Thursday, November 11, 2010

A small busienssmans perspective on what we can do

I have had the privilege of owning more than one type of business and been involved in different sectors of the economy. So I believe that I have a perspective that few have. It is well documented that business and small business is sitting this one out due to the uncertainty of all the taxes and regulations that are coming down the road from Washington. What are we to do from a state standpoint; well I believe that we need to create an atmosphere of certainty. This means a long term commitment of lower taxes, lower regulation and a strong front against the efforts of Washington in terms of its policies. Regionally we are in a good spot, with California going broke, and all the inventory of vacant land, housing, commercial properties etc. Nevada has to clearly set itself apart, to create jobs and opportunity. Nevada needs to go back and relook at what has been put into place in a regulatory, fee and tax structure and see if these items are really needs. And what cost structure was put into place and the effects on the industry that it was placed on. This will not be easy; there are those that will have to bend on EPA, tax and regulatory policy. For too incentivize our business community we have to allow for them to make money. To diversify we have to allow for a broad base easing of the cost that we have placed on business. Nevada will gain for the folks leaving California, if our message is clear. If not we will continue to wallow.

I have seen the opportunity leave this area and this state. Much of the regulations and tax and fee structure has come from an overreach on the public sector over the private sector. I regret that we are going to lose some public sector jobs, but history has shown that if we can jump start our economy, the benefits in taxes and revenue generation will erase any of those concerns. Just look at Virginia, which had a budget deficit in the Billions and now are only second to Texas in job growth, and tax revenue. Nevada regionally can, and in my thoughts must commit to lowering our tax and regulatory structure to bring in regionally a much more diverse economy. We can use our negatives as a positive. We have vacant housing, which is becoming more and more competitive in pricing. We have the empty buildings to bring in service business. We have large warehouses that can accommodate manufacturing. All these are possible if we act. But we have to look inward first and reduce regulations and fees and taxes. We have to stream line.

Tuesday, November 9, 2010

The Disconnect of the entrenched political class

Politically and economically where are we today? And can we grow from here? Two good questions, I am not sure we have a chance of getting to the answers, with our present leadership. The dust has settled after the November 2nd elections, but what does it tell us. The far left Socialist in Washington, feel that we do not understand the future America that they have promised. The far right progressives feel that the tea party was just a blip on the radar. These are not good signs for the rest of us.

I have looked at what these two extremes are telling us. The far left is playing a dangerous game of using race, creed and the economic underclass and pitting the rest of us as the enemy. The far right progressives are protecting their interest and consolidating power where they can. And the vast majority of us are in the middle, viewed by both sides with contempt.

The Tea party was a voice of reason, smaller government and less cost on us. It was an argument of placing more control further down the economic chain, giving us more options. The problem is that the options are getting smaller as I write this comment. The Federal Reserve just broke their promise and monetized the debt to the tune of 600 billion with a promise of another 250 billion in a few months. That is close to a Trillion dollars in monetization of a debt that will cause stagflation and a commodities crisis of staggering proportions. The Federal Reserve just monetized 600 billion in Debt which has in essence decreased the value of our Dollar by 20%. That will cause the price of food; energy and the cost of living up for all of us when we can least afford it. This is a revisiting of stagflation of the 1970's but on steroids. For the amounts that we are talking about now are far greater than we had back then.

The actions of the middle here is going to move this debate, either in a positive way or one that I do not want to even think about. The country may not withstand these effects, and I could see the destruction of our system of government. The states may have to question the union and break away from the policies of Washington. These are scenarios that are not easy to think about, but we may have to go down that road if thing do not change. I am not pushing for a civil war, I am telling you of the potential we face and the level of unrest that the actions of a few have created. History tells us how Man has reacted in these times; we have a choice facing us. We need to have clear headed leaders, for these times that are now facing us. The next few months are going to test the beliefs of every Man and Woman in our society. If we pit one against the other we will have violence, those leaders that pit different groups in our society as the enemy need to be rebutted at every turn. For we will need all of us to get out of this hole, that a few have caused.

The current act of monetizing the debt by our leadership is sending us down an economic road that will create a chaotic social condition and cause all of us much pain. If the level of this effect is not evenly spread out in our society, and the government does not actively react to help the disposable income crisis that we are going to face. We will be in for serious trouble. And those seeking power will need to be scrutinized even more. We cannot continue to allow the a press who approaches news on a one sided opinion, as the norm. the debate will get very heated, It needs to. all options need to be on the table, and we must all know the options.

We are going to be pushed; we are going to have to move. The direction of movement is ours to determine.