it has attempted to continue a clear consistency in its trade negotiations. This means that every new agreement negotiated must be coherent with the existing ones. On top of all, the recently concluded FTAs by Chile generally do not provide for the exclusion of any products. If they do, it is only for a very limited number of products. Trade agreements also have disciplines in the area of investment and services and also in other areas like bilateral dispute settlement mechanisms, transparency, trade defense mechanisms, government procurement, and smart property (WTO 9).

The impacts of such bilateral trade agreements go more than just advancing the reciprocal trade conditions. For instance, the increasing importance of a progressively more open trade regime in Chile has resulted in a shift in the country’s productive structure. To some extent, this shift can already be sensed today, a case in point is the use of agricultural land, where the area devoted to forest plantations, vines, fruit, and vegetables, has significantly increased at the cost of grassland and annual crops (WTO 9). This change in production should run in the next few years. The Chilean government hopes that the shift will be completely realized in the next trade policy review, which will be in 2009.

All together, these bilateral trade agreements may have significant macroeconomic impacts in that they contribute to the reduction of growth volatility. External volatility will be reduced with export diversification. It will also decrease with the stabilization of capital flows as a result of increased investor confidence in making their investment decisions. These agreements at the domestic level will strengthen the openness policy and the development strategy grounded on the attraction of FDI and exports (WTO 10).

Chile views the FTAA as representing an occasion to discuss on central subjects like investment, services, and government procurement with its Andean Community neighbors and Mecosur. At the moment, Chile has only tariff agreements with the Andean Community and Mecosur under the Latin American Integration Association (LAIA), which correspond to chief destinations for its supply of services and investments.

Cross-Regional Trade Agreements

In the beginning of the 1990s, the additive regionalism approach started to mold Chile’s trade policies. Immediately after President Patricio Aylwin Azocar assumed office, the country became one of the most active countries in Latin American pursuing FTAs. The significance of PTAs for its trade activities has increased since 1997. It has PTAs with the United States, Canada, the European Union, and some countries from Central America. Also, Chile has negotiated PTAs with the EFTA and South Korea. Chile sees that the major motive slack the policy shift is to ensure market access to its large trading partners.
How and why have cross-regional trade agreements (CRTAs) become a trade policy alternative for Chile over the last decade? The search for expanded or unique market access through investment liberalization and preferential trade is a potent determinant of partner selection. However, it is surprising that there is very little research that provides a consistent and clear rationale for selecting an ideal FTA partner.

Using the viewpoint of neoclassical trade theory, an FTA involving two economies with harmonizing structures of comparative advantage – a labor-abundant and capital-abundant country pair – would tend to promote inter-industry trade, bringing trade benefits in the form of efficient allocation of resources and economies of scale (Krugman and Obstfeld 24) The FTA between Chile and such countries as South Korea, New Zealand, Singapore, China, India, and the EU is apparently in line with the neoclassical prediction. On the contrary, novel international trade theories based on the differentiated products framework imply that economies that have the same structures of comparative advantage are likely to trade more through product specialization grounded on intra-industry trade resources (Krugman and Obstfeld 121). From this standpoint, an FTA intriguing countries with the same factor endowments would tend to maximize the gains from the trade.

The gravity model provides an alternative elucidation that connects economic size and geographic distance to the option of an FTA partner (Frankel, Stein, and Wei 49). To trim down the costs associated with geographic distance and to make the most of the benefits from economic size, the gravity model implies that neighboring countries structure FTAs with each other, thus establishing a natural trading bloc. Although the establishment of natural trading blocs enhances economic benefits, the creation of unnatural trade blocs between microscopic and/or distant economies possibly has minor certain impacts (Frankel, Stein, and Wei 149). From this view, Chile’s FTA with countries from other regions is a characteristic example of an unnatural trading bloc. This is not only because of geographic separation, but also because of the fact that the country’s economy is fairly small (Koo 144).

The gains to particular industries from CRTAs may encourage otherwise unlikely FTAs involving distant trading partners. Nonetheless, the early doubts regarding economic benefits on the one hand and the mixed forecasts of international trade theories on the other hand show that CRTAs do not make convincing economic sense at the early phase of negotiations. Consequently, it can be argued that many economies enter an agreement for instrumental and political, rather than simply economic, reasons.

CRTAs are a major characteristic of Chile’s eagerness for a multi-track FTA approach. From an institutional perspective, it looks like the country’s adoption of FTAs has been molded by a top-down political scheme rather than just bottom-up question from the general public and different interest groups. Chile’s motivations to go after CRTAs are very complex. These include leverage/diplomatic, political, and economic motives. Before further establishing FTAs with other trading partners, Chile needs to determine to pursue strategic FTAs with relatively smaller partners to minimize possible losses and risks and to obtain negotiation skills. It should also consider opening trade policies of other countries and their accumulated experience in FTA negotiations before considering them as trading partners. While Chile has to pay expensive tuition for its learning experience with its trading partners, it will certainly acquire technical know-how and negotiating skills.

Overall, the strategic and economic driver of the political leadership and the new bureaucratic balance of power have played an important role in Chile’s move toward regional trade agreements (RTAs) in general and CRTAs in particular. As evidenced by its previous and existing FTAs, Chile is trying to strike the right balance between cross-regionalism and intra-regionalism. The country’s CRTAs will in effect strengthen its intra-regional policy goals. Even though its pursuit of FTAs does not essentially mean that it has entirely abandoned the multilateral trading system, Chile’s trade policy departure is becoming increasingly important and obvious.

Foreign Trade Barriers

Import Policies

There are very few restrictions inhibiting imports and company growth for foreign agency wishing to do business in Chile. Trade regulations and standards that may affect importation to Chile include tariffs, trade barriers, import requirements and documentation, export controls, labeling and marketing requirements, prohibited and restricted imports, and customs regulations and contact information. The Chile-US FTA lifted tariffs on 90% of U.S. exports such as automobiles and parts, technology equipment, construction and agricultural equipment and medical devices. The FTA also states the Chile agrees to phase out its luxury tax on American automobiles. Other luxury goods, such as alcoholic beverages, jewelry, pyrotechnics, and tobacco products are subject to additional taxes. All imports are smooth subject to the same 19% Value Added Tax that is imposed on domestic goods.

