WHAT CHANGES?

Both parties agree that changes in our Government and Economy must be made and both promise to make these changes if elected. But, what changes are needed and what changes are promised?

First, we must understand how our government and economy are now operating and why does it need changing.

We have two economic systems operating together in our country:
1) A private free market business enterprise system owned and operated privately under the control of the owners, with personal liability for the debts of the business.
2) A public business enterprise system comprised of "Artificial Persons created by law" (Corporations) owned by public investors and managed by professionals, both with limited personal liability for the debts of the business.

Both systems operate together in a minipulated free market business enterprise system, and as one might expect, the artificial persons with the advantage of limited personal liability plus access to unlimited funds have taken over most of the economy.

The Professional managers (CEO's), like the government managers (President and Government officers), have taken control of these artificial persons and many have placed personal objectives above the welfare of those that they represent. Consequently, CEO's with the help of government subsidies and the investment of owner's profits have expanded their businesses to the point where they are out of control. Freed from any personal liability for their actions, CEO's have taken irresponsible risks in the hope of making greater profits and greater personal remuneration. Too many of these irresponsible risks have failed, and hence, the crisis.

Specifically, in regard to the major part of the current crisis; aided by the Government, great sums of money were made available for Real Estate Development which was sold on credit that many of the buyers could not afford. The government set up additional "artificial persons" (Fannie and Freddie, etc)
to accept this poor credit in exchange for cash which the CEO's used to "reward" themselves and to expand supply beyond capable demand. When these creditors were unable to pay their mortgages, the government subsidized artifical persons were without funds to pay their bills or to lend more money to perpetuate the trickle down theory, and hence the crisis and the artificial persons are now looking for more money to keep afloat. Unfortunately, the governbment is also over its head in debt from taking irresponsible risks, and the crisis becomes even greater.

THE BAILOUT!

If the government should decide to use taxpayers funds to "solve" this crisis, the bailout could take two approaches. 1) give the artificial persons funds to cover their losses (Bad Debts) or 2) give funds to "Bad Debters" to pay off their mortgages. In either case provision could and should be made for reimbursement to the taxpayers. (Actually the second approach would be an attempt to help both groups)

SUGGESTED CHANGES:

For Starters:

1) We must provide a fair playing field for Private Business Enterprises if we are to continue with a Free Market Business Enterprise System to manage our Economy.

How:

A) The Artificial Persons cannot continue to exploit their advantages in the system. Government Regulations must be enacted and enforced to make artificial persons responsible for their acts. If they fail, they should not be bailed out by the government, AND THE GOVERNMENT SHOULD NOT SUBSIDIZED THEM.
NO TAXPAYER FUNDS SHOULD BE USED TO SUBSIDIZE BUSINESS ENTERPRISE PUBLIC OR PRIVATE.

B) Give the owners ofthe Artificial Persons (shareholders) control over the profits of their business as dividends. The owners can keep the profits or reinvest them AT THEIR OWN DESCRESSION.

C) The remunerationof CEO's should be subject to the vote of the shareholders.

D)
a) Make records and activities of artificial persons open to the public.
Detailed budgets matched with full disclosure financial statements should be published and available to government regulators and to every shareholder.

b) Require color coded reports with instructions on how to read the statements.
(Blue-Assets, Red-Liabiolities, Yellow-Net Worth, Green-income, Orange-Expenses, Puraple-costs, Black-current profit, etc.)

E) Restrict Artificial Persons from anti-fair trade mergers and take-overs.

(MANY CHANGES IN THE GOVERMENT SHOULD BE MADE AS WELL, BUT THAT IS ANOTHER BLOG) Big may be beautiful but it can also become Obesse and easily hide abuse and corruption.

I'M SURE THAT THERE ARE MANY REFINEMENTS AND ADDITIONS THAT CAN BE MADE TO THIS AS WELL AS OUT AND OUT DISAGREEMENT!