To grow the economy we will look at the primary sources of wealth
for a country.
Mining includes, oil and gas production
2. Manufacturing, which includes anything that adds value to a
product and distribution and transportation of products.
3. Agriculture, which includes farm animals
4. Allow new refineries to be built
1.
We will leave manufacturing for last because it is the most
complex.
Actions
1. Remove all unnecessary regulation for oil and gas
production
2. Open up most of federal land for oil and gas exploration
3. Give drilling permits on federal land whenever possible*
4. OK the Keystone Pipeline and other pipelines as
needed.
MINING
Benefits
1. Meets demand of oil and gas in our country
2. Reduces fuel cost
3. Reduces import of foreign oil
4. Increases export of oil and gas
5. Allows the United States and Canada control the price of oil
6. Greatly reduces revenue for our oil producing enemies
7. Creates millions of jobs
8. Greatly increases tax revenue for all levels of government
9. Allows for a balanced budget
10. Allows for paying down the National debt
Future of fossil fuel
The private sector may continue research on solar power and
production of solar power panels and devices.
Hydrogen technology very is close to being able to replace gasoline
and diesel fueled vehicles.
There are 2 ways to use hydrogen to power vehicles, fuel cells to drive
and elector motor or strait hydrogen can be used with modified gasoline
and diesel engines.
Strait hydrogen can be distributed using the model used for propane for
home use.
The biggest problem with using hydrogen is reducing the production
cost.
Government must work with farmers and ranchers and find
out how government can do to help increase production
and reduce cost.
Shutting off water to the agriculture area in California
because of a fish that offers nothing for us.
There are hundreds of new species that evolve and die out
every year in the Rain Forests every year.
Species have come and gone since the beginning of life on
Earth and continue until the sun destroys Earth billions of
years in the future.
There are 2 parts to job creation in manufacturing
1. Increase the demand for manufactured products
2. Bringing back manufacturing that is currently
being manufactured in another country.
Manufacturing the supply for the increased demand
is where jobs are created
The next slide is a simple explanation of how consumers
drive demand when they spend more.
Consumers With Extra Money
Consumer Products Factory
Product
Demand
Product
Demand
Subassembly Factory
Product
Demand
Jobs
Create Demand for Products
Subassembly Factory
Product
Demand
Product
Demand
Subassembly Factory
Parts Factory
Raw Material
Retail
Online Retail
Services
Consumer
Product
Demand
Product
Demand
Jobs
MANUFACTURING
DEMAND AND SUPPLY
Supply to Satisfy the Demand Completes this
Process of Job Creation.
The next slide is a simple explanation of how the demand
consumer created is satisfied by supply and jobs are
created.
Consumer Products Factory
Jobs
Supply
Product
Supply
Product
Subassembly Factory
Jobs
Supply
Product
Jobs
Supply
Product
Subassembly Factory
Supply
Product
Supply
Product
Subassembly Factory
Parts Factory
Raw Material
Retail
Online Retail
Services
Consumer
Supply
Product
Supply
Product
Jobs
Jobs
Jobs in Consumer Products Factory
Supply
Product
Jobs in Subassembly Factory
Jobs in Subassembly Factory
Supply
Product
Jobs in Parts Factory
Jobs in Subassembly Factory
Supply
Product
Jobs in Raw Material
These slides demonstrated the demand flow and the resulting supply flow are
simple representations of the flow. The timing of demand generation can be a
very complicated process generally created by a computer that tries to time
phase the receipt of all parts just before needed in production. These computer
programs and procedures to manufacture products are Master Production
Scheduling, Material Requirements Planning, Capacity Planning and Supply
Chain Management, the computer time phases the demand but the Master
Scheduler is in absolute controls of the end item schedule and planners work
with the production supervisors and venders and report problems to the Master
Scheduler. For more information on manufacturing planning http://apics.org
The people with new or better jobs will not only spend more money in retail,
they will also eat out more, buy new homes or have repairs made on their
homes, buy new cars and trucks or have repairs made on their cars and trucks.
