Presentation on theme: "To grow the economy we will look at the primary sources of wealth for a country. 1. Mining includes, oil and gas production 2. Manufacturing, which includes."— Presentation transcript:
To grow the economy we will look at the primary sources of wealth for a country. 1. 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 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.
Subassembly Factory Consumer Products Factory Subassembly Factory Product Demand Subassembly Factory Product Demand Parts Factory Product Demand Raw Material RetailOnline Retail Services Product Demand Consumer Consumers With Extra Money Create Demand for Products 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.
Subassembly Factory Consumer Products Factory Jobs Subassembly Factory Jobs Supply Product Subassembly Factory Jobs Supply Product Supply Product Parts Factory Raw Material Jobs Supply Product Consumer RetailOnline Retail Services Supply Product Supply Product Supply Product Supply Product Jobs
Jobs in Raw Material Supply Product Jobs in Consumer Products Factory Supply Product Supply Product Jobs in Subassembly Factory Jobs in Parts Factory Jobs in Subassembly Factory
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
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.
The more 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 you must read the complete plan. Jobs STIMULATING MANUFACTURING
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.
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 STIMULATING MANUFACTURING
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.