Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

[jtabeb]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

The rest are a net negative contribution both individually and collectively.

You should volunteer at a school, a soup kitchen, community organization, or charity and do some 'grunt' level work. If you had, I'm convinced that you would not cast aspersions so easily on something so fundamentally beneficial to our society.

Working 1 on 1 with someone to help others help themselves and simultaneously make the world a better place is one of the true joys of the human condition.

No one should deny themselves that. If you haven't seen it yet, you should try another venue to practice your magic. The results are, well... MAGICAL.

Besides, lobbyists persuade, volunteers serve. I think that is a critical distinction.

We need to create a ton of jobs right? How about instead of "make work" jobs we create jobs where people actually SERVE their local community in a variety of ways. They could accrue retirement credit from their service the same as any federal employee or military member. When they earn enough credits they could start collecting their "retirement". You could have it kick in at say age 65 or so. In this way you could tie in the guaranteed income system that I've talked about earlier with this type of federal retirement credit system.

The trick is, an individual would get a guaranteed income UNTIL they reach retirement age, say 65. THEN they would have to fund themselves. In this way, the system is like the Australian Health Care system. You are FUNDED via public financing until age 65, then you have to pay for yourself. In this way People are INCENTIVEIZED to provide for their own welfare during their working lifetimes BECAUSE they know that there will be no government support available to them after they retire.

It makes NO SENSE to me that we back-load societal costs into the most expensive years of life (elder-years). It makes FAR MORE SENSE to FRONT-LOAD support so that you give the young the best chance to develop into everything that they are capable of (remember they have an incentive to do so). BUT, we have to take care of people who are living under the old system. There has to be a trade-off. How to make that trade-off equitable between older and younger is going to be a challenge BUT, I think that when people are given a chance to make a rational decision about what is in their own best interest, without distortions of reality, they go for it.

Anyway, hope these concepts/ideas prove useful somehow.

[c1ue]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

You should volunteer at a school, a soup kitchen, community organization, or charity and do some 'grunt' level work. If you had, I'm convinced that you would not cast aspersions so easily on something so fundamentally beneficial to our society.

Spoken as one who doesn't actually know.

I have in fact volunteered in many places and many venues. In the course of my previous business, I in fact took the place of many of the so called 'grunt' workers - including carrying a lady who just wanted to go back home one more time before she died. The 'grunt' worker was a nice lady who simply couldn't get the job done - no fault of her own, the fault was with the son who simply didn't get that his mother wasn't in good shape.

The lady's bladder cut loose in the process of moving her upstairs to her rent controlled apartment; I assured her that it was no big deal - and it wasn't - but in reality the reason she had this problem was that she wasn't getting sufficient physical therapy.

The physical exercise of getting her out of her hospital bed, into my car, onto my back, and up the 1 floor to her apartment was enough, on the other hand - she was 20 pounds overweight from water retention. This after 45 minutes of my grilling her as to why moving wasn't a great idea.

As someone who has actually done this grunt work, I can clearly and honestly say that working for $13 an hour would not allow me to achieve anything which I would want for myself or my loved ones.

And the reason this is so is due to the FIRE economy.

Volunteering to feed subsidized food to homeless people lets you feel good, but does NOTHING to fix any of the fundamental issues which have put these people in this place - either deserved or undeserved.

[jtabeb]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

"Volunteering to feed subsidized food to homeless people lets you feel good, but does NOTHING to fix any of the fundamental issues which have put these people in this place - either deserved or undeserved.
And the reason this is so is due to the FIRE economy."

Agree, it fixes symptoms, not causes.

"Spoken as one who doesn't actually know."

Umm, not bragging, but yeah I've volunteered about 500 hours as a soccer coach over the last 5 or so years. It does make me feel good, and does some actual good, I hope. (Note: I was not castigating you, just pointing out this stuff feels good for a reason)

But,

Did you like my OTHER points? That's the real question is it not. We both agree on cause, I know we differ on the cure, but I have to think that there is some common ground on a way to move forward. Could you please repeat how you would move forward. I need a position refresh from you as I seem to have forgotten where you want us to go and how to get there.

