Category: Business

To prepare for this pandemic, our liberal and conservative leaders failed us

To prepare for this pandemic, our liberal and conservative leaders failed us

A lot of liberals won’t like this post. Please don’t read it if you are a liberal because you will get mad. It hurts when facts smack you in the face, so you should avoid doing that. This article points out that liberals completely failed to help the US prepare for a pandemic.

To be fair, conservatives shouldn’t read this post either because that same brick wall of facts is going to hit you in the face as well. Don’t read it as conservatives haven’t prioritized preparing for a pandemic either.

This is an article from 2009. It is from NPR, so no one is going to say it right-wing bias. Conservatives will say that it is MSM, but the facts on the ground have proven this article to be very accurate. 

Here is another article by Sheri Fink that covers the various studies in 2006-2009 about how woefully prepared the US is in handling a pandemic.

In 2007 and 2006, the country did studies that showed that during a pandemic, NYC would be short 15,000 ventilators, and 150K people could die. Sound familiar? There were probably studies since the publication of these articles. So did Bush or Obama do anything? Not much, and I will suggest they did zero. Trump didn’t come into office with any insight and initiative to fix this known problem, so he is just as guilty as Bush and Obama.

There has been a total lack of leadership by Bush, Obama, and Trump on this issue.

And Governor Cuomo? Nope. He didn’t fight for it either—more lack of leadership.

And neither did Pelosi, Reid, McConnell, Ryan, Boehner, Schumer, or any other leader of our Congress. A complete lack of leadership for a situation that everyone knew would eventually happen.

BTW, the current candidates for POTUS in 2020: Biden, Sanders, and Trump – nope. None of them did anything when they were in positions that could have influenced this.

All of our government leaders failed us on both sides of the aisle. They taxed the hell out of us. They whined and complained about other stupid shit. They gave incentives for solar energy, oil production, buying stuff on the internet, buying health insurance, fighting bad guys in Afghanistan, or Iraq, or Syria. But prepare the country for a pandemic? Nope. 

They all said, “Hopefully, that pandemic will happen when I am not in office, and the next person can worry about that.” Guess what, we are the next person. We are now worrying about it, and our bickering Federal government messed up big time.

The Federal government is really only good at two things

  1. the infrastructure that hundreds of thousands or millions of people rely on
  2. the defense of our country and people.

To be honest, the government isn’t all that good at those two things, but it is the only entity that can do them. The government shouldn’t be doing other things. It should focus on doing those two things and do them as well as possible, giving the inefficiencies of an organization that has no competition.

It is woefully incapable of doing anything else well. In just about every case other than the two cited, private industry that competes with others will do a better job. Will the private sector screw something up? Absolutely! But then that private enterprise will be displaced by a competitor that will perform better. 

Pandemic relief falls into both categories. It is the defense of our people, and it is the infrastructure to support that defense. We did both poorly for pandemic relief, and it is now costing us dearly.

What is the solution? Throw the bums out. Every damn one of them. They failed us. They screwed up. They should be rewarded with losing their jobs.

We need politicians that are focused on just doing the two things that only the federal government can do. We need politicians to look at a bill and say, “Is this something that ONLY the federal government can do and therefore is in the above two categories?” If the answer to that question is NO, then the politicians need to vote it down. If the answer to that question is YES, then the politicians need to approve it and give it the appropriate funding and oversight that it is done as well as possible.

Header Photo by Parentingupstream (Pixabay)
Gig workers are not employees and no one should make them be employees

Gig workers are not employees and no one should make them be employees

In order to understand why California’s new Assembly Bill 5, (AB 5) is lousy you have to decipher who wins and who loses in the gig economy. If the losers are politically connected, it is logical that the losers will try to change the rules.

This is the downside of most government interventions. The goals of the “do-gooders” are overwhelmed by the special interests. Laws should be simple and have as little interference in the personal lives as possible.

