Economic Survival--Long-Term

When I wrote that China elevated (at various points)

300 Million

500 Million

700 Million

people from poverty to the middle class, I pointed out China created a

Middle Class

Consumer Class

Investor Class

I also pointed out that China created cohesion among the Chinese people.  China created a buy-in.  A vested interest in the success of the Chinese economy.

This brings us to Henry Ford.

Ford doubled his employees' salaries and cut the work week to 40 hours.  He, essentially, created the Middle Class.

Ford workers could now, and subsequently buy

A Ford

A Washing Machine

A Refrigerator (Ice Box)

A Radio & Eventually

A Sears Roebuck House  (Some assembly required.)


By creating a Middle Class, he created a Consumer Class and an Investor Class.  He gave the American worker a vested interest in the success of he American Economy.

Don't get me wrong; the labour movement was ugly, violent, fraught with private armies, sabotage, strikes, lockouts, scabs, strike-breakers, and the like.  Nonetheless, the strong Middle Class meant a Strong Economy.  A strong Economy meant a Strong America.

The Middle Class is the Economy.


Now, The American Widget Company is not going to hire one additional widget maker, until there is an order for one widget more than the company can make when operating a maximum capacity and optimal efficiency.

They also know:

If you grow faster than your market, you tie up capital.
If your market grows faster than you do, you lose market share.  Therefore, company growth is predicated on a rising demand curve.  And when more people buy stuff, they make more widgets, increase their revenue, invest their returns, and also benefit from revenue enhancement.

China: Rising middle class, rising economy.

India:  Rising middle class, rising economy.

Russia: Stagnant middle class, stagnant economy.

America:  Declining middle class, follow the path of the trajectory.

One reason I wrote, 

Tax policy to increase wages $5 an hour. Now! was to show the benefit to increasing wages with a tax policy that incentivises, business increasing wages with serious tax benefits for doing so, and subsequent economic benefits as the programme proceeds. 

If you want to close the gap, you redistribute the money.

Henry Ford did not redistribute the wealth.  He redistributed the money.

Wealth is what you have.

Money is what you make.

If you own a $100 Million Factory, but can't run a business, you make earn $50.000 a year.

If you own a $500 laptop and pay $100 for an internet connexion, (A service, not an asset) might earn $1Million a year.

The first example, you have wealth but little money.

In the second example, you have little wealth but make a lot of money.

If you are responsible, you save half your income, and in 20 years you have $10 Million.

If you spend it on loud noises, bright colours, and shiny things, you end up with nothing.

In the first example, you may end up liquefying assets and come out with, say, $50 Million.  Wealth is what you have. Money is what you make.  If we want to close the gap, we redistribute--Read: Reinvest--the money, create a Solid Middle Class, and let the economy help people create wealth.

Further reading:


Tax Policy to Increase Wages $5 an hour. Now!

If You Really Want to Close the Gap

Powell's Testimony House Financial Services Committee

If you're really interested and energetic & ambitious:

Hillary Redux

Sincerest regards,


Slim.

If you find anything here to be helpful, please don't hesitate to send me a really tricked-out Mac Book and to tuck a few dollars into the envelope along with the thank you car.
Slim.

Robert Asken
Box 33 
Pen Argyl, PA 18072

Copyright © 2019  Robert Asken
All rights reserved.

Tropical Products: From Africa to the World.

In economic development, people focus on the Big Picture.  Unfortunately, this leaves out a crucial factor:

Local People

Just as House Speaker Tip O'Neill said, "All politics is local." so to "All Economics is Local."

With the internet, local means bringing people around the world together to do business.

In the course of writing about global political and economic events, I came across something interesting on a local level to write about.  

Someone restated a phrase I used in designing a portal website years ago.  "Local People Helping Local People."

The message conveyed is simple.

You send a message that the world must work together.

People helping people helps all people.  


Mr. Thomas AHOLOUHOUEDE introduces himself to the global community this way:

Hello to all,
We are a company in Africa,
We grow and sell tropical products:


Located in Cotonou, Benin, Thomas AHOLOUHOUEDE sells

Tropical products: 
Shelled and unshelled nuts
Soy
Cotton and cotton seeds
Shea butter seeds
100% pure African Benin.

We can deliver up to 5,000 tons.
We also represent companies that want to sell their products in Africa.

At this time Thomas AHOLOUHOUEDE is looking to expand to the global market.  He is seeking investors familiar with agriculture to expand into 

China
India
United States.

Thomas AHOLOUHOUEDE provides his contact information.

+229-67371089/

satingos@yahoo.com

This is an opportunity to demonstrate the power of the global economic community operating on the internet.


Slim Fairview.

 

Time-Management Time Again, Folks.

The boss has been given the responsibility of fixing the problems caused by his lack of qualification to manage.

The boss hires a time management consultant.

The consultant give the presentation. The consultant hands out Day-timers. (Or whatever is now fashionable. Everyone engages in much upbeat chatter about how positive they all feel about what they've learned.

It doesn't work.

The Boss puts pressure on the employees.

"The company paid for that programme to help you."

"There is no I in team."

"People, we have to co-operate. We all have to work together to succeed."

"Success comes in cans not can'ts."