The country’s trade regime provides for the free importation of goods, except for those goods that are banned under existing legislation. Sometimes a potential import to Chile, because of its nature, might be subject to special authorization or oversight by an enforcement agency such as the Directorate for Borders and Limits, General Directorate of National Mobilization, National Health Service, or the Agricultural and Livestock Service.
Customs authorities need to approve and issue a report for all imports valued at more than three thousand dollars. Imported goods must generally be shipped within 30 days from the day of the report, but longer periods may be authorized. Commercial banks may authorize imports of less than three thousand dollars (Office of the US Trade Representative 71). Larger companies need tot report their export and import transactions to the Central Bank of Chile. Commercial banks may sell foreign currency to any importer to cover the imprint of the imported goods and related expenses, as well as to pay interest and other financing expenses that are authorized in the import report.

Overall, there are very few import or investment barriers in Chile. In general, foreigners receive the same protections and operate under the same conditions as local firms. The Health Service Office at the port of entries must grant permission for all imports after testing and taking samples of the goods. Imported items for consumption must show country of origin as well as list all principal information in Spanish. Temporary admission on equipment or samples necessary to conduct business are duty free under Chilean law.

Few items of importation are prohibited in Chile. Used cars and cargo vehicles are prohibited. However, restrictions depend on Chilean approval. Products that are considered non-lateral with Chilean morals, public health, national security, or not favorable to the environment are such items. Chile’s overall policy is to comply with international standards, specifically the WTO Committee on Technical Barriers to Trade, barring that they look towards Chilean trade norms of their largest trading partners (European Union and the United States).

Chile has a complex price band system for sugar, wheat, and wheat flour that will be phased out under the Chile-US FTA for imports from the US by 2016. This system intends to guarantee a minimum and maximum impress for the covered commodities. When certain CIF prices fall below the floor, a special tax is added to the uniform tariff rate to raise the price to the minimum floor level. Stamp bands effectively set a minimum import mark that is normally higher than both international and Chilean domestic prices. On October 23, 2002, the WTO Dispute Settlement Body (DSB) ruled, however, that the country’s effect band system was inconsistent with Article 4.2 of the Agreement on Agriculture. Consequently, Chile agreed on a compromise proposal eliminating the price band system on vegetable oils.

The proposal also introduced several modifications for sugar, wheat, and wheat flour. Starting in 2008, the floor would be adjusted downward by 2% annually, until 2014, Mixtures that hold over 65% sugar content are now covered by the sugar price band system. On December 8, 2006 the DSB maintained their original ruling that Chile’s price band system is inconsistent with Article 4.2 of the Agreement on Agriculture as it is a border measure similar to a variable import levy and to a minimum import effect (Office of the US Trade Representative 72).

Export Controls

Customs authorities in Chile have to approve and issue export reports. Basically, exported products must be shipped within 90 days following the date of the export characterize, however this period may be extended under some special conditions. Exporters may use the formal or informal exchange market. Large corporations are required to report all exports to the Central Bank of Chile. Copper exports, which are authorized by the Chilean Copper Commission, are an exception.

Duty-free import of materials used in products for export within 180 days is allowed with prior authorization. Free-zone imports are free from VAT and duties if re-exported. The import/export process necessitates contracting the services of a specialized professional called a Customs Agent, who is the connection between the National Customs Service and the importer/ exporter. It is the mission of the Agent to smoothen the progress of foreign trade operations and to act as the official representative of the importer/exporter in Chile. Agent fees are not standardized (Office of the US Trade Representative 74).

Labeling, Testing, Standards, and Certification

Prior to the Chile-US FTA, many of Chile’s trade-restrictive sanitary and phytosanitary requirements prevented the entry of some US food and agricultural exports. During the FTA negotiations, an ad hoc SPS working group was created to address a number of issues of pain to both Chile and the United States. Through this, significant progress was made, including gaining new market access for US beef and processed beef products. In addition, under the current Chilean requirements, imported food products must provide physical and chemical, dietetic, and microbiological analyses and samples, regardless of whether the good has been reviewed and approved previously for another applicant. Also, imported food products must file a request for a Certificate of Use and Disposal. However, the requirement for repeated sampling and reviews of imported products previously approved does not attain a dazzling balance between cost and effectiveness. With risk-based testing system, it would be possible to obtain the same level of public health protection at a reduced cost.

Government Procurement

Usually, it is the individual government entities in Chile who conduct their own procurement. Law in Chile law requires public bids for tremendous purchases, even though procurement by negotiation is acceptable in some cases. Local and foreign bidders on government tenders need to register with the Chilean Bureau of Government Procurement. In addition, they must also post a bank and/or guaranteed bond, more often than not equivalent to 10% of the total bid, to guarantee compliance with specifications and delivery dates (Office of the US Trade Representative 73). Chile is not a member of the WTO Agreement on Government Procurement.

Patents, Data Protection and Trademarks

It is reported that Chile is not meeting its FTA commitments in terms of the protection of patents and pharmaceutical test data. In December 2004, Chile’s Congress approved legislation intended to bring the country into compliance with a number of its Trade-Related Aspects of Intellectual Property Rights (TRIPS) commitments. It was entered into force on November 28 in the following year. It contains limitations and exceptions that may undermine the effective protection of undisclosed safety and efficacy information. In general, Chile’s Trademark Law is along the line of international standards. However, legislation bringing Chile’s law fully into compliance with its obligations under the FTA is still pending. Several trademark holders have complained of inadequate enforcement of trademark rights in Chile. The Chile-US FTA also requires Chile to respect the principle of “first in-time, first-in-right” with respect to geographical indications and trademarks (Office of the US Trade Representative 75).

Summary

In summary, the paper tackles international market conditions in Chile. It focuses on trade balance, what is traded, historical trade balance, the major trading partners (export and import), and trade diversification in terms of types of goods and destinations. This paper also discusses Chile’s trading arrangements with other countries (preferential and regional trading arrangements) and analyses current trade policies and foreign trade barriers. Overall, this paper shows that Chile is and has been a competitive player in the international trading regime. However, it is suggested that Chile should further enhance its import policies, export controls, government procurement, lustrous property rights, and labeling, testing, standards, and certification.

