Use the latest technology, THE INTERNET,
for A CUTTING EDGE
EXPLANATION
of how ECONOMIC TERMS are used to MISLEAD EVERYONE.
MOST ECONOMISTS , "Except KRUGMAN",
intentionally confuse the Issues.
Your Consultant will :HELP YOU UNDERSTAND THE REALITY OF ECONOMICS AND HOW IT AFFECTS YOUR LIFE.
HE WILL REPLY TO YOUR QUESTIONS ON THIS WEBSITE.
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He personally answer your email questions by email, IF YOU WISH.
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The basic reality of Economics is best explained by the World War TWO music, which was sung by
Bing Crosby.
The lyric goes, "You've got to Accentuate the Positive
Eliminate the Negative,
Latch on to the Affirmative,
Don't Mess with Mister In-Between."
- Plato proved, LOGICALLY and THIS IS PLATONIC ECONOMICS--
- Moderation in all things (ESPECIALLY
IN ECONOMICS) is the road to UTOPIA.
CONFUCIUS expounded on the same topic,
"Anything Opposed to Harmony, has
No Future."
To reply just cut and paste the term defined into your email. Please make the "Subject" ECONOMICS.
It will be included on the web pages on the next revision, which should be weekly.
- WE will define the Positives in layman's terms.
- WE WILL REMOVE THE POLITICAL PROPAGANDA
AND SHOW THE LACK OF AFFIRMATIVES IN THE TERMS USED TODAY, SUCH AS:
-
Inflation;
(Cut and Paste, the below statement into your response, by using the text of the statement as
the starting point.)
The condition where one's Standard Of Living (SOL) is lowered due to increases in
living costs. This can be caused by increases in the two basic economic factors in all
commodities:
(A) Cost of Labor; and (B) Cost of money;
For workers, Inflation is an indirect tax which reduces one's Standard of Living (SOL).
Unless compensation for one's labor is increased equal to the percentage increase in
the cost of living, your (SOL) goes down.
Higher costs of money--Interest--often cause management to raise prices.
If the results of your labor, products or services you create, are sold for a higher price,
than last year's selling price, Inflation results.
Agree_________ Disagree________
COMMENTS:
Productivity;
(Cut and Paste, the below statement into your response, by using the text of the statement as
the starting point.)
This term can be defined by various statistical formulas. To be sure, one
must have the factors used in the term's measurement.
The most common is the Sales Revenue divided by Total Costs, compared to previous periods.
Many times, the formula used is Sales Revenues divided by Total Payroll.
Frequently, the Measure's definition changes to suit corporate public relation's goals.
Multi-National corporations use this term to justify layoffs, and out-sourcing.
The fewer people engaged in the corporate operation, the higher a firm's Productivity;
\The lower the Total Costs the higher the Productivity.
To be realistic, one must know the bases for comparison.
In many of the world's national economies, the total number of jobs is a major factor
by which Productivity is measured, and/or compared to previous time periods.
$$$$$$$$$$$$$$$$$$$$$
Something to think about.......
To discuss this concept, here is a proposition:
Two Societies, A & B, produce the same dollar amount of GDP--Gross Domestic Product.
Society A has 100 producers and 50 drones, which are consumers, only;
Drones consume but do not produce; 80% of Society A's GDP is consumed by all;
20% is exported in Balanced Trade;
Society B has 150 producers which consume 80% of the Society's GDP;
20% is exported
in Balanced Trade.
Based on the previous definitions, Which society is the most productive?
COMMENTS:
Unemployment;
(Cut and Paste, the below statement into your response, by using the text of the statement as
the starting point.)
The total number of people shown on the Nation's Unemplyment Benefits Rolls
versus the number of jobs reported on the Federal Withholding Tax Rolls.
If people who were collecting Unemployment exhaust their benefits, the
Nation's Unemployment "decreases". People are no longer counted as "unemployed",
if they do not use the State's Unemployment Service "to search for work".
The relationship to reality can be measured by comparison with the "New Jobs" Reports.
On many occasions Unemployment increases and the New Jobs Report shows gains.
How realistic is that?
The reports are very often manipulated for political purposes.
Agree_________ Disagree________
COMMENTS:
-
Money Supply;
(Cut and Paste, the below statement into your response, by using the text of the statement as
the starting point.)
Early last year, the Federal Reserve Bank (FRB) announced
they would no longer report on the total Money Supply, which is called M3.
