Times are tough and it is even tougher trying to find jobs if you are a self-employed consultant, not matter what the field. Wages and fees for projects just keep going down.
I have many friends who consult, write and design various projects for a complex mix of vendors. No one I know can get the wages they did just a few years ago. It is indeed a big conundrum. It is the same for employees.
A friend recently considered going along with a proposed ongoing assignment because it would get her some more credit working in an area where she needed credentials. On the surface, that sounds ok, if you are not forced into making a long-term commitment.
Self-employed people have to dedicate a good portion of their time to finding new clients. Marketing is always a part of the mix. It’s even more so when the economy slows. If you hand over a big slice of your time to a job that only pays pocket change, you may lose out on the right job that comes along and the time to find the clients that will be the right fit. (Lest you think that I exaggerate about pocket change, I’m not. Some writing projects are headed just that way.)
Lately, it also seems as if the trend is the cheaper the pay, the more they want. If you are approached with such a project you might try negotiating how much you are comfortable doing in a week. Don’t agree to more work than you want just to land this job. If they like you, they will be willing to listen to a negotiation. Additionally consider asking for quick payment with such gigs. Back, when accepting such projects, I would ask those in charge for payment to FedEx me the checks. Nowadays, we have paypal to make and receive speedy payments.
There are a couple of other things to consider when taking low-paying jobs. It is very easy to allow this to effect your feeling of self-wroth. You’re reduced to working for a ridiculous amount of money. Keep in mind that this is temporary. Also, if this is a situation where you are working for a start-up or a company that hasn’t built a reputation yet, you might want to take on this project only for the money. You don’t want to add a company to your resume that down plays your other accomplishments.
Do not, despite bad economic times, allow yourself to fall into a trap of continually selling your services for a discounted rate. After once or twice to the same vendor, you can let them know that your rate had been discounted and it is now time to up to a fairer rate. If they are not willing to play along, it is time to move on.
It’s not easy. I know as I have been marketing for private clients for 30 years. You have to trust that your accomplishments and your reputation will bring in the right clients that will keep you on the profit side of your business
If you are continually finding jobs/projects below your acceptable rate, then you might need to find new locations to network. Social networking is an outlet you might not have considered. Check out Linkedin, Facebook, Marzar and ecademy.com.
For more samples of my work: www.bellbusinessreport.com
-30-
One of the main reasons is America’s addiction to debt. I posted this theory on Linkedin.com and got so many responses I could barely get through them. Truly, this is a subject on everyone’s mind..
US consumer debt has reached staggering levels after more than doubling over the past 10 years. According to the most recent figures from the Federal Reserve Board, consumer debt hit $1.98 trillion in October 2003, up from $1.5 trillion three years ago. This figure, representing credit card and car loan debt, but excluding mortgages, translates into approximately $18,700 per US household. This is to found at: http://www.wsws.org/articles/2004/jan2004/debt-j15.shtml
Comments from Linkedin.com users were a combination of useful and extreme. One user, from out of the country, thought we ought to penalize drivers if they drive over a certain number of miles and put a limit on the number of credit cards allowed an individual.
Others included the suggestion that we change the usury laws so credit card companies can’t charge over 12%. Another commented, that, “Americans were made addicted to credit’
This is one major mess. Big messes can’t be swept up quickly.
An added factor is greed. Many lures of financing today offer the buyer a chance to wait several years before making payments. This gives buyers the feeling of getting something for nothing. They don’t think about the giant payments and usury laws broken with the accumulated interest. All they think about is the furniture, i.e., that just got delivered and they didn’t have to pay a thing to get it there.
What’s worse is the automobile dealers are using the same incentives in order to get their buyers across their threshold and the cars off their lots’ inventory.
Lest you think I am exaggerating. There is a prime time commercial for new televisions. It shows a couple having to deal with a tv that just bought the dust. Wife says, “Ok, go and buy one, but don’t get carried away.” The theme in the background is, “I want it al. I want it now.” It’s repeated more than once.
That is the theme for the majority of the buying consumers in the United States. No longer do people think about saving up for something. Why bother, flip out the credit card. I will worry about it later. It used to be that we hoped as years went by we would be earning more money. There were decades of cost-of-living raises. I sometimes think that the majority of the population makes decisions as if that trend was still in play. Of course, younger workers hope for promotions and an onward climb up the ladder. Times are such right now that anyone is just lucky to hold onto the job he/she has. Never mind dreaming that cash flow will increase.