Works Cited

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Everybody wants to place money. But none of us want to give up what we have or give up our current lifestyles. I say you can cut your spending without giving up any of your popular things. These tips pick what you already buy and simply cuts the spending:

1. Plan Grocery Trips in Advance: Plan your meals for the week. Write them in a list and post it on the fridge. Be honest. When we view, we realize we will probably go out to eat one night a week. Therefore, we only buy for 6 days or of dinners. Then make your grocery list from this.

If you’re like most Americans, right before you go grocery shopping you throw away all your tainted food. That’s because you bought too much. Planning your trip beforehand will save you and you’ll never notice the difference.

Also, this cuts out a lot of impulse buys. Don’t be foolish; stores spend millions trying to get you to buy on impulse. Those candy bars and frosty beverages at the checkout arn’t there because they are worried you’re actually starving to death.

2. Buy Generic: This doesn’t always work. You can accept away with store brand water bottles and store brand cereals usually. However, I calm haven’t found a generic soda that tastes good.

3. Don’t Assume Bulk is Cheaper: Companies have figured out you’ll use more if they impartial give you more of the product. Consumers assume that buying in bulk is cheaper per unit than buying smaller individual-sized packages. This is not always the case!

At grocery stores, look at the smaller number (the price per unit number). This lets you better judge if you are actually saving when buy generic or buying larger packages.

Also, we all want to buy that gallon of mayo because its cheaper than 2 regular bottles. But, you’ll never eat it all. So you mild wasted all that extra money.

4. Research car insurance: If you recently married, turned 25, or graduated college, call your insurance company. Most good insurance companies (aka not Internet insurance companies like Progressive and Geico) will give you steep discounts. If you have ‘cheap’ insurance like Progressive or Geico and have a clean record, call some other companies like Allstate, Nationwide or State Farm. These companies view out older drivers with clean records, so their rates are cheaper.

5. Descend Unnecessary Insurance: Unemployment insurance? Are you kidding? Waste of money. Most big-box stores try to sell you on product insurance. For the most part, these are wastes of money, but hey, if it makes you feel better about buying that $4,000 Flat-screen, who am I to believe.

6. Check on cell phone plans: Chances are, no one is every going to convince you to give up your cell phone sans death itself. So, call you cell phone provider. Ask how many minutes you’re using. Are there plans that better meet your needs? If your idea is for 1000 minutes but you never spend more than 200 of them because your fingers are too busy texting, its time to change your plan. Most providers will let you change for free. Likewise, if you’re going over your plan minutes or texts every month, its time to bite the bullet and upgrade.

Also, if you never use Internet on your phone, but your phone has access. Call your provider and have them cut your phone’s access. Charges for simply connecting usually run $1.99, so every time you hit the Web Browsing button rather than Text Message button, you waste $1.99 for no reason.

7. Trace up for ‘free newsletters’: Most of your favorite restaurants have websites and even Twitter, Facebook, and even that poor ole’ lost soul Myspace accounts. Signing up to ‘follow’, ‘friend’, or receive newsletters usually comes with bonus deals only their followers derive. Also, most places (Chili’s, Pizza Shuttle, Cold Stone Creamery, Dairy Queen, Texas Roadhouse, etc) give free stuff on your birthday! Free tastes good no matter how you look at it! And, since you’re not going to stop going, at least attach while you’re there!

8. Groupon.com: (website) Available in 92 US cities and in many countries around the globe, this juggernaut of stout value is less than two years old. Basically, you sign up for free; no credit cards required to label up. Everyday you check in to see what the deal of the day in your city is. Local businesses basically offer gift certificates to their businesses at an average of 50% savings. In April, in Milwaukee, I bought for $40 a bike tune-up worth $80.

If you like the deal and want to buy into it, you simply say you want to buy it and you buy it impartial like you would on Amazon.com. The interesting thing though: a certain number of people have to also want to buy it. If the quota of buyers is not met, the offer dies away. If you signed up to buy into the offer, but the quota isn’t met, you are not charged. Its kinda like losing a bid on Ebay.com. No wound, no foul.

Are you looking for affordable car insurance rates? This task can be made easy by comparing different car insurance quotes and getting the policy that’s best for you. Here are some tips for finding the best insurance rates.

Documents to have Available

1. Vin# (Vehicle Identification Number)
2. Driver’s License
3. Model and year of car

Decide What Type of Coverage

It’s advisable to select the time and settle what type of auto insurance coverage you need. All consumers must have liability coverage. This type of coverage must be fulfilled in every state. However, you can decide on getting comprehensive and collision coverage.

Car Insurance Discounts

If your car has additional safety features you may be eligible for discounts on your insurance policy. Compose determined to ask the agent what type of discount you can receive if you have the following devices on your vehicle:

Airbags
Car Alarms
Automatic Seat Belts
Anti-Lock Brakes

You may also be eligible for multiple car discounts and a multiple policy discount.

Coverage Comparison

Here is a recommended listing of coverage to compare when you get a car insurance quote:

Collision Deductible
Medical Payments
Body Injury Liability
Uninsured Motorist Bodily Injury Liability (each accident averages $300,000)
Uninsured Driver Property Damage
Comprehensive Deductible

Some insurance companies offer customers an option of increasing their comprehensive and collision coverage deductibles. This lowers auto premiums and saves you money.

While searching for the best car insurance rates there are some coverages you can avoid. These types of coverages are unnecessary and will cause a price increase in your policy.

Roadside help: Many consumers belong to AAA. You will not need this type of insurance.

Mechanical Breakdown: Individuals that have a new car that’s under warranty will not back from this insurance.

Reasonable priced insurance is an obtainable goal for everyone. Consumers will receive a lower priced premium and excellent coverage on their auto insurance.

Sources:
www.insurance.com

By now you’ve seen those famous neanderthals. The surly-looking bunch with protruding brows and mangy hairstyles combed into position with rocks. Authentically Pleistocene from the neck up, their clothes and lifestyles project a more modern and hip sensibility.

