Productivity

True or False? A nation’s living standard depends on that nation’s collective and meaningful productivity.

History teaches us this basic truth time and time again.

Look at the weaker nations in Europe, like Greece, France, Portugal.  Or look the other way at productivity and living in Eastern Germany before and after the Wall “came down."  

Further Proof: When did China start to be a powerhouse? Only after backing away from some of its strict Communist ideas and simultaneous introducing incentives and personal motivations.

Why doesn’t a majority of our voters see this obvious truth in world history?  

Maybe it is just easier to watch football and count food stamps and hope that Big Government will take care of us when as we age.

Or look at the other end of the economic ladder: At the people who deal in “almost legal” but highly profitable rip-offs of the food stamp counters.

And there you have the problem -  the lack of knowledge of some at the bottom of the ladder and the “almost legal” activities  of people near the top.

When the number of these dangerous voters gets large enough to sway elections, we will then see the living standards in the US decline rapidly and the US influence in world affairs diminish accordingly.

Things haven’t been too bad since World War II ended in 1945, BUT there is no promise that the US, with all its faults should or will have the same force for good in the next 69 years unless we pull up our socks and change.

"Earned, not Given"!

I saw a twelve year old wearing a t-shirt that gave me the strongest reason for optimism that I have had in several months.

   The t-shirt said:  “Earned, Not Given”.  Could this youth be representing a new generation that does not want to be entitled, but rather to “earn” their way??  If so, America will have a renewal in twenty-five or thirty years when this youth generation gets into power.

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It used to be a man sired enough children to take care of himself in his old age when he was unable to work.  Somehow that has been turned upside down.  We have now begun to think that the parents should leave a financial legacy for the children. And the children expect it as an entitlement.  What a reversal!  Especially since the children now days can feel discriminated against if they don’t get a car when they reach sweet sixteen, at least five years of college to complete four years of work and a forgiveness for any loans they may have taken out to finish school.   What a difference the words on a T-Shirt could make!!!

How to Elect Romney

One of the good lines that came out of the Republican Nominating Convention was:  Every good Repubican should make a personal pledge to convince one person who voted for Obama four years ago to NOT vote for him in 2012.

The line died, was not repeated and it should have been.



Just think, if every Republican would convince just one person who voted for Obama in 2008 NOT to vote for him in 2012, Romney would win in a walk.

If you want to be sure, ask that every Republican convince three people to NOT vote for Obama even if they can't bring themselves to vote for Romney.  They can still vote for the other Democratic nominees if they wish.

Who  are the best candidates for conversion??  My guess is that the most lucrative are the young voters in 2008 aged now about 25-35.  They have seen that their "hopes" for Obama have not been warranted and the "change"  has not been what they expected.

Taxpayers and Congress Align!

An open letter on a creative idea to get citizens and politicians aligned on the task of Deficit Reduction.

If you like the idea, please sign our petition.
Click to Sign Petition

An open letter to:  Representative Dave Camp, Chairman of the House Ways and Means Committee

Here’s an idea that would get all the taxpayers focused on the deficit.  It might even increase consumer savings, curb the inevitable inflation and get more and more voters intimately involved in government finance and deficit borrowing.

How would any one idea create so many miracles?  Read on, dear congressman.

First, the Republicans would have to agree to a 10% tax increase for ALL tax payers.  Don’t choke.  There is a redeeming feature. The feature is this:  The taxpayer would receive a 30 year government “deficit bond” equal to the 10% increase he is forced to pay in taxes, but the interest rate would be 0%; however, the interest rate would increase by X (say 1%) for every Y (say 4%) that the deficit decreases.

After three years or so, the 10% tax assessment would fall in some proportion to the decline in the deficit.

The program ends when the government deficit reaches a specified % of GNP.  

Banks will make a market for the bonds to create liquidity for people who can’t or don’t want to keep the bonds to maturity.  Each series (vintage year) of bonds ideally would have different interest rates based on the year of issuance and how much the government debt had declined since issuance.

Want to reduce taxes? Get the deficit down and taxes automatically reduce. Want to stimulate the economy?  Get the deficit down and the value of the Deficit bonds citizens holds goes up making them feel wealthy and motivating purchases.  Let politicians compete for ways to reduce the deficit because the average citizen sees a direct, financial impact in doing so.

And if you are looking for a catchy name for these bonds, play off the bonds called TIPS and call theses deficit bonds DIPS.

Good luck Congressman Camp!


Please Sign our Petition

A FISH TALE

The financial troubles in Europe bring back memories of the fairy tale about the starving people on an isolated Pacific island.

It seems that one government sent in a load of fish which the starving natives immediately consumed. Another government sent in a teacher or two. Their job was to teach the starving natives to fish.

Some of the natives stood by the pier and waited for their next arrival of free fish. No shipments ever came.