We have to self-regulate ourselves back to sanity. We know that most likely interest on credit cards are going to stay high despite the fact that most constitute usury. No law is going to come into effect mandating that a person can have only one or two credit cards.
The credit card companies are not going to voluntarily stop sending out cards to good customers, hoping someone will bite because they see a new one in the mail.
We all know that some consumers are struggling to keep the roof over their head and food on the table. In order to do that, they are making unwise use of credit. Helping them is a bigger picture.
Those who have a choice need to draw a line in the sand and make changes within their family and circle of acquaintances. Don’t take on any new credit cards. Try to pay down the balances you have. When considering purchases of durable goods, they are going to last awhile and paying them will take years, what will you do if you lose your job after you take on this new debt.
Stop using credit cards for goods that will not be around when the bill comes. Stop fooling yourself into thinking it is a way to keep better records. Unless you pay off each balance monthly, money is going down the drain on interest.
Look for ways to eliminate interest payments in your life. Consolidate bills on one card if you will pay less, but look into the fine print before making a decision.
The next time you think about going out for dinner or to the movies, don’t if you don’t have the cash. Changing our purchasing habits can only happen one step at a time. You are going to have to replace this old habit with a new one.
Teach your children and talk to anyone around you willing to listen. The financial life you save will be your own.
For more samples of my work: www.bellbusinessreport.com
-30-
Unless you have been living under a rock or on another planet, you know that banks have trouble. Mortgage lending has landed many in hot water.
Most commercial banks offer mortgages. Thankfully, they usually don’t keep them in their portfolio for long. Citigroup, however, parent of Citi bank, is so troubled; it isn’t yet known whether or not the group may be split up. I have a feeling there are banks who have been holding their troubles closer to their chest. We haven’t heard the end of this mess yet.
Most folks probably don’t realize that until the 80s, banks weren’t in the mortgage business. That was the business of the savings and loans. In fact, savings and loans were organized to offer mortgages and to encourage consumers to have savings accounts. It wasn’t until the mid 80s, they were allowed to offer checking accounts.
In the 80s, mutual funds became the investment of the day. Even the little guy got into the action. The incentive for the shift from savings and loans to mutual funds was the soaring interest rates. At its highest, prime rate was at 22 per cent. This meant that the S&Ls couldn’t offer an interest that had a chance at keeping their depositors. Mutual funds offered much better rates and S&L customers ran in hoards. This was probably the pivotal reason the banking industry changed forever. There was a massive deregulation bill that passed in the early 80s. S&L’s got to offer checking accounts and banks got to offer mortgages. They also got to offer checking accounts which paid interest rates. But it turned out to be a little too late and a dollar short. The S&L CEOs looked for easy answers to their financial dilemmas and ended up in big trouble because of scandals and financial fall out. The industry dissolved before our eyes.
You have all heard the quote that, “..if one doesn’t pay attention to history, it will repeat itself.”
Banks begin making loans to people who couldn’t really afford the loan to begin with. It all boiled down to an introductory brand of advertising. (Prices increase after the introductory offer expires.) Cell phone companies and satellite television offer similar deals. This type of deal making worked with consumer goods and someone got the crazy idea to use the same tactics for mortgages. We see what happened. Everybody has to take some blame. Consumers were getting what they couldn’t get before and the deal makers were making out like bandits.
The point is that we need to pay attention to our banking institutions. We are at the point in our country’s history that we can no longer take their business practices for granted. This is even more important if you happen to have over $100 k on deposit. Hopefully, you are aware the maximum you could recover in a bank’s meltdown is that amount.
Do you do business with a bank that has been named as a participant in this mortgage mess? Who holds your mortgage? Are they on the list of institutions whose future is uncertain? You need to know.
Banks are no longer simply a safe place for your money. Financial institutions make deals with our money in hopes of earning profits and keeping their shareholders happy. During economic trying times, they tend to make foolish decisions.
Keep an eye on the financial institutions you do business with. Watch the news for more upsets and realize that the health of the banking industry is directly tied to what’s happens to the economy.
Taking the banking world for granted is what got us into this mess to begin with.
