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.
Thursday, November 11, 2010
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.
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.
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.
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.
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.
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.
Wednesday, September 29, 2010
A nation divided can not stand
The more I look at the press, from print to TV; I am worried about our future. We seem to have polarized opinions that cannot live with each other. We seem to demand acceptance where tolerance would work far better. I admit I have moved to a more conservative mentality on economics, I am a social libertarian to a large extent. This is where my tolerance argument comes from. Small Government requires tolerance. Small Government allows for personal freedom to reign. Small Government will not allow for a small group of individuals to dictate their wishes over the majority of us. That alone was the beauty of our constitution. That is what we have lost.
Should the elite in both parties be worried, I say yes!
Here In Nevada we have Rhinos backing Reid, and Democrat's not using their party affiliation next to their name. Yet we have a tea party candidate who without backing giving the Democratic Senate Majority leader all he can take. What does that mean? I would say that the people who have been taken for granted are beginning to speak up. For those who have been in charge of this mess, I would choose my words carefully. Your future is at stake. The last time this has happened here the British had to relocate them to Canada.
I would say we are seeing the birth of a new government and a new ruling party, that party being you and I. I believe that our two party systems are forever gone. What third or fourth parties rise has not been determined as of yet. But I believe that the people are speaking. And the powers that be need to either listen or pack its bags and begin to look at for the union jack. For those who only speak for the Unions are going to get Jack when the people begin to push back.
All we want is sanity; we want small government, and lower taxes. We have all had to deal with deflation of our homes, salaries and standard of living. It is time for our leaders to realize that new taxes are not the answer. The Federally mandated programs of this administration will not stand. States rights will again rise in influence; the tea parties across the nation are just the first wave. The war of ideas have begun, and all of those who say the constitution and the Declaration of Independence are out dated will have to defend the notion that big government and a consolidation of power at the Federal level is a positive move. History has not painted a great picture of the results of big government and personal liberty. Death and abuse are the only results that big central power seems to bring with it.
I would say we are seeing the birth of a new government and a new ruling party, that party being you and I. I believe that our two party systems are forever gone. What third or fourth parties rise has not been determined as of yet. But I believe that the people are speaking. And the powers that be need to either listen or pack its bags and begin to look at for the union jack. For those who only speak for the Unions are going to get Jack when the people begin to push back.
All we want is sanity; we want small government, and lower taxes. We have all had to deal with deflation of our homes, salaries and standard of living. It is time for our leaders to realize that new taxes are not the answer. The Federally mandated programs of this administration will not stand. States rights will again rise in influence; the tea parties across the nation are just the first wave. The war of ideas have begun, and all of those who say the constitution and the Declaration of Independence are out dated will have to defend the notion that big government and a consolidation of power at the Federal level is a positive move. History has not painted a great picture of the results of big government and personal liberty. Death and abuse are the only results that big central power seems to bring with it.
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