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Forum Post: Economics, Stimulus, Taxes, Jobs, Regulations, Revolving Door, Specific Action Items to Consider

Posted 2 years ago on Feb. 12, 2012, 10:41 p.m. EST by Middleaged (5140)
This content is user submitted and not an official statement

--- For Comments --- Does anyone want to add Reform, or Economic Stimulus Ideas ---

A. Problem Area Taxes are Lower for Rich People:

1) Captial Gains, 2) Dividends, 3) Carried Interest, 4) Deferred Wages,

B. Problem Area Taxes for Social Security, Medicare not paid by the Rich (These social programs are under funded).

I was just reading this article: http://www.truth-out.org/have-super-rich-seceded-united-states/1326127151

C. Problem Area Most People Don't Work although women did join the work force and increase the number of people competing for jobs

1) Children, 2) Elderly, 3) Infirm, 4) Spouses at home

D. Problem Area The Alternative minimum Tax doesn't work for Rich who still have "Loop Holes", Pay "None Wage Tax Rate", and No Defintion of "effective tax rate" except for the tax in the IRS tax booklet.

E. Problem Area Congress Spends Funds that We Don't Have.

1) War over 500 Mile from this Country is Questionable, 2) There is No Trust Fund for War Spending, 3) Taxpayer's Borrow Money for War, 4) Much of Spending is a transfer of Taxpayer money to industry, 5) Too much Spending for Prisons for nonviolent crime, 6) Over 1600 Federal Subsidies, 7) Social Security Funds Stolen for War Funding.

F. Problem Area Banks Are Predatory, engage in dishonest and Criminogenic activity, One Idea: "Banks should become a Utility" managed like a the water complany. It seems like a good idea, because they function to lend money and with Fractional Reserves - they are really making money "out of thin air" (transparency and regulation goes without saying if banks become a "Utility").

G. Problem Area Borrowed Money:

1)Which brings up another point that MMT (Modern Monetary Theory) has brought up. And that is that if we are the government, we own the treasury, why don't we create money and institute monetary policy, and why should we pay back money borrowed, or ... even borrow money to begin with???? Unless we borrow or lend to foreign entities we can create money without borrowing it.

2) Monetary Policy is all about making sure there is enough money in the system. If businesses can be born, and grow...if people can borrow and use credit,... then the system works. But today with dishonest deals driving out honest deals ... like the No Document Mortgages, packed and resold within hours or days. Money supply should be tied to changes in population to prevent money from getting tight as it is now. Small businesses can't get loans today (I am told). And people that want to refinance homes can't refinance.

3) Monetary Policy is supposed to work for both Main Street and Wall Street. And it has nothing to do with "pulling yourself up by your bootstraps". Today the money system is Broke. And the Economists in charge are "Neoliberalist".

here is a link I looked at posted by notaneoliberal http://www.commondreams.org/view/2011/04/02-5

H. Problem Area Job Creation is Really Creating an Environment For Starting Small Businesses (Small Businesses are the heart of the USA, employ the most people, and manufacture the most products - it is a myth that big giant corporations are the heart of the USA).

How About Some Strategy Ideas for Thought:

1) Get rid of the Central Bank (since we know they are in bed wtih the people that they are supposed to Regulate, the Revolving Door from the Treasury to Big Banks to the Federal Reserve proves this is one big "Club"). No one knows why the FED was created in secrecy without congress anyway.

2) Break Up All Banks that are too big to fail with Antitrust Laws (separate commercial banks, investment banks, and savings banks).

3) Stop Foreign War over 500 Miles from any one US State.

4) Stop asking the Governent to Create Jobs.

5) Stop asking Businesses to Create Jobs.

6) Fully Fund Social Security and put money behind a Firewall (that is why we called it a "Trust").

7) Extend Unemployment benefits another year

8) Bring Army Troops back to permanent stations in the USA from Japan, Korea, and Germany. This means building (Stimulating) more housing, barracks, training facilites, and maintenance facilities. It also WILL Stimulate the US Economy as their money is spent in the US.

9) Create Incentive programs in K-12 through small Grants of $2000 - $4000, and in Colleges and Tech Training Schools of $5000 - $6000 to test new inventions, create contests in science, agricultural labs, greenhouses, etc.

10) Close the Department of Education since it has failed.

11) End the War on Drugs and transfer DEA agents to other departments since the mission has failed (the SEC needs help).