The gig economy has provided opportunities for millions of Americans to make money. That’s not the same as having a “job” but that’s the point. Many gig workers have other jobs and many of the ones who don’t are in school or want to work part-time to make a little extra cash. Obviously, some of these people would like to have a different job which they can freely look for while doing gig work without any repercussions from an “employer” looking for loyalty or firm work hours.

The reason the “gig economy” took off is because of the freedom it provides people who are willing to hustle to make extra money. You could set your own hours, accept work when you had free time, and not worry about an employer having that control. If you’re an employee, you might get benefits, but you lose that freedom and control.

The gig economy put millions of people to work in one way or another. Those new service workers upset many people that were being displaced by gig workers.

Any law that has lots of “exemptions” means it is a bad law. Lawmakers are saying what is good for one group (that may not be politically connected enough to get an exemption) is not good enough for another group (where they are politically powerful).

But people don’t sign up for gigs because they’re looking for health insurance, overtime, and a retirement plan. A gig means freedom, extra cash, and a chance to have control over when and how you work. Those other things are all important, but if that’s what you’re looking for, you look for a job, not a gig – and maybe you use a gig to pay some bills while you are looking for the perfect job.

Don’t kill one just because you think it should be the other.

Hopefully, this law doesn’t infect the rest of the country and hopefully, it stays in California, which is essentially a politically screwed up state anyway.

Here is John Stossel’s take on all of this.

Photo by raezer

The new burger chef makes $3 an hour and never goes home. (It’s a robot)

The new burger chef makes $3 an hour and never goes home. (It’s a robot)

The response to the high wages demanded in low skill position was obvious.

Miso can offer Flippys (a robot for making food) to fast-food restaurant owners for an estimated $2,000 per month on a subscription basis, breaking down to about $3 per hour. (The actual cost will depend on customers’ specific needs). A human doing the same job costs $4,000 to $10,000 or more a month, depending on a restaurant’s hours and the local minimum wage. And robots never call in sick.

Sorry teenager trying to earn a few bucks to go to college, restaurants don’t need to hire you at the high wage that over-eager do-gooders are demanding.

https://www.latimes.com/…/flippy-fast-food-restaurant-robot…

Arizona Governor Withdraws Incentives After Nike Pulls Flag Shoe

Arizona Governor Withdraws Incentives After Nike Pulls Flag Shoe

I am done with Nike.

Colin Kaepernic was a so-so football player that was close to the end of his career. He wasn’t even good enough to get a job as an ESPN analyst. He maintained his relevance to some American consumers by inspiring contempt for America’s symbols. His original protests were supposed to be about police violence but now he seems to be branching into other forms of outrage – whatever will get his name in print, it seems.

I think everyone that hates America’s symbols just because they are old should buy Nike products and everyone else that loves America and understands that we have never been a perfect country but we sure have been better than the majority of countries in the last 250 years should not buy Nike products.

Good job to Governor Ducey for drawing a line in the desert sand.

Source: Arizona Governor Withdraws Incentives After Nike Pulls Flag Shoe – Bloomberg

A tax plan that would promote economic growth

A tax plan that would promote economic growth

Both halves of Congress are trying to create a more fair tax plan that will promote growth and simplify the code. I am skeptical that anything will get done though as it appears that this Congress is incapable of doing anything significant.

Since Congress will almost certainly fail, I thought I would put my suggestion on the table. As I analyze it, it is probably the most likely plan that I have ever seen to encourage employment growth.

The first step is to not change anything for individuals except to increase the amount of money saved in long-term savings without tax penalty. This should be doubled from its present rate. The government is in the retirement business, and it isn’t doing a sufficient job of managing it. The government needs to get out of the retirement business because the government can rarely do something well. Social Security is a broken plan, and we all know it – we just need to transition out of the retirement business slowly so that we do not screw up the American workers that depend on Social Security.