For more examples of my work:
www.bellbusinessreport.com
Laura Bell
writer@well.com
-30-
Filed under: Uncategorized
Promises and commitments are made every day over the Net. It is very common for those involved in alleged deals not to have a clue about contract essentials. Many feel that small business owners have no recourse if they don’t want to pay. A friend, a graphics designer, had a contract broken once with a man who felt he didn’t have to pay. Her retort, “I’ll see you in court.” And, she did.
Just in the past month, I had two different vendors breach a contract. One, I am letting go for the time being. The other has been informed that I expect payment on the rest of the contract. Whether or not, I have to take it further is yet to be seen.
A friend who consults, on asking for a contract recently was told, “…could you provide me with one?.” The women giving her the work didn’t even have a template to offer. We are working in a world of constant legal slip-ups. Small business vendors who do this without thinking twice are just hoping that the person slighted wouldn’t go to small - claims court. It is a whole lot of trouble to collect a relatively small mount of money. The Better Business Bureau is an alternative route to voice one’s complaint.
Our educational system is lacking in their failure to teach the basics of business law to students before they enter the real world. It is one of those situations where people don’t know and don’t know what they don’t know.
Knowing the elements of a valid contract will give you an edge. Besides the five basic elements of a valid contract, you also need to consider a cancellation clause. Something I am embarrassed to admit just cost me some money in a contract dispute. Give both parties a bowing-out clause so neither feels as if they have the right to say ‘stop’ at any arbitrary time without consequences.
There is also the issue of written versus oral. There are different state laws. Minimally contracts must be in writing for anything dealing with real estate or an agreement that can’t be finished in a year.
Moving on, the five elements necessary for a contract are very simple. The first element is a meeting of the minds. Of course, there is no way to absolute ensure that two parties are thinking exactly the same when they enter into a contract. However, there better be enough evidence, if taken to court, to convince a judge there was. It means, you both have to be on the same page. Then comes the offer. You offer to sell your services or buy some one’s goods. If it came down it, the offer and acceptance are supposed to be delivered and received in the same way. But no one is splitting those types of hairs these days. Someone accepts your offer and then? There has to be consideration. That means money for most of us. There can be, however, a valid contract where barter is the compensation.
Parties involved have to be adults or it isn’t a valid contract. Age differs by state. The contract can’t be for something illegal. Sounds, like common sense, but there isn’t much of that around these days.
Through email, keep copies of all documents exchanged. It would also be a good idea to print and fax copies to the other party if the option is available
There are numerous links to be found for templates.(Go to ask.com.) Don’t be too timid to demand a contract for a business deal, over the Net especially.
Anybody frightened about the idea of putting a contract together needs further education before starting their own business.
For more examples of my work: www.bellbusinessreport.com
Laura Bell
writer@well.com
-30-
Filed under: Uncategorized
The debates are now discussing who did what and personal accusations. That is not what a presidential race should be about.
They are good at talking about the problems. Hillary talks about health care and the problems with the war. Obama is quick to bring up the fact that he also has a health care policy. I heard a little of the recent debate. Hilary kept talking about her affordable health care plan. Affordable, someone has to pay for it. It obviously isn’t going to be the individual consumer. How is it going to be financed?
Hillary wants to start bringing the troops home six months after her inauguration. I didn’t hear anything about what happens next. What happens to all the men who are going to be unemployed on return?
There has also been banter about NAFTA and immigration reform. Trade problems with other countries are not going to improve by putting barriers back up. This situation can only be improved when American industry starts producing widgets cheaper and more durable than the rest of the world. Since we can’t seem to figure out how to do that, we have a trade problem. The problem has nothing to do with putting trade barriers back up. Gee whiz; this stuff is really so simple.
America doesn’t ask politicians to explain themselves. Politicians wax eloquently about problems and offer a few tidbits on what they will do. I heard Obama in one speech talk about putting a tax rebate into the hands of the working class. Ok, where is the money going to come from? What is going to happen after the folks, such as the ones in the economic stimulus package, spend their small windfall? There was no idea as to how to improve those people’s position permanently.
What a concept that would be. Explain the problem. Detail how it is going to be fixed; how long it is going to take and how it will be ten years from now. Let the voters know that you understand economics. It’s not a bad thing to clue us in on. John F. Kennedy didn’t mind referring to economics.
