As the end of this year approaches, it is a good time for me to reflect upon the events of the past year.
A lot of good things happened.
Our oldest daughter and her family moved back to Utah, close to family, after having lived in Athens, Georgia for the past 7 years. It is great to have them close.
Our youngest son married a beautiful young lady this past year. We love and admire her, and we are glad to welcome her into the family.
Our youngest daughter graduated from Weber State University with a Bachelors of Science degree in musical theater. We are so proud of her and of her many accomplishments.
Our oldest grandson turned 8 this year. He became a cub scout, got baptized and is doing well in school.
All of the family is healthy and doing well. Challenges exist, but we are working to make those challenges be a benefit to us.
We are so grateful for family and for the associations that we have with them.
I started teaching math, science and chemistry at a private High School. The experience has been wonderful. I love watching these young people work and learn. The glow on their faces when they accomplish good things is priceless.
A lot has changed this past year. A new administration is preparing to take office in the United States. Many corporations have gone into bankruptcy. A lot of people have lost their jobs, their life's savings and their retirement prospects.
I believe that there is a silver lining to the economic turmoil that we have all experienced. It is humility. With humility comes meekness. With righteous leadership, that humility and meekness should translate into greater prosperity.
The economic crisis has created a moment of retrospection, where each of us can take an accounting of our current state of being, and ask the questions: What did I do right? What could I have done better? And what will I do to build upon this experience to improve the future for myself and for others?
My hope and prayer is that the world will capitalize on this humility and be better off for the experience.
Wednesday, December 24, 2008
Monday, December 15, 2008
The Paradox of Job Losses
Business Week begs the question, "Job losses: Is the panic Justified?"
Like with the chicken and the egg, the answer is yes and no. In other words, what comes first: the panic or the job loss?
It's a paradox.
The panic results from job losses. Job losses create the panic.
But what is really happening?
In our modern world, prosperity occurs because of synergy. Teamwork, comparative advantage, trade, specialization, competition, etc. have all contributed to the greatest prosperity that the world has ever known.
As a result, the world is now supporting nearly 7 Billion inhabitants; by far the most inhabitants at any point in time in the history of our world.
So what is the problem?
It is entitlements!!!
More and more individuals are demanding entitlements; IE, protection for their particular interests, such as inheritances, health care, social security, vacations, leisure, retirement, property, education, jobs, etc.
The problem is further complicated by the fact that our entitlements are dependent upon the work of each other. We cannot survive in the current world of prosperity without each of us doing our part to help each other.
What an interesting paradox. We either help each other and prosper, or we protect our individual interests and suffer.
For this to work, however, there needs to be a level of trust in each other, which is completely reliable; where complete honesty is exercised. Greed needs to be eliminated. Kindness need to be elevated. And competition needs to be mitigated.
We live in a world of plenty. We can produce more than we need. We need leaders who will promote that prosperity in a modern world environment. The result will end the Job Loss Paradox, as there will be jobs for all who want them. And those who want to work will maximize their efforts to benefit everyone.
When the world population works in concert for the benefit of all, excesses are produced. Those excesses can be used as a storehouse of value for needed entitlements. As we age, we need some entitlements, such as social security, retirement, health care and love.
So is the job loss panic justified?
Only if we insist on maintaining our selfish interests.
Like with the chicken and the egg, the answer is yes and no. In other words, what comes first: the panic or the job loss?
It's a paradox.
The panic results from job losses. Job losses create the panic.
But what is really happening?
In our modern world, prosperity occurs because of synergy. Teamwork, comparative advantage, trade, specialization, competition, etc. have all contributed to the greatest prosperity that the world has ever known.
As a result, the world is now supporting nearly 7 Billion inhabitants; by far the most inhabitants at any point in time in the history of our world.
So what is the problem?
It is entitlements!!!
More and more individuals are demanding entitlements; IE, protection for their particular interests, such as inheritances, health care, social security, vacations, leisure, retirement, property, education, jobs, etc.
The problem is further complicated by the fact that our entitlements are dependent upon the work of each other. We cannot survive in the current world of prosperity without each of us doing our part to help each other.
What an interesting paradox. We either help each other and prosper, or we protect our individual interests and suffer.
For this to work, however, there needs to be a level of trust in each other, which is completely reliable; where complete honesty is exercised. Greed needs to be eliminated. Kindness need to be elevated. And competition needs to be mitigated.
We live in a world of plenty. We can produce more than we need. We need leaders who will promote that prosperity in a modern world environment. The result will end the Job Loss Paradox, as there will be jobs for all who want them. And those who want to work will maximize their efforts to benefit everyone.
When the world population works in concert for the benefit of all, excesses are produced. Those excesses can be used as a storehouse of value for needed entitlements. As we age, we need some entitlements, such as social security, retirement, health care and love.