The more jobs created the higher the demand for goods and services.
As more jobs are created the more taxes are collected at every level of
government. Most of you have heard the terms “Trickle Down economy” and
“Supply Side Economics”, neither one of the are a complete solution, Demand
trickles down the supply chain and causes Supply to goes up the supply chain
creating jobs as demand increases at every level.
An Increase in Demand and the Supply to Satisfy
That Demand Creates Jobs, this is Not a Political
Philosophy, is an Undisputable Fact.
How successful the process is can be manipulated by
the Federal, State and Local governments.
If the expenses of a self employed plumber, when the plumber can no longer
live on his profits he will raise his rates or go out of business.
Corporations have many more expenses than the plumber including employee
benefits, business insurance, legal fees or staff, accounting and many others
depending on their products and services, but they all pay (or should pay)
taxes on their gross profit. Taxes are just another expense that is passed along
to the consumers in the form of price increases, you and I pay those corporate
taxes. The higher the companies taxes are the more the consumer pays for
their products and services and when it reaches the point they can no longer
make enough profit from their products, they move all or part of their
operations to another country with cheaper labor and lower taxes.
The problems with corporate taxes is discussed in another part this
presentation, that becomes a little political.
Profit
How do you measure profit and what do you call windfall profit?
Company B made 39% more profit than Company A, which company
do you think preformed the best for their shareholders?
You don’t have enough information yet to answer this question.
Profit
How do you measure profit and what do you call windfall profit?
Company B had 84% more gross revenue than Company A, does this
help you decide which company you think preformed the best for their
shareholders?
You have enough information from these 2 slides to answer this
question if you know how to use that indormation.
Profit
How do you measure profit and what do you call windfall profit?
Company A had 73.5% more net profit as a percentage of gross
revenue than Company B, Company A has more money to invest in
growth and pay larger dividends to their shareholders than Company B
Profit
Why do corporations need to make a large as possible profit?
• Pay shareholder enough dividends to keep them happy investors
and attract new investors.
• Bonuses
• New product development.
• New technology
• New facilities and more advanced equipment.
• Growth
Disclaimer
What corporations do with their profits is up to the Corporate Management, The Board
of Directors and the Shareholders.
At this time, many Corporations are spending money expanding to or relocating to
states with low taxes, fewer costly regulations, at least some Tort Reform and have
Right to Work Laws.
Just because a company has a history does not mean it is a good company to invest in,
investments in individual stocks should be discussed with a licensed Financial Advisor
that will make recommendations based on your investment goals and their knowledge
of the Corporations.
I feel that the more management gets from their employees and the information the
share with their employees the better the company preforms. When you insert a union
between the management and their employees productivity goes down and the best
employees leave because salaries are part of the union contract there is no reason to
do anymore than you have to.
Now that you understand how jobs are created with demand in
manufactured products, we need to start creating the demand and
to do that consumers must have:
1. More money to spend or lower prices that gives them more
buying power
2. Be confident their buying power will not go down on the
foreseeable future.
A one time check from the government to every consumer will not
create jobs, retailers know this is just a ripple and will not reorder
products and create demand, this is just a waste of tax payer
money.
STIMULATING MANUFACTURING
The more Jobs
we have the more tax
we have at all
levels of government, the more
we have the more small
businesses are created which creates more
.
Now that we know what we must do to improve the economy, wen
need a plan to do it. The remaining slides in this section will
explain how we do it, it is an outline of a comprehensive integrated
plan in which all the pieces must be implemented for a self
sustaining robust economy and a wealthy country that can help
make the rest of the free world a much better place for all people
to live.
In order to form an fair opinion
complete plan.
you must read the
Tax Cuts
A one time check from the government to every consumer will not
create jobs, retailers know this is just a ripple and will not reorder
products and create demand, this is just a waste of tax payer
money.
Target tax cuts that encourage investment and growth.
The numbers used in the following section about lowering taxes
are just examples, but cuts in these taxes must be substantial.