The natives who learned how to fish ate well and eventually ruled the island.


An analysis of the European situation is not off base.

A lot of voters in Europe want the rich nations to underwrite the losses of the big debtor nations so that life can go on as before. They remind you of the starving natives who stood by the pier waiting for a second gift of fish that never came.

The unpopular view that the nearly-bankrupt-nations must change their lifestyle and borrowing/ spending habits reminds you of the natives who opted to learn to fish.

Parallel to the fish story ends there because everybody gets one vote. Those who were at the pier outnumbered those who wanted to learn to fish. But each vote counted the same.

America, itself, is not absolved. Haven’t we really borrowed ourselves thin to support the “entitlements” that were given to us in the past partly to buy our vote (with our own tax money or credit) and partly out of good intentions but would allow unintended results for greed--by those who saw a chance to personally profit from a well intended idea.

Here’s to those in the world who elect to learn to fish. May they become the leaders of the future.

I have a Dream. Its a fun Dream

I am dressed in my Brooks Brother’s pinstriped suit wearing a rep necktie with my white button down Brooks Brother’s oxford shirt.

I am standing on a podium in front of 1500 demonstrators in Liberty Square who want to “Occupy Wall Street” and the demonstrators are giving me their full attention which is the fun part.

And I am asking them what they really want. SILENCE! All I ever heard is that they wanted was long jail terms for Wall Street and banking officials guilty of greed. No Problem. The country is full of potential scape goats.

What else do you want? I ask. SILENCE, AGAIN. There is some mumbling and waving of signs that talk about Wall Street lies and greed.

Do you want the government to run all big businesses, I ask? Like the post office? Or like the railroads and telephone companies in England before Maggie Thatcher? Or Fannie Mae and Freddie Mac in this country?

By the way, I ask whose idea was it that everybody deserves a house (or maybe two) even if they can’t afford one and was that the trigger that set off the current depression ? (correct).

Do you remember the ad for mortgages that read “No Docs” or “No Wage Checks”? Did these ads run in The Washington Post too? Was that a government program run by the same types of people that might run the banks if you had your way?

Or, are you really after forgiveness for your own $80,000 education loan because it took you five years to complete four years of college work in an institution whose tuition has increased at more than twice the inflation rate? (And by the way, have you ever checked out the standard of living of the tenured professors who are pretty adept at getting government grants and working the system)?

And I am glad to see that you have a lot of Union support here. I am still waiting for their apologies for being so successful in raising wages and benefits so that American businesses moved to low wage countries abroad. And this contributed to higher unemployment and discontent among their own membership. Maybe what you really want is more of my money so that you can continue your “entitled” living . Sorry, there is not much left. My house in Greenwich won’t sell. And to save money for your sisters’ private school and future college expenses I am living full time in the summer house which won’t sell either because of the housing bubble generated by two government run agencies and a lot of Congressmen.

My income tax has increased and will probably will go up again, because I am still considered rich which just isn’t so, since I am paying double real estate tax and 6.5% sales tax and tax on gas, telephones, etc. etc. And I am paying a high fee to my tax accountant because I can’t understand the IRS’s many directives.

Now quit throwing those eggs. I can’t afford $13 plus 6 ½ /% sales tax to get this Brooks Brother’s suit cleaned again and my girlfriend who lives on a beach in Florida is still complaining about the spots on my clothing.

Save the eggs, boil them and invite me for a lunch. Kindly invite my girlfriend too. That will save both of us money.

Great Thought (Maybe) in a few words (Maybe)

Thought Number 1

Perhaps the US should forbid the importation from Europe of social, financial, or banking ideas. They don't seem to work too well over there. And besides, we have enough "entitlement ideas" of our own and they don't work so swell either.

Thought Number 2

What more proof do we required about the basic need for personal incentives in the national financial mix? Just look at what's happened to the Chinese and Russian living standards since they included more personal incentives in their finances. Or look at the difference in life between South Korea and their northern brothers. Or study East Berlin since they joined the west. Why, then, do some people in the U.S. want to de-incentivize those who seek to better their lives???

Thought Number 3

Is it true that, deep down, those who borrow dislike those who lend? Or that those who receive unearned largess dislike or suspect those who gave it?

Thought Number 4

Because of the economic demise of 2008 many many tax payers have carryover capital losses that can only be used against capital gains (except for $ 3,000 per year). With no capital gains to be had in the current year, why doesn't Washington decree that taxpayers can deduct 1/3 of their total carry-forward loss (versus the $ 3,000 allowed now) provided all carry-forward losses are completely used up in say 3 years? The tax savings would increase consumer spending and confidence almost immediately. The funds would go into consumption, savings, debt reduction or investment -- all stimulating job growth and/or real estate values. Just what we need.

Those are my thoughts for today. Steve Jobs 'thought differently'. We need a Steve Jobs in Washington.