So is the job loss panic justified?
Only if we insist on maintaining our selfish interests.
Thursday, December 11, 2008
The Nationalization of America
If we are going to nationalize America, how should we do it?
Case study: If America is going to own the majority of the stock in AIG, America should manage AIG to maximize the wealth of taxpayers as well as the shareholders.
How should that happen?
First, focus on work. In other words, hire workers. The taxes on the earnings of these workers would support hiring more workers. The productivity of these new workers will provide goods and services, which when taxed, will increase the dollars available to support government as well as AIG.
Second, incentivize those workers to own their own company. In other words, give the equity in AIG back to the workers.
Third, identify what should be free. In other words, life, liberty and the pursuit of happiness should be free. Entitlements should not be free. Eliminate all entitlements. For example, health care should be incentivized. How? Workers should pay for their own health insurance. How? HSA accounts is one idea to support the concept of workers being responsible to pay for their own health care. An HSA kind of plan builds a savings type of retirement account that would build up a capital base to support consumer driven health care. Preventative health care benefits should be provided for by AIG only when monies are available from investments by the HSA plan, or from investments resulting from increased profits and productivity at AIG, as funds become available.
In summary, the plan of the nationalization of America should:
First - Hire workers.
Second - Give the equity in the companies back to the workers.
Third - Provide entitlements only from excesses.
Something is way off kilter, when I see those corporations who are being given money (being nationalized) laying off workers. The reverse should be happening. If we are going to be giving money away to companies like AIG, BAC, Merrill, Citicorp, GM, etc., etc., etc., that money should be going first and foremost to workers. Instead, these companies are laying off workers, protecting their own self-interests; or preparing to support entitlements; or they are trying to maximize their own shareholder wealth. This makes no sense. That money should be going to hire workers; those workers should be given equity in their respective companies; and all entitlements should be eliminated until there are excesses in production. The word excesses meaning that something has been set aside for a rainy day.
It feels like a lot of the taxpayer money that is being used in this economic recovery, which is essentially nationalizing America, is being wasted.
Case study: If America is going to own the majority of the stock in AIG, America should manage AIG to maximize the wealth of taxpayers as well as the shareholders.
How should that happen?
First, focus on work. In other words, hire workers. The taxes on the earnings of these workers would support hiring more workers. The productivity of these new workers will provide goods and services, which when taxed, will increase the dollars available to support government as well as AIG.
Second, incentivize those workers to own their own company. In other words, give the equity in AIG back to the workers.
Third, identify what should be free. In other words, life, liberty and the pursuit of happiness should be free. Entitlements should not be free. Eliminate all entitlements. For example, health care should be incentivized. How? Workers should pay for their own health insurance. How? HSA accounts is one idea to support the concept of workers being responsible to pay for their own health care. An HSA kind of plan builds a savings type of retirement account that would build up a capital base to support consumer driven health care. Preventative health care benefits should be provided for by AIG only when monies are available from investments by the HSA plan, or from investments resulting from increased profits and productivity at AIG, as funds become available.
In summary, the plan of the nationalization of America should:
First - Hire workers.
Second - Give the equity in the companies back to the workers.
Third - Provide entitlements only from excesses.
Something is way off kilter, when I see those corporations who are being given money (being nationalized) laying off workers. The reverse should be happening. If we are going to be giving money away to companies like AIG, BAC, Merrill, Citicorp, GM, etc., etc., etc., that money should be going first and foremost to workers. Instead, these companies are laying off workers, protecting their own self-interests; or preparing to support entitlements; or they are trying to maximize their own shareholder wealth. This makes no sense. That money should be going to hire workers; those workers should be given equity in their respective companies; and all entitlements should be eliminated until there are excesses in production. The word excesses meaning that something has been set aside for a rainy day.
It feels like a lot of the taxpayer money that is being used in this economic recovery, which is essentially nationalizing America, is being wasted.
Friday, December 5, 2008
The Great Money Giveaway
The Governments of the world are pulling out all stops to make sure that economic growth comes back.
To accomplish this goal, the world is experiencing one of the most aggressive money giveaways of all time.
1. What is the point behind this giveaway?
2. Is it going to work?
3. Who is going to benefit from this giveaway? Who is going to get wealthy from this giveaway?
4. What is the best way to give all of this money away?
5. Sean Hannity asked the question recently, "What caused this mess anyway?"
One of my neighbors, who has been very successful financially, told me how to make a lot of money. He said in part, "If you want to make a lot of money, you have to stand in front of it."
Well, there is a lot of money being given away by the government. How will you and I benefit from the giveaway?
