Regardless of which party is in power, The US will survive. Whether the top 1% pay their share of the taxes or the bottom 50% pay their share, the US will survive. Whether entitlements are not cut to the bone or corruption remains out of control, the US will survive.
How long it will take to bring down unemployment and how much of a hardship will be born by the middle class and the poor may depend upon the management and policies of the party in power, but the US will survive,
The Government could end the crisis with all citizens contruibuting a fare share if Congress were to lend a hand and cooperate by enforcing only needed regulations and cracking down on mismanagement and corruption.
If deams could come true the Federal Reserve could gradualy issue dollars to pay off debtors, devaluating the dollar and causing inflation that would increase prices which would also increase wages and taxes, all born fairly by consumers and businesses alike in the purchase of goods and services..
Real Estate and Capital Wealth would retain their value through appreciation. The only losses would come from large amounts of uninvested dollars in corporations and banks. (and also of course, cash horded under mattresses)
Higher prices would be offset by corresponding higher wages and business would not be effected. The possibility of low income consumers unable to save for down payment on a first home could be offset by government backed, low interest, capped mortgages that could also help small business entrepreneurs in need of capital for start-up and/or expansion.
Any change would be opposed by those satisfied with the statis quo. Even if the tax break for the top 1% was ended, it wouldn't be much of a hardship for them. However, massive cuts in entitlements and health care would tragically reduce the standard of living level for millions of middle class with millions of the poor living at a third world level. Continued cuts in education would greatly jeopardize our future leadership role in the world. Neglect in maintaining the infrastructure and public service will impede progress and result in choas. The budget challenges today are astronomical!
The effect on foreign trade would vary according to the financial adjustments made by the countries involved, but basically prices on imported goods would be higher with lower prices on exported goods. This would be good for our economy as this would promote more demand for domestic goods. Admittedly, this may reduce profits for outsourced domestic corporations.
If you think that the doubling of prices and wages would never happen, consider the prices and wages from 1960to 2000 and we still surived.
Wednesday, August 15, 2012
Sunday, July 29, 2012
GOVERNMENT REGULATIONS
Rep Kelley's U Tube speech on Government Regulations was little more than an emotional diversion from the real issue involved. The real issue is the elimination of fraud and corruption in business enterprise. Faulse advertising and hidden dangers in products is not in the public interest and should be considered on the same level as theft and physical assult. Do you want to buy food without some reglation governing the preparation and distribution of this food.
Abolishing government regulations is not the answer. The answer is to challenge the regulations to come up with regulations that serve the best interests of all involved.
Abolishing government regulations is not the answer. The answer is to challenge the regulations to come up with regulations that serve the best interests of all involved.
Thursday, July 19, 2012
Thursday, February 17, 2011
RESTRUCTURING BUSINESS ORGANIZATION AND MANAGEMENT FOR THE PUBLIC FUNDED CORPORATION
The private free business enerprise system is perhaps the most perfect method of sharing economic wealth. Business owners in competition with other businesses attempt to produce a better product at a cheaper price with a reasonable profit and a healthy economy results. Small Business is the backbone of tWestern Society.
In an effort to expand the economy, the Corporation was developed. Public investment gave the economy Big Business. Investors received dividends from the profit of the Corporation and corporation officers and workers received income. The distance between the ownership and the management of the corporation gave rise to corruption and exploitation.
A suggested restructuring of the organization and management of the corporation to effect a more equitable distribution of the profits of the corporation between investors, officer and workers is presented below for consideration.
Officers and workers are contracted on a basic, reasonable salary schedule. Fifty percent of the profit less a reserve for contingencies is to be distribted as dividends to the investors. The other fifty percent of the profit is to be distribituted to the officers and workers on an equitable basis in the form of treasury stock at market price. This money to be deposited in a holding account with appropriate shares given to the officers and to the workers. Officers and workers can sell up to 50% of their shares at any time if they so choose. At least 50% of their shares must be kept as retirement benefit when the Officer or Worker leaves the company. The stock can be kept and receive dividends even after the Officer or Worker leaves the corporation if they choose.
This arrangement provides an equitable share of the risk and the profits of the Corporation for Investors, Officers and workers giving all a fair share of their input into the enterprise.
In an effort to expand the economy, the Corporation was developed. Public investment gave the economy Big Business. Investors received dividends from the profit of the Corporation and corporation officers and workers received income. The distance between the ownership and the management of the corporation gave rise to corruption and exploitation.
A suggested restructuring of the organization and management of the corporation to effect a more equitable distribution of the profits of the corporation between investors, officer and workers is presented below for consideration.
