Archive for October, 2009

What Is Your Fiscal Priority: Taxes, Government Services, Job Creation, or Business Growth?

October 30, 2009

To a large degree, taxes, government programs, paychecks, and business revenues all originate from the same place: your wallet.  The first step to address these issues is to prioritize them.

Below are some priority setting worksheets you can download.  They resemble the mileage charts on a road map, where you compare each item to every other item and vote between each pairing.  After completing the worksheet, you simply count up the votes.  The item with the most votes is the highest priority.

https://paycheckeconomics.files.wordpress.com/2009/10/fiscal_pizza-priority-execise.pdf

As a warm up example, imagine you are in a group that must vote on  its favorite ice cream from the following flavors:
V = Vanilla
C = Chocolate
S = Strawberry
N = Neopolitan

Here is a completed worksheet that displays the ice cream flavor preferences of my kids.

Ice cream priority worksheet - completed
Here is a blank ice cream preference worksheet.

Ice cream priority worksheet - blank
Now to the task at hand.  How do you rank the following fiscal issues?:
G = Maintaining Government services – budget funding
T = Lowering Taxes or not raising Taxes
J = Job Creation
B = Business Growth

(To compare Job Creation to Business Growth: You can create jobs by hiring 10 guys with shovels to dig a ditch.  Or, you can grow business revenues by investing in a backhoe, training one guy to operate it, and firing the other 9.)

Fiscal priority worksheet - blank

What are your fiscal priorities?

An Approach to Lowering the United States Unemployment Rate 1% (on about $20/week)

October 18, 2009

IT IS NOT THE JOB THAT IS IMPORTANT TO THE ECONOMY!!

IT IS THE PAYCHECK!!

Can 200 people do enough local shopping and generate enough local economic activity to create one more job?  If so, then you have the potential to lower the unemployment rate 1%.   Click on the link below to find an analysis that demonstrates this.

United States 1% Unemployment Rate Reduction Analysis

For example, if you want to create jobs that pay $12/hour or $480/week, this factors out to about $2.00 weekly, on a per capita basis, depending on the ratio of local population to labor force.  With a retail program where 10% of the sales price of some goods or services went to locally originated, paycheck creation fund, it would require that the average person spend about $20 weekly at local businesses.

In the United States, that would create approximately 1.5 million jobs.

With this type of paycheck creation program, you can create fewer or more jobs depending on the wage you pay people.  You could actually control the number of jobs you create, within local economic parameters.

To make this happen, you would need:

  • a transaction system
  • a reporting system
  • businesses willing to participate by offering some goods and services for this paycheck creation program
  • incentives for businesses to participate
  • people who are willing to shop locally
  • incentives to motivate people to shop locally and create paychecks

JK

The Taxpayer Should be the Funding Source of Last Resort

October 3, 2009

The Taxpayer Should be the Funding Source of Last Resort. (This statement probably makes me the most fiscally conservative person in America.)

Consider that government collects taxes for the purpose of paying for resources required to support public services.  These resources might be considered as follows:

Personnel – the cost to employ people

Procurement of goods – the cost to purchase goods

Procurement of service – the cost to employ a person who is not an employee

Especially for procured resources, if a business, organization, or person in the community has budgeted or purchased a resource, and is offered an incentive to provide that resource for public service, and is willing to do so, then the taxpayer does not need to buy it.

In other words, the taxpayer is the funding source of last resort.

JK