12) Create some kind of Minimum Tax on Progressive Scale without Loop Holes as a "kind of alternative minimum tax" that applies to the Rich and to Capital Gains, Dividends, Carrying Fees. This will get Lawyers, Tax Lawyers, Accountants, Tax Accountants into other economic activities that could be helpful to the GDP and may have a multiplier effect on the economy (hopefully we can get more financial managers into manufacturing also). This may also reduce the number of IRS employees needed to review tax forms. Outlaw Deferred Wages since they erode tax base and obstruct visability of Executive Wages Earned (nontransparent).

13) Overturn NAFTA and CAFTA laws. Go to a Tariff system on imports (start at 1%).

14) Stimulate manufacturing with "Economics Free Zones" in states and cities across the USA which would remove barriors to businesses, reduced taxes, reduced liscenses, reduced certifcation requirements, no unions, reduced sales tax, reduced production tax, reduced capitol investment tax, maybe customers would not have to pay sales taxes either.

15) Stimulate manufacturing by providing small grants to trade schools and to students toward teaching them about business and how to start a manufacturing enterprise (laboratories, agricultural plots, energy and alternative energy testing projects, chemistry projects, hazardous waste control technology).

16) Stimulate manufacturing by identifying banks that would lend to new businesses, establish new small business federal loan programs at federal loan rate of 6% or 8%, identify technologies that will be trends in the future and will be focus of federal loan program (waste disposal, recycling, energy, autos, mass transportation).

17) Stimulate business creation with additional public works programs, and energy technology programs grants, loans, reduced production tax, sales tax, capitol investment tax, for businesses with capitolization below $10 Million Dollars that will produce energy or manufacture capitol equipment utilized in the energy industry.

18) Make Health Care Portable across State Lines ending monopolistic Insurance Programs.

19) Make all Student Loan Interest Rates go down to either 6% or 8% to end the predatory rates from financial organizations who get their money for free or nearly free (Fractional Reserve Lending) and who now use profits to Lobby Congress.

20) Break up the TV/Cable Monopoly with Antitrust Law. No media owner/corporation/cabal should have the power to advertise talking points and call it news.

21) Outlaw Lobbying Congress and Gift Giving to Congress (i.e. free hotels, free dinners, free vacations, free conventions, free plane rides). And accepting gifts/contributions from foreign entities by congress is treason. Campaign contributions shall be set at the same limit for all US Citizens, but corporations and PACs shall not contribute to congressmen/women. Congress shall raise money through books and speaking, but can't sell books to PACs or corporations or some rich entity.

22) SEC must be bolstered with full backing of US Treasury if it is to face big banks in court to discourage criminogenic behavior.

23) SEC probably needs manpower of 200 additional agents to investigate Fraud and Criminogenic environment.

24) Corporations need to be rated not only on their risky behavior, and for hiring unqualified personnel to create mortgage loans or other financial instruments, but also for the amount of leverage they use and lack of reserves they keep on hand (transparency is key).

25) Corporations need to be Rated for all consumers, investors, or potential business partners with regard to transparency and independent audits of Off Balance Sheet Transactions. GAAP rules are the goal for US Businesses (transparency).

26) Politicians should be Rated and Evaluated when they intervene/pressure Federal regulatory offices and agencies. For Instance it is said that congress interfered with the IRS audits of Rich people in the past. The real danger is that political pressure can allow regulations to be bent without the politician knowing the full context of the US regulations or the Lobbying Entity's Activities (Context is crucial to all US systems).

27) Make Banks become "Utilities" like water or electric with profit controls, leverage controls (less than 10 to 1), fractional reseve controls (minimum on hand assets), Interest Rate controls (Student Loans at either 6% or 8%, Small Business Loans either 6% or 8%), Off Balance Sheet transaction controls (to make explicite what is allowed and what is prohibited), and transparency of credentials for bank loan officers and mortgage specialist.

28) End the Revolving Door Between Federal Regulators and the Industries they Regulate. There are rules that exist that prevent government employees from working in industry jobs for a period of 5 years under certain conditions and circumstances. Disclosure Forms can be used to keep up on job changes of government employees that want to move from the Treasury or another agency to work for the entity or industry they were sworn to regulate (this forces people to chose their careers and stick to their decisions).

