Tuesday, November 1, 2011

reality check. yes I know it hurts, but only for a second.

Ok, repeat, but its important. 
Regulations and lower corporate taxes or  reduced taxes on people making over 200, 000 dollars are NOT going to boost the economy.  
http://www.nytimes.com/2011/10/26/opinion/its-consumer-spending-stupid.html?_r=1&partner=rssnyt&emc=rss    Read here, I'm not the only one telling you this.

Corporations are  like small children, if their is a margin or  .000001 % to be made on something and they believe that people will buy allot of somethings, they will make the factory bigger, put more people to work and sell the "day glow widgets "
          The only reason corporations give a rats butt about regulations is because they are greedy, mentally feeble who want more more.   For you much older folk  consider the cartoon character Daffy Duck...." gimme gimme gimme"    But at the end of the day if there is money to be made the company will sell you  pet rocks or  buffalo chips in acrylic.
          
The European Court of First Instance, in a starkly worded summary read to a courtroom of about 150 journalists and lawyers here, ordered Microsoft to obey a March 2004 commission order and upheld the €497.2 million, or $689.4 million, fine against the
company.

Do you see Microsoft pulling out of Europe?  No, because even with this ruling, Microsoft is making money.     So dropping regulations would increase the profit margins, but not enough that they leave if the regulations are not dropped.  
         While it can be said that some of the regulations prevent a company from starting, which I agree is bad.  Its not that simple, if the start up company could not operate safely, than the regulation served its purpose.
        Routinely  we folk make fun, poke jokes when we see a regulation that says:  "A cereal cannot contain more than .001 parts insect carcass"  or  pills that warn, side effects may cause death.
        Well what do you think  would happen in a free market if the regulations however NOT all encompassing, what would happen if there were NO regulation.
          Oh you say, I would buy another product.   If there were no regulations do you think the other company wouldn't allow  1.9 percent insect carcass?
        Than I wouldn't buy that product at all?  Fine, why do you buy it now than? 
Yes I'm picking the easy subject, because this is a blog, and I'm making a point.
     Additionally the regulation for bidding  more than .oo1 bug guts in your cereal doesn't stop the company from making the cereal.  They make money and continue to make as sure as possible there are limited number of bug parts in there.
         I think its very funny when people, react to insects in the restaurant.  You live on a planet where they the bugs outnumber us over  1000 to 1, do you really think that the restaurant you just paid 150 dollars for a steak and  3 mini carrots doesn't have any bugs there.   These places are just better at making sure you don't see them.
           This is the long way around of saying regulations do not stop a company from making money,  nor will the removal make the economy move.
           Which companies closed because of  ( wait for it ) the taxes were to high ?   Yep, companies are moving to other places, to increase there profit margin, however, you can not just say, ok, we will reduce our cultural or society standard of living, lower the taxes so these companies can make more money and will stay here.
           Remember, if we ain't buying, it don't matter if you are making cheap stuff in China.
And if we ain't working we ain't buying.
          Its with great amusement, I have been reading about Chinese companies closing to move to Malaysia, because China is becoming to expensive.  
          No matter the taxes or regulations   companies will grow, if they can make a profit.
High price jobs, with expensive benefits in the U.S.  means the worker will buy the over priced blue ray copy of  "Survivor Island, lake Michigan", which puts money in the  pocket of our poor media industry.
         Once again the point  is not so simple.   Very little in our world is  "black or white"  yet we attempt to pigeon hole an issue into true/ false, yes/no.  Fair regulations, and proper taxation can help, but ultimately its the consumer spending that determines how any economy will do. 
             Our economy in the U.S. is proof, a living example.  The majority of established companies have more cash than they know what to do with. ( a figure of speech, they are investing the money to make more money)   They are neither expanding their business, buying new equipment or hiring new employee's.
           Another example is giving the masses free money.  There is no guarantee that giving money for disaster relief or to pay their debts that people will actually do that. 
           A congress that will not allow tax reductions for business that promise to hire Americans, so those Americans can go out and buy products and services.
          Why is it, that no one in congress will pass a bill that says,  " You promise to hire  X number of Americans, in return you reduce your corporate tax  X number of dollars.   If you take the reduction and do not hire those people, you will pay back the money including penalties.   If you fire those people or lay them off in less than 5 years without good cause,  You will pay back the money.   Here are the acceptable reasons, per a national standard, pretty much accepted across the country"
             Such a bill is not taking away any ones freedom... you are free not to take the money, but if you do here are the conditions.
           Here Mr. Bank, he is bail out money, but you must loan that money out to people who will spend it to grow the economy, OR failing that, you will spread that money out to reduce the debt on X number of loans to people with incomes of  X.
         Perhaps the old model of economies, was applicable, that business with low taxes and few regulation grew an economy, but no more, at least not now.
            This morning driving in, the radio reported that Greece will put its new austerity measures and bail out  to a referendum before the Greek people !.  This is much like the Dutch putting to a vote  "Should we be flooded this year or not?"    Economically the Greeks  ( among others ) are in poor shape, but that doesn't stop them from being dumber than a box of rocks.  We will vote on  taking the bail out or not.  And if we don't we will do what?   I don't like to predict election results, but I think the rioting, burning of shops and vehicles is a pretty good indicator of how the vote will go.
           I started this blog explaining human nature in my overly simplified way, and continue to show you examples.  The Greeks are just they latest, with the battle cry  "Freedom"  or "You will have to pry my retirement check from my cold dead hands "  which could be soon if their is no money backing that retirement check.
           I started these blogs, with the intent to prove the 85 percent rule, which started as a joke, is no longer funny and it is as real as you or I.   Knowing its true is not meant to be a magic bullet, to fix anything.
Knowing it is true has always been a way of understanding what is going on around you, and using that knowledge to make better decisions.   If you know some one is deciding irrationally, you than decide your own path.  Hell you might decide to vote/buy/sell/act irrationally too, but do it with the knowledge you made a clear cut decision based on facts you have on hand.  Don't do it because the "herd" has decided. 
Do it because you have decided its the best course of action for you.   
         As bad as I feel now voting for Obama,  I can not in good justice have voted for McCain.  McCain became a tool of the his party.   I was a McCain supporter right up to 2000, when he decided to stop being the Maverick.   Despite what you read here, I am at heart a Republican, waiting for my party to sober up and become pragmatic again.   Some one needs to prove to me that  "God is actually getting his 10 percent" as the republican candidate suggested a few days ago.    Cause if God is getting 10 percent, its time to lay a corporate tax on God.   Remember the republicans are calling for a flat tax with no more loop holes, not me.

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