Currently, the government taxes employees directly via the FICA tax on each dollar earned. The government increases this tax by assessing the employer an equal amount. This direct tax exceeds 15% and is used to fund Social Security. While it is essential to finance Social Security for today’s seniors, we need to get away from this transfer of cash from working Americans to retired Americans. We need to make it financially affordable for working Americans to save for retirement so that they can live off of their own money and not their children’s and grandchildren’s money. The fact that Social Security will be insolvent between 2025 and 2034 (depending on analyst assumptions) points to the fact that the system is systematically flawed. I have ranted on this in the past.

The biggest change in the tax plan is to change the way we tax our employers. Not just big companies but every employer – be they big or small. We need to reward companies for investing in their business and investing in their employees.

Currently, the corporate tax rate is around 35%. This tax burden is massive. Unfortunately, it is unevenly allocated and most directly hurts companies based in the US, primarily employs US workers, and principally sells to US customers. This is preposterous! Why is the federal government trying to hurt the best companies, but reward those companies that have substantial foreign investments?

My suggestion is to eliminate all tax loopholes in the corporate plan except for the ones that I itemize here. Yes, that means that Congress will never go along with me since every special interest lobbyist will argue and bribe vehemently to fight my simple and easy ideas. Here are the highlights of the plan:

  • Corporate income tax is 35% for all income.
  • Income taxed in a foreign country returned to the US corporate parent is the difference between the original tax paid and 35%. This balance of tax is still available for the following discounts (as well as all US based income).
  • For every dollar that is paid to train employees plus one additional dollar, there is no US corporate tax. Corporations should be encouraged to train their employees so that money shouldn’t be taxed and additionally they should be rewarded by claiming 200% of that investment up to 35% of corporate income. This reduction in taxes is good for the company, great for the employees, and magnificent for the US economy. In the 21st century, only smart workers are valuable, and we need to increase that pool of people.
  • Today, wages and benefits to employees are already written off and not counted toward income. This expense will remain the same (as with all business expenses) however if the employer hires more workers in the US and its territories from the previous year then the company should be rewarded. The company will be able to write off that new employee’s wages plus an additional 300% up to 35% of corporate income. Please note that this is ONLY for the growth of full-time employees from the previous year to the current year. The employer doesn’t get to deduct this cost for perpetuity but only for the first year. Also, note that this doesn’t allow the employer to increase foreign-based workers, the workers have to be reporting to work in the US and its territories.
  • Any improvements in facilities are already written off, and that will continue. However, this will be accelerated in my plan as the company can write off 200% of all INCREASES in facilities, marketing costs, sales costs, etc. as long as they are spent in the US and up to the 35% cap that already exists. They will be able to write this off in the year that the expense occurs. Note that this is only for increases in those costs over the previous year. If the company doesn’t grow those costs, then it is simply held at the standard 35% deduction, but if the company increases those investments in US-based assets, then the company can accelerate those year-over-year savings.

So how is this good for the US economy and the US worker? Simple, it is all about the economic growth, the growth of employment, and improving the lives of US workers. Companies that are unable to grow their business will not get this benefit, but companies that can employ more US-based people, create more US assets, and improve their ability to market to US-based customers will thrive. It puts America first in our corporate tax policy. It rewards companies that invest in America and it doesn’t help any company that chooses to invest internationally at the expense of America.

This plan will accelerate the return of money from foreign lands back to the US. This plan will encourage companies to hire more US-based workers and will significantly increase the quality of life of Americans.

This isn’t a giveaway to the corporations or a supply-side “hope for the trickle-down plan.” It only rewards companies that truly make the trickle-down (in the form of a gusher rather than a trickle) happen. No company will be able to take advantage of this plan unless they truly change that “trickle” to a firehose of economic prosperity.

This plan will never pass. Too many lobbyists will be hurt. Too many special interest groups will not have their interest served. However, this is one plan that would almost guarantee massive prosperity for the American middle class and therefore massively increased tax revenue for the Federal government.

It just makes sense which is why it will never be adopted by Congress. Simple things that make sense never seem to get done by Washington DC.

Photo by 401(K) 2013