Tuesday, April 5, 2016

Common Sense

People normally do not appreciate things given to them. I don't understand why so many people in government do not understand this common sense notion. As soon as anything becomes an entitlement the quest begins for the next freebie. These gifts are always short sighted and unsustainable.

A noble effort to get people into houses they could not afford caused the near-collapse of the world economy. This collapse was caused by the United States and every economy in the world is still struggling. Washington politicians blame Europe for the slow recovery. Anyone that has watched the world economy for the last fifty years knows the world cannot possible recover until the United States recovers.

Corporations waste time and money by hiring consultants. Supervisors, managers and higher executives often crush innovation because they don't recognize the value of an idea. What corporations try to do is use ideas they see as successful in other companies or in other sections of their own corporation. The problem with this thinking is the individual with the original idea has visualized a method for success. Without that vision and a concerned person fighting for it, there is no success.

You may pass on an idea, but passing on a vision is considerably more difficult. Handing off an idea to someone else for implementation is a tremendous waste of effort. Corporate leaders pass ideas to district managers who relay the ideas local managers. They in turn hand off the idea to supervisors to issue to workers for implementation. All good consultants know the problems companies and corporations face are due to management decisions, but they usually don't get hired by pointing this out.      

Small business owners normally think for themselves, because they can't afford to waste time or money. Entrepreneurs are successful because of hard work, an innovative idea or both. Timely decisions are essential for success and profit margins are slim. A simple 5% increase in tax rate shuts down some businesses and prevents others from starting.

There is a trend now to push for minimum wage increases for people that add little to the profit of businesses. I like states making this effort. It gives other states an opportunity to observe and see the results. If the wage increases cause the state economy to improve or decline, other states react to the circumstance. Watch for more robots replacing people.

Private sector labor unions were taught this lesson many years ago. In order to keep a seat at the negotiating table, unions officials have to keep demanding more. The result is fewer and fewer union workers in the private sector. I have never understood why people can take company wages to sustain and improve their family situation for 30 years, then retire and complain about the company that paid them. Then, they praise the unions which they paid to help decrease the number of union workers. Public sector unions are driving most big cities in the country into bankruptcy. Want to guess who gets the blame? The next Republican elected.

I am much against the federal government managing the minimum wage. We cannot regulate or legislate our way to prosperity. Prosperity normally happens when the government gets out of the way of business. Wages increase naturally in two ways. Labor adds more value to the product or labor is scarce creating a competition employers cannot ignore. The members of the National Chamber of Commerce want a lot of immigrants that offer them cheap labor and more customers. They found a president and congress that will honor their wishes. The problem with this thinking is more people out of work and decreasing wages. We are watching lack of common sense in action. We keep supporting the people that are hurting us. We deserve what we get, because of who we choose to elect. We can do better. We can do a lot better. Anyone seen any common sense lately?

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