32 Comments

32 Comments


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[-] 2 points by Middleaged (5140) 1 year ago

Naomi Klein has a book and video called The Shock Doctrine, the rise of Disaster Capitalism which will make you Jump Up and Down!

http://www.youtube.com/watch?v=hA736oK9FPg

It is about Corruption, Cronyism, Neoliberal Economics, Privatization of government jobs and resources, Milton Friedman, George W. Bush, KBR, Halliburton, Think Tanks, Big Banks, Corporatism, Oligopolies, etc.

Neoliberalism has been part of the IMF plan for world domination. Bolivia, Argentina, Iceland, Brazil, Ecuador, Venezuela, etc have learned the hard way and have kicked out the IMF, Big Banks, and Western Corporate Control.

http://en.wikipedia.org/wiki/Neoliberalism

http://en.wikipedia.org/wiki/Milton_Friedman

After 911 (which was a kind of IPO of a new business starting from year zero) the war on terror was actually a military business. But it was a privatized Military and government. 911 empowered this Privatization under cover of the War of Terror. Bush could wage the war any way he wanted. Shock and Crisis allows new doctrine or new economic program.

Bush played the Role as a Venture Capitalist. He is the plan, here is the start up money, here is the market "Military War", most every function of military and government was outsourced.

Blackwater, XE, KBR, Halliburton, Dynacor, Teledyn, General Dynamics,

Word.

[-] 2 points by Middleaged (5140) 2 years ago

Video that will Wow you. Corruption investigator David Kay Johnston on Democracy Now. His work is always stunning. Look at the 55 minute mark into the video.

http://www.democracynow.org/2008/1/18/free_lunch_how_the_wealthiest_americans

[-] 2 points by Middleaged (5140) 2 years ago

Robert Reich on increasing Manufacturing Jobs is a very different perspective:

http://www.huffingtonpost.com/robert-reich/manufacturing-jobs_b_1285909.html?ref=business

[-] 2 points by Middleaged (5140) 2 years ago

Corrupted Democracy, Lobby for War...

Video Noam Chomsky talks about Isreali Lobby and Oil Corporations benefits from War in Middle East and some reasons why no one faces down the Isreali Lobby. They are discussing a new book that came out in which 2 authors have come under heavy fire for simple democratic action of publishing. Look about 38-39 minutes into Video for that. Danger of Bush Policies creating resentment, terrorism, and a greater threat to NUCLEAR War about 19 Minutes into video.

I Just found this video has a good statement from Noam Chomky about 19 minutes into it he is explaining how the threat of NUCLEAR War has gotten greater due to Bush Policies that we are following.

http://www.democracynow.org/2006/3/31/exclusive_noam_chomsky_on_failed_states

[-] 1 points by kjack (48) 2 years ago

In the past two weeks ive been learning about AIPAC, its power and that crossing them by voting on legislation that disadvantages Israel even slightest is political suicide. As the media machine is preparing the people for war with Iran with baseless propaganda that is even more laughable than what was used for Iraq, I'm understanding the ways in which AIPAC is continuing to shape American foreign policy to fit Israel's needs. Anyway I watched this video of President Obama speaking at the 2011 AIPAC conference and his lack of enthusiasm was comical but more importantly I think he passively stood up to them. Fast forward to 9:40 and watch the stretch up to about 11:00. He was either doing one of two things: using a tongue-in-cheek kind of way to criticize Israel's actions or just to laugh on the inside because everything he said about Iran is true about Israel and yet everyone wildly applauded completely oblivious of the blatant hypocrisy.

http://www.youtube.com/watch?v=5tib1lYIsdk

[-] 1 points by Middleaged (5140) 1 year ago

I can't see where I replied before, but I did look at the video. I can't find any fault in what you are saying. And AIPAC seems to fit into the war machine or MIC. I don't know why we allow foreign lobbies or anyone to lobby for defense of another country. Accept maybe it fits some religious right leaning extreme view.

[-] 1 points by Middleaged (5140) 1 year ago

Foreign Free-Trade Zones set up in the USA, 257 of them, ...works against union workers, and US Small Businesses...

I recomended Economic Free zones last year that would encourage small business start ups ...by reducing regulations, taxes, and even possibly union membership ... in order to stimulate the economy and make loans available to small businesses (Main Street).

