Killing the goose that laid the golden egg

Capitalism is described as "an economic and political system in which a country's trade and industry are controlled by private owners for profit."  That's it in a nutshell, and it's worked better and benefited more people than any other economic system the world has ever known.  But somewhere along the way our system of classic capitalism has been compromised, subverted, and dare I say even perverted.

My brother and I are the owners of a privately held corporation, meaning the two of us are the only stockholders.  On an almost daily basis we do things above and beyond what is required by any regulation because we feel it is the right way to do business.  This costs us a bit more to deliver our product, and reduces our profits somewhat, but we're still doing OK, and our clients say they appreciate our extra effort and attention.  We'll never get rich doing business this way because we're "leaving money on the table", but we sleep well at night.

Today's publicly held corporations can't afford to leave money on the table.  They must lie, cheat, and steal to squeeze every last penny from their customers.  If they don't, their thousands of stockholders will demand a change in executive leadership and/or dump their stock, possibly tanking the company.  If their product can be made the slightest bit cheaper, they'll do it.  Cutting corners has become a fine art.  Profits come first, always!

Consider this:  Pharmaceutical manufacturers employ tens of thousands of brilliant researchers who spend years developing and testing new drugs that improve our quality of life, and in many cases actually save lives.  They're amazing people doing incredible work.  God bless them!

One of their creations was "opiods", drugs that can help those with chronic pain.  This was a godsend for those hurting.  But according to the new rules of what I call "perverted capitalism", pharmaceutical company executives have no qualms at all about turning these miracle drugs into an addictive nightmare for millions (?) of people.  Opiod abuse has now become a national crisis.  Lives and families have been torn apart, all so the drug makers can maximize their profits.  Shame on them!

And, yes, they know exactly what they're doing.  They know they're producing many times more opioids every year than can safely be prescribed and used by actual patients.  Through their lobbyists they even pushed a bill through Congress last year that prohibited the Drug Enforcement Administration (the DEA) from investigating and interdicting massive opioid shipments to "suspicious" distributors.  Had the drug companies failed, the DEA would have put a huge dent in their profits, and to them their profits are more important than peoples lives.  That's just wrong!

Then we have corporate mergers that have the effect of reducing competition and inflating their bottom lines.  Remember when we had Exxon and Mobil and Chevron and Texaco?  Now we have Exxon/Mobil and Chevron/Texaco.  United and Continental merged to form the new United Airlines.  Delta and Northwest merged to form the new Delta Airlines.  American and US Air merged to form the new American Airlines.  Fares are up, and customer satisfaction is down, but airline profits are at record highs.  

Remember when Macy's, Neiman Marcus, Lord and Taylor, Saks Fifth Avenue, and many others were all independent companies?  Now they're all owned by giant retail conglomerates.  Walmart and Amazon have taken over their sectors, too.  Remember local hardware stores, mom and pop restaurants, community banks, and independent car dealerships?  There are relatively few still in business, left behind in the race to merge, "increase synergy", and maximize profits.

And do I even need to mention corporate subsidies, aka "corporate welfare"?  What the hell is that all about?  Did they think we wouldn't notice?

I've heard it said your "character" is defined by how you behave when no one is looking.  If that's so, then many of our players today have terrible character.

It's no longer about doing what's right, but only about what will make the most money and what they can get away with.  At many businesses today doing "right" will get you fired, that's how cold blooded we've become. We're being attacked from within, and we're losing.  Capitalism in 2017 is NOT your daddy's capitalism!

S

You scratch my back, I'll scratch yours

Did you ever own a fully restored classic car?  No?  Me either....they were always waaay above my pay grade.  But I have known people who did, and they all told me their restoration was a gradual, evolutionary process that took years before their cars were trophy winners.

