Monday, May 26, 2014

Whatever Do I Mean

When I write, think, read and learn, I have some definitive end points in mind,  and sometimes I use mental 'shorthand' to sum up those goals and ideas.  In the future, I would like to use this title to expand on some of these ideas.  Today's topic seems to be economics, so without further ado, the first-ever column...

Whatever Do I Mean when I say a "strong and healthy economy"

First off, this can be used to describe both macro and micro economies, using much of the same points and goals...because if most of our micro economies are strong and healthy, than our national 'macro' economy would also be strong and healthy... it's the nature of the here we go...

A strong and healthy economy is:

 We only have to look at Detroit or Pittsburgh to see the problem
with economies that rely on a narrow range of businesses for its economy.  Detroit was cars, Pittsburgh was steel... and when that business has problems, the economy as a whole shares those problems...unless there are other options, other businesses, other employers.

So a Strong and Healthy economy is one that has a lot of companies from a lot of sectors of economic activity... cars, construction,  manufacturers, furniture, service, etc,etc.

 A good economy has few barriers for inclusion... small businesses are encouraged,invited and welcome...even if they challenge existing companies....(perhaps even ESPECIALLY if they challenge the status quo)   just look at Tesla motors and the problems they are having with states outlawing their business model...Or the subsidies, tax breaks, exemptions,etc that oil and natural gas companies get which puts a barrier in the way of alternative energy sources...(or the states that make selling electricity back to the grid illegal, putting the kibosh on personal power generation...)

So a Strong and Healthy economy is one that welcomes and encourages New players, and innovation.

Smaller is Better.
 A good economy has many smaller companies, with more competition.  As I pointed out in my last post, smaller companies, wether mom&pop stores, or state wide/regional chains often pay their employees better(and that doesn't include the other benefits of small company loans, or owners paying for loyal employees surgery...)
 Small companies also spend more of their profits in the local economy, increasing the amount any dollar "loiters" around,generating more economic activity)... lack of uniformity across the country also increases the sense of"area identity" which works in favour of internal tourism...camping, road trips, etc (I once traveled 8 hrs for fish and chips... Argyle's forever

So a Strong and Healthy economy is one that is weighted towards small businesses and regional chains, as opposed to massive conglomerates and MegaCorps, and enacts legislation with this in mind.

MORE OWNERS, more profit sharing
 A good economy has much of the prosperity going to the 30% - 70% of the economic ladder...the middle of the country...The middle class...let's be completely honest, we are the real 'job creators'.... all of economics tells us that DEMAND is the most important part of the supply/demand specific moments, that equation can(and has) been thrown out of wack.... however FUNDAMENTALLY demand is long as the purchasing power exists to support that demand...and suppliers are not held back from providing the goods and services that are demanded

So a Strong and Healthy economy is one that puts profits lower on the economic ladder, so that the middle class (who spend more of their paychecks on a weekly and yearly basis) can fully support and enjoy the benefits of a demand side economy

Is there anything I missed??? I welcome your comments


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