Here is an article that shows how Chinese Corporations are moving in to all sectors of American Businesses, ...but also taking advantage to set up "Foreign Free_Trade Zones", (A world Model).

http://theeconomiccollapseblog.com/archives/does-china-plan-to-establish-chinese-cities-and-special-economic-zones-all-over-america

1) China has a Corporate Model for big projects and thinks very strategically.
2) US debt owned by China provides Leverage for all kinds of Investment.
3) The Chinese Government Runs some Corporations like in the Petroleum Industry.
4) Globalization in the USA has opened up many US systemic Vulnerabilities.
5) Media Black Out in the US has kept Consumers, Unions, and Workers in the Dark.
6) All Resources in the US are potential takeover targets, such as farmland, oil & gas, construction, infrastructure, hotels, residential developements.

Be sure to read the whole article Some of the executive orders signed since 2001 seem to break the US down into federal regions which make it easier to privatize government functions and government projects.

[-] 1 points by Middleaged (5140) 1 year ago

Moved from another string to save the ideas here. Since I want to mandate an interest rate of 6-7% for individual savings accounts and this concerns the banking industry, inflation, and money supply I think this is the proper place for these ideas.

How about some radical creative new ideas.

1) Outlaw Corporately owned Investment Banks and mandate that all banks be privately owned by people who can held to account.

2) Mandate that Individual Savings accounts pay minimum of 6-7% Interest to pay for inflation and to encourage savings.

3) Break up TBTF Wall Street Banks

4) Put ceilings on Public College and University Tuition and Mandate that all Student Loans be limited to 4% Interest

5) Eliminate/Outlaw all Corporate Shell Companies

6) Mandate that all Pension funds be fully funded or Terminated within one year

7) Prohit bonus' if the business loses money or doesn't make enough profit to pay bonus' since this is illegal as a fleecing of coroporate coffers

8) Prohibit Off balance sheet transactions especially for publically held corporations since this would tend to deceive bond holders, stock holders, and other investors (adher to GAAP rules).

9) Outlaw Private banking

10) Regulate all financial instruments and outlaw black banking such as derivatives.

11) End Revolving Door and Regulatory Capture by prohibiting government employee from working in industry and vice a versa.

Sorry I guess that wasn't very creative...

Corporations should stand alone in whatever country they manufacuture or produce in. Parent companies become investors with no board pressence, no formal relationships, no chairmanship, leaders or executives jump ship if they move to another country for a break-away company.

Corporations must be reregulated. Now there is not regulation on purpose, period of time, public service or public interest, there must be no opportunity to pollute air or water or earth and leave as an executive with no responsibility or legal recourse. Corporations should serve a larger good for the public. they can't be allowed to exploint people or resources with tragic consequences.

Articles of incorporation like a charter or a marque should be limited to a very narrow purpose, period of time, and restricted relationships to government, universities, churches, unions, and public opinion or public media. No Lobbying.

http://occupywallst.org/forum/the-buffett-rule-will-bring-in-less-than-5-billion/

[-] 1 points by hchc (3297) from Tampa, FL 1 year ago

Excellent. You need to go spend $50 and print out 500 of these, and go door to door and get some reaction.

Put contact info on there, and you are well on your way towards REALLY helping this nation.

[-] 1 points by Middleaged (5140) 1 year ago

Thanks. I'm not much of an activist thou. Courage is a lesson I need to learn.

[-] 1 points by Middleaged (5140) 1 year ago

updating my Income Tax plan, but see I still have more to learn.

12) Scrape the current federal income tax scheme in favor of a progressive tax that only allows 5 deductions, recognizes wages and earnings the same way, investment dividends and short and long term profits and loses are treated with an exclusion for the first $15K earned, then taxed at 24%, interest rates for two mortgages can only be deductible up to $100K per house, there would be no such thing as a lower tax rate for "carrying fees" earned through business. This tax plan will get Lawyers, Tax Lawyers, Accountants, Tax Accountants into other economic activities that could be helpful to the GDP and may have a multiplier effect on the economy (hopefully we can get more financial managers into manufacturing also). This may also reduce the number of IRS employees needed to review tax forms. Outlaw Deferred Wages since they erode tax base and obstruct visibility of Executive Wages Earned (nontransparent).

