October, it is in my estimation, will officially be henceforth known in my world as "Macho Month." And the reason I will consider it my own personal "Macho Month" is because I, your beloved Captain, has done no less than;
1. Replace a thermostat on my car
2. Replace a radiator in my car
3. Winterize 2 lawnmowers and a motorcycle
4. Install a wood burning stove and chimney at my house
5. Forage for at least 2 chords of free wood
All of which on my own.
Now you might say, "Cappy, I thought you were an economist and taught dance class? What's with all auto repairs and home improvement projects and everything? Shouldn't you adhere to the division of labor and specialize in economics and pay somebody to install a fireplace, fix your cars and store your motorcycle?"
And normally you would be right. But these are not normal times.
Understand that in these socialist times we live in today, it doesn't pay to work. The governments (state, federal and local) are estimated to expend 43% of GDP and this says nothing about the future promises of entitlements they've given to various special interest groups. Therefore if you're one of those working schmoes you're essentially slaving away for about half the year to pay taxes. And if you're one of those HIGH-EARNING schmoes, you're a veritable slave to the government for the majority of your working hours.
This is why you go Galt. Not that you choose to do this, but the government essentially makes any marginal pay you receive so marginal that it isn't worth the marginal time you must expend to earn what meager earnings the government will let you have. Therefore you find out how much you need, scale back your work and enjoy leisure time which (and this really pisses off the left) CAN'T BE TAXED!
Now the Captain has a fair amount of leisure time, but the problem in going Galt is that those who do go Galt are typically of the industrious sort and they soon get stir crazy. They're not the types to sit around and drink coffee at a coffee shop and then read THe Guardian while they talk to their liberal buddies about their manuscript for a play they wrote. They're people who know the value of work, have a strong work ethic and just can't sit still for more than a full day not doing anything.
The good news is that there are many things you can do that will not result in a paycheck, but will still improve your standards of living and essentially make it as if you have a tax free job. The most notable of these things are repairs and improvements.
If your car breaks down, you now face a problem. You have to give up some of your hard earned money to pay a mechanic to fix your car. The problem is doubled when the mechanic has to forfeit 43% of that money to the governments to pay taxes. In other words an exchange between you, the mechanic and the suppliers of any materials you might need, is now interrupted by a mafioso like government that insists you guys need "protection."
But if you've gone Galt, you have the one thing you need to avoid paying this unecessary protection money; time.
Oh, you may not be a great automechanic now, but just go on You Tube, look up what you want to repair or replace and usually there is a how to video ready and willing to hand hold you through the process. And in the end you've not only saved yourself a $400 repair bill, you also denied the government a $400 transaction which it cannot tax for it never happened.
There are also improvements to your household. The Captain is cheap. I have no problems letting the temperature in my basement go down to 32 degrees. I do this not to save the environment, I do this to save money. But as I thought about it, a nice wood burning stove would be nice to have. Not only would the basement stay warm, I'd save a LOT of money on gas, the pipes wouldn't freeze, AND I'd be emitting more carbon.
Again, I have a choice, do I spend the $5,200 I was quoted by the fireplace installation outfit? Or do I drop $1,500 on materials and do it myself? Sure, it took a week to properly install the flue, but in the end I saved myself $3,700 in labor therefore denying the governments the opportunity to tax that $3,700.
Now we could go on about how you can save money doing your own auto repair, improving your house, or doing your own computer repair, but the larger point is that to still produce while you "go Galt" the vast majority of your production is going to be in repairs and maintenance as these are things you can do on your own. You don't need the "double coincidence of wants" that is required for a barter exchange (besides which the government actually taxes you on the estimated barter transaction, not kidding, look it up). So while it is difficult for me to find say a dentist willing to trade dental work for dance lessons, I need no one to repair my house but me.