They’re the Geico Cavemen. Typical urban thirty-somethings. Indistinguishable from their modern peers were it not for those brows, that hair and, of course, the beef they have with the insurance company that made them famous.

Actor Ben Wilson was in the second Caveman commercial. He played a cromagnon who indignantly stands and asks his roommates if they heard the Geico pitchman’s latest insult.

I caught up with Wilson at Miyagi’s on Sunset for a brief chat.

“You don’t actually look much like a caveman.” I say as we get settled in.

Wilson has a short, dirty blonde haircut and a prominent jawline, but to describe him as a neanderthal is definitely a stretch.

He flashes an appreciative grin, revealing smooth, white teeth.

“Thanks, but I smell flattery.” he says. “I’m quite caveman-ish. People say I have a flat face. Which is upright. My forehead is so thick that it has corners at the top.”

“Is something like that an advantage at auditions? “

Wilson laughs, a little self-conciously. “Well, fortunately nobody really notices.” he says. “But I’ve got a lot of hair, too. A Forty-Niner beard. Not like Jerry Rice, like the California gold diggers with the mules who turn up on Scooby Doo…”

“I accumulate the picture.”

“My beard engulfs the bottom two-thirds of my face pretty fast if I don’t continually cut it off at the base.”

“Kind of like kudzu.”

Wilson laughs. “Yeah, and my face is Atlanta.”

Wilson played a pirate in the original “Pirates of the Caribbean” movie, which mentioning his beard reminds him.

“My beard is so impossibly wooly that on the set of Pirates, one amazed makeup lady told me it was the best fake beard she’d ever seen. My hair is brown, but my beard is red so I can see why she thought that. I didn’t tell her it wasn’t a groundless, though.”

Wilson and I order the buffet and some tea. Wilson seems to have a thing for buffets. It gives him a chance to stack his plate with various tempuras and gyozas.

“So, how did you land this caveman gig? ” I ask.

“I auditioned at Ross Lacey Casting and I was one of the five cavemen they cast. I don’t know how many other people auditioned. They don’t deny you that kind of thing. For all I know I was the fifth caveman selected from five auditionees.”

“Was there a casting couch? “

“Y’know, now that you mention it, there was. All the creative people and the product people were sitting on it. It was a big brown low number. It might’ve wrapped around. I don’t remember. I do remember that on the table in front of the casting couch, there was a Roman-Feast-sized pile of food. It was so high that they had to have TV monitors so they could watch my audition even though I was only seven feet away from them.”

“Did they do you wear the caveman makeup on the casting couch? “

“Though everyone was very superior, I was never invited to join them on the couch. Maybe I should have worn cologne…or bathed sometime the week before that call assist.”

“Who were some of the other cavemen you worked with? “

“Great guys, all of them. Ben, John, Jeff and Joe. Two Bens including myself and three guys whose names begin with J.”

We both steal a second to marvel at this coincidence as a waitress delivers a bottle of sake to our table. Wilson tells her “arigato”. She bows and leaves.

“How did you prepare for the role? ” I ask.

“”They made them contemporary cavemen. I didn’t have to transform myself into an actual caveman by say… going into the wilderness to spear a bear. My hat goes off to the inventors of the spot for not making me have to do that. Geniuses.”

“What was it like to wear the makeup? “

“Awesome! I kept asking myself where were these guys when I was getting ready for Prom. It was shipshape fun and like wearing nothing at all. The only thing they had to do was apply a little facial prosthetic.”

“What did they add? “

“Fairly minor stuff. You know, objective a completely recent face and head structure including forehead, nose, cheekbones, jaw, stuff like that…”

He takes a sip of his sake.

“Fallacious teeth…” he continues. “A wig, a fake beard. I gotta say, seriously, the makeup and special prosthetics guys are also geniuses. Tony and Vance and all those guys. They’re “amazers”…they will literally amaze you.”

“So it was a relatively painless procedure? “

“They had to spread glue all over my arms and legs and feet and hands and chest with dinky butter knife things, like I was a big smooth untoasted English muffin, then they stuck lots and lots of hair to the glue. It wasn’t painful, but it was amazingly itchy. I looked awesome, so it was worth it.”

“How long did it take to assign on? “

“Not too long. The develop up guys are well-organized nice and the time honest flies and the next thing you know, “ZOW!” you’re a caveman.”

The Geico Cavemen are noted for their urban-coolness, attending swank parties in condos overlooking West Hollywood, ordering roast duck with mango salsa, scheduling therapy sessions while music by Royksopp soundtracks their day-to-day coming and going. So it’s no surprise that Wilson carries himself in the same way.

“The jacket and shirt are thrift store.” Wilson says.

Of course the thrift stores in Los Angeles are filled with a few more buried treasures than those in other parts of the country. The shirt is a nice dress shirt with unfastened French cuffs and the jacket is tailored with blue pin stripes. I notice his shoes, which are a pair of white crocs.

“Is this the kind of ensemble your character would wear? ” I ask.

“I actually got to wear these Zodiac brand three-tone top-sider-boat-shoes which I could never have afforded when I was in high school when they were really cool. You remember those? “

I nod.

“Yeah, so that was like another kind of perk. I took a little moment while they were setting up a different shot, to fantasize that I was relieve in high school strolling down the hall in those Zodiacs with all this manly hair everywhere and totally turning the heads of all the ladies. Students, teachers, student teachers. Everyone. Mothers, secretaries, the kitchen cooks. All these ladies drop everything to catch a glimpse… and nod approvingly.”

“ABC just said they’re going to remove up the Caveman sitcom.” I say.

Wilson nods. “I’ve heard that it’s out there, but I’m not in it. Everybody’s been calling, asking if I’m in it. And they’re all excited and I have to shoot down their hopes. It’s tough, but tough is a main part of tough love.”

“Are the Geico Cavemen ready for Prime Time? “

“I clear hope so…” Wilson says with a smile. “And I hope that they can have a cousin in some of the shows and that cousin can be played by me. It’s a brilliant concept and it’s struck a nerve. Thinking back I can’t believe I got into it at all. I couldn’t be luckier.”