Thanks

V/R

JT

[blazespinnaker]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

Yeah, being able to deduct tax for volunteer work would be interesting. I'd probably volunteer more for stuff that I find interesting.

Right now, at least in Canada, you can not do that because of the obvious abuses. It'd be interesting to see some way to fix that though.

[c1ue]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

Did you like my OTHER points? That's the real question is it not. We both agree on cause, I know we differ on the cure, but I have to think that there is some common ground on a way to move forward. Could you please repeat how you would move forward. I need a position refresh from you as I seem to have forgotten where you want us to go and how to get there.

I've been quite consistent on what I believe is the solution:

1) dial back the FIRE economy. Remove all mortgage interest subsidies. Kill the FHA. Close down Fannie and Freddie. Bring back Glass-Steagall. Upgrade the SEC to rein in SIVs and various other bulls**t ways to get around capitalization ratios. Kill all mortgage securitization.

2) move taxes from income and sales to property. Sales taxes won't disappear - they'll be morphed into health care VAT. See next item.

3) Health care modified by the federal government offering a 'safety net' in actuarial coverage as well as health care provision via the VA network.

4) Create an energy tax devoted to garnering $35-$50 billion a year, with said money to be used towards a pre-defined set of alternative energy performance goals.

5) Change the law such that all forms of executive compensation - including stock and option grants, etc etc. are not tax deductible over $1M

6) Pass a law requiring all corporations receiving revenue from the federal government to publish accounting of cash flows publicly.

7) Outlaw all forms of political campaign contributions - including for judges and what not.

There are dozens more, but I think you get the drift.

[blazespinnaker]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

These are all good, though I think the political donation one is tricky. Too much manipulation occurs via soft money. Your intent is obvious and sound though.

I've been quite consistent on what I believe is the solution:

1) dial back the FIRE economy. Remove all mortgage interest subsidies. Kill the FHA. Close down Fannie and Freddie. Bring back Glass-Steagall. Upgrade the SEC to rein in SIVs and various other bulls**t ways to get around capitalization ratios. Kill all mortgage securitization.

2) move taxes from income and sales to property. Sales taxes won't disappear - they'll be morphed into health care VAT. See next item.

3) Health care modified by the federal government offering a 'safety net' in actuarial coverage as well as health care provision via the VA network.

4) Create an energy tax devoted to garnering $35-$50 billion a year, with said money to be used towards a pre-defined set of alternative energy performance goals.

5) Change the law such that all forms of executive compensation - including stock and option grants, etc etc. are not tax deductible over $1M

6) Pass a law requiring all corporations receiving revenue from the federal government to publish accounting of cash flows publicly.

7) Outlaw all forms of political campaign contributions - including for judges and what not.

There are dozens more, but I think you get the drift.

[jtabeb]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

"Yeah, being able to deduct tax for volunteer work would be interesting. I'd probably volunteer more for stuff that I find interesting."

But what about folks that don't meet the threshold of income deductiblity? If you made it a CREDIT, NOW THAT would be something and is a position that I would STRONGLY support! (With proper documentation requirements, of course)

Yeah, I know C1ue, people fudge taxes all the time (or try to), point is I think the societal benefit would outweigh the cost by an order of magnitude or three. Imagine if you could earn $12,000 a year in tax credits by volunteering 20 hours a week at a school. How AWESOME is that!?!

What's that phrase, Oh Yeah, "A Good teacher is priceless", "worth their weight in gold", umm, well, you get the idea.

[c1ue]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

Yeah, I know C1ue, people fudge taxes all the time (or try to), point is I think the societal benefit would outweigh the cost by an order of magnitude or three. Imagine if you could earn $12,000 a year in tax credits by volunteering 20 hours a week at a school. How AWESOME is that!?!

Frankly I see no point in giving a tax deduction or tax credit for people who volunteer, nor paying them.

If the objective of the volunteer is charitable contribution, then so be it.

Promulgating financial gain in any form for a supposedly Samaritan pastime is contradictory.

My original point is still unchallenged: that it is the structure of the present economy - specifically including the two income family - which discourages Samaritan work simply via monopolization of workers/earners time and energy.

Trying to compensate against the effects an entire system of FIRE via FIRE-related deductions is doomed to failure.

