Tuesday, October 26, 2010

economic Plan of action

We all have lost capitol, we have all had to reduce our spending habits and we have all we have had to limit what we can do daily. This is not only a personal problem; it is a business and state issue as well. We have a mortgage default crisis, and we have business property that will soon come under mortgage default as well. We can only grow out of this mess in a planned, methodical way. We have to have a solid reason for our action so everyone will be on board. I have two major goals; first we have to regain increased discretionary spending. This is the short term fix, and I believe this can only be done by reducing cost for everyone. Second we have to heal the economic condition to not only grow the current business climate but to diversify our economy, this means an intentional movement away from being solely focused on gaming issues tourism and gaming. Not abandon those two industries but to lessen our exposure to the ebbs and flows of the economic impact we face when we have a far too narrow economy and tax base. Any sane individual will think twice before investing, or taking a risk on a new business venture. We have to look at other segments of our economy and heal our economy from the bottom up not the top down. The lack of capitol is the key, big items will have to be put on the back burner, and we need to look at our economy here and now. We currently have a service based economy and we have far too many use fees that is constraining our current economic condition, for too many small operations. 86% of our employed here in the state are working for companies of 20 employees or less, we have to change how we govern. How then are we to get out of this mess?

Here is my short list:

For General population, the Mortgage crisis issue help increase disposable income to stabilize our current condition. Goal to increase discretionary spending, short term fix to take economic stress off our population.

• Allow all homeowners the choice of paying interest only for a two year period.

• Lower all Power, telephone, sales tax and water fees by half.

• Reduce the cost of higher education to $150.00 a unit.

• Open up health care to allow for more carriers to come into market.

For Businesses,

• Reduce employee taxes.

• Reduce business taxes to levels on 2000.

• Reduce taxes on power, telephone, Sales, and water fees by half.

• Allow businesses owners a two years period of paying interest only on mortgages.

• Open up health care to allow for more carriers to come into market.

• Reduce all compliance issues, regulations, fees, permits to same levels of 2000.

• Repeal the Nevada clean air act. (To help stabilize local bar, C Store and supermarkets)

• Reduce gaming taxes by half. (To help stabilize gaming industry)

The Leaders in our government see the need for services and continue to push for new spending. But is that a long term goal we can live with? I am not so sure. We cannot continue to raise fees and taxes that result in a lower business activity. We have to enable those who can work, the incentive to go out and work and benefit from that work. With a lack of Capitol can we afford to take on more debt without it effecting future growth? I say no. Many on the left think that in our economy we are only trading from one to another, many on the left do not understand that we can grow and build new items that will expand our economy.

The issue that I have with our leadership in both parties is that they have forgotten that we can build things. It would appear that the issues of environmental concerns have put that option off the table. We have increased the cost of manufacturing and have forced much of our manufacturing off shore. I believe that we can build again and that we can reduce cost and still be cleaner that in the past. We have to diversify, and that means manufacturing, that also means we need to lower operation cost. We need to increased power plants to diversify our energy needs and lower our rates. We can continue with clean energy but we also need to build what has worked in the past. Clean coal is a viable option; we cannot afford to deny that the BTU factor of burning coal works. Many of these items have been front line issues of the far left. I am not a far right or left person, I am very aware that our current condition cannot continue, we are eroding our future and we have to grow out of this condition. We can grow and be cleaner than the past, but we have to allow ourselves the chance and ability to grow and diversify.

Friday, October 15, 2010

The battle over taxes and services

How much can we afford, and at what price? We are suffering from a downward push on our salaries, equity and our personal wealth. Whether you are a business owner or an employee we are in this together. How do we build jobs? Well the answer is simple, but the pain will be felt by all. We have to help individual business owners regain profitability, not just the large businesses but all. Small business has far too often been played by both the government and big business to restrict competition and increase the cost of operation, all to garner new taxes. The burden of tax and fees on small business is the straw has broken the camel’s back. We are at a cross roads, our actions in the next six months will determine if we turn this around or do we continue to erode into a chaotic economy.

Small business in Nevada, employ 86% of all persons employed in Nevada. These small business operations are comprised of companies of 20 people or less. Why then do we listen to far too great an extent the IGT's and the Casino lobby? Again Capitol is less available. We need to change the idea that we need to hit a home run and bring in big business. Let’s just get people on base. Just look at the SF Giants, they got rid of their home run hitter and now made the playoffs. We need to reduce cost, reduce taxes, and reduce fees on that 86% of employers in this state. The Pain is a reduction in State employees, for that I regret that individuals will feel pain. But we have to look at where we are, and that position is one of weakness. If we do nothing, businesses will continue to falter. If we only reduce cost slightly, we will continue to have an extended period of pain. Governments will continue to reduce hours, and employees due to the business climate that has continued to put economic strain on small business. We need drastic measures to reduce the cost of doing business. As capitol begins to become available, businesses will start to invest, and hire. We have to allow these risk takers that chance to make money. If we take away all the uncertainty and allow this to happen it is the first step to recovery.

Wednesday, October 13, 2010

Why our political leaders cannot see the need to find a economic balance point

Why is there such a difference in opinions coming from our political leaders and the vast majority of the population? Our leaders tend to think that only they can act in this economic downturn, and that they alone have the answer. They will gather their supporters, meet and have advisory boards and come up with ideas that a limited number of people are privy to. What is lost on many of them is that all they can do is restrict, and increase the cost on individuals by acting. Unless our leaders see the light and begin to reduce cost o its citizens, by reducing regulations, fees, and compliance cost on individuals and small business. Here in Nevada 86% of the businesses have 20 or fewer employees. That is right 86%. These individuals and small business owners are in real pain at the moment. They have lost capitol; they have lost equity and are in a situation that is giving them fewer and fewer possibilities to grow their way out of this mess. Banks are not lending and if they would be able to borrow, the amount available to them is much smaller than 2 years ago. Returns on investments are much smaller in a market that has been reduced to the levels that we now face.

The Tea party folks have been demanding lower taxes, smaller government, which is in direct opposition from our leader’s stance that only they have the answers. This is a direct threat, and why our leaders are so worried. They should be, the movement to take power away from them is rising again, and they have lost the moral authority to lead. respect is not given it is earned, and what is lost to many of our leaders is that the vast number of our population have hopes, dream and the ability to take care of their own issues. The problem arises when government begins to overreach and try to socially engineer our options and our behavior.

I regret that we find ourselves at this crossroad, but here we are. The pain will be felt by many; the length of time that the pain will be felt is up to our leaders. If they follow the road to recovery they will reduce cost on us. If they continue to believe that they can design a better way the pain will last much longer.