We talk about politicians badly because they usually are not around when the consequences of their decisions come into play. Every plan and solution needs to have a budget to make it happen. We usually don’t print money in this country to finance health care. Where is it going to come from? If the care is affordable, who is going to cough up the extra money needed to pay the doctors who are used to a decent salary? There are no answers. If Hillary knew how to make it happen, it would have at least gotten started when her husband was in office.
Let’s talk about problems that have doable solutions. Let’s stop accepting politicians that couldn’t keep a company running for a nano second without asking for other’s people money to pay the bill.
We need to stop planning with deficit spending. They mention it some where in their pontificating, but that is about it. The only thing we are going to get are programs paid for by our grandkids. Are we going to stand by and let it happen?
For more examples of my work: www.bellbusinessreport.com
Laura Bell
writer@well.com
-30-
Filed under: Uncategorized
Currently it seems the economy has its ‘undies’ in a bunch. Two problems are yanking its chains concurrently: inflation and the threat of a recession.
“U.S. consumer prices increased 0.4% in January and 4.3% from a year earlier, a worrisome sign for Federal Reserve officials who are trying to buck up the economy without fueling inflation. “Core” CPI, which excludes volatile food and energy prices, advanced 0.3%. Home starts increased 0.8% last month.” (This is from the Wall Street Journal.) The true increase wouldn’t be known until we hear more about fuel and other durable goods.
This information is of importance in conjunction with future Fed rate cuts. They always worry that slicing rates may stimulate inflation. It will be interesting to see what the changes in the indices show in the next few months.
(The following is from the New York Times.)
“Just recently, the central bank disclosed that Fed policy makers now expect the United States economy to expand between 1.3 percent and 2 percent in 2008. That would be the slowest growth in five years.
Making matters more difficult, the Labor Department reported on Wednesday that consumer prices are rising faster than analysts had expected and faster than the central bank’s unofficial comfort zone.
Consumer prices jumped 4.3 percent in January, compared to one year earlier, the fastest year-over-year jump since September 2005. Excluding the volatile prices of energy and food, consumer prices climbed 2.5 percent lower, but still significantly above the Federal Reserve’s unofficial comfort zone of 1 to 2 percent.”
There has also been report that the stock market, which usually slows down on the reports of inflation, was continuing to do well. A lot odd economic stirrings.
Then, there is the mess with the mortgages which doesn’t directly impact CPI. Housing isn’t included in that index.
Prices are going up, which usually means there is a larger demand. (Slow growth means not as much buying.) Not as much buying, when logic prevails, brings prices down.
It all boils down to an economic picture that is in bits and pieces. It is going to be quite awhile before the dust finishes settling. There have been so many changes that the true picture wouldn’t be clear for awhile.
I believe the Fed will continue with their interest cutting. Otherwise, unemployment will worsen and in the long run increase the number losing their homes. Sliced work forces, failing businesses and distraught home owners make for a nasty forecast.
Because of the upcoming economic stimulus package, the summer buying season will have distorted figures.
Spend very conservatively. Don’t make any business decisions you don’t have to. If you are a retailer, continue using your current price strategy since consumers are, for the moment, used to rising prices. You’ll know when it is time to change. Consider any pricing structure that will take into account that things may slow down in the second quarter. In other words, get it will you can. Above all, do not cut back on advertising. Give concern to the fact that you might have to buyer cheaper, however. The only businesses who keep up during slowdowns are the ones who continue advertising.
The slow down is going to hit the durable goods market harder. If that is your niche, you might consider an additional service to increase cash flow when sales decrease..
The next year or so is going to be critical as the economy will be floundering. Keep your eye on the economic indices more than you ever have. Being diligent is the only way to endure a bumpy economy.
For more examples of my work: www.bellbusinessreport.com.
Laura Bell
writer@well.com
-30-
Filed under: Uncategorized
Understanding this concept is basic to making wise decisions when it comes investing. Now, with the values of real estate dropping like a lead balloon, this topic is even more important. No one invests with the idea of losing money. It is necessary to try and invest in things that will earn money. Otherwise, sad faces all around. A lack of this understanding is evident in the sub-prime mortgage loans.