[jtabeb]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

"Promulgating financial gain in any form for a supposedly Samaritan pastime is contradictory."

NO, It's smart policy. It's what's known as a win-win. People give what they have (time and expertize) and receive what they need (money to live on). Why is that a Bad Idea exactly?

"My original point is still unchallenged: that it is the structure of the present economy - specifically including the two income family - which discourages Samaritan work simply via monopolization of workers/earners time and energy."

It's unchallenged because it is a valid point. None the less, we have to have policies that will get us out of this mess. Do you like the policy or do NOT like the policy, that is the question. (And why would the status quo be any better than what I've proposed here. Or do you just plan on making sure all jobs will support a family of 4 on a single income? If so, how so, and how would you work the transition?

[c1ue]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

Do you like the policy or do NOT like the policy, that is the question.

I thought I was quite clear.

I do not like the policy.

A policy of giving tax deductions or credits for volunteering does not resolve the living wage issue.

It does not resolve the 'Two Income Trap' issue.

It is a pure coping mechanism, and by its very structure is regressive: those who are poor don't pay enough taxes for this to be worthwhile, while those whose spouses make lots of money will benefit disproportionately because the opportunity cost of the volunteer's time is more forgoable AND they pay a higher tax rate.

In fact, a significant basis for the income inequality of the past 3 decades is exactly due to this issue: the rentiers know full well that any policy which promotes tax deductions or credits disproportionately benefits them.

You or I donating $500 to a worthy cause will save 30% of said donation in taxes.

A maximum income bracket person would save over 100% - because their $10B donation creates a foundation who ongoing proceeds not only saves $10B in tax credit, it also absolves the capital gains embedded in the $10B to start with. This doesn't even include the lifetime board member positions for themselves and their family, free and ongoing publicity, political action committee offshoots from foundation and so forth.

Tax deductions are the exact opposite of giving $100 to a poor person in a 3rd world nation - rather tax deductions are the poorer taxpayers forgoing government services in favor of leaving more money in the hands of those who have more.

[jtabeb]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

"A policy of giving tax deductions or credits for volunteering does not resolve the living wage issue."

Good! How do you propose to resolve this issue in an era of globalized wage rates OTHER than to just let transportation costs be the great equalizer? (As an example, for Chinese steel imported into the US the lion's share of the cost is TRANSPORTATION, not PRODUCTION).

I'm really interested in what you have to say policy wise. If you are a retro-status-quo kind of guy, I can buy that (Real Bills Doctrine, hard money, etc) and if no I would love to hear your policy suggestions. One thing is clear though, we can't keep riding on this broken wagon (Banking and Wages and Monetary theory). We need to "Fix It" or get a "New One".

The problem IS, both fixing it and/or getting a new one require a complete worldwide financial system reset. Old debts become unpayable under either eventuality. AND importantly, failure to reform only hastens the day of reckoning with regards to our financial system. AND, places dollar hegemony at risk. Once people start looking, start questioning the utility and stability of the dollar, they won't stop until they find a solution that best suits their need. You know, no counterparty risk, stable to rising value, universal acceptability, colateral of last resort, etc. You something that can't be printed. Like Gold I guess.

But I digress.

What's YOUR policy proscription c1ue, I'm all ears baby.

Currency for transactions, something else as store of value perhaps?

[c1ue]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

Good! How do you propose to resolve this issue in an era of globalized wage rates OTHER than to just let transportation costs be the great equalizer?

In the long term - i.e. 10 years or more, I'd institute the following:

1) A phase out of income and sales taxes into property taxes over a 10 year period based on revenue transfer (i.e. 10% less collected income taxes/sales taxes converted to 10% equivalent revenue increase from property taxes).

2) A phase in of a government offered health insurance scheme focused on prevention - the actuarial portion of health care.

3) A phase in of a VA network based health care provision - based on prevention and regular checkups.

4) In combination with the above, a phase out of subsidies for employer based health insurance and a phase in of a health care VAT

For 2), 3), and 4), a 3 to 5 year phase in/out period seems most sensible.