A) Progressive tax with few deductions from 14% ($1-$22K per year) 16% ($23K-30K per year) 18% ($31K-38K per year) 20% ($39K-$49K per year) 22% ($50K-$60K per year) 24% ($61K-70K per year) 26% ($71K-82K per year) 28% ($83-$95K per year) 30% ($96K-120K per year) 31% ($121K-$1.5M per year) 32% ($1.6M- infinity) B) All wages, tips, carry fees, income treated the same C) Rich people pay full Social Security and Medicare taxes D) Allowed to own two houses and deduct up to $100K per year per house, additional houses are called investments and you can't deduct the interest paid from income taxes E) Head of Household and those with dependents can deduct health insurance premiums (capped at $20K per person), copays, drug costs, and medical bills F) Investments are encouraged, loses and gains are only calculated when actually sold stocks, bonds or other financial instruments. G) Pensions are not taxed by the federal government unless they exceed $100K per year in which case they would be taxed at the lowest rate or 14% H) Personal deduction allowed, plus deduction for dependents and spouse

[-] 1 points by Middleaged (5140) 1 year ago

In response to Forum topic:
http://occupywallst.org/forum/bernanke-call-krugman-reckless/

This is complicated and the article may have been written by someone that doesn't understand monetary policy or economics better than me.

My take is that there isn't enough money flowing in the economy for job hiring and state, local and even federal governments are cutting budgets. There fore we are in a period of Austerity in the USA.

1.Street lights in cities have been shut off to save money.

2.Cities have torn out pavement for gravel Streets to save maintenance costs.

3.Emergency and other city employees have been laid off.

So what are the choices. Austerity means slowing down the economy and reducing the money flowing. I see the following choices.

1) Sell Government Bonds 2) Buy back Government Bonds 3) Economic Stimulus Programs to hire construction or government workers 4) Raise the Interest Rate for loans to slow down new loans or encourage consumer savings 5) Cut Taxes for Main Street 6) Cut Taxes for Wall Street and Corporate USA 7) Start program to subsidizes gasoline for both Main St and Corporate USA (Lowering the cost of energy for all) 8) Nationalize commercial banks and lower the barriers to getting loans for small businesses, recycling organizations, and alternative solutions for future energy.

If you set aside the discussion about what our current Inflation rate is from shadow statistics, then I think we can prove that consumers can't spend, we need jobs, and we have a period of government austerity. We can't be afraid of inflation. We need some stimulus. I would also like to encourage a higher interest rate for US Savings Accounts.

The real fear is that we will continue to have workers that don't contribute to the the economy or the GDP. I mean Wall Street financial managers, tax accountants, tax lawyers, and accountants that help corporations escape and avoid taxes.

Break up the TBTF Banks on Wall Street and force those executives to open their own bank. Let's create an environment that encourages manufacturing and protects our manufacturing with .5% tarrif and put a tarrif on any imports from countries that prohibit US imports.

I remember Greenspan never did anything. He just said we'll wait and see. Neoliberals created financial boon doggle. Neocons created war boon doggle. Bernanke and Greenspan are both Neoliberals who created, condonned, and espoused the financial crisis. Idiots.

[-] 1 points by Middleaged (5140) 2 years ago

The solution to Fascist Austerity and Fascist Economics: Below article is about how there was an Italian Summit where people who really don't like Fascism received a panel from the US who explained that Austerity increases unemployment and kills jobs.

http://www.nakedcapitalism.com/2012/02/michael-hudson-2181-italians-pack-a-sports-arena-to-learn-modern-monetary-theory-%e2%80%93-the-economy-doesn%e2%80%99t-need-to-suffer-neoliberal-austerity.html

Video:

http://www.youtube.com/watch?v=XP60tpwu5cs

This Modern Monetary Theory believes in good government spending and good government debt. In the US we have had Neoliberal Economic Policies for 30-40 years since the Chicago School of Economics came up with this crap.

http://www.washingtonpost.com/business/modern-monetary-theory-is-an-unconventional-take-on-economic-strategy/2012/02/15/gIQAR8uPMR_story.html

http://ftalphaville.ft.com/blog/2012/02/22/890211/yes-virginia-there-really-is-modern-monetary-theory/

I believe most MMT followers like the idea of getting rid of government borrowing from Big New york Banks. They believe the US Treasury can print its own money like the "Greenback" under Lincoln. There is no reason for the government to borrow money and pay interest.