A brief side note. It would appear that none of the original commercial actors were called upon for the sitcom. As so grand of the appeal of the Geico Cavemen is in the charisma of the original performers, one has to wonder about the wisdom of the show’s producers to recast. We shall view…

The Populist and Progressive movements in American politics share many similarities despite springing forth from different demands. The Populist movement was primarily grew from the agrarian sector of the economy that feared that Eastern industrialists and bankers were gaining too much influence and control over both political parties. The Populist agenda grew from a desire for reform in the banking industry, specifically to allow for free silver coinage. The Populists sought more governmental control of the banking system as well as governmental control over the operation of the nation’s railroad and communication systems. The Populist movement was one that wanted to return a sense of power to the working man and sought to raze the burgeoning sense that American was transforming from its democratic roots into a oligarchy run by the capitalist elite.

A sense of imbalance in the scheme the American economy was being run led to the rise of Populism. Widespread discontent with the lack of progress in railroad reform and with the McKinley tariffs-combined with the Constitutional inability to directly elect their own Senators led to the creation of a powerful new third party that sought many wholesale changes. Populism was at heart a rise borne from the discontent of the rural areas of America, building gradually but with an increasingly earnest fire among the farming communities in both the north and south, uniting the interests of black and whites alike. Populism was also helped along toward its destiny as a major movement through its beginnings as a means of socialization. The populist agenda was spread through such social events as picnics. They organized around a unified front against the encroaching power of the railroad industry and other manufacuturers.

The Progressive movement differs mostly from the Populist movement in focusing on reforming the political process as a whole, rather than focusing on the economic system. The Progressives saw the unchecked corruption of sizable business and the legal system-as well as the continuing exploitation of workers, women and children-as the primary enemy. The spark for the progressives was the unfair election system which poisoned every aspect of American life. The progressive movement in America was mainly a middle class affair, made up of both men and women who saw their interests being co-opted both by the interests of the rich and the poor. They saw the large corporate interests in much the same light as the pressures being brough to beget by the huge onslaught of immigrants looking to take their jobs. Even labor unions were viewed with suspicion as a spreading tide of socialist aggression. The progressives viewed their primary goal in terms of regaining what they saw as a lapsed power; their interests had once been the main concern of the government, but those interests were now not at the top of the heap.

Although often accused of just barely falling short of communism on some of their proposals, the fact remains that most of the issues supported by the Populist movement eventually became the law of the land and the enact of the populist agenda is even felt today.

When most folks get new or utilized cars they rarely feel all that far into the future and that causes a entire lot of difficulties If you purchase a vehicle that you truly can’t afford there could be repercussions from that choice that could affect your life for years and possibly decades.

Extra so than the property mortgage meltdown caused by too numerous folks purchasing homes they couldn’t afford, too several people today are given vehicle loans even though it is doubtful they will be able to make the payments over the whole term Why do you believe vehicle repossession is a booming enterprise, specially in this economic recession?What occurs if you do have your automobile repossessed You do still have to drive your children to school and get to work What do you do now Well, as you possibly are well conscious, once your vehicle is repossessed it becomes really tough (nigh on impossible) to finance an additional vehicle You will either will need to pull the money together or have a friend or family member give 1 to you The 1 thing you possibly didn’t believe about, nonetheless, was the reality that your earlier repossession was going to make your auto insurance rates skyrocket.What does your auto insurance have to do with your financial predicament Just due to the fact you are poor with dollars doesn’t mean you are a poor driver, does it Well, all insurance businesses use your credit rating as a means to calculate your premiums So it can even be a issue if you don’t pay off your credit cards on time every month Ah, the sweet tyranny of credit.As for your credit rating, only bankruptcy and property foreclosure rank as the two events that can affect your FICO score much more than a automobile repossession Seriously, your credit will be ruined for years So do not just feel that you can stop paying off your vehicle and it will just be some fast economic fix to not have that monthly vehicle payment.In the lengthy run you will lose a lot extra funds by permitting your finance lender to take back your vehicle Auto insurance rates are high sufficient so why set your self up for years of being looked upon as a high insurance risk Just maintain that in mind when you go new automobile shopping.Also, if you believe having your vehicle repossessed doesn’t make you seem irresponsible then you are wrong If you are careless with your finances, it holds to reason that you are possibly an irresponsible driver as well That might sound harsh but it is true .

The improvement of virtually all facets of human life which began in the West during the 18^th century and has since spread to increasing numbers of people around the world has as its cause the liberty of individuals to pursue their well-being and happiness. The inseparable concepts of liberty and private property, when extensively defined and enforced, lead to universal progress by enabling specialization and entrepreneurial innovation. Furthermore, liberty is itself progress; it frees all people from the arbitrary power and violence of other men.

Before discussing the causes of progress, we need to identify what progress is. Progress is not simply income growth or increases in quantities of existing output types. Rather, as Randall Holcombe notes, “the more essential element of progress in the work people do is not the quantitative reduction in work hours or increase in output, but rather the qualitative changes in the nature of work.”[1] Furthermore, “[t]he changes in types of output and methods of production…create economic progress…”[2] During the 20^th century, the average real income in the United States increased roughly sevenfold.[3] This is an important part of progress, but it is not the whole. The kinds of goods available to consumers have expanded dramatically, and the quality of available goods has likewise soared. Airplanes, televisions, computers, mp3 players, and thousands of other goods which expand people’s opportunities and enhance their quality of life were non-existent in 1900. Medical advances during the same time have raised average life expectancy in the United States from 47 to 77 years.[4] Even if average incomes remained the same between then and now, the introduction of new goods, techniques, and knowledge would still have dramatically elevated human living standards worldwide.

Progress, then, is a comprehensive improvement in the number, kind, and quality of goods, services, opportunities, and occupations available to individuals. As it involves a vast multitude of considerations, progress cannot be measured by any single parameter, such as the per capita Gross Domestic Product or average number of hours worked or the output of any particular generous. The number of horse-drawn carriages produced today is significantly smaller than that produced in the late 19^th century – yet most people would agree that large progress in transportation has been made and that the decline in horse-drawn carriage production is actually a sign of such progress. Integrating a wide variety of parameters and plan their causal interactions is essential to obtain an understanding of whether progress is occurring and to what extent.