This organization is privately owned. It is no more FEDERAL than Federal Express.
SEE: /money/frbhist.htm
or /money/index.htm
Money supply is measured with three (3) compnents: M1, M2, & M3.
Please go to http://www.calneva.com/money/ and use that Page's "SEARCH TOOL" and
insert M1, M2, or M3 into the textbox.
The FRB controls the total amount of money in circulation,
in the United States and in the World.
Many believe the M3 is not reported because the total amount of money held by China is
driving the U.S. into bankruptcy.
The FRB insists on using "INFLATION" caused by higher money costs (interest rates)
to justify raising interest rates higher. The bankers tell us they need to get a
higher rate for the money they create, because of "INFLATION", which they
create--out of thin air. Money is a commodity, which raises the cost for all
other commodities, when it costs more.
Agree_________ Disagree________
COMMENTS:
CORPORATION -
Economic Organization (Structure)
(Cut and Paste, the below statement into your response, by using the text of the statement as
the starting point.)
AN ORGANIZATIONAL STRUCTURE OF BUSINESS IN WHICH RISK IS SHARED;
ALL ASSETS ARE OWNED BY SHARE-HOLDERS;
ALL LIABILITIES ARE HELD BY SHAREHOLDERS;
OWNERSHIP OF BOTH ASSETS AND LIABILITIES ARE DISTRIBUTED AMONG SHAREHOLDERS, RELATIVE
TO THE NUMBER OF SHARES EACH OWNS;
Control of the firm is determined by the owners of fity-one
percent(51%) of the shares. Each share is entitled to one (1) vote.
Politically speaking, the Control of the firm can be vested in
one shareholder who owns 51%--a DICTATORSHIP; and/or
Control can be vested in a group of shareholders, which acts
in concert--an OLIGARCHY.
The Corporate Business Structure is the foundation of most Capitalistic Enterprise.
.
Only in structures like Cooperatives is control vested in the
entire group of shareholders; each having but one financial share and one
vote--a DEMOCRACY.
Most corporations are not Cooperatives.
A Limited Liability Corporation(LLC)is a variant corporate structure. The shareholders' risk is limited to their investment. The GENERAL PARTNER has
total control but shares the risk.
Most corporations are an ARISTOCRACY, IN WHICH POWER IS VESTED
IN THE WEALTHIEST SHAREHOLDER(S).
Any organization, social, economic, or political which is controlled by
the wealthiest members of the group is an ARISTOCRACY.
An OLIGARCHY can be organized by social, economic, and/or political
POWER.
No one will argue against the fact that in such an enterprise, the Primary Goal is Profit, generated by the business' activity. For centuries, corporate pursuit of Profit has eliminated all corporate business activity which will reduce long term returns on investment (ROI).
In times of cyclical contraction of a society's business, causes of which usually are due to outside economic factors, employees are reduced, in order to minimize relative contractions in Profit. However, in other business structures, such as sole proprietor-type business, maintenance of workers' jobs often out-weighs short-term reductions in Profit. Sole Proprietors don't have to worry about stockholders that bail out when profits fall.
One fundamental error made by those economists, who are employed by financial and educational institutions, is that "GROWTH" is measured in terms of money, as annual Return On Investment (ROI). This short term viewpoint does not consider the effect of "GROWTH" on future generations' prosperity or even survival.
Earlier in our economic history, job growth was the measure of prosperity. Now, it is purely revenue growth, as corporations use that measure to attract stockholders' investments.
Surprisingly, many do not realize that stock investments do not go to the corporation, after the Initial Public Offering (IPO).
Projections of future growth, in ROI, drive sales of the corporation's stock. Even though dividends are not provided to the stockholders, the GROWTH in share price that is stimulated by such projections, drive stock speculation.
Furthermore, projections drive corporate borrowing, but at risks which are often under-estimated.
Banks and other lenders mortgage corporate assets to hedge their risks and debt loads grow larger with each annual search for growth.
Time and again, corporate leaders, usually hired professionals, not the major owners, are driven to project "GROWTH" that exceeds the projections of their competition, which are competing for the same investment dollars.
Recent scandals such as ENRON, MCI, ADELPHI, et al, result from the drive to increase stock values by fraudulent corporate accounting at the expensive of real performance. Chief Executive Officer (CEO) Compensation tied to financial incentives, controlled by crony- loaded Boards of Directors, is the root evil.