Now, since the majority of "Going Galt Work" is repairs and maintenance this practically forces you to become a macho guy. It's bumpy at first, repairing tires, changing oil, replacing a timing belt, but soon you're pulling out radiators, alternators, jerry-rigging things that were never meant to be but still work, installing fireplaces and cleaning out the carbs on your own motorcycle. You'll have grease and grit on your hands and under your finger nails. Women will look at you while you're dancing with them on the floor and say to themselves, "My goodness, not only is he a ballroom dancer, he repairs his own motorcycle and re-supported his house AND moded his own X-Box!" And soon not only will you be a rebel for going Galt and sticking it to the system, you'll be a macho Galt-Going rebel who will be able to do macho guy stuff with cars, the house, and the computer. And if they weren't already smothering you before, WOO HOO!!! Look out! THere's nothing more a lady likes and that going-Galt rebel who does auto repair, especially if he's an aspiring, junior, deputy or official economist.
So what the government essentialy does is it makes the economy undevelop itself back to ancient self-reliant DIY economies.
ReplyDeleteThanks for the ideas but isn't part of going Galt disappearing? I mean, they know your address, don't they?
ReplyDeleteOh, I hope your woodpile is in good voice.
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ReplyDeleteYou need to add to your list:
ReplyDeleteHunt and Kill your own dinner. Gut, skin, and clean and grill. Or as The Nugent would say "Kill It and Grill It".
Hmm.. Deer Opener is only 2 weeeks away!
It also bears mentioning that interstate "mail order" (internet) purchases are local sales tax fee. In those juridictions where sales tax adds to the cost of Galt repair parts, it can pay to order online.
ReplyDeleteWhile going Galt forces one to become more frugal, which forces you to become more self-reliant and thus more macho, you don't really have to go Galt to be a frugal DIYer.
ReplyDeleteI haven't gone Galt yet. I figure that since I'm still blessed with a job and am still able to work, I should continue do so. I haven't yet gotten to the point where my pay is so high that it no longer pays to work, so I still work.
But, I'm still "with you" on this... I'm a frugal DIYer - I've done carpentry, electrical, drywall, some plumbing, appliance repair, etc.
I do most of my car maintenance and routine repairs and lawn equipment repair. Being an IT guy, I do all my family's PC repair and maintenance and networking.
I have three projects starting up shortly - one is to remodel a room in our old farmhouse, the second is the remodel a bathroom and the third to set up the IT equipment and network for my son's new business.
Aside from which being ablke to do all those things is manly, and thus attractive to some women.
ReplyDeleteBut I'm sure that never crossed Captain's mind.
Another advantage, at leaet in Canada, is that when you "do it yourself" you can usually buy what you need for "cash" avoiding things like GST, PST, HST and for the seller- income tax.
ReplyDeleteEverybody-well almost everybody- wins.
Excellent piece Cappie.
ReplyDeleteA friend of mine said this to me.
"I have been Galt for a very long time. I go further than just barter, I do as much business in the underground markets as possible."
"There are many who do this out of necessity and I support them. Along with many other things that have become unaffordable to the common working stiff, so have the mammoth taxation levels we are being forced to pay. And there is no end in sight to the new and more efficient ways to steal our hard earned money."
"I don't know anyone who isn't aware that some tax is needed so we can have roads, flush toilets and an army, but most draw the line at funding immigrant Muslim families with three wives and ten kids all on welfare. Canada does this beyond belief."
"Many also draw the line where we have in Vancouver Canada, 'shooting galleries' so the drug addicted sum-bag street people can get their fix from a drug dealer who we spend millions on trying to catch, then go and shoot-up under the care of a registered nurse paid for by the tax-payer."
"I could spend the rest of my life listing the waste and insanity that governments are responsible for in the name of getting their butts reelected. That is not serving the people ... that is self-serving and we are sick of it."
"Remember this ... the governments who all claim they work for fairness and equity for all, lie to us as matter of course. Therefore in the name of fairness and equity, it is perfectly okay to like to them."