While it may be impossible to precisely measure the rate of progress as such, it is nonetheless possible to conclude with certainty that substantial progress has occurred over time – especially in the past 250 years and that the frequency of progress has greatly increased in the recent past. Holcombe observes, “The economic growth over this 250 year period has been worthy, but the economic progress that has taken place over the same period is even more grand.”[5] Even judging by people’s subjective estimations of their own lives, the evidence for progress is inescapable. In his first comprehensive “world diagram of happiness,” social psychologist Adrian White notes:

“The three predictor variables of health, wealth and education were… very closely associated with each other, illustrating the interdependence of these factors. There is a belief that capitalism leads to unfortunate people. However, when people are asked if they are happy with their lives, people in countries with fine healthcare, a higher GDP per capita, and access to education were much more likely to report being pleased.”[6]

Furthermore, whatever the problems of the more technologically advanced and materially prosperous countries may be, they pale in comparison to the problems that were universal throughout most of human history and still plague much of the Third World today. White observes that “[t]he frustrations of current life, and the anxieties of the age, seem to be much less critical compared to the health, financial and educational needs in other parts of the world.”[7] Moreover, the desirability of the modern, technological, materially wealthy world over the impoverished, manual-labor-driven world of centuries past is heightened by the dramatic improvement in the sensibilities and behaviors of our contemporaries. Steven Pinker notes that “Violence has been in decline over long stretches of history, and today we are probably living in the most peaceful moment of our species’ time on earth.”[8] Moreover, people virtually everywhere have become vastly more humane, agreeing on the ethical intolerability of and abstaining from behaviors that have in past centuries been commonplace and unquestioned. Pinker explains:

“Cruelty as entertainment, human sacrifice to indulge superstition, slavery as a labor-saving device, conquest as the mission statement of government, genocide as a means of acquiring steady estate, torture and mutilation as routine punishment, the death penalty for misdemeanors and differences of belief, assassination as the mechanism of political succession, rape as the spoils of war, pogroms as outlets for frustration, homicide as the major obtain of conflict resolution– all were unexceptionable features of life for most of human history. But, today, they are rare to nonexistent in the West, far less common elsewhere than they used to be, concealed when they do occur, and widely condemned when they are brought to light.”[9]

Clearly, the fruits of progress are not simply the abundance and variety of material goods available. Progress improves the morals of virtually all human beings and enables them to coexist peacefully, ethically, and to mutual relieve. If we can pinpoint the enabling factor of progress, then promoting and enacting this cause is one of the noblest endeavors available to us.

Fortunately, the cause of progress is well-known and accessible; it is transforming and improving the world at this instant. This principle – which elevates every aspect of human life and distances humankind from the primeval state Hobbes described as a “war of all against all”[10] – is the liberty of individuals to act in any manner not injurious to the welfare of others. Thomas Jefferson enunciates this understanding of liberty: “No man has a natural right to commit aggression on the equal rights of another, and this is all from which the laws ought to restrain him.”[11] F. A. Harper agrees and defines liberty as “the absence of coercion of a human being by any other human being; it is a condition where the person may do whatever he desires, according to his wisdom and conscience.”[12] Liberty does not give individuals any positive entitlements to concrete goods, but it protects an individual’s freedom to act to improve his life. Harper explains that liberty is not freedom from hardship or want; rather, “Nature will still impose its restrictions on [13] Freedom does not guarantee anybody his life or his happiness, but it does remove – as far as is humanly possible – any active manmade obstacles to their pursuit and securement. Having the resultant freedom, individuals can choose to act to recall natural barriers to their survival and happiness as well, or to trade and negotiate with others for the goods that will enhance their quality of life.

Integral to the concept and the preservation of liberty is the plan of private property. John Locke explains that every person originally owns his hold body and his labor. Because, in a spot of liberty, a man is free to use his labor to transform objects originally in the state of nature and thereby to remove them “from the common region Nature placed it in, “no Man but he can have a moral to what that is once joined to”[14] and the transformed object becomes his property. The only legitimate ways to come by property are to mix one’s labor with objects in the state of nature or to gain the consent of another individual who has already done so to the use of the fruits of his labor.

But it is not enough to simply have an abstract thought of liberty and private property. These principles need to be well-defined and diligently enforced in order to bring about real-world progress. Even if an individual has a natural right to what he has acquired through his own labor or unprejudiced commerce, he will make little progress if his just property is not widely recognized and if he can be easily expropriated. In any market interactions, the parties involved need to be able to answer a series of crucial questions: “Does the seller own the [property] and have the right to transfer it? Can he pledge it? Will the new owner be accepted as such by those who enforce property rights? What are the effective means to exclude other claimants? This is why the exchange of most assets outside the West is restricted to local circles of trading partners.”[15] Hernando de Soto notes that without an easily accessible, universally understood, and consistently enforced system of property rights, virtually every kind of asset “is extremely hard to move in the market.”[16] This partially explains why the economic benefits of capitalism have not materialized to the same extent in parts of the Third World as they have in Western countries. Western countries, over the course of centuries, have developed legal systems that recognized, codified, and protected property rights and “thus gave the West the tools to produce surplus value over and above its physical assets.”[17]

Well-defined property rights render individuals secure in what they own and allow them to make more innovative ways of using their assets in economic transactions that generate progress. De Soto notes the importance of well-defined property rights in “[f]ixing the economic potential of assets… [i]ntegrating dispersed information into one system… [m]aking people accountable… [m]aking assets fungible… [n]etworking people… and [p]rotecting transactions.”[18] Moreover, well-defined property rights channel people to only act in mutually beneficial ways. Peter Hill explains that “[u]nder a set of well-defined and enforced property rights, the only transactions people engage in are ‘positive-sum’ or wealth-creating transactions, those that occur because all parties to the transaction bear they will be better off as a result.”[19] A society that respects liberty only permits individuals to take from others what others consent to give them; the law protects the property of every person and punishes violence and attempts at expropriation. The government is constructed both with external and internal checks and balances so that the state itself does not become an instrument of the violence and expropriation it has been delegated to prevent.