The real problems are never solved. Things do not get better. The boss blames the employees.

The employees try to explain what the real problems are.

The boss says, "Don't play the blame game."

The whole time-management thing is scrapped. (Some of the problems do resolve themselves.)

Then, 20 years later, I clicked onto a discussion about time-management.

Repeat as needed.

Let's get together in 20 years to discuss it again.

Sincerely,

Slim

mail slimfairview@yahoo.com


Copyright (c) 2011 Slim Fairview

The Food Crisis in India: The Price is the Crisis

Food: The Price is the Crisis

At the risk of sounding trite, the law of supply and demand still functions. To solve the price crisis in India, supply must be increased. This is a matter of "time place utility"; "form utility"; "economies to scale"; and direct foreign investment. I mention the last consideration because the advice to some can also be considered advice to another. In short, if you know where and how people are being advised to invest, you can position yourself to be the where and the how.

I've included "Having Problems with Foreign Direct Investment?" to give insight into what investors can look for. This can also give insight into those who want to benefit from the investors. I've included The Marketing of India. I've included a metaphor: Starving Nations and Food Equations: A metaphor. This is not to be interpreted as reference to people actually dying. It is to discuss the economics of agriculture.


Having Problems with Foreign Direct Investment?


What are some of the barriers?

Leverage.

ROI.


It is easy to see that start up costs in some countries are much lower than start up costs in another. If the other country does not have the physical plant for example, it will be cheaper to build that plant in the other country.

Currency considerations are another factor

Incentives from a country with little industry are greater than they are from a country where you will compete with the locals.

Market penetration. Would people in countries in the region be more inclined to buy from countries in the region or from western nations.

Partnering. It is easier to partner with business in some countries where western technology is not readily available by making that technology available.

Just a few thoughts.

Regards,

Slim

mail slimfairview@yahoo.com

Copyright (c) 2011 Slim Fairview



The Marketing of India


Find a need and fill it.

Who has a need for what you can produce?
Partner with that (nation's) companies.

In addition to the profits, offer a minority interest in the company. (This will give investors an incentive to succeed.)

Offer a profit share to the suppliers. (This will give the farmers(?) an incentive to join in the venture.

In addition to money, offer other incentives. [Prestige]. For example: Build schools in the areas where the people are most enthusiastic.

If one or two small companies cannot find the funding (through govt. funding--a bad idea) go to the marketplace.

Economies to scale.

Create a marketing group for the several smaller companies, so they can pool their resources.

In Vermont there is a joke:

Q: "Do you think the rain will hurt the rhubarb?"
A: "Not if they're in cans."

If produce spoils before it hits the market, set up a joint effort to can the produce at the source.

Roads are a government responsibility.

Just a few ideas. (Call me old-fashioned)

Anyone care to amplify, amend, or correct?

Sincerest regards,

Slim

PS. Read The Caste Busters article in the NY Times:
http://www.nytimes.com/2011/01/02/magazine/02Striver-t.html

Mail slimfairvew@yahoo.com

Copyright (c) 2011 Slim Fairview

Starving Nations and Food Equations: A Metaphor

[This metaphor does not refer to people actually dying. This refers to the discordance in the economy of agriculture specifically and in the economy as a whole.]

If one person in the group does not have enough food to eat, he may die.

For a while, that means more food for the rest of the group. However, that also means one less person to work the farm. That means less food to eat. Less food to eat means someone will die.

For a while, that means more food for the rest of the group. However, that also means one less person to work the farm. That means less food to eat. Less food to eat means someone will die.

Soon, there won't be enough people to work the farm. That means there won't be enough food to eat.

Get the idea?


Slim

Mail: slimfairview@yahoo.com


Copyright (c) 2011 Slim Fairview

The New Age Biz Wiz

The New Age Biz Wiz:

I remember my humble beginnings as a broker 35 years ago. (Basically, it was nothing more than a sales job. Entry level, customer service, trainee.)

Now, youngsters are "one with the computer". They move millions, hundreds of millions, of dollars around the globe in minute by minute transactions. Analogous to my becoming an air traffic controller at a busy airport or going on the Ed Sullivan show to keep those plates spinning on sticks. When these youngsters engage in this activity, they earn (or lose) "lots and lots of" money for the companies they work for. We become enraged when big bonuses are payed out. The problem is that we don't only reward the successful. We also reward the failures.

Some twenty-five years ago, an editor said, "we lose money on eight out of ten books we publish". I could never figure out why publishers didn't fire those editors and hire editors able to lose money on only seven out of ten books they publish and increase the rate of success by 50%.

Another analogy is NBC moving Jay Leno from the 11:30 spot because they were afraid of losing Conan O'Brien. (op. cit. all that stuff reported on that bit of media wizardry.) What happened to the old b-school adages? Do they really no longer apply? True, those were the days before the front-page glamour of leveraged buyouts and junk bonds, however, the recent debacles seem to suggest people are more interested in coming up with new and creative ways of doing business than with doing business.

The future: Avatars as a comforting visual for the artificial intelligence running the business of the future that will be beyond the capabilities of mortals.

Remember "The Forbin Project"?

Regards,

Slim

Mail. slimfairview@yahoo.com

Copyright (c) 2010 Slim Fairview