States to see increased economic competition

AS THE U.S. BECOMES MORE COMPETITIVE GLOBALLY, STATES WILL NEED TO ADJUST

FISCAL REFORM OR DECLINE

The pressure on States to reform their tax and regulatory environment is now going to become a matter of survival. The competition for more companies and more jobs is going to now go into high gear. North Carolina has announced that Triangle Tire is going to build a new plant in their state that will employ 800 workers. Much of the U.S. tire production had been moving off shore and this is a good sign for the future. Many companies are announcing expansion of their facilities in the U.S.. Who is going to get those new plants and those jobs will depend on who has the most attractive environment.

States like Illinois, which is bleeding population, will now be required to reform their tax and regulatory system or face a rush for the exits by both their residents and their companies. Some, of course, are tied to the state for 1 reason or another, but you can bet they will not be expanding in these high tax states.

The most vulnerable are New York, New Jersey, Connecticut, Massachusetts, Pennsylvania, Illinois, Vermont, Minnesota and California. These states have high fixed costs with union contracts and pensions, and  burdensome regulations. They will now have a window as small as 24 months to make sweeping changes or face a dismal declining future for their states. While they have a skilled workforce and good infrastructure they will have a limited time to become competitive. If they fail, their more talented workers will be heading south and west.

As population declines and companies leave they may be tempted to adopt the "Detroit Plan" of raising taxes on the remaining.This will result in a disaster, and a shift of economic and political power out of their states. It is dilemma a long time in the making. Many have been calling for these necessary reforms for years, now the time is up, reform or fall into the abyss. 

Political fiscal policy is at the root of the great divide.

CHOICE IS EQUALITY OF RESULT ENFORCED BY THE STATE VS FREEDOM

SOCIALISM CAN ONLY EXIST WITH A MASSIVE ADMINISTRATIVE STATE  

We are now witnessing the howls of indignation that the tax bill will let more people keep a larger share of their earnings. That evil corporations and business's are getting a tax break on the backs of the poor. These perceptions's that all business is evil, that the profit motive must be controlled by government through taxation. That Human nature itself must be controlled by increasingly taxing the productive members of society and sharing the wealth with those who have less. Of course the enforcer of these policies is the government, who reaps a share of the wealth through wages, pensions and political power and the ability to determine who should be a winner and who a loser.

This philosophy can be summed up in one statement,"FROM EACH ACCORDING TO HIS ABILITIES, TO EACH ACCORDING TO HIS NEEDS",  KARL MARX  The predictable result is a society with less abilities and more needs.

These ideas which started in the middle of the 19th century and  culminated in the Russian revolution of  1917 have largely been proven by experience to be a dismal failure. Not just an economic failure, but also a failure in the fact that in an attempt to realize this dream it requires an authoritarian state to enforce these policies. It has proven that it requires the elimination of the opposition, the squashing of descent and complete control of all aspects of society through laws and regulations.. We have witnessed the results in the Soviet Union, the eastern block nations before the breakup of the Soviet Union, Cuba, Venezuela, North Korea and China before its experiment in a dual capitalist and communist government. The result usually is  poverty for the masses and prosperity for good party members.

This debate is far from over, as we see millennials, who have been taught by their parents by their actions that they deserve to be taken care of by someone. First by their parents who have accommodated them to believe they are the center of the universe and deserve to be compensated by their mere existence. When the parents can no longer sustain them, the responsibility must be turned over to the government, who will gladly take charge just for giving them their vote and giving them the power to confiscate the wealth of others.

All Students should be required to read the "Communist Manifesto", by Karl Marx, as I hear the quotes every day from Democrats and big government types in the the Republican party. This required reading should be followed by reading of  the "Gulag Archipelago" by Alexander Solzhenitsyn, who lived through the communist revolution and witnessed the results. Who was put in a forced labor camp for years for being a reactionary in his writings. They should also take a vacation to Venezuela and witness the results of their beloved Philosophy.

The immigrants who come to this country from these communist countries are some of our most patriotic citizens. They are thankful for the opportunity to be free, to prosper, and shape their own destiny. This false song of government enforced economic equality is just that, a false philosophy which will produce the opposite results.

Time for private sector job training

SHORTAGE OF QUALIFIED WORKERS ON HORIZON

BETTER TO TRAIN AMERICANS THAN IMPORT WORKERS

The efforts to make America more competitive and increase the availability of good paying jobs will expose the shortage of qualified workers. It is in the nations best interest to encourage business's to train workers for the jobs that need to be filled. Most workers could be trained to fill these jobs with courses of less than a year.

This could be accomplished by possible tax credits for each worker trained and employed. Hopefully this will lessen he strain on social services and increase tax revenues in the long run. Business knows what it needs from its workers, who better to design and maintain courses to train workers. The emphasis should be placed on recruiting and offering placement in the latter years of high school.

These course could be offered at low cost to the qualified students and could be coupled with on the job training for part of the course. Starting early would hopefully offer students hope that if they are responsible they will have employment in their future.

