1) Extend unemployment insurance benefits.
Could be amended to include, 'If unemployment extends beyond 6 months without finding
"suitable" work, the worker must accept any job which they are able to perform and if pay is
less than insurance benefits, insurance will pay the difference."
2) Repeal the Bush/Cheney gift tax break for the wealthy and eliminate the cap on Social Security
Tax.
3) Stop deficit spending and start to reduce the National debt.
The enormous debt that we are leaving for the future middle class to pay is immoral.
4)Take a realistic approach to the Free Business Enterprise System.
A) Enact and enforce conservative regulations for all businesses with 1000 or more employees.
B) Nationalize all businesses that have vital national benefit and cannot survive without
government subsidies. ie Railroads
C) Stop Intervention in businesses operating in a valid free business enterprise system. Risk
Management is the responsibility of the entrepreneur.
D) Enact corporate law to make CEO's more personally liable for their risk management.
E) Enact federal, state and local laws to make elected officials more personally responsible for
their risk management with double jeopardy for fraud and corruption.
Thursday, July 8, 2010
GOVERNMENT INTERVENTION
Government Intervention is the antithesis of Freedom and the Free Business Enterprise System, but driven more by the desire for wealth and power than the avoidance of a Depression and the welfare of the nation, the Government has tried many ways to promote economic prosperity and freedom, and eliminate Depression. At the beginning of the century, regulations on big business, the enemy of "Freedom," was the first to go. Then the Government took over consumer credit in the home building industry establishing two enormous credit factories that enabled consumers to spend money that they didn't have or couldn't reasonably expect to have, to purchase homes. Investors wildly used these factories as well and a housing bubble evolved causing disaster for 10 to 20 percent of the present population and future "hard times" for the middle class.
The Government enacted a stimulus program that was, and is, a necessary aid for the "depressed" (those without jobs) but does nothing to stem the Depression. Bailouts to create jobs that increase supply simply add to the economic problems. The reliance on consumer spending, the backbone of our economy, will be a long hard struggle. Unfortunately war and destruction of supply (along with the lives of our brave and innocent youth) appears to be our only current hope for a less lengthly economic recovery.
The Government enacted a stimulus program that was, and is, a necessary aid for the "depressed" (those without jobs) but does nothing to stem the Depression. Bailouts to create jobs that increase supply simply add to the economic problems. The reliance on consumer spending, the backbone of our economy, will be a long hard struggle. Unfortunately war and destruction of supply (along with the lives of our brave and innocent youth) appears to be our only current hope for a less lengthly economic recovery.
Tuesday, July 6, 2010
RISK MANAGEMENT CONTINUED
For the Supplier of a product and/or a service in the Free Business Enterprise System, decisions concerting supply are based on the unknown (risk) which is the demand. To be successful Supply should approximate Demand. The Supplier not only has to consider the demand of their market population, but because of the competitive aspect of the Free Business Enterprise System, consideration of the market demand that the competition would satisfy is also required. Excessive supply would cause a loss of the cost of supply unconsumed. Insufficient supply would result in less gain than the Supplier would have made if demand had been completely satisfied. The process of determining the supply to be produced to meet the unknown demand is known as risk management.
The Business persons (suppliers) have developed a number of ways to manage risk. Some restaurants, for example, require reservations to more accurately determine the risk (demand). While this reduces the risk of "over supply." it looses the possible gain of the demand without reservations.
Advertisements, sales, and various kinds of gimmicks can be used to gain a bigger share of the demand and they add to the risk factor that has to be considered.
This practice of basing supply on predetermined demand can be, and is, used in nearly all businesses. It is considered a conservative approach and not compatible with the American Dream of maximum profit. Most businessmen use risk management in conducting their individual businesses, some taking greater risks than others.
The development of the Corporation has completely changed the strategy of risk management. The limited liability of the owners of the Corporation and the prospect of great gain without personal liability influenced unrestricted risk taking by corporate management and encouraged investors to
accept risk as a part of the system.
With unrestricted risk management of supply, failure to respond to the Recession phase of the Business Cycle often resulted in failure. Because of the size of the Corporation and its lack of personal identity, failure caused loss to a large number of people which is referred to as a Depression. Investors lost money and people lost jobs. (The governments, local, regional and national. lost tax income as well)
The normal business cycle starts with Progress (Demand exceeding supply), then Recession (Supply starting to exceed supply) Depression (failure of a significant number of business enterprises) and Recovery (Demand increasing with depletion of excessive supply, inventory) The prudent private business owner, using risk management. reduces supply in a recession and averts failure (depression) while the risky corporation management and less prudent private business owners, in search of greater personal gain, gamble and often fail, bringing on a Depression.
The government has tried a number of plans to avoid a depression which includes subsidies, regulation, intervention and stimulus.
The Business persons (suppliers) have developed a number of ways to manage risk. Some restaurants, for example, require reservations to more accurately determine the risk (demand). While this reduces the risk of "over supply." it looses the possible gain of the demand without reservations.