Officers and workers are contracted on a basic, reasonable salary schedule. Fifty percent of the profit less a reserve for contingencies is to be distribted as dividends to the investors. The other fifty percent of the profit is to be distribituted to the officers and workers on an equitable basis in the form of treasury stock at market price. This money to be deposited in a holding account with appropriate shares given to the officers and to the workers. Officers and workers can sell up to 50% of their shares at any time if they so choose. At least 50% of their shares must be kept as retirement benefit when the Officer or Worker leaves the company. The stock can be kept and receive dividends even after the Officer or Worker leaves the corporation if they choose.
This arrangement provides an equitable share of the risk and the profits of the Corporation for Investors, Officers and workers giving all a fair share of their input into the enterprise.
Wednesday, February 16, 2011
IT IS A CONSUMER CRISIS
This is not a business crisis, it is a CONSUMER crisis. Businesses are making more profit now than they did before the Crisis. Consumers are still loosing their homes and there is shortage of jobs. The way out of this crisis is to increase consumer spending and reduce the debt! Congress is either unable or unwilling to raise taxes to support government jobs and increase consumer spending, so perhaps drastic action must be taken.
The Feds could "print money" to pay off the debt which would lower the value of the dollar and result in higher prices resulting in the entire population paying the price. Then a revolt of the people could cause government officials to reform corruption and excessive benefits to government officials and government workers, followed by increased taxes on the top income makers and a balanced budget law.
Higher prices could hurt our exports but adjustments for US business overseas could ease this loss.
We cannot support the entire world beyond the amount we can afford under a balanced budget. Charity begins at home.
The Feds could "print money" to pay off the debt which would lower the value of the dollar and result in higher prices resulting in the entire population paying the price. Then a revolt of the people could cause government officials to reform corruption and excessive benefits to government officials and government workers, followed by increased taxes on the top income makers and a balanced budget law.
Higher prices could hurt our exports but adjustments for US business overseas could ease this loss.
We cannot support the entire world beyond the amount we can afford under a balanced budget. Charity begins at home.
Tuesday, February 15, 2011
BASIC HEALTH CARE
When the government wants to provide health care to everyone as an entilement we have to consider what the government can afford to provide. At one end of the spectrum, there is Basic Health Care and at the other end there is extreme health care.
Consider nursing home care for the elderly. It would be nice to give each elderly person in need of assistance a luxury condo with catered meals, a housekeeper and medical services available. But can we affdord that. Perhaps the best that the government can do is provide basic care, a comfortable room, meals and needed medical assistance.
Next, we might consider "needed medical assistance." Emergency care is certainly needed but would extreme care like intertalization be an entitlement. Woud a heart transplant or organ transplant that at best would extend live (with pain) for a year or so be an entitlement.
In our capitalistic, democratic society we are entitled to spend what we earn for our own welfare. We are also expected to pay taxes to the government to provide basic needs. (Soc Sec Retirement, Education through grade 12, "insurance" to cover basic needs, etc.) This welfare entitlement can not exceed what we can afford.
Abuses in the "entitlement benefits" have helped to cause the crisis we now have. The fact that over extention aid to other countries, wars, etc have been a far greater cause of the crisis does not excuse us from curbing the abuses and paring entitlements to a level that we can afford.
One of the major abuses to consider are the retirement benefits of public servants that have been increased legally but unethically far beyond the intended limits. Another major abuse would be the policemen and firemen who double their adequate wages with exorbitant overtime.
We are a very generous and tolerant people but we have been exploited beyond our means and we must consider "what we can afford" in making our decisions.
Consider nursing home care for the elderly. It would be nice to give each elderly person in need of assistance a luxury condo with catered meals, a housekeeper and medical services available. But can we affdord that. Perhaps the best that the government can do is provide basic care, a comfortable room, meals and needed medical assistance.
Next, we might consider "needed medical assistance." Emergency care is certainly needed but would extreme care like intertalization be an entitlement. Woud a heart transplant or organ transplant that at best would extend live (with pain) for a year or so be an entitlement.
In our capitalistic, democratic society we are entitled to spend what we earn for our own welfare. We are also expected to pay taxes to the government to provide basic needs. (Soc Sec Retirement, Education through grade 12, "insurance" to cover basic needs, etc.) This welfare entitlement can not exceed what we can afford.
Abuses in the "entitlement benefits" have helped to cause the crisis we now have. The fact that over extention aid to other countries, wars, etc have been a far greater cause of the crisis does not excuse us from curbing the abuses and paring entitlements to a level that we can afford.
One of the major abuses to consider are the retirement benefits of public servants that have been increased legally but unethically far beyond the intended limits. Another major abuse would be the policemen and firemen who double their adequate wages with exorbitant overtime.
We are a very generous and tolerant people but we have been exploited beyond our means and we must consider "what we can afford" in making our decisions.
Thursday, July 8, 2010
SUGGESTIONS FOR RECOVERY
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.
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.
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