1) Austerity Bad.
2) Government Spending Good.
3) If you stop government spending you lose jobs and increase unemployment.
4) The money supply is managed according to the population growth to allow plenty of money to flow in the economy without creating inflation.

http://www.neweconomicperspectives.org/p/modern-money-primer.html

William Black posted a long comment to further explain the MMT solution to Fascism at February 29, 2012 at 4:00 am. you will have to scroll down pretty far. It is located below the article posted here:

http://www.nakedcapitalism.com/2012/02/michael-hudson-2181-italians-pack-a-sports-arena-to-learn-modern-monetary-theory-%e2%80%93-the-economy-doesn%e2%80%99t-need-to-suffer-neoliberal-austerity.html

[-] 1 points by brightonsage (4494) 2 years ago

I believe it is "carried interest" and "deferred" wages.

[-] 1 points by Middleaged (5140) 2 years ago

Thanks got it.

[-] 1 points by Middleaged (5140) 2 years ago

Example of Globalsim, Money Laundering, Corruption, Big Banks Altruism???

http://www.bloomberg.com/news/2010-06-29/banks-financing-mexico-s-drug-cartels-admitted-in-wells-fargo-s-u-s-deal.html

"The smugglers had bought the DC-9 with laundered funds they transferred through two of the biggest banks in the U.S.: Wachovia Corp. and Bank of America Corp., Bloomberg Markets magazine reports in its August 2010 issue."

" This was no isolated incident. Wachovia, it turns out, had made a habit of helping move money for Mexican drug smugglers. Wells Fargo & Co., which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers -- including the cash used to buy four planes that shipped a total of 22 tons of cocaine."

"Wachovia admitted it didn’t do enough to spot illicit funds in handling $378.4 billion for Mexican-currency-exchange houses from 2004 to 2007. That’s the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in U.S. history -- a sum equal to one-third of Mexico’s current gross domestic product."

"Twenty million people in the U.S. regularly use illegal drugs, spurring street crime and wrecking families. Narcotics cost the U.S. economy $215 billion a year -- enough to cover health care for 30.9 million Americans -- in overburdened courts, prisons and hospitals and lost productivity, the department says."

Wachovia Agrees to Pay $160 Million Dollars : http://www.bloomberg.com/apps/news?pid=newsarchive&sid=avbx.9LIE6.A

http://www.bloomberg.com/news/2011-12-06/issa-plans-probe-into-report-u-s-helps-drug-cartel-laundering.html

And Video Available:

http://www.youtube.com/watch?v=GNkzBAy7LYE

[-] 1 points by Middleaged (5140) 2 years ago

Problem Area Banks and Big Phamacies make fortunes on legal and Illegal drug sales (More people die from prescription drugs than illegal, banks launder illegal drug money, war on drugs is a failure and drives poor people into the drug trade being instantly replaced when they are caught or killed). See Whitney Houston death for human side of the story. It is not humane to have drug prohibition and create a world black market for illegal drugs. Drug Education about legal and illegal drug use/abuse/deaths is required, of course.

[-] 1 points by FriendlyObserverB (1871) 2 years ago

A cap on sales profits will stimulate the entire global economy.

[-] 1 points by Middleaged (5140) 2 years ago

Well there is no way any revenue would be returned to either consumers or any other entity. maybe you are thinking about the Consumer Protection Agency, and protection against predatory lending. Or maybe you are thinking about banks becoming Utilities?

I just realized that Credit Cards interest rates could be held down to protect consumers (Consumer Protection Agency). I mean they are creating credit out of thin air, so why should they demand 25% interest or higher??

So Consumer Credit Interest Rates could be held down just as Student Loans and Loans for New Small Businesses (say 8% Interest on Creidt Cards).

[-] 1 points by FriendlyObserverB (1871) 2 years ago

perhaps you are not aware how a cap works? Let's say you are a retailer and sell tables. The Cap is ten percent mark up. so, you pay the manufacturer $2000 cash than you resell adding on the ten percent. You resell for $2200 . That equals a $200 profit [ ten percent ] . There is no need to return money to anyone ? as you would think ??

[-] 1 points by Middleaged (5140) 2 years ago

Yes, well Wholesale Markup may be around 10% - 20%, but Retail markup maybe much higher in many cases like food items. There are also job-shop type set ups or consignment arangements.

If I delivery bread to the Circle K and the 7-11 store, fill up the Bread Display Rack, I'm probably getting 30% Markup (I think??).