My own roommate is frustrated with her financing package and would love to find a way out. Her property value has dropped. Like many others, during this crazy mortgage time, she didn’t make any down payment. Therefore, she has no equity. Getting out now would be a disaster. The only thing she would accomplish is getting this loan off her credit record. Those stuck in these situations need to look to the future if they can still keep up the mortgage payments.
She, like others, haven’t lost money yet. It is inaccurate for those with similar mortgages to say they have lost money just because they received a new tax bill showing the property value has decreased. You don’t lose money unless you sell when the value has decreased.
The only time someone makes money selling a resource when the value has declined is if they have shorted a stock in the stock market. (You bought an option that said it would go down.) Other wise, smart investors hold on to the property until the value bounces back up. This is, of course, doesn’t apply when you own a chunk of stocks and the price is dive bombing. In that case, you get out before you lose all the money you put in.
This principle of present versus future value may sound too simple for some. I’ve had several stock brokers as public relations clients over the years. I was in one’s office the day after monthly statements went out. He had to take a call from a client who was whining greatly because, according to him, “he had lost money.” The value of his stock was down at the moment. No matter, how long my client explained this was a temporary state, and to wait out the market, the customer hung up convinced he had lost a portion of his money.
Growing your money (putting your money to work) is the principle behind all investing and some other creative dealings. I have a son who understood present versus future value as a teenager. I didn’t get it then, but he did. His father would have him do a project and give him an IOU for the end of the month. Based on that, he would find a small electronic gadget/toy to buy and fix it up. He would then sell it to someone else for a profit. By the time he collected on his original money, he had already turned a profit.
Only a small percentage learn early on that there are only three ways of earning an income in life. Either you go to work as a wage earner, sign up for welfare or put your money to work for you. I know it isn’t easy when times are hard. Don’t let your money lie idle. Find a way to put it to work, even a small amount. There are always small collectibles one can get into. Forbes use to have a section on that issue at the back of the book. Like pretty tea cups and glasses? Buy a couple of books on antiques. It might sound insignificant. My antique china collection came in handy when I was unemployed in the 90s.
The point isn’t what you do, but that you do it. You can make it a family project. Children love collecting things and you will be teaching them a valuable lesson. Thinking bigger and might want to indulge in e-trading? Why not get the books and learn the tricks with the rest of your family.
On a final note, do not get into a mortgage that gives little or no chance of having your money grow. Your mortgage property is supposed to give you more than a roof over your head and a tax write-off.
Wherever you put your money, give it a shot of helping your future. It goes without saying that there are no guarantees. Except, of course, if you don’t do anything with your money but keep in your pocket, nothing happens and you spend the rest of your laboring at a job. Thinking about growing your money gives you a chance at a better future.
For more examples of my work: www.bellbusinessreport.com
Laura Bell
writer@well.com
-30-
Filed under: Uncategorized
This is the header for one of the last front-of-the-book commentaries in the “Economist” The only thing we can be sure in the next couple of years is uncertainty and there will be tough times.
The ripples from the sub prime mortgage market are being felt in Europe and other developing countries. They saw us get away with it and it was a matter of the blind leading the blind.
No one knows for sure just how many people are going to lose their homes this coming year. This will be the year the teaser rates go away for many. The owners are either left scrambling to pay the new note or begging another finance company to refinance. That has been relatively simple in years past if one had relatively decent credit and been making payments on time.
One problem with many of these loans is that the buyer didn’t make a down payment. To make matters worse, the value of many of the properties have gone down in the first two years. This leaves them with no equity in the home. This means they are holding a note to something that if sold would mean they couldn’t pay off the bank. Not a pretty picture. It is even a worse for the financing company. My roommate is trying for refinancing and she has to revamp some of her credit obligations.
If this wasn’t enough, tight credit is moving down to the credit card companies.
We wouldn’t see credit easing anywhere in the near future despite the Fed’s actions and the continued ads that it is now a great time to refinance..
The tax rebate has been passed and the legislators are hoping this alleged stimulus will give the economy the push it needs. The problem with this thinking is that the push is going to be short-lived. Employers are not dumb enough to hire permanent employees to keep up with the temporary increased demand. They can easily deal with that by bringing on contract employees.
Then, of course, there is the question as to whether or not the rebate checks will get spent. There are still a few among us who have enough common sense to put ‘found’ money away for a rainy day.