The Auto manufacturers have been working on these type of courses by helping to support technical schools for auto technicians. They appear to be highly successful. This approach could be used by many more industries. 

I would expect we will see efforts in the near future to encourage this approach rather than hire workers from other parts of the world, while we have at present a low employment participation rate. There a plenty of workers who are not working at present.

We have a problem with employees who a suffering from forms of substance abuse and a high incidence of employee theft. After several terminations for these offenses they become almost unemployable. Hopefully if offered the chance for meaningful employment early in there lives they will be able to develop better work habits that will benefit themselves and society.

Goal now, force Trump to quit

AS INVESTIGATION INTO COLLUSION RUNS DOWN, GOAL IS TO FORCE RESIGNATION

MORE COLLUSION IN THE FBI THAN IN TRUMP CAMPAIGN 

The newest tactic to get rid of Trump is to force him to resign. The most likely tactic is to indict his family members for lying to the FBI or some other impropriety and then offer to drop all charges if Trump agrees to go quietly. 

The original plan for impeachment has not quite panned out. The plan to find him incompetent is unlikely to be effective. The hope now is to threaten his family with disgrace and jail, and then offer resignation as the way out. 

This precedent was effective with Richard Nixon, but we now live in a new age and Donald Trump is not Richard Nixon. The Clinton's set the new precedent of hanging tough and Trump has a reputation of hanging tough. In some ways he may welcome such a showdown, it will be the greatest show of all.

The big loser will be the country. If we proceed into this gorilla warfare with extortion and hostages it will be a political bloodbath not seen since the civil war. In fact there already is a long list of casualties on both sides, not to mention the reputation of the FBI, the Department of Justice and expect the same in the State department.

There has been widespread corruption in most Federal government agencies. While this has always been the case to some extent, the Clinton/Obama coalition has taken it to third world status. They are now fighting for their survival. As more and more of the details of the corruption are exposed and the fear that they may all be taken down, a new urgency and hysteria has taken hold.

With the immanent election of Hillary Clinton on the horizon, they had no fear of discovery, but with the unexpected win by Trump the fear that they will be exposed became very real.

The mere existence of Trump for president has exposed many, from the establishment media, to establishment Republicans, heads of government agencies and on and on. Their overreaction may very well be their own undoing. In a unrelenting quest to eliminate Trump they have just sunk deeper into the mire. 

Their last hope is force Trump to resign, it is a very long shot, Trump may have a lot of flaws, but a lack of determination to be a winner is not one of them. The deep state now has 3 choices. 1. Skip all the dramatics and just assassinate the President, this is a very risky bet, lots of things could go wrong. 2. Give up and make peace with Trump, let him serve his 4 years and attempt to beat him in the election. They don't know what will be left of the deep state in four years. Admitting defeat is very unpleasant. 3. Pressure Trump to resign, or proceed with impeachment. This would be 2 years of chaos for the country, for the economy, and place us in a vulnerable position with our enemies. 

Trump should hunker down and fight to the end, If he loses this battle there will never again be a candidate who is not handpicked by the powers that be. If he gives in, he will set the precedent, if you are unhappy with an election outcome you can reverse it through coordinated corrupt means.  Lets get it on. Let the house members vote, the senators vote, lets see how many more can be exposed. We need to hope and pray that the nation will survive.

Who will benefit from Tax reform

WINNERS FROM TRUMP FISCAL POLICY

GOVERNMENT EMPLOYEE PENSIONERS MAY BE BIGGEST WINNERS

While the new tax reform bill is not yet complete or passed it seems it will happen soon. Some are disappointed that they will not receive a substantial tax cut. Some complain that business and corporations are the big winners. At first glance that may appear to be the case, but in the long run all Americans will benefit from Trumps proposals. The tax bill is not exactly what Trump wanted, but in a representative democracy we don't always get what we want. 

First of all, the biggest winners in the long run may be government workers pension plans. Many were on the verge of insolvency, particularly in big union blue states.With the run-up in stock prices, since Trumps election and the anticipation of a friendly business climate, stocks have increased by over 30%. This may save these plans if they will also restrain increases in benefits.

With the lowering of the corporate income tax from 35 to 20% this will increase corporate profits and increase dividends which will also benefit these pension plans. 

It can be assumed that this more friendly business climate will stop the hemorrhaging of companies and jobs to other countries. It will also encourage international corporations to shift some business to the U.S. It will also save those who are struggling and encourage new business formation.

Those that fret that this plan will raise the debt by 1.5 Trillion over 10 years, are the same ones who said nothing of 8 Trillion in increased debt in 8 years under the last administration. 

They are not taking into account that increased dividends will add to taxes collected by the government, also increased capital gains will also add to taxes collected. Also increased activity will hopefully increase jobs and wages, which will also add to government revenue.

Finally an increase in business activity should result in more normal interest rates, which again should encourage savings and reward seniors who saved and were responsible with their money.

If there any losers in  these policies, it will be few, and adjustments can be made in the future to address those issues. Hopefully if these policies are successful, there could be future tax decreases for all.