[-] 1 points by FriendlyObserverB (1871) 2 years ago

A cap on sales profit is a specific item to consider , and would result in a "silver bullet" type fix to the economy. thanks

[-] 1 points by Middleaged (5140) 2 years ago

We better define terms better to make more sense to everyone.

Profit is ephemeral. I can pay my 16 year old kid a salary, my wife who is laying in bed a salary, hire my brother to be on the board of directors, and all of this will be paid out of revenue before profit. And by the way I'm going to pay myself $200K a years, and add on a benefits package.

1) Deferred wages of $1M, 2) Stock Options of $1M, 3) Bonus $1M, and 4) Bonus Stock Options or Bonus Stock Shares, 5) My original $200K salary has a Retention Bonus of additional $1M

You see the problem. Law or Constitutional Amendments have to be very specific. That is why we would focus on Deferred Wages, Interest Rates Charged, Hidden Consumer Fees, or may be Markup percentages.

Maybe I get mixed up when I say salaries are Overhead. True overhead can be the 1000 employees that were layed off due to outsourcing, offshoring, robotics, or automation (computers). Anyway Revenues are the money that comes in from consumers buying products and services. Revenues are directly related to Markups. Complicated benefits packages for CEOs are more like Overhead to me (they are temporary and could be eliminated)

[-] 1 points by FriendlyObserverB (1871) 2 years ago

The cap is specifically placed on the mark up before all expenses with few exceptions. and than let the salaries to your wife in bed be paid from that. It will be skimpy .. but you'll survive..

[-] 1 points by Middleaged (5140) 2 years ago

I don't really have a wife, or a dog or a business, of course. This is just kind of an exercise because it helps to think things out a little.

So on Mark Up Limitations say "No markups larger than 300% for Small Businesses with Less than $2 M in annual revenues, and 200% for annual revenues less than $10 M, and 120% for revenues less than $50 M in Annual Revenue (reported on US Federal Tax), and No more than 50% mark up on Products Costing over $3000 and below $150K, and for Small Businesses with over $50 M in revenue per year Markup limited to 80%, and say Markups limited to 40% on products for larger businesses or corporations."

For instance say I made a deal for someone to produce an emergency tool for $2 each, I might like to sell them for $6-$10 each to try to get some of my own coin/scratch.

For all the Banks and Financial Organizations, I wrote for numbers 16, 19, and 27 above.

[-] 1 points by FriendlyObserverB (1871) 2 years ago

The mark up would have to be equal across the board .. if a large retailer survives over the small retailer so be it .

[-] 1 points by Middleaged (5140) 2 years ago

Well there is sort of a commonly known issue called Economies of Scale. As I remember it, the Big 3 Auto Corporations, are the best example. There is a kind of barrior to entry in the Auto Industry because of the Very High Cost of capital equipment.

And if the markup is limited to a very small percentage, then for new businesses there may not be enough revenue to create a brand, create a product line, to even get into full scale production to produce for more than one major city or major market area.

This has to be well thought out. The current manufacturing base in the US is very small, and many would agree we need to set aside barriors to get more manufacturing enterprises into the market. (this is also true for the UK who have floundered since the 1980s under Thatcher?)

These days you might hear a similar term "Moat".

[-] 1 points by FriendlyObserverB (1871) 2 years ago

okay thank you for pointing this out .. perhaps I should have made this clear from the begining .. the cap does not apply to the manufacturer.. so hopefully that will help with your answer.

The cap only applies to mark up on buy and sell items .. not the manufacturer .. because you are definitly correct .. a cap on manufacturing would be very detrimental in many ways.

[-] 1 points by Middleaged (5140) 2 years ago

Did you ever go back and reread this. you are sort of behind the curve. you don't really know anything about business.

Take some time and do some web surfing.

[-] 1 points by FriendlyObserverB (1871) 2 years ago

Okay one more time, listen closely, there is no cap on manufacturing. So your argument has no ground.

[-] 1 points by Middleaged (5140) 2 years ago

Problem Area Global Free Trade can lead to goods in America subject to shocks due to changes in prices and availibitity.

1) Oil and Gas Prices, 2) Food that is not produced in the US, 3) Textiles (clothes) that are no longer made in the US, 4) Wood Products used for homes and furniture, 4) Autos and Auto Parts, 5) Computer Accessories, 6) Telecommunications Equipment, 7) Raw Metals, Raw Minerals, Natural Resources.

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