Here is my perspective on the answers to these questions:
1. What is the point behind this giveaway?
Answer: It means that you and I are safe, secure and happy. For that to occur in this world, it means that labor and capital need to work harmoniously for the benefit of all. It means that governments, corporations and individuals need to synergistically work in concert with each other. It means that everyone will be better off if we work well together.
2. Is it going to work?
Answer: Probably, but it is a function of labor having the confidence to work productively.
3. Who is going to benefit and get wealthy from this giveaway?
Answer: Whoever is in front of the money flow. I hope that the money gets down to the workers and consumers. That is the whole point of this exercise. Unfortunately, the reverse is happening to begin with. That is why the money giveaway is essential and important. The question now is whether or not those that are managing the giveaway will act responsibly, such that this money gets into the hands of laborers first, which will spend and consume that which they have worked to produce.
4. What is the best way to give all of this money away?
Answer: It should go to capital first and labor second. It should not go directly to consumers. Laborers should have a vested interest in the capital. They should be owners. There should be accountability by labor of management as this capital is put to work. Since public works projects are important to modernize the infrastructure of the country, all taxpayers should have a vested interest in the upkeep and welfare of the country's capital.
5. What caused this mess anyway?
Answer: There are a lot of reasons behind this question. Everyone has a share in the blame, since it is a macro problem and we are all a part of the macro equation. Here are my thoughts as to what caused this mess and what we can now do to mitigate it.
First, the current tax policy caused too much money to flow towards capital and not enough to flow towards labor and consumers.
Second, the tax policy, lax lending practices, a weak dollar and an easy monetary and fiscal policy following the terrorist attacks contributed to the inflation of hard assets; oil and real estate in particular. This caused asset inflation to escalate much quicker than wages, causing a huge imbalance with respect to earnings being able to support the asset inflation.
The current efforts by governments to stimulate the economies of the world should work. It may work very quickly. Hopefully everyone will go back to work and stand in front of the huge money flow, so that everyone will be better off.
And then we better follow Ronald Reagan's favorite scripture from the Bible:
2 Chronicles 7:14 If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.
To accomplish this goal, the world is experiencing one of the most aggressive money giveaways of all time.
1. What is the point behind this giveaway?
2. Is it going to work?
3. Who is going to benefit from this giveaway? Who is going to get wealthy from this giveaway?
4. What is the best way to give all of this money away?
5. Sean Hannity asked the question recently, "What caused this mess anyway?"
One of my neighbors, who has been very successful financially, told me how to make a lot of money. He said in part, "If you want to make a lot of money, you have to stand in front of it."
Well, there is a lot of money being given away by the government. How will you and I benefit from the giveaway?
Here is my perspective on the answers to these questions:
1. What is the point behind this giveaway?
Answer: It means that you and I are safe, secure and happy. For that to occur in this world, it means that labor and capital need to work harmoniously for the benefit of all. It means that governments, corporations and individuals need to synergistically work in concert with each other. It means that everyone will be better off if we work well together.
2. Is it going to work?
Answer: Probably, but it is a function of labor having the confidence to work productively.
3. Who is going to benefit and get wealthy from this giveaway?
Answer: Whoever is in front of the money flow. I hope that the money gets down to the workers and consumers. That is the whole point of this exercise. Unfortunately, the reverse is happening to begin with. That is why the money giveaway is essential and important. The question now is whether or not those that are managing the giveaway will act responsibly, such that this money gets into the hands of laborers first, which will spend and consume that which they have worked to produce.
4. What is the best way to give all of this money away?
Answer: It should go to capital first and labor second. It should not go directly to consumers. Laborers should have a vested interest in the capital. They should be owners. There should be accountability by labor of management as this capital is put to work. Since public works projects are important to modernize the infrastructure of the country, all taxpayers should have a vested interest in the upkeep and welfare of the country's capital.
5. What caused this mess anyway?
Answer: There are a lot of reasons behind this question. Everyone has a share in the blame, since it is a macro problem and we are all a part of the macro equation. Here are my thoughts as to what caused this mess and what we can now do to mitigate it.
First, the current tax policy caused too much money to flow towards capital and not enough to flow towards labor and consumers.
Second, the tax policy, lax lending practices, a weak dollar and an easy monetary and fiscal policy following the terrorist attacks contributed to the inflation of hard assets; oil and real estate in particular. This caused asset inflation to escalate much quicker than wages, causing a huge imbalance with respect to earnings being able to support the asset inflation.
The current efforts by governments to stimulate the economies of the world should work. It may work very quickly. Hopefully everyone will go back to work and stand in front of the huge money flow, so that everyone will be better off.
And then we better follow Ronald Reagan's favorite scripture from the Bible:
2 Chronicles 7:14 If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.
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