America needs despairingly to improve its education system. Why should we worry about it? Because we are living in a new world where technology and science will reign to determine a country's wealth and power, and any country that is not equal to or better than the best will suffer economic and social problems. Americans have succeeded in building up the economies and technology of other countries in the world which is good for them but it has drained our national wealth and now we are falling behind in technology and leading edge science, especially in hard science.
So what do we need to do about this problem. First and most important is to get our education system improved. This means a little work and sacrifice. Inner city schools need improvement first on a high priority basis. We need to upgrade facilities, provide more money, support our teachers, throw out the social engineering courses, and make hard science, physics, chemistry, science, biology, and academic courses mandatory. Back to the 3 Rs but with algebra, trigonometry, and calculus added. Also we need computer programing and computer literacy courses included in all high school curriculums.
Finally, we need to do more to attract foreign students, scientists, and engineers to come to the US and live and work here.
If you agree with me, call and write your Congressmen and tell them. Then send me an email so I know that I have support from you on this issue.
Friday, December 31, 2010
Tuesday, December 14, 2010
HOW TO FIX UNEMPLOYMENT IN USA
The current thinking in Washington DC on the part of both Republicans and Democrats is that there is no way to fix unemployment and that it will take years to fix it. The only thing that stands in the way of getting people jobs is the government!
Here are some steps the government could take and in my opinion it should take:
1) Reduce taxes even further than the Bush tax cuts. Just continuing the Bush tax levels is not really a tax reduction from the levels we have now. So how is retaining the Bush levels a tax cut?
2) Reduce the Federal taxes on luxury items.
3) Raise taxes or tariffs on low price imports that kill our businesses.
4) Eliminate the Estate Tax (otherwise known as the death tax) completely. This will put money in the hands of people and keep some people from going on the public dole. But mainly it would stop small businesses from being liquidated along with the jobs people had as workers there.
5) Raise pay for soldiers and provide free housing for active military families. This will put more money in the pockets of our soldiers and their families which I know is greatly needed.
6) Provide free land and a tax moratorium for companies, domestic or foreign, that want to build industrial plants in the US, especially plants that employ significant numbers of employees.
7) Heavily tax goods manufactured by American companies in foreign countries that will be imported to the US for sale or incorporation in other products.
8) The government should impose large fines on any American company that lays off workers in America and moves their manufacturing facilities or process overseas.
9) Provide incentives to Americans to "Buy American".
10) Provide free job training for displaced workers or jobless people who need new skills to become employed.
11) Reduce or eliminate all non-essential government services until the budget is balanced each and every year.
12. We need more scientists and engineers to stimulate new product development in the US. Therefor offer incentives to degreed foreign engineers and scientists if they wish to immigrate to the US.
If you agree with the above write your Congressmen and tell them. If you don't agree with me, write me and tell me why you don't agree.
Here are some steps the government could take and in my opinion it should take:
1) Reduce taxes even further than the Bush tax cuts. Just continuing the Bush tax levels is not really a tax reduction from the levels we have now. So how is retaining the Bush levels a tax cut?
2) Reduce the Federal taxes on luxury items.
3) Raise taxes or tariffs on low price imports that kill our businesses.
4) Eliminate the Estate Tax (otherwise known as the death tax) completely. This will put money in the hands of people and keep some people from going on the public dole. But mainly it would stop small businesses from being liquidated along with the jobs people had as workers there.
5) Raise pay for soldiers and provide free housing for active military families. This will put more money in the pockets of our soldiers and their families which I know is greatly needed.
6) Provide free land and a tax moratorium for companies, domestic or foreign, that want to build industrial plants in the US, especially plants that employ significant numbers of employees.
7) Heavily tax goods manufactured by American companies in foreign countries that will be imported to the US for sale or incorporation in other products.
8) The government should impose large fines on any American company that lays off workers in America and moves their manufacturing facilities or process overseas.
9) Provide incentives to Americans to "Buy American".
10) Provide free job training for displaced workers or jobless people who need new skills to become employed.
11) Reduce or eliminate all non-essential government services until the budget is balanced each and every year.
12. We need more scientists and engineers to stimulate new product development in the US. Therefor offer incentives to degreed foreign engineers and scientists if they wish to immigrate to the US.
If you agree with the above write your Congressmen and tell them. If you don't agree with me, write me and tell me why you don't agree.
Wednesday, December 8, 2010
AMERICA, WHY IS IT GREAT?
I write a lot about all the problems that America has, but what is good and even great about America that we need to remember? I will list a few things that I can think of and if I leave any out please email me so I can add them to the list (These things I list here are not necessarily listed in order of priority) :
1) We are one of the most free nations in the world in terms of free speech and freedom of the press (including unfettered and uncensored access to literature and the electronic media.)
2) Free enterprise. The freedom to start almost any business that is legal that you can think of, and more businesses are legal here than in most countries.
3) The freedom to vote for the political party and candidate of your choice.