All this boils down to, how will you deal with all of this uncertainty? If you own a company, don’t plan any big expansions that you can’t already finance. Look for ways to scale down any expense that isn’t absolutely necessary. Start thinking in plan B mode. If your usual marketing doesn’t work, what are you going to do next? Do not, consider cutting out marketing, however. The only businesses which stay afloat during hard times are those who continue to advertise.
When it comes to personal finance, look at your spending and saving practices and see what you can do to improve them. If either you or your spouse has a hobby, think about turning it into a small part-time business. Filing profit and loss statements greatly improve your tax returns. Filing a profit and loss also usually allows you to change your W4 form so you increase your take-home pay. You are going to have a write-off at year end that will offset the fact the government didn’t keep as much. Before taking any of these steps, get advice from a tax professional.
On the credit side, are you using credit to buy goods that will no longer exist by the time you finish making the payments? Not good. Find a way to get around it. Do not use credit to buy groceries. If you are, it is a sure sign things need to be tightened up in your personal finance arena.
This is not the time to buy large ticket durable goods. These usually come with long-term contracts and ungodly interest charges. Put yourself into a different mode the next time an appliance or car breaks down. Try using the Net to find an used replacement.
If you are not currently saving and would be in a big trouble if you or your spouse lost a job, you need a coping plan. Are you comfortable in your own housing situation? Do not wait for the mortgage company to show up and ask for it back. Look for help now.
This is not going to be an easy year. The only sure thing is uncertainty.
For more examples of my work: www.bellbusinessreport.com
Laura Bell
writer@well.com
-30-
Filed under: Uncategorized
Wake up people! It’s time to get answers we can put our teeth into. Am I the only one who wonders about the how-to of their promises?
Both Hilary and Obama are talking big time about the need to fix health care and bringing the troops home. I have failed to hear any logistics about remedying these situations.
I read today on the Net about a push for bringing the troops home now, since we allegedly been promised this several times. Here is the thing, nothing as complicated as either of these issues can be solved ‘now.’
When our troops pull out in a hurry, chaos follows. Troop withdrawals have to be planned. What is going to happen to the troops that were enlisted and now may be out of job? Our armed forces haven’t been keeping extra personnel around for a couple of decades. I have run into a couple of Army personnel who had to be retired in a hurry. Their lives never fully recovered. We have to figure out how we are going to deal with returning personnel. Not doing so in previous conflicts let loose a host of social economic problems, we are still dealing with.
Then, there will be the unanswered question as to who is going to be to keep the contract workers safe once our personnel leave. According to a 2004 USA Today article, there were over 15,000 contract workers in Iraq.
We aren’t hearing anything about these issues. We only hear the emotional side. Practical guidelines as to how this will get accomplished don’t come out. Perhaps, they thing voters don’t need to know the details. Taxpayers end up paying for most programs.
Health care has been mentioned by both of the front runners. I saw a television ad where Obama was pontificating on how he was going to make sure that all Americans had affordable health care. Sounds good? How is that ever going to happen? If, for instance, the costs for doctor visits and emergency room care came down somewhere on the same level as generic drugs, what happens to the rest of the cost? Many can’t pay for health care and suffer. I understand that. Who in the universe is going to pay for the rest of the costs of running the health care industry? Overhead would have to be slashed. Let’s see, minimize doctors’ salaries to an equal level of a white collar worker? Get rid of mal practice and everything that goes with it? Do away with HMOs? Toss out all of the governmental red tape that currently slows the industry to a snail’s pace? Don’t allow the development of any new or better drugs? Is any of that going to happen? Is the United States government going to come in and make up the difference? Not unless there is a parallel Universe I know nothing about. Then there is the long term effect of sending all of our talented medical practitioners to other countries where they are still allowed to earn a decent salary. Let’s hope logic prevails.
Current problem with the California state budget also fall into the same category: promises with no proposed logical solutions. Right now there is an ongoing battle about the Indian casinos. After all, the state has to have these monies.
There is another way. Businesses have been leaving the state and setting up shop elsewhere for a couple of decades. It costs too much to operate in California. The officials looked at the short run by increasing business tax, etc. They ended up shooting themselves in the foot. The institution of a marketing plan to bring big business back to California would be a gigantic step towards getting this state back on its feet. Offer them incentives to cut their costs for the first five years they return. Publicize similar incentives for new business registering for the first time in the state. Business creates jobs. Businesses hire employees who pay taxes and spend money in the state.
