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.


An index/schedule of past and future posts and their dates will always be updated so that it becomes the first post that you see below. If the date of a post that you wish to read is preceded by the word "Posted", then find it below or click on the title in the Blog archive to review.

Blog Archive

Sunday, November 18, 2012

Beyond Stupid – Laws and Policies of the US Government

Social Security Benefits are paid to immigrants who neither they or their spouses ever worked in America nor paid Social Security Taxes.

Global Companies who earned profits overseas and wish to invest those profits in America are taxed on those profits. Therefore, a global company can use their profits for free overseas to invest in their business, creating job opportunities there, but are penalized by new taxes (leaving less money available for investment) if they invest those profits in America to create American jobs. So why would they invest in America?

When the Federal Government sends out bids for work (for example to build a new highway), instead of accepting the lowest bid they can get, all bidders by law must price their bids as if they pay all their workers “union wages”. Therefore, the government never pays the cheapest price possible for the same work and quality.

Companies with union members cannot build factories or businesses in a different state without permission form a government board for fear that the out of state factory might become a non-union plant. A recent example was Boeing Corporation, headquartered in California, seeking to build another plant in North Carolina (while keeping their California plant) being turned down by that government board. Now if Boeing, having been stopped from expanding in the US, had decided to build that plant in Canada, it could do so without a problem.

America does not have an effective national system to stop voter fraud. A person with homes in two or more states can vote in all those states in the same election without a problem. Fraudulent voters (not registered, voting for someone else, not a citizen, using a dead person's identity, etc.) can cast ballots with little fear of being caught or stopped.

There is no system to catch a doctor who loses his medical license in one state, from moving to another state and practicing medicine.

There is no national, effective system to prevent illegal immigrants from working, collecting government benefits, sending their children to school, renting or buying housing, etc.. Therefore, there is no deterrent, and plenty of incentive, to illegal immigration.

Children born to American citizens out of the country are not automatically citizens, but children born to illegal immigrants in America are automatically citizens. It should be the reverse!

Though we have a shortage of scientists, mathematicians, and key technical experts in America, college graduated foreign exchange students, who can and want to fill those jobs plus have companies that wish to hire them, are quota bound denied the opportunity and sent back to their own nations. Meanwhile, low skilled illegal immigrants remain here with virtual impunity.

We have the highest corporate taxes in the world. Therefore, if you are a global company and can take your operations anywhere in the world, why would you choose America?

Government subsidizes some businesses such as 'green' companies, effectively and substantially lowering their taxes as compared to other business of the same size and profitability. This in effect is limited communism, a system that always failed miserably.
Government requires all gasoline to be at least 10% ethanol for the stated purpose of reducing oil imports. However, it takes more than a gallon of gasoline to make ethanol, so no oil imports are saved and more imports are actually needed. Also, it takes farming resources of land and water (6,000 gallons of precious, limited, fresh water for each gallon of ethanol) to produce ethanol. Ethanol delivers less power and efficiency than gasoline. It also results in less food products and animal feed, raising the costs of both to consumers and farmers. People are going hungry and some have died of hunger because we produce less food for human consumption around the world due to this policy.

While the government wisely requires all businesses who have pensions to adequately fund them, it has no such rules for itself. Consequently, government pensions for government workers are underfunded by tens of trillions of dollars.

Government pays pensions in a manner that would bankrupt a private company that offered the same plan. Full pensions are paid to workers in their 50s and sometimes in their 40s instead of 65. Pensions are padded by using the largest one year income that is often manipulated and padded by huge overtime pay deliberately condoned so that instead of collecting half their pay as pension, workers collect their entire annual salary or more as pension. In addition, cost of living raised are included for retirees. Plus they are excluded from paying Social Security taxes. Finally, overtime pay is given to managerial and professional workers by government they would not be given to such workers in a private company. Such people are paid by the job in private industry, not by the hour.

Subsidies for Agriculture. Another bit of communism at work. We pay farmers not to grow crops (to preserve the land which farmers would do anyway to protect their future). We set minimum prices for some crop prices which not only raises food prices to consumers, especially hurting the poor and middle class, but also produces unwanted surpluses that the government pays millions of dollars per year to store. The average farmer has a net worth of two million dollars, so why are we subsidizing multi-millionaires?