Enforcement of liberty and private property bring about progress through a multitude of ways. They constitute progress in themselves by freeing individuals from the arbitrary power of others to inflict distress on them. But moreover, a free society enables and encourages individuals to take fleshy advantage of social cooperation through specialization and the division of labor. Ludwig von Mises explains that “[t]he fundamental facts that brought about cooperation, society, and civilization and transformed the animal man into a human being are… that work performed under the division of labor is more productive than isolated work and that man’s reason is profitable of recognizing this truth.”[20] By using their own minds, people will enter into economic arrangements that enable the division of labor to flourish.

Indeed, the tremendous advantages of specialization are only possible in a society of liberty – where a wide extent of commerce is possible. Dwight Lee notes that “”a specialist produces much more of a product, or part of a product, than he wishes to consume himself.”[21] The only draw for a specialist to accumulate from producing the entirety of the output within his ability is to trade a allotment of his output for the fruits of others’ labor. Only in societies where commerce is sufficiently free to be wide-ranging can people have a sufficient incentive to specialize. In unfree societies where commerce is limited, individuals will tend toward autarkic production – seeking to personally create all of the basic necessities of life. Without freedom and the consequent specialization, most individuals will live on the edge of subsistence. Just as the workers in the pin factories Adam Smith observed were able to produce 48000 pins per day via specialization but would only have been able to produce 200 pins per day if each worker made pins from start to finish, so individuals forced to personally supply all essential needs would achieve lower outputs by orders of magnitude.[22]

Liberty furthermore unleashes the innovative force of entrepreneurs who use their alertness to profit opportunities in order to discover better ways to employ resources for satisfying the demands of consumers. Israel Kirzner observes:

” Because the participants in this market are less than omniscient, there are likely to exist, at any given time, a multitude of opportunities that have not yet been taken advantage of. Sellers may have sold for prices lower than the prices which were in fact obtainable… Buyers may have bought for prices higher than the lowest prices needed to secure what they are buying…”[23]

The entrepreneur is the individual who notices such discrepancies before anyone else does and takes action to remedy them by purchasing assets at lower prices than those at which he sells them. But this pure arbitrage is not the extent of an entrepreneur’s contributions. Much of an entrepreneur’s contribution to progress “is spotting alternative methods of production, and spotting ways in which output characteristics can be altered to better satisfy the demands of purchasers.”[24] The entrepreneurs are ultimately responsible for introducing recent consumer products; they assume currently available goods or technical methods of production to be inadequate and offer an improvement. If the improvement stands the market test, the entrepreneurs are rewarded with profits, and consumers are qualitatively better off.

Much of the 20^th century’s progress can be attributed to the actions of entrepreneurs like Henry Ford, Steve Jobs, and Bill Gates. These individuals did not necessarily build the products they popularized, but their activities were essential to the success of others’ inventions. Were it not for the entrepreneurs, some inventions might not have advance to benefit the general public “because their originators were not able to build all the pieces together to accomplish those ideas profitable.”[25] But it is impossible to predict in arrive which entrepreneurial decisions will ultimately pass the market test, earn profits, and improve the lives of consumers. Holcombe notes that “it may be impossible to say ahead of time what someone could do to be entrepreneurial.”[26] No government or committee of experts can foresee which actions will bring profit or just economic discrepancies. Thus, progress cannot be centrally planned. The government can only hinder progress when it restricts the liberty of entrepreneurs to act on their alertness.

If we wish our lives to continue to improve in their length and quality, if we desire continued technological advances and rising standards of decency and morality, then it is essential to recognize liberty as the source of progress. A society of free men and confident, protected property owners is a society that can only grow and flourish.

Works Cited

de Soto, Hernando. 2001. “The Mystery of Capital.” Finance and Development. Vol. 38, No. 1. Available from http://www.imf.org/external/pubs/ft/fandd/2001/03/desoto.htm. Accessed 9 January 2008.

Harper, F. A. 1957. [2007]. “Liberty Defined.” The Rational Argumentator, Issue CXXXV. Available from http://rationalargumentator.com/issue135/libertydefined.html. Accessed 19 December 2007.

Hill, Peter J. 1988. “Markets and Morality.” Bozeman, MT: Political Economy Research Center. Available from http://www.perc.org/perc.php? id=820. Accessed 21 December 2007.

Holcombe, Randall G. 2003. “Progress and Entrepreneurship.” Quarterly Journal of Austrian Economics. Vol. 6 Num. 3. Retrieved January 9, 2007 from http://mises.org/journals/qjae/pdf/qjae6_3_1.pdf

Johnson, Johnson, and Johnson. “Quotes.” Available from http://www.shortydawkins.com/Quotes.html. Accessed 21 December 2007.

Kirzner, Israel M. 1973. Competition and Entrepreneurship. Chicago:University of Chicago Press.

Lee, Dwight R. 1998. “Specialization and Wealth.” The Freeman. Vol. 4 No. 8. Available from http://www.fee.org/publications/the-freeman/article.asp? aid=3509. Accessed 9 January 2008.

Locke, John. 1690. Second Treatise of Civil Government. Retrieved January 8, 2008, from http://www.constitution.org/jl/2ndtreat.htm.

Mises, Ludwig von. 1949. [2000.] Human Action: A Treatise on Economics. Ludwig von Mises Institute. Available from http://www.mises.org/humanaction.asp. Accessed 8 January 2008.

Pinker, Steven. (2007, March 19) “We’re Getting Nicer Every Day: A History of Violence.” The Unusual Republic.

“Thomas Hobbes.” Wikipedia, the Free Encyclopedia. Available from http://en.wikipedia.org/wiki/Thomas_Hobbes. Accessed 8 January 2008.

University of Leicester (2006, November 14). Psychologist Produces The First-ever ‘World Map Of Happiness’. ScienceDaily. Retrieved January 8, 2008, from http://www.sciencedaily.com­ /releases/2006/11/061113093726.htm

[1] Holcombe 2003, p. 6

[2] Holcombe 2003, p. 4

[3] Holcombe 2003, p. 5

[4] Holcombe 2003, p. 5

[5] Holcombe 2003, p. 6

[6] University of Leicester (2006, November 14)

[7] University of Leicester (2006, November 14)

[8] Pinker 2007

[9] Pinker 2007

[10] “Thomas Hobbes.” Wikipedia, the Free Encyclopedia

[11] Johnson, Johnson, and Johnson.