First they disassembled everything to see what needed to be done.  Then they rebuilt the engine and transmission while the body was being repaired and repainted.  Finally everything was put back together, with new re-chromed wheels and appropriately sized tires.  With a new convertible top and upholstery, it was ready to meet the show judges.

~~~~~~~~~~~~~~~

Stay with me here....Now that a replacement for ObamaCare has fizzled it looks like we're stuck with the old ACA, and that's a problem.  By all accounts it's failing fast.  There are too few insurance companies to choose from in many areas, premiums are rising, and deductibles are so high many people can't afford to actually use the insurance they're paying for.  So instead of just walking away from it and watching it wither, and killing people (literally) in the process, why don't reasonable people work together to FIX IT?

Just like with a classic car, first you see what needs to be fixed.  Then piece-by-piece you clean it up and keep what you can, buy new, better parts as needed, and finally reassemble it to become something that actually works.  It's an evolutionary process, not an overnight quick fix.

They say there isn't enough competition between insurance companies, so why not allow them to compete across state lines?  The GOP campaigned on that idea, and if it can bring down premiums, why would the Democrats object?  (They've always said insurance companies were their archenemies, right?  Here's their big chance to spank 'em!)  Except for the health insurance company CEO with a mega-bonus at stake, why would anyone object to companies competing for your business?  Am I missing something?

They say the pharmaceutical companies are screwing us blind, which is another reason insurance costs are so high.  The Democrats on the Left and now the Tea Party on the Right have always wanted to come down hard on them, so why can't they bury the hatchet long enough to give Big Pharma an ultimatum?  "Get your prices here in America in line with the international market, or we'll free up consumers to legally buy their prescriptions overseas.  No more official government cover."

Line-by-line, read the ACA, keep it if it's working, and change it if it isn't.  Have an ongoing amendment process that keeps constantly striving to improve it.  The old system (pre-ObamaCare) was slowing failing us, so it was just a matter of time before something new had to be tried.

They say if everyone walks away from a negotiation just a little miffed, it was probably a fair deal.  Forget the concept of "all or none".  It's time for some give and take.  Americans seem pretty fed up with the extremists after their sorry debacle last week, so this might be a good time for moderates to get something done.

We have us one helluva mess.  Something has to change. 

S

Circle the wagons, boys!

It isn't exactly "Breaking News" when I say that people get really touchy when you talk about getting into their wallets.  "It's MINE, I WORKED for it, you CAN'T have it!"  And this, IMO, is why our government today is so dysfunctional and our people are so upset.  One economic class feels they're paying for benefits that another economic class is receiving, and to be honest, it's largely true.  (Their elected political manipulators see this perpetual standoff as their job security.)

TAXES.  Just saying the word gets most people's blood pressure up.  The average middle class guy feels he's working 100 mph to pay for day care, to put braces on his kids teeth, to somehow pay another semester's tuition for his oldest to stay in college, to pay the deductibles and co-pays on his heath insurance, or if he's an "independent contractor", to pay for his family's health insurance that might cost more than his house payment, etc.  It's a struggle for sure.

Meanwhile, in his mind, another economic class gets free child care, food stamps, rent subsidies, college grants (that require no payback), free medical care (via Medicaid) and even a free cell phone, all paid for by HIM!  And then when you interject race into the equation, it really gets nasty!  To the average middle class taxpayer (statistically likely to be white) the average beneficiary of our social safety net is black or brown, and now includes immigrants, too, hence the animosity.  Facts to the contrary be damned!  He simply can't fathom his economic situation deteriorating to the point he might need some of those services himself some day.  These are benefits (he thinks) he'll never receive.

This is where he thinks his taxes are going.

At the other extreme, while he vaguely knows about the massive government subsidies going to the private sector ($37B to Big Oil, $270B to Big Pharma, $18B to Big Ag, $83B to Wall Street, etc) he can't put a face with a $$$$ to know who to direct his anger at.  (I know, I know, a preposition at the end.  Shoot me.  ;) 

This is why the idea of a tax increase to balance the budget, for example, is a non-starter.  "MORE money to give to those bums? Oh HELL no!"  

In their minds they, personally, aren't getting anything for their tax dollars (hello!...national defense, highways, etc?), with the exception of Medicare and Social Security.  Ahhh....don't you love it when a Tea Party supporter holds his sign up high that says "NO SOCIALISM IN AMERICA!!", then says, "but don't mess with my Medicare or Social Security."  *dude, those programs are the epitome of socialism!*  

As long as people don't feel like they are themselves getting anything for their tax dollars, they're going to resist.  Call them anything you want....selfish, greedy, uncompassionate....when you get into people's wallets, the battle lines will be drawn.  Let's just hope the rest of the world stays more f__ked up than us so they'll run over here with their $$$$ and finance our debt.

Just my thoughts. 

S

Next you'll want me to pick tonight's World Series winner, right?

If Carnac The Magnificent did politics....

Time for some rank amateur, next-to-worthless political prognostication from yours truly.  The US Presidential / Congressional elections are exactly one week away, The Donald is still groping women out in his bus according to Hillary Clinton, and Hillary is already taking reservations from her Banker buddies...cha ching...for overnight stays in the Lincoln Bedroom according to Donald Trump.  For us the choice is simple: Would you rather die from a venereal disease or a stab in the back?

My timeline:  If Donald Trump wins we'll see some almost immediate riots / civil unrest, primarily in the inner cities where minorities will see his election as the first step to rolling back their civil rights.  That won't happen, of course, but that will be their perception.