Minimum wage laws. The 'intent' sounds good – ensure payment of a 'livable wage' to workers, but what is the real 'impact' of this policy? Does it accomplish the intent? The answer is no. Studies show that these workers are often people in their first job. 10 years later, 98% of them are earning the average American salary which is much higher than the minimum wage. Studies also show that minimum wage workers are not usually head of household, but often teenagers and students being supported by someone else. Most importantly, people who can't find employment in their first job until later in life, often never join the middle class and are dependent on government welfare programs for most or their entire life. Since studies also show that unemployment among youth seeking their first job is much higher than the rest of the population and that the number of entry jobs substantially decreases (employers eliminate some jobs, reduces the number of other jobs by adding more responsibilities to the job) when minimum wage rates are raised, thus sending youth unemployment rates much higher, minimum wage laws are regressive/counter productive rather than progressive. This result shouldn't be a surprise as it is another example of government over-riding the free marketplace to institute a bit of communism (the management of businesses by the state). So why does government pursue this policy? The reason is that Democrats, by making the minimum wage increasingly higher, make it easier for unions to bargain for higher wages.

The huge spread of government subsidizing consumers who buy what the government wants them to buy such as 'green' cars. Basically, you have decided that a green car is too expensive to buy. Instead of letting the marketplace determine the winners and loses of the various green technologies being produced or researched, the government offers a substantial subsidy to you to buy this too expensive car that you wouldn't pay for with your own money. This is stupid in two ways. First, the government is reaching over to your back pocket, lifting your wallet, taking money out of it as taxes, then giving it back to you to buy this car. So you paid full price anyway. Secondly, the fact that it is too expensive to buy means that it is not market ready and most importantly may not be the right green technology that could ultimately be truly marketable. In fact, the subsidy to the wrong technology could delay or stop the right green technology from ever being developed. Same concept exists for government grants to universities and colleges to develop new technologies. Let business and the free marketplace, which is loaded with incentives to develop marketable products, handle it.

Blocking oil and gas drilling on public lands, especially in the places that energy companies most want to drill. I'm not talking about National Parks. Government owns plenty of land and ocean that will never be a National Park, but could produce needed oil and gas to make us energy independent and maybe even an energy exporter someday. Why is that good? Well besides protecting our economy from shortages and foreign nation oil boycotts such as happened in the 1970s, we could save the 700 billion dollars a year we pay for oil imports and invest that money to produce good jobs in America.

Declaring the polar bear as a threatened species. Really? There are 25,000 polar bears today compared to only 8,000 polar bears 50 years ago. So the polar bear population has tripled in just 50 years! This outrageously prejudiced decision was a government sponsored marketing event to promote false man-made global warming policies that liberals love and support because polar bears, almost universally liked by the general population, might help win more supporters to this global warming hoax.

Flood insurance by the federal government. Private industry won't handle it due to the cost. So again, government overrides the marketplace and installs another bit of communism. The result – the same homes are destroyed and rebuilt by the government multiple times at huge deficits to the premiums collected for all policies. At the very least, it should pay the damages, then confiscate the property so as never to build upon it again. Better yet, get out of the business (or at least publicly declare it will not accept new policies so that unoccupied flood prone properties are never built upon).

Labeling a reduction in future, “planned” spending as a “cut” to the deficit. This is a fairy tale embedded in a lie, designed to fool the general public. A true 'cut” means spending less than actual expenditures from the past, not the future. The current. nonsensical debate about cutting 4 trillion dollars from the deficit over the next 10 years is in actuality an 8 trillion dollar increase to the national debt, bringing it in 10 years from the current 16 trillion dollars to 24 trillion dollars.

Using discrimination policies to end discrimination policies. Contradictory in its concept, Affirmative Action policies and laws discriminate by using the color of one's skin to gain jobs, promotions, and acceptance into colleges over more qualified people with a different skin color. No amount of “dancing” around this issue can mask the fact that Affirmative Action is unfair and real discrimination. This certainly isn't the policy that Martin Luther King campaigned for. He campaigned for the end of all discrimination!

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