[12] Harper 1957

[13] Harper 1957

[14] Locke 1690, Sec. 27

[15] de Soto 2001

[16] de Soto 2001

[17] de Soto 2001

[18] de Soto 2001

[19] Hill 1988, p. 4

[20] Mises 1949, p. 144

[21] Lee 1998

[22] Lee 1998

[23] Kirzner 1973, p. 41

[24] Holcombe 2003, p. 18

[25] Holcombe 2003, p. 11

[26] Holcombe 2003, p. 11

Trying to out-Republican the Republicans is a losing strategy, and Democrat gubernatorial nominee Roy Barnes should know better than to go down that road.

In a recent interview with the Associated Press, Barnes blasted both political parties and President Barack Obama for failing to win bipartisan support for a law more Americans could get behind.

“I consider it to be the greatest failure, new failure, of political leadership in my lifetime,” Barnes said in a recent interview with The Associated Press.

Greatest political failure of leadership–Obama? Many measures in the health care law came from Republicans even though they didn’t vote for it.

In March, Obama said the following about the ‘centrist’ health care law.

“I judge that the Republican Party made a calculated decision, a political decision, that they would not support whatever we did,” he said on NBC’s “Today” show, referencing Sen. Jim DeMint’s (R-S.C.) claim that it would be his Waterloo. “I think that’s unfortunate, because when you explore at the actual bill itself, it incorporates all sorts of Republican ideas.”

The health care law isn’t perfect, and can be made better. However, Barnes giving proverbial comfort to the Tea Party Republicans or right-wing conservatives is not a winning strategy and further confuses the debate on health care.

Barnes’ attempt to be this independent populist needs to stop right now. You are a Democrat and need to start acting like one.

“Listen, I made mistakes. I pushed some things that I should’ve reached a better consensus on,” Barnes said. “He did the same thing. He’ll learn.”

Sometimes, Mr. Barnes you have to take a stand and do what’s right for Georgia, and giving any credit to Sonny Perdue is not a step in the right direction.

In the 1940′s when Truman enacted Executive Order 9981 to integrate the military, was there a ‘consensus’ or when Lyndon Johnson pushed through the Civil Rights Act and other equal protection laws?

Georgia and the nation are at a crossroads, and appears Barnes is campaigning ‘scared’, and it shouldn’t be that way.

When Barnes decided not to attend an early August fundraiser and speech of President Obama in Atlanta, I was a little disappointed. However, I just brush it aside at the time.

Barnes wanted to visit rural areas of south Georgia such as Berrien County, and that’s fine. However, what is his message as a Democrat?

It is good that he is traveling to rural south Georgia and visited places like Ocilla in Irwin County. Ocilla is Irwin County’s largest city and has a 60% African-American population.

Rural Georgia isn’t exclusively white conservatives. There are white rural progressives along with a large percentage of African-Americans and a growing number of Latinos, but it seems Barnes is trying to veer right instead of sustaining a progressive message and bewitching his Democratic base.

Now I am becoming a little more skeptical and worried with his latest comments about Obama.

Barnes is receiving some dreadful advice from some of his advisors and from some political scientists.

Obama is viewed incorrectly as a Muslim by 1 of 5 Americans, but Obama received more votes in 2008 than any other presidential candidate along with receiving more votes from whites than Bill Clinton did.

However, it appears in a mid-term (non-presidential year) Barnes is succumbing to advice like this.

“Among white independent voters in Georgia — which Barnes needs — he (Obama) is pretty unpopular,” Emory University political science professor Alan Abramowitz said. “Barnes needs to cease away.”

Obama is not the plight… it’s Barnes political and media strategy.

And if Barnes feels more comfortable with Sonny Perdue than Barack Obama, Democrats are in trouble.

It would be nice to eye Barnes talk to Morehouse and Fort Valley State students instead of steering clear of them.

Younger voters–white and black ages 18-29– and minority voters across the board were instrumental in Obama and Bill Clinton’s victories. And simply build, Barnes is ignoring them. This may hinder Barnes from breaching the 50.1% threshold on November 2nd.

Barnes should know better.

Bill Clinton received criticism for passing a budget reconciliation bill in 1993 without a single Republican vote and raised taxes for millionaires along with targeted tax cuts, and by the time he left office, the country had a budget surplus.

Obama and the Democrats passed a health care law and have been able to stabilize the American economy with 2009 stimulus.

Barack Obama did lose Georgia in 2008, but only by five percentage points, and if Obama would have visited the Peach State more, Obama would have won the state.

Obama’s presence on the ballot helped former U.S. Senate candidate force a run-off with Republican Saxby Chambliss.

So why is Barnes trying to ‘diss’ Obama in 2010?

Obama received 1,844,123 Georgia votes in 2008 with his “Yes we can” progressive message.

Barnes received less than a million in both of his gubernatorial wins in a landslide net over Guy Millner in 1998 and his disappointing loss to Sonny Perdue in 2002.

Sonny Perdue has proved to be one of the worst governor’s in Georgia history, and has taken the Georgia economy to recent depths that include continuous budget cuts to education and health care benefits and now furloughing teachers have become ‘normal’.

Governing is hard and Barnes should know that first hand, and making tough decisions is part of the job.

Everybody – especially among the working and middle class—is struggling accurate now on some level, but Barnes must do a better job of explaining himself and the Democratic Party’s accomplishments in order to rep in November.

Barnes needs to be an advocate for the health care law, and provide solutions to make it better instead of joining the Sonny Perdue-Nathan Deal band of skeptics who side with the insurance companies.

Barnes blamed Democrats for failing to explain the plan better and Republicans for not delivering reasonable alternatives.

Take your own advice Mr. Barnes, and embrace your ‘base’ along with presenting your own plan for Georgia’s future– and actually accept Obama’s help for once.