Ludwig von Mises:
“Government is in the last resort the employment of armed men, of policemen, gendarmes, soldiers, prison guards, and hangmen. The essential feature of government is the enforcement of its decrees by beating, killing, and imprisoning. Those who are asking for more government interference are asking ultimately for more compulsion and less freedom.” (Mises, Human Action, Chapter XXVII, Part 2)
“The State is a group of people who have managed to acquire a virtual monopoly of the use of violence throughout a given territorial area. In particular, it has acquired a monopoly of aggressive violence, for States generally recognize the right of individuals to use violence (though not against States, of course) in self-defense. The State then uses this monopoly to wield power over the inhabitants of the area and to enjoy the material fruits of that power. The State, then, is the only organization in society that regularly and openly obtains its monetary revenues by the use of aggressive violence; all other individuals and organizations (except if delegated that right by the State) can obtain wealth only by peaceful production and by voluntary exchange of their respective products. This use of violence to obtain its revenue (called “taxation“) is the keystone of State power. Upon this base the State erects a further structure of power over the individuals in its territory, regulating them, penalizing critics, subsidizing favorites, etc. The State also takes care to arrogate to itself the compulsory monopoly of various critical services needed by society, thus keeping the people in dependence upon the State for key services, keeping control of the vital command posts in society and also fostering among the public the myth that only the State can supply these goods and services. Thus the State is careful to monopolize police and judicial service, the ownership of roads and streets, the supply of money, and the postal service, and effectively to monopolize or control education, public utilities, transportation, and radio and television.” (Rothbard, War, Peace, and the State)
This writer believes government is necessary to protect–through legitimate force–the individual rights and freedoms of its citizens. The rule of law and property rights are essential. The problem occurs when government goes beyond this boundary.
Valuing A Cyclical Company
A few readers have asked about how to value a cyclical company. Rather than give my view, perhaps listening to how an entrepreneur of a cyclical company views the price and value of his company.
I think you will gain if you read all the materials.
TJ Rodgers Letters to Shareholders about the Stock Price of Cypress: CS on a Cyclical Business or Thinking About Cypress Stock
Also, view the Value-Line to see the company’s history: CY_VL
An industry perspective circa 2002 is presented here: download_t_j__rodgers__cdc_2002_keynote_presentation
Questions and thoughts are encouraged.