Capitalism works
Why: Capitalism is fueled by greed of investors which creates
competition and competition is necessary for capitalism be successful.
People compete for just about everything; some examples of what we
compete for being a wife, a job, a Gold Metal in the World Olympics, for
a better job, to have the best yard in the neighborhood and having the
best high school football team in your state.
Businesses compete to have a larger market share for products, to get
the best employees, have a better product than their competitor, to
make enough to grow and pay investors good dividends.
The tax cuts must be permanent.
Why: Businesses need to know taxes will be stable before they invest
their money after they way the Obama Administration has treated the
private sector they do not trust the government anymore, the
government will have to earn their trust with their actions not by what
they say.
Before Congress starts debating tax cuts they need to understand
how the Capitalist System actually works.
Why: The concept of capitalism is very simple, when there is a demand
or need for a product or service there will be someone or business
there to provide that product or service.
Cut corporate taxes to 10% from 35%
Why: Taxes are just like any other expense a company has, it is added
to the overhead, when taxes go up the consumer pays more for their
products and services, when taxes go down the consumer pays less for
their products and services. Lower corporate taxes gives the consumer
more buying power
Eliminate special all tax loop holes for all companies, they all pay
10%
Why: Every corporation should pay the same percentage. Temporary
reductions to allow the economy to adjust import taxes on imported
goods from other countries. (explained later)
Cut tax on money bring back money made in another country to the U.S.
to 5%
Why: Large international corporations have accumulated large
amounts of profits in other countries and are investing it in other
countries to avoid the large tax the United States would levy on it. This is
legal and a good business decision. I that money was invested in this
country it would create lots of jobs when the economy starts to recover.
Cut capital gains and dividend tax to 10%
Why: This will give people and businesses more money to spend and
reinvest, for now keep the individual tax rates where they are now.
STIMULATING MANUFACTURING
Add import tax to selected items from various countries,
primarily China
Why: The purpose of this tax is to get electronics manufacturing
back to the USA. The tax would start small and grow until the cost of
importing these items would be the same or more than
manufacturing them here.
This may cause prices to increase over a period of time needed for
the economy to adjust to the new prices, all or some of the increases
cost of manufacturing the item here could be absorbed by the
manufacturer because the lower corporate tax rates, offset by
continued low interest rates, decreased inflation by stopping the FED
from printing extra money because the dollar supply would be
increased because of fewer imports.
STIMULATING MANUFACTURING
Stop the earned income tax credit to individuals and families with
a gross income of less than $50,000
Why: This will create tax revenue by not giving people tax credits to
those that earn can get by without them.
Add variable import tax to selected items from various countries,
primarily China. This would increase prices of the taxed parts.
Why: The purpose of this tax is to get electronics manufacturing back
to the USA. If implemented properly
The Causes
There are many products that can’t be manufactured here and
compete with products built in China because of the cost of doing it
here. Those costs are:
1. Cost of labor
2. Corporate taxes
3. Unnecessary regulations
This is a problem that must be addressed.
How to address it
Pick 3 or 4 large technology companies that do most of their
manufacturing in China.
Ask the what the government would have to do for them to bring
their manufacturing back to this country
Make it happen.
26
1. Tax cuts already recommended
2. Add an incremental import tax on that product and all similar items from
competitors
3. Import tax on their the companies imports would be given to those
companies to build their manufacturing faculties, the equipment to build
that product and recruit engineers and technicians to build the product.
The import tax will be a political football because it will make prices go up,
but is absolutely necessary for the economic future. When as oil is
replaced by hydrogen we will need the wealth from manufactured exports
to replace the reduced export of oil. If we don’t keep a positive balance of
trade and a balanced budget we will end up back where we are now.
Price Increases
Price increases should be treated as inflation and the incremental
increase in the import tax make the adjustment to higher prices
easier for consumers to adjust to.
Higher prices on exported products could effect our exports.
International US companies will probably continue to manufacture
products in other countries using parts from China and selling their
products to other countries as they currently, however now they can
bring part or all their profits back to the US at a reasonable tax and
invest it here.