Sunday, October 19, 2008

We Need A "New" Business Plan

As I see it, the problem is that businesses (whatever their size) aren't interested in the future, they don't try to grow a solid business that will sustain itself and its employees into the future. The current strategy is for the individual(s) at the top of a company to pull out as much money as possible from the business, even before repaying the company's debt. These individuals don't reinvest their profits into the business to make it grow and prosper, they take the profits to acquire personal wealth (=power).

It is not sound economic strategy, but as long as they get rich, who cares? There are laws to regulate every aspect of our personal lives. Maybe there needs to be laws to enforce sound business models/principles on these companies. Conservatives only want "deregulation" on businesses, but not on our personal lives, we are animals to be controlled. Only the wealthy and the religous zealots know the right way for everyone to live, and only they deserve to be free to live as they please.

It seems to me that everyone, Government and businesses included, would save a whole lot of money (and reduce the size of Government) by simply throwing out the entire tax code and applying a flat tax to everyone, possibly through a national sales tax. That way you would only pay taxes when you spend your money, and you are not penalized for earning and saving. Everyone pays the same rate, (luxury items could have a higher rate, no tax on first home). People under a certain income level would be exempt from the tax. Cut out all the paperwork, and the people who have to handle the paperwork from record keeping, preparation, govt. handling, and distributing refunds, and giving the Government the "right" to seize your property if you can't, or don't pay. This may be a free country, but we all pay through the nose for that "freedom".

Anyway, just some of my thoughts on what got us into this mess.

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