4) All citizens have the full rights of our United States Constitution regardless of gender, race, creed, age, or religion.
5) The right of privacy and protections against illegal search and seizure.
6) A person is considered to be innocent of any crime until proven guilty by due process of law and trial by jury.
7) The right of individuals to bear arms.
8) The right of free assembly.
9) The right of workers to organize to form unions.
10) The right to own real estate and other legal property, to accumulate wealth, and to protect it.
11) The right to travel to any state inside the country without interference or identity checks, and to almost any country (with legal documents such as a passport and visa when required.)
12) The free exercise of religion. The government does not restrict nor outlaw any religion.
13) The charitable character of the American people to contribute help to other nations and at times even fight and die for the freedom of others. The combating of tyranny and terrorism wherever it is found.
There are also many other good things about the United States that I cannot even begin to fully list or describe here. I will let those who criticize us think about it.
1) We are one of the most free nations in the world in terms of free speech and freedom of the press (including unfettered and uncensored access to literature and the electronic media.)
2) Free enterprise. The freedom to start almost any business that is legal that you can think of, and more businesses are legal here than in most countries.
3) The freedom to vote for the political party and candidate of your choice.
4) All citizens have the full rights of our United States Constitution regardless of gender, race, creed, age, or religion.
5) The right of privacy and protections against illegal search and seizure.
6) A person is considered to be innocent of any crime until proven guilty by due process of law and trial by jury.
7) The right of individuals to bear arms.
8) The right of free assembly.
9) The right of workers to organize to form unions.
10) The right to own real estate and other legal property, to accumulate wealth, and to protect it.
11) The right to travel to any state inside the country without interference or identity checks, and to almost any country (with legal documents such as a passport and visa when required.)
12) The free exercise of religion. The government does not restrict nor outlaw any religion.
13) The charitable character of the American people to contribute help to other nations and at times even fight and die for the freedom of others. The combating of tyranny and terrorism wherever it is found.
There are also many other good things about the United States that I cannot even begin to fully list or describe here. I will let those who criticize us think about it.
Friday, December 3, 2010
WHY IS UNEMPLOYMENT STILL HIGH?
The big network news people wonder why the unemployment figures have gone up to 9.8% instead of dropping. The news people bring on talking heads to try to explain it without blaming Democrat policies (not that Republican policies are so great either.) So what are the real causes of unemployment in the current economic environment. Here are just a few reasons that come to mind with only a little thought that government economists should be able to figure out:
1) The Democrats have created an atmosphere of uncertainty for businesses with their insistence on increasing taxes on even small businesses. If you were running a small business and your living is directly related to how profitable your business will be, would you take any risk hiring an additional worker or two? Even larger businesses for the most part are not in the mood for hiring new people when they are not sure what their tax bill is going to be, and especially if they think it will be higher and will be cutting into profits. Their counter policies to the government policies will naturally be to stop hiring, or even layoff more people, as well as other measures which tend to reduce employment, especially new investments in plant and equipment.
2) In a move to "save money" the Obama administration has cut back important work, such as the space program, which has resulted in a cut-back in employment of aerospace workers and other supporting educated people, adding to the number of highly qualified people looking for work and competing with less qualified people. Cutting back the space program also has a domino-effect causing private high-technology businesses to also cut back and layoff people. Now we are hearing talk in Congress about cutting the military budget. This will cause even further job loss and shrinkage in the economy, not to mention possible bad effects on our military capability and readiness. These cuts will affect us for years to come, even allowing foreign countries to forge ahead of us in space and military technology. This is a dangerous direction for the US to move in.
3) Extended unemployment benefits which give a lot of workers enough incentive to stay on unemployment benefits instead of finding a job.
4) Environmental regulations on virtually every form of construction, power plants, oil drilling, roads, bridges, etc. These regulations are holding up a lot of projects that would otherwise go forward and employ more people. What business would want to fight all of these regulations and red tape?
5) Red tape slowing infrastructure work that was supposed to be a stimulus for employment.
6) Older workers that have not kept up job training. They are mostly computer illiterate and not employable at any modern office work. So that only leaves lower paying jobs such as fast food work or labor jobs that many of them are not physically capable of doing. These people will continue to be unemployed and eventually add to the welfare burden unless they get assistance to become employed at work that they can do.
7) American education has become so poor that a lot of young people can't even read. Of course these people cannot be employed at most jobs except low pay labor jobs. (There is nothing wrong with labor jobs in general. In fact, trained workers can make good salaries operating heavy equipment, or for example, get good jobs in the trades, if they get the training for these jobs. Many operate their own businesses.) We also need people that are willing to do labor work, but currently there are too many untrained people that can't find jobs.
8) Finally, the big one, "free trade". How many industries have we lost to "free trade": textiles, shoes, tools, steel, a large part of the automobile market, hundreds of household items, and almost anything you go to the store to buy - even a lot of grocery items. How many people would have jobs if we still had these industries in our country? How many jobs have been lost by losing these industries? No doubt millions of jobs. The economists will say "but we are now a service economy". Oh, really? Haven't countries like India already taken over the "service market"? Lets have FAIR trade put back in place and bring back the industries we lost.
