Getting it Right - Welcome

The goal of this blog is to publish my thoughts on a variety of economic and political topics in the hopes that people who find them educational or beneficial will utilize them and/or forward to others who might find them interesting and/or worthwhile to promote to others, possibly including politicians who can push some of these ideas to fruition. The topics in my blog are meant to be of value on a long term basis, not a daily diary or political issue of the day log. If the information posted is useful to you, by all means utilize it and/or forward it as you see fit. If not useful, then merely ignore it. There are no universally agreed upon truisms and too little tolerance between some of those with opposing viewpoints to successfully convince the people with hardened opinions to move away from them. I am an analytical type person who will try to be as factual as I am able.

I disdain the current popularity of name calling and condemnation of viewpoints with no factual alternatives or logical solutions given that I see so often. If you don't have a solution based on fact and logic, then opt out of the discussion because you have nothing to contribute. My background is a degree in Economics from the University of Michigan and 39 years working in middle management jobs for a major retailer. My opinions are forged on the personal experence of life, family, friends, and work as well as triumphs and mistakes that I have made and hopefully learned from. My hope is that this blog helps you.

My first topic will be about personal finance. I chose that one first because most of us work long and hard just to survive but not all of us realize our dreams of becoming financially independent from the labors of our work. Much of our political votes/thinking also focus on the economy and in particular how well we are personally doing financially.

It is relatively simple, without sacrificing the enjoyment of living for 'today' and even at moderate incomes, to retire as a millionaire or multi-millionaire, if you focus on that goal consistently from a young age. It is also simple to ensure that your child or grandchild retires rich. It merely requires a one time gift of just $2,000 invested wisely and the passage of time. Please read my first post on this blog to learn more.


Getting it right on Politics, Economics, and Personal Finance

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Monday, September 3, 2012

Cost of a Government Created Job

Compare a government created job that Democrats love to push for to a private business created job that Republicans love to push for. Say they both pay $50,000 a year and income taxes collected for each is $10,000. With medical and pension benefits, the total cost of the government job is $75,000. The net cost to the government and therefore to us taxpayers after income taxes are paid is $65,000 ($75,000 total expense - $10,000 paid in taxes). What's the cost to the government for the private job? Instead of a net expense loss of $65,000, the government receives $10,000 of income taxes plus another $7,000 in social security taxes (paid by the worker and the employer; government workers do not pay SS taxes) at no expense to the government. So a private job is a net gain in taxes received to the government of $17,000 while the government job is an initial net loss in expenses of $65,000. The difference between the numbers is a total net loss to the Federal government of $82,000 (-$65,000 plus -$17,000 = -$82,000) each and every year worked for just one job created by government instead of by private industry.
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