If Hillary Clinton wins there will be civil unrest, too, primarily from those who suspect she will immediately start to work abridging their Second Amendment rights. That won't happen, of course, but that will be their perception. 

And Carnac saaaaaays....Hillary Clinton by a nose.

The House of Representatives will stay in the hands of the Republican Party, but that Party will be in total chaos.  The only organized faction of the surviving GOP will be the Brown Shirts...er...the Tea Party.  Their agenda item #1; wrestle the Speakers gavel away from Paul Ryan and pass it to one of their knuckle draggers.  Agenda item #2; begin setting up special investigation units to see what misdeeds they can pin on President Hillary Clinton.  She will prove to be a "target rich environment".

The Senate races are a tough call.  I suspect the Republicans will keep their majority standing, but only barely.  If they do, nothing their archnemesis Hillary Clinton requests will ever get a committee hearing, much less a Senate floor vote.  The Supreme Court, already one member short, will likely stay that way (or get worse as more vacancies open up due to the old-timers there now clocking out).  Republicans (Tea Party members or those intimidated by the Tea Party, which is all the rest of 'em) will never vote for a nominee they feel might overturn Roe v Wade or Citizens United, upset the Second Amendment status quo, etc.

The economy will turn south, more than anything because we've been on a winning streak for a historically long time and are due a correction.  Hillary won't notice because she'll be too busy shaking down The One Percent.  She will get blamed for the recession, as Presidents always are, and her approval rating will plummet. 

The House Tea Party will initiate an impeachment hearing against President Clinton, and will vote "aye" 20 minutes later.  They know there is no way the Senate will vote by a 2/3 majority to convict her, but that's OK with them.  They just have a sharp stick and they want to poke it in her eye.  It will be the centerpiece event of their Annual Summer Family Picnic.

For the next six months the news will revolve around nothing more than the upcoming Senate impeachment trial.  We might get a few days of "other" news following a terrorist attack somewhere, or if California goes missing after an earthquake, but that's about it. 

In the interim, while we're busy lobbing stink bombs at each other, the banks will quietly continue their march to complete domination of us all, the insurance companies will continue to merge, first into the Big Eight, then the Big Four, and finally the Big One.  Same with Big Oil, Big Pharma, Big Ag, etc.

OR

We'll grow some balls, round up all the above mentioned "deplorables", and ship them all off to a newly renovated (kidding) and restocked (with bread and water) Alcatraz.

Now, is that a happy ending or what?  :) 

S

A challenge for the GOP

WARNING!  Back yourself into a corner, sit down, and hold on to your wallets.  The politicians are putting together their budgets. 

The Republican Party has for years called for cutting, or at least not raising, taxes.  It's the glue that holds that party together.  Every two years they run for re-election proudly proclaiming that they didn't raise taxes on their watch.  

They are equally adamant about their opposition to "re-distribution", the policy of taking money from one class and giving it to another.  And the Democratic Party just smiles and lets them get away with it, as they are silent partners in this sham.

Sham?  What ever do you mean, Lowandslow?

It's all about the definition of "tax".  To my way of thinking, taking money from my pocket and putting it in the government's pocket is a "tax".  But what about all those "fees" and licenses we're required to pay?  Whenever the pols need a few more $$$ they just raise "fees", never "taxes".  What's the difference between a "tax" and a "fee"?

Example:  Years ago I had a nursery license (landscape, not the juvenile holding facility kind).  It originally cost me $10 a year.  Then it went to $30 a year, then $90, and when it got to $300 (?) I decided it wasn't worth it and let it lapse.

I'm sure the same can be said for licenses for electricians, plumbers, beauticians, exterminators, etc.  Likewise the cost to get your yearly auto registration and safety inspection has greatly outpaced inflation.  

Wanna go to a state or national park?  It'll cost you more than it did a few years ago.  The list of things we have to pay for that falls outside the traditional definition of a "tax" is long.  It may seem like small stuff, but it adds up.

Oh...and toll roads!  In my state, because the politicians won't dare raise the gasoline tax, which is used to build and maintain public roads, they've come up with a new scheme:  set up new "tollway authorities" and let them build the roads and charge tolls.  Or worse, let them take a road we've already paid to build and turn it into a toll road.  I spend well over $1000 a year on tolls.  Now we're talking BILLIONS!  But at least they didn't raise my taxes.  Whew!

And isn't a "subsidy" really just a "re-distribution"?  When taxpayer money is given as a subsidy to the oil industry, Big Pharma, Big Ag, Wall Street, etc, by my definition that's a "re-distribution".  I once had that money, then government got it and gave it to someone else.  Someone with political connections no doubt.  Same with tax loopholes.  Added up, these total HUNDREDS OF BILLIONS OF DOLLARS!  But it's OK...sleep well...they aren't "taxes".

Here's my challenge for our politicians, particularly the Republicans as they seem to hold all the cards these days:  Declare all things that require us to pay our money to the government a "tax".  No more "fees" or other obfuscated terminology.  

Declare all things that transfer our money to someone else a "re-distribution".  And when one group can avoid paying taxes (formerly known as a loophole), requiring another group to pick up the slack, that should also be declared a "re-distribution".

Now let's see 'em backtrack, declaring tax increases to not be so bad after all.  But...but...uhh...

Here's my point:  Don't bullshit us.  Admit the government needs money to conduct business on our behalf.  But instead of lamenting HOW MUCH we're paying in taxes, concentrate on HOW IT'S BEING SPENT.  Right now we're not getting our money's worth.  

Waaaaaay too much taxpayer money is being wasted on crap stuff that is of minimal if any value, and waaaaaay too much taxpayer money is being handed out as political largess.  The bureaucrats and political insiders are living very well at the expense of the rest of us.

Politicians need to learn that The People won't mind paying taxes IF THEY FELT THEIR MONEY WAS BEING WISELY SPENT.  Right now we're NOT feeling the love.

S