There are also probably a lot of other factors that are a direct or indirect result of poor government policies, either at the federal or state level or both. But, the eight items I mention above would be a good place to start attacking the problems.
Call and write your Congressman and tell them to wake up and start working to do something about jobs.
1) The Democrats have created an atmosphere of uncertainty for businesses with their insistence on increasing taxes on even small businesses. If you were running a small business and your living is directly related to how profitable your business will be, would you take any risk hiring an additional worker or two? Even larger businesses for the most part are not in the mood for hiring new people when they are not sure what their tax bill is going to be, and especially if they think it will be higher and will be cutting into profits. Their counter policies to the government policies will naturally be to stop hiring, or even layoff more people, as well as other measures which tend to reduce employment, especially new investments in plant and equipment.
2) In a move to "save money" the Obama administration has cut back important work, such as the space program, which has resulted in a cut-back in employment of aerospace workers and other supporting educated people, adding to the number of highly qualified people looking for work and competing with less qualified people. Cutting back the space program also has a domino-effect causing private high-technology businesses to also cut back and layoff people. Now we are hearing talk in Congress about cutting the military budget. This will cause even further job loss and shrinkage in the economy, not to mention possible bad effects on our military capability and readiness. These cuts will affect us for years to come, even allowing foreign countries to forge ahead of us in space and military technology. This is a dangerous direction for the US to move in.
3) Extended unemployment benefits which give a lot of workers enough incentive to stay on unemployment benefits instead of finding a job.
4) Environmental regulations on virtually every form of construction, power plants, oil drilling, roads, bridges, etc. These regulations are holding up a lot of projects that would otherwise go forward and employ more people. What business would want to fight all of these regulations and red tape?
5) Red tape slowing infrastructure work that was supposed to be a stimulus for employment.
6) Older workers that have not kept up job training. They are mostly computer illiterate and not employable at any modern office work. So that only leaves lower paying jobs such as fast food work or labor jobs that many of them are not physically capable of doing. These people will continue to be unemployed and eventually add to the welfare burden unless they get assistance to become employed at work that they can do.
7) American education has become so poor that a lot of young people can't even read. Of course these people cannot be employed at most jobs except low pay labor jobs. (There is nothing wrong with labor jobs in general. In fact, trained workers can make good salaries operating heavy equipment, or for example, get good jobs in the trades, if they get the training for these jobs. Many operate their own businesses.) We also need people that are willing to do labor work, but currently there are too many untrained people that can't find jobs.
8) Finally, the big one, "free trade". How many industries have we lost to "free trade": textiles, shoes, tools, steel, a large part of the automobile market, hundreds of household items, and almost anything you go to the store to buy - even a lot of grocery items. How many people would have jobs if we still had these industries in our country? How many jobs have been lost by losing these industries? No doubt millions of jobs. The economists will say "but we are now a service economy". Oh, really? Haven't countries like India already taken over the "service market"? Lets have FAIR trade put back in place and bring back the industries we lost.
There are also probably a lot of other factors that are a direct or indirect result of poor government policies, either at the federal or state level or both. But, the eight items I mention above would be a good place to start attacking the problems.
Call and write your Congressman and tell them to wake up and start working to do something about jobs.
Thursday, December 2, 2010
Hauser's Law
What is Hauser's Law? Hauser's law states that total tax revenues per year are always equal to 19% of GDP. Now what happens if the Government raises taxes? Well, of course the GDP will shrink because higher taxes have a negative effect on business activity. So what happens when the Government raises taxes is that business activity drops so the GDP drops and then total tax revenue also drops because is will not be above 19% of GDP, even though the Government has raised taxes in an attempt to collect more revenue. By the way, Hauser's Law is based on many years of GDP and tax revenue data and is not challenged by anyone that knows economics.
So what should the Government do to get more revenue? The answer is to actually reduce taxes which will stimulate business, increases GDP, and so total tax revenue actually increases. This has been proven in the past when taxes have been reduced. Obviously there is then some optimum tax rate which will allow a healthy business tax environment with a growth in GDP, but still have enough tax revenue to meet necessary government expenses.
Economists, if they are worth their pay, should be able to calculate what that tax rate should be based on the vast amount of data that is available to them. Then Congress can set rates that will allow reasonable revenues without killing business.
So what should the Government do to get more revenue? The answer is to actually reduce taxes which will stimulate business, increases GDP, and so total tax revenue actually increases. This has been proven in the past when taxes have been reduced. Obviously there is then some optimum tax rate which will allow a healthy business tax environment with a growth in GDP, but still have enough tax revenue to meet necessary government expenses.
Economists, if they are worth their pay, should be able to calculate what that tax rate should be based on the vast amount of data that is available to them. Then Congress can set rates that will allow reasonable revenues without killing business.
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