"We are only a couple of years away from a global feudal system, so we had better get used to being self-reliant now because the welfare state will morph into a lord and serf system with no further need to buy votes."
My friend makes a lot of sense and it is hard to argue with her unless you happen to be in the government trough yourself.
I can only hope that the revolution with be televised.
Youtube is far too general for most automotive repairs.... alldatadiy.com it will pay for itself the first time you fix anything that you would otherwise have gone to a mechanic for.
ReplyDeleteThese types of tax avoidance schemes become very common, when tax levels become too high. Adam Smith talked about this a lot. Smith even considered avoidance of high taxes to be expected, and along the lines of Natural Law.
ReplyDeleteHere in Canada huge segments of the economy have gone underground. A fire place installation, would almost always be offered at a cheaper cash only price. The home improvement business, is often done on a cash basis.
This is why higher and higher tax rates to not bring in more revenue.
Well, I think you're pretty right about the DIY services side of 'going Galt' being outside the reach of the tax code , and it sure has an appealing normative side to it, but I think the tax-man awaits on the wood-stove installation. Insofar as the wood-stove adds value to your home, when you sell it, assuming it remaIns an additional element of value in the selling price (likely, as wood stove will be soon banned by the eco-nuts, making a grandfathered or illegal one even more valued), that means more taxable 'gain' (or a reduced loss), and an incrementally higher tax bill (unless you deferred, via a 1031 exch, etc, but all you're really getting is deferral...). This is not tax advice to anyone anywhere!!.
ReplyDeleteThat's not to say that it is not without merit to delay our absurdly bloated local, state and federal gov'ts receipt of dollars, hoping thereby that inevitable fiscal reality arrives that much sooner (i.e., before even more damage is done), but as the argument goes, its really a question of income deferral, not exclusion... Of course, the feds can just print more $$, but I suspect as a homeowner (if debt free), you could ride that out.
Of course, by your actions, the character of that gain has also likely changed (from what would be ordinary income - if it was paid with after tax wages - to capital gain), unless you're a dealer in homes... so the deferral does hurt the bloated public fisc, by delaying the payment of taxes until you sell your home (insert rant about present value here!!) and by likely changing the character, but as above, it is not the perfect "Galting". All the baseless speculation above assumes the internal revenue code governs.
The same logic applies to your bike, insofar as it will command a higher value if / when you sell it, but its far more tenuous, and I'd bet no one ever reports gain on their bikes, because it is rare for these things to appreciate...even when perfectly maintained.
THUS , the true 'John Galt' maneuver is as Rand propounded it - not working, denying the state the benefits of your skill / experience / innate abilities. Isn't socialism great?
My hubby's been a do-it-yourselfer for years. He loves it, and not just for the money/tax savings (though that's a big part). He says life is about experiences, and he loves being able to say he's done: a complete rewire on an entire house (with permit and inspection), drywall, complete bathroom installation, hardwood flooring and ceramic tile, central vac installation, plus automotive and computer repairs.
ReplyDeleteAnd, I must say, the quality of his work is fantastic. He's a self-employed photographer/web designer who takes care of all regular maintenance on our house and vehicle. Plus, he does all the vacuuming! He's not much of a dancer (neither am I though), but he's too handy to lose. A smart woman knows when she's got it good! There's nothing sexier than a self-reliant man.
Downside on that fireplace thing: If you don't have an official installation certificate, the only fire insurance you'll find will be at loan shark rates.
ReplyDeleteMy deal with the govt. is this:
ReplyDeleteThey don't tell me what they're doing and I don't tell them what I'm doing. Works well for me.
Having just completed my first brake job, as well as replacing the electric window regulator and the alternator belt, I totally agree with the DIY lifestyle. Did I mention I saved HUNDREDS of dollars in labor costs? Add to that that I'm raising 27 chickens and a huge garden and building my own barn, so every day I get farther and farther off the grid. Benefits? Healthier, cheaper eating, and I'm seriously at risk of becoming a gearhead.
ReplyDelete