The wealth-building thread

[Blumlein 88]

Managing gov't is different. I worked in a local govt. It was headed for bankruptcy. For years some of us tried to trim the work force and reallocate it. Not replacing retirees or replacing them with people doing a different job. Nope, just wasn't possible. A federal court put someone else in charge of operations for a time. They cut the workforce 40% in one month. Ridiculous, services suffered, necessary items were being left undone. Over two years the workforce ended up about 20% smaller and stayed there. Services if anything improved.

When you cut too much it makes it very clear what are real needs. Also which positions simply made no difference when they were gone. Takes no genius to put it back together with what is really needed. It is messy, ugly, not entirely rational and ruins some people's lives. However, it is a quick effective way to prune the ever growing tree of govt. Since gov't isn't managed without the interference of politics that is sometimes how it gets done. It need never come to that except well it does.

Something sure needs to stop the $36 trillion debt from growing. A rational way would be to trim programs until it begins to go down. Leave taxes alone even though we all hate them. Once things are headed in the right direction then later you might get a tax cut. Politics being politics that isn't how it will happen. Looks like they'll attempt to trim down gov't and taxes. Probably going to end up with a smaller gov't and the debt where it is. As a book I read about various civilizations put it once, "bad gov't is the price of gov't". It usually is a price well worth paying vs alternatives.

None of the administrations in my lifetime have been perfect or even exceptional in my opinion. Good and bad points to all. I don't think this is some doomsday scenario as it is. Regardless of what anyone is doing equities seems awfully highly valued at the moment. Something was bound to kick off a correction I think. Capitalism is a story of booms and busts.

 

[Timcognito]

Managing gov't is different. I worked in a local govt. It was headed for bankruptcy. For years some of us tried to trim the work force and reallocate it. Not replacing retirees or replacing them with people doing a different job. Nope, just wasn't possible. A federal court put someone else in charge of operations for a time. They cut the workforce 40% in one month. Ridiculous, services suffered, necessary items were being left undone. Over two years the workforce ended up about 20% smaller and stayed there. Services if anything improved.

When you cut too much it makes it very clear what are real needs. Also which positions simply made no difference when they were gone. Takes no genius to put it back together with what is really needed. It is messy, ugly, not entirely rational and ruins some people's lives. However, it is a quick effective way to prune the ever growing tree of govt. Since gov't isn't managed without the interference of politics that is sometimes how it gets done. It need never come to that except well it does.

Something sure needs to stop the $36 trillion debt from growing. A rational way would be to trim programs until it begins to go down. Leave taxes alone even though we all hate them. Once things are headed in the right direction then later you might get a tax cut. Politics being politics that isn't how it will happen. Looks like they'll attempt to trim down gov't and taxes. Probably going to end up with a smaller gov't and the debt where it is. As a book I read about various civilizations put it once, "bad gov't is the price of gov't". It usually is a price well worth paying vs alternatives.

None of the administrations in my lifetime have been perfect or even exceptional in my opinion. Good and bad points to all. I don't think this is some doomsday scenario as it is. Regardless of what anyone is doing equities seems awfully highly valued at the moment. Something was bound to kick off a correction I think. Capitalism is a story of booms and busts.

Overall good with this, but we are pruning good fruit producing branches like the IRS. Also, to keep things functioning, there is expertise, international good will and coordination, good faith agreements and jobs that fuel commerce and taxes. Relieving the the heads of agencies to bring in fresh blood and new direction is a long followed and tested way organizations reorganize. What about NASA or farm subsidies? Cuts in education just hurt the poor and disadvantaged. Dumping tens of thousands into unemployment could have same effect as the pandemic did when that last happened. It seems unorganized and punitive. There is talk in California about holding back federal tax contributions to shore up lost federal programs which now have to be managed by the state. We give far more than we receive.