5) All corporations receiving federal revenues must publish public accounts of their cash flows. In particular, the present and future health care, pension, capital investment, and so forth obligations as a whole as well as for labor and management collectively (3 different accounts)

6) Pass a law where any company receiving federal funds with a significant labor force - say 30% or more of expenses based on labor - must have a labor representative on its board of directors.

7) Empower the IRS to audit a company based on its entire international network of subsidiaries and direct affiliates. If the IRS can nail restaurant servers for under-reporting tips, it is entirely unclear why the same entity cannot nail corporations for underreporting US revenues and profits.

8) In cases where management and labor cannot agree - say as in the air traffic controller strikes - the government has the right to intervene as an impartial arbitrator. Solomon and the baby style with respect to cash flow after operational expenses are accounted for. The operating principle of said arbitrator is to make BOTH parties equally unhappy, and the arbitrator WILL charge for the service.

9) Aforementioned real estate subsidies - phase out of mortgage interest deduction over 5 years. Phase out of Fannie/Freddie over 5 years. Immediate outlawing of mortgage securitization. Immediate termination of FHA loan program (and VA).

Beyond that - let the market figure out the rest.

This will certainly never happen barring my appointment as dictator, but it is in the right path.

The objective is very clear:

A) Remove the props which pump up housing expenses.
B) Remove the props which pump up health insurance costs.
C) Expose people to the economic decisions associated with high ticket health insurance costs while maintaining basic checkups and prevention.
D) Remove the curtain of opacity which prevents labor from understanding the operational spending of management - and which coincidentally obscures management abuse. Equally open the books such that unreasonable labor demands can be put into context.
E) Remove the accounting games by which multi-national corporations abuse jurisdictional tax laws

It is unclear whether import tariffs are necessary either permanently or temporarily - a panel would be convened to study the issue.

(As an example, for Chinese steel imported into the US the lion's share of the cost is TRANSPORTATION, not PRODUCTION).

This is true, but what is more relevant is how much China subsidizes energy costs for its domestic manufacturers. Steel has only 3 inputs: ore, labor (less and less), energy.

Ore costs are the same worldwide; ore can be stored forever if necessary. Labor costs in China are clearly much lower, but the amount of automation has reduced the actual percentage cost of labor in a modern steel plant dramatically. Energy, on the other hand, is a huge part of the cost which is largely unavoidable.

Standard anti-dumping policies already have the mechanism to deal with this type of abuse - all that is missing is the will to execute on them.

The problem IS, both fixing it and/or getting a new one require a complete worldwide financial system reset.

That may be true, but I personally don't think a reset is a law of nature i.e. unavoidable.

The difficulty is that the above will be highly unpopular, so perhaps the reset is pragmatically necessary.

I suggest you find an old copy of "The General's President" by John Dalmas - a science fiction tale specifically covering this dilemma.

Unfortunately there isn't a magical energy source at the end of our tale.

[jtabeb]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

Great, insightful reply. Thank you.

[Rajiv]

Re: Commander's Weather, iTunes, deflation, Cognitive Surplus, and Unemployment

I suggest you find an old copy of "The General's President" by John Dalmas - a science fiction tale specifically covering this dilemma.

Yes that was a good read

[Rajiv]

Will the RepRap machine bring a new manufacturing and the end of consumerism?

Blaze,

Here is something to add to your collection

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Maddy is in the throes of a tantrum because she can’t wear her favorite pair of shoes. She’s outgrown them. Her mother has repeatedly bought the same pair of shoes as she’s grown older - there are now four pairs in a box in the basement - but Maddy is now too big for the style. What’s a mother to do?

Maddy’s mother calms her daughter, and heads to her computer. She downloads the shoe specs from the shoe company’s website onto a memory stick, takes the old shoes and some empty plastic bottles from the recycling bin and heads to the techshop that’s just opened on the high-street. It has a 3D printer available for public use three days a week, and can turn a new pair of shoes ‘while-u-wait’.
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RepRap.org

RepRap is a free desktop 3D printer capable of printing plastic objects. Since many parts of RepRap are made from plastic and RepRap can print those parts, RepRap can be considered a self-replicating machine - one that anyone can build given time and materials. It also means that - if you've got a RepRap - you can print lots of useful stuff, and you can print another RepRap for a friend...
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RepRap from Adrian Bowyer on Vimeo.