Wednesday, December 17, 2008

In Response to Gov Kaine's tax proposal.

This whole discussion is ludicrous. The fact is that social welfare programs have sucked down the taxes that were to go for infrastructure and defense. The politicians are trying to find ways to tax that will cause the least consternation amongst the voters. Since smoking is 'bad' for you, then even those who will bear the brunt of this tax increase will not be inclined to oppose it. McDonalds food is 'bad' for us as well. How long before an extra tax is levied there? The thing I really ask and often is where does it end??? How long before the pretense is abandoned? How long before government simply gets the fruits of our labors first and then apportions to us that which we need by some subjective standard? This has got to stop!!! When will we as individuals realize that it is our duty to say no!! How much longer do we let government shove it's morality down our throats. How much responsibility do we surrender? The government has, in my lifetime, decreed that driving without a seatbelt is criminal. In other words, acting in a manner risky to one's own safety is not a matter for the individual any longer. So by the same logic, government can punish any risky behavior. Maybe skydiving will be illegal next. Then after that comes having a desert if you are fat. Does it seem I have gone off on a tangent? I assure you that I have not. The ever increasing taxes and the ever increasing intrusions into our lives are indicative of a pattern that can be observed going back to the beginning of the 1900s. Does this have to proceed to it's inevitable conclusion? Do we have to live in a worker's paradise like Cuba?

Tuesday, December 2, 2008

An Automotive Parable

This was posted on a forum I frequent

Toyota and Ford canoe race.

A Japanese company (Toyota) and an American company (Ford) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race. On the big day, the Japanese won by a mile. The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action. Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing. Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion. They advised, of course, that too many people were steering the boat, while not enough people were rowing. Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents, and 1 assistant superintendent steering manager. They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners, and free pens for the rower There was discussion of getting new paddles, canoes, and other equipment, extra vacation days for practices and bonuses. The next year the Japanese won by two miles. Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India. Sadly, The End. Here's something else to think about: Ford has spent the last thirty years moving all its factories out of the US, claiming they can't make money paying American wages. TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter's results: TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses. Ford folks are still scratching their heads.


This was my response

Re: Toyota and Ford canoe race. (joke)
December 2 2008, 7:51 PM
Top heaviness is indeed a large reason for the domestic industry's woes.Sadly, however, it is not as simple as that.
The problems are as listed below.

1: Too much bureaucracy (Top Heavy)

2: Unsustainable wages negotiated by unions and agreed to by management.

3: Unrealistic pension plans negotiated by unions and agreed to by management.

4: Heavy governmental interference in the running of a private business.

A business exists to make a profit - and it exists to make as much profit as the market will bear. There is nothing wrong or immoral with that. Under the burden of the governmental intrusions such as mandated safety, pollution controls, fuel economy standards and under the burden of wages and benefits negotiated by a union too shortsighted to realize that they do not exist without the car companies, the domestic automaker cannot survive. Furthermore, government intrusion and regulation makes it impossible for a business to act in it's own best survival interests.

If I were put in absolute charge of the big three right now, here is what I would do. I would call the union to the table. If they would not agree to unskilled labor at $15.00 an hour and skilled positions at $25.00 an hour, I would tell the union that bankruptcy was going to be declared immediately. The same kind of cuts would need to be looked at for pensioners. I would swing a heavy axe in management. From CEO to floor supervisor, there should be no more than 3 layers of management. I would demand that the managers establish base metrics and show improvement. I would demand a meeting with congress. Right there in front of C-Span, I would demand that the market steer the designs and r&d rather than congressional law. If congress did not like that, I would shutter the factories, lay off all workers, and all equipment would be sold in order that the government or no one else could simply re-start production. I would turn to the c-span cameras and say - "American people, you CAN prevent this. Call your congressman and demand that they get their fingers out of my business."

Too many people in this country feel like they are entitled to the key to the golden crapper. All anyone is entitled to is whatever compensation they agree to take for the time spent working for an employer. No one is entitled to anything more. Some people's time is worth more than that of other's.

Social Security,Pensions, and 401Ks have screwed up any sense of responsibility that was held for our 'golden' years. If all these things were liquidated and showed up in the paycheck as cash, then we could all be responsible for ourselves. We could make our own choices. We would have to suffer the consequences of those choices.

Is the "what I would do" thing above naive?? It is. Either the union or the government would have me killed if I spoke in such terms. It is what needs to be done. When society collapses under the weight of the 'looters', there will be mass starvation and death. Then maybe, logic and reason and honesty will be able to rise like a phoenix from the ashes of our civilization.

I have often wondered at the government of the USSR and Iran and Iraq. How can they exist when they oppress so? I am seeing how now. Our own government is going down that path. What is happening is that slowly and bit by bit, government is taking over the responsibilities or the individual. Each new generation that comes along is less able to be self sufficient. God, I hope I am so wrong about all of these things. I don't think I am, but I hope I am.