Now while I do usually find John to be spot on - I don't think that tax breaks made alpacas "explode", but as I have been saying for months if not years - prices need to come down to a "reasonable" level in order to support their true purpose . . . . FIBER!!!!!
Before people comment and bash John Stossel --- I think some posters on his blog and the alpaca chat sites are missing the point of the article. He is NOT bashing the alpaca industry. He is pointing out that tax breaks may help the serious farmer or business person etc, they also invite people to use them as a tax shelter which artificially inflates prices and creates a bubble. People who simply board their animals and are completely hands off for example. When the bubble bursts, all get hurt. I lowered prices years ago - but there are still people out there on the precipice of the bubble waiting for the economy to recover and the huge prices come back. I am not waiting! I lowered prices and I am selling, and selling alot! Economics 101 - "an item is worth what others are willing to pay for it". I also have a thriving fiber business which is the commodity that MAKES alpacas viable livestock - FIBER.
A brief description of the whole show is below (Alpacas fall into #6):
Please tune in to the FOX NEWS CHANNEL this FRIDAY at 9 PM ET to see Politicians’ Top 10 Promises GONE WRONG with John Stossel
Politicians make promises, and brag about the results of their work, the “seen” benefits, but they ignore the unintended consequences—the “unseen” harm-- of their laws. Politicians PROMISED that…
10… CASH FOR CLUNKERS would save the auto industry. Instead, it increased the costs of USED cars (the ones that poor people buy), decreased charitable donations, and just moved auto sales from other months into July and August.
9… increasing the MINIMUM WAGE would guarantee everyone better pay, but it ended up killing jobs.
8…TITLE IX would end discrimination against women in sports, but instead it has taken sports away from both men AND women.
7… Big projects like STADIUMS, ARENAS, and CONFERENCE CENTERS will create jobs. Instead, they steal money from the local grocery store.
6… Politicians manipulate the TAX CODE to “save small farmers,” and “save the environment,” but instead create an explosion of ALPACAS, give rich people like Stossel free GOLF CARTS.
5…CREDIT CARD REFORM would save us from horrible bank fees, but “reform” led to higher credit card interest rates and less credit for the poor, which drove them to worse forms of credit.
4…the HEALTHCARE bill would give us cheaper more comprehensive healthcare, but instead it’s causing insurance companies to stop offering health insurance altogether.
3…ETHANOL would relieve our dependence on foreign oil AND save the environment, but instead it’s increased the cost of food, done MORE damage to the environment, and to taxpayers.
2… Politicians said more HOME OWNERSHIP was good for America, but their subsidies created a bubble that made life worse.
And tune in for the #1 PROMISE GONE WRONG.