If the politicians don’t give a logical answer to how they will execute their promises, don’t give them your vote. It’s time the American people started demanding the ‘how’ instead of just the ‘what.’ Wake up people! Stop settling for ho-hum leaders.
For samples of my work: www.bellbusinessreport.com
Laura Bell
writer@well.com
-30-
Filed under: Uncategorized
The economics are killing us……..
Let’s look at the numbers and try to be realistic. Let’s not think about the emotions to begin with. The numbers say that we can never pay for this war. Oh yes, I know we had to do something after 9/11. We had to stand up and take a stand and draw a line in the sand. I am convinced that if President Bush hadn’t attacked Iraq and set up the hunt for Saddam Hussein and Osama Bin Laden, we would have figured a way to drum him out of office. What we now have is a mess, one that is getting worse with every tick of the clock.
Many will tell you that one of the reasons for going there is to protect the oil. Iraq, after all, has the second highest reserve in the world. (That’s according to the stats I found. I am sure there may be different numbers.) The problem is the pipelines are getting attacked on a regular basis. So, oops, we didn’t stop that.
The daily cost of keeping us in Iraq is $275 million. That breaks down to $4,100 per household. These numbers are staggering. Who knows how many generations it will take to pay this off. James Madison is quoted as saying, “Every generation should be made to bear the burden of its own wars.” We’re falling so far behind it’s just plain crazy.
It used to be the prevailing feeling that starting a war created growth in the economy. The idea is if we want more butter on the table, then you give the country a reason to produce more guns. This is such a prevailing thread of explaining the relationship between the military and capitalism, that there is a Wikipedia page on the subject. The page is labeled “the guns versus butter model.” I hunted diligently around the Web trying to come up with some numbers to show that this war has put something back into the economy. I found no such stats. I did hear, however, from a fellow Linkedin member that he felt there was an increase in jobs in the Department of Defense area. He purported, however, that increase would in no way offset the ‘Zillion dollar war,” (the last being his word.) He also included the Intelligence Community also expanded. Yes, all we need is a few more secret agents to make our economy better.
We sent some construction companies to Iraq to help with the rebuilding. I am sure they have made a good amount. There are still ads on the Net for jobs in Iraq. I wonder how much a job should offer you to work in an environment where you may be subject hidden bombs. True, we have to admit these workers sent money home to their families. The families hopefully did more than pay bills and did a little shopping. (Shopping is good for the economy.)
Ok, we were hunting for weapons. We didn’t find any. We didn’t find any when we found Saddam. This should have been the end.
Others commented to me on Linkedin that we were going there with the idea of doing some training. I remember hearing about our troops training the local police force as well as helping some their troops fighting the insurgents There was also talk of training teachers. I learned not too much happened there. We supposedly were also to rebuild K-12 schools. In other words, we were allegedly trying to rebuild the infrastructure before the war was even over. My thought on that is: “how is that working…?”
I am sure if someone could sit down with President Bush and ask him to be honest about the real reason he hasn’t ordered the troops home, it would come down to him hoping that we don’t look bad to the rest of the world for not finishing something we started. My answer to that, would be, “get over it already.” There is an economic principle that is called a cost benefit analysis. It boils down to putting the pros on one side of a page and the cons on the other. I don’t see anything now that could possible go on the pro side.
Economically speaking, we have done damage that may never be fixed. Let’s not sit around so long that we end looking like fools. I am sure there are still some who remember the Americans in Saigon were forced to get the heck out.
We operate this country on an elastic budget. That means that the citizens are usually willing to hold paper for the U.S. government. This happens when citizens agree to buy U.S. Treasury bonds. If this nonsense doesn’t cease, there will be a day that the Fed issues a sell order for T-bills and there are no buyers. If that was to happen, the only other way for the government to raise funds has never changed: taxation and the seizure of property. I know we have the Constitution and all of that. However, if there comes a day where there are no longer funds to run the government just what do you think is going to happen? The fact that you will probably be dead and buried isn’t relevant. Is this what you want to leave for your grandchildren to deal with?
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Laura Bell
writer@well.com
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