Advertisements, sales, and various kinds of gimmicks can be used to gain a bigger share of the demand and they add to the risk factor that has to be considered.
This practice of basing supply on predetermined demand can be, and is, used in nearly all businesses. It is considered a conservative approach and not compatible with the American Dream of maximum profit. Most businessmen use risk management in conducting their individual businesses, some taking greater risks than others.
The development of the Corporation has completely changed the strategy of risk management. The limited liability of the owners of the Corporation and the prospect of great gain without personal liability influenced unrestricted risk taking by corporate management and encouraged investors to
accept risk as a part of the system.
With unrestricted risk management of supply, failure to respond to the Recession phase of the Business Cycle often resulted in failure. Because of the size of the Corporation and its lack of personal identity, failure caused loss to a large number of people which is referred to as a Depression. Investors lost money and people lost jobs. (The governments, local, regional and national. lost tax income as well)
The normal business cycle starts with Progress (Demand exceeding supply), then Recession (Supply starting to exceed supply) Depression (failure of a significant number of business enterprises) and Recovery (Demand increasing with depletion of excessive supply, inventory) The prudent private business owner, using risk management. reduces supply in a recession and averts failure (depression) while the risky corporation management and less prudent private business owners, in search of greater personal gain, gamble and often fail, bringing on a Depression.
The government has tried a number of plans to avoid a depression which includes subsidies, regulation, intervention and stimulus.
Monday, July 5, 2010
RISK MANAGEMENT
FOREWORD
In the American culture, risk is the pathway to success,a quick means to achieve the American Dream. Quick success has become the all consuming goal in America and the "failure consideration" of risk has become a minor concern. As a result management decisions are often based more on luck than on good judgment. A thorough understanding of risk management is needed to turn business enterprise from a gamble and depression to an investment and stability.
RISK MANAGEMENT
A risk is a venture into the unknown. Without risk, we would never go anywhere or learn anything new.
Risk brings gain and it brings loss. The greater the risk, the greater the possible gain; AND the greater the possible loss.
We take risks most of the time. We take a risk whenever we walk across the street or drive a car. If there are no cars coming, the risk in crossing the street is minimal (The gain is to reach the other side, the loss would be an accident that prevented one from reaching that goal) If the street has high speed traffic, the risk would be greater. If a car is driven on a crowded highway at legal speed, the risk may be small. If the car is driven on a crowded highway above legal speed with faulty brakes, the risk may be great. Steps can be taken to reduce risks. One might reduce the risk of financial loss, for example, by purchasing accident insurance.
In any action involving risk, all conditions should be considered and weighed; and a decision should be taken to determine the action that is to be taken. This assessment and decision is called RISK MANAGEMENT.
In our democratic, free business enterprise system, risk is the key element. Proper management of the risk increases the possibility of gain and decreases the possibility of loss.
Success to some extent also depends upon luck. Luck is the element over which we have no control.
However, it has been wisely said that the better the risk management, the better the chances for good luck. A risk taken based solely on luck is a gamble. Risk based upon proper risk management is called an investment.
Our Free Business Enterprise system is based upon Supply and Demand. Since it is a Free system,
demand is unknown and consequently Free Business Enterprise System is a system based upon risk.
In the American culture, risk is the pathway to success,a quick means to achieve the American Dream. Quick success has become the all consuming goal in America and the "failure consideration" of risk has become a minor concern. As a result management decisions are often based more on luck than on good judgment. A thorough understanding of risk management is needed to turn business enterprise from a gamble and depression to an investment and stability.
RISK MANAGEMENT
A risk is a venture into the unknown. Without risk, we would never go anywhere or learn anything new.
Risk brings gain and it brings loss. The greater the risk, the greater the possible gain; AND the greater the possible loss.
We take risks most of the time. We take a risk whenever we walk across the street or drive a car. If there are no cars coming, the risk in crossing the street is minimal (The gain is to reach the other side, the loss would be an accident that prevented one from reaching that goal) If the street has high speed traffic, the risk would be greater. If a car is driven on a crowded highway at legal speed, the risk may be small. If the car is driven on a crowded highway above legal speed with faulty brakes, the risk may be great. Steps can be taken to reduce risks. One might reduce the risk of financial loss, for example, by purchasing accident insurance.
In any action involving risk, all conditions should be considered and weighed; and a decision should be taken to determine the action that is to be taken. This assessment and decision is called RISK MANAGEMENT.
In our democratic, free business enterprise system, risk is the key element. Proper management of the risk increases the possibility of gain and decreases the possibility of loss.
Success to some extent also depends upon luck. Luck is the element over which we have no control.
However, it has been wisely said that the better the risk management, the better the chances for good luck. A risk taken based solely on luck is a gamble. Risk based upon proper risk management is called an investment.
Our Free Business Enterprise system is based upon Supply and Demand. Since it is a Free system,
demand is unknown and consequently Free Business Enterprise System is a system based upon risk.
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