 

[Blumlein 88]

Overall good with this, but we are pruning good fruit producing branches like the IRS. Also, to keep things functioning, there is expertise, international good will and coordination, good faith agreements and jobs that fuel commerce and taxes. Relieving the the heads of agencies to bring in fresh blood and new direction is a long followed and tested way organizations reorganize. What about NASA or farm subsidies? Cuts in education just hurt the poor and disadvantaged. Dumping tens of thousands into unemployment could have same effect as the pandemic did when that last happened. It seems unorganized and punitive. There is talk in California about holding back federal tax contributions to shore up lost federal programs which now have to be managed by the state. We give far more than we receive.

I hear you, but political realities just rarely let it work that way. The organization I was with didn't take time to be careful. They could have, a good many managers would have given more considered cuts given even a week. Didn't happen that way. I was involved in some budgeting and purchasing among other things. They cut the finance department 40% and we couldn't get our bills paid. People we had long done business with put us on cash only basis. This took additional time from an already inadequate work force. Like I said, doesn't have to be this way. Easy to imagine it done differently and better. Politics however cause a different path. So I fear how things might be for a couple or 3 years (hopefully it won't be longer in general). I just hope it is an overall benefit when over and done. Some people are going to get hurt along the way for sure.

 

[Timcognito]

I hear you, but political realities just rarely let it work that way. The organization I was with didn't take time to be careful. They could have, a good many managers would have given more considered cuts given even a week. Didn't happen that way. I was involved in some budgeting and purchasing among other things. They cut the finance department 40% and we couldn't get our bills paid. People we had long done business with put us on cash only basis. This took additional time from an already inadequate work force. Like I said, doesn't have to be this way. Easy to imagine it done differently and better. Politics however cause a different path. So I fear how things might be for a couple or 3 years (hopefully it won't be longer in general). I just hope it is an overall benefit when over and done. Some people are going to get hurt along the way for sure.

Okay but shades of the pandemic, tens of thousands suddenly on unemployment and looking for jobs. If the economy sags new positions will be harder to come by. As a woodworker and builder I've learned big cuts get short pieces and wasted material. Measure, measure measure, mark and measure mark, cut a hair long and fit, trim if necessary.

Showing everybody you are the boss makes for bad teamwork that wastes time and brain power, especially by someone who unwilling to use facts or change course. "The harder they come, the bigger they fall". I remain Bearish given what I see and will keep my powder dry and safe. If I miss the next rally so be it.

 

[blueone]

There is talk in California about holding back federal tax contributions to shore up lost federal programs which now have to be managed by the state. We give far more than we receive.

I'm mostly ignoring the political part of this conversation... but what does it mean to hold back federal tax contributions? Is this talk referring to not transferring federal income tax and FICA withholding from state employees? There aren't any other federal taxes I'm aware of collected by the state. I'm not a tax law expert for sure, and I don't know who the "responsible person" would be in a state government, but I can't believe it isn't a crime for the governor to approve withholding the funds transfer like this at the state level. If this threat is what I think it is, it looks foolhardy with the current US DOJ and a conservative USSC.

 

[BDWoody]

I'm mostly ignoring the political part of this conversation...

Can everyone else teetering on that ragged edge please back off a bit. One egregious post deleted. Let's leave it there.

 

[JeffS7444]

I've decided that there's not much point in getting worked up about stuff I can't control, and that I'm most devious when I've had a proper night's sleep.

Mars: Maybe the real value in colonizing other planets is to have a boundless frontier to conquer: Sometimes I think humanity struggles to deal with sustained peace and prosperity without "Impossible" goals to strive for, AI being a currently trendy example. Do we need it? It keeps people occupied and maybe that's what matters.

While I sense more than usual amounts of turmoil and uncertainty in the USA, I'm not currently planning on pulling my money out of the stock market, and certainly don't think precious metals or other commodities offer a safe harbor. They look nice though!

 

[JeffS7444]

What with sanction mania in full swing, stock market activity for March 3 and 4 is kinda depressing.

 

[Mart68]

What with sanction mania in full swing, stock market activity for March 3 and 4 is kinda depressing.

I know, and I just bought in too. Still, it's the long game that matters.

 

[JeffS7444]

Mexico sanctions have just been suspended for a month, so prices on fresh berries and bananas should be steady for awhile. As the year progresses, we'll see berry production shift northward to USA, then Canada, assuming no anomalous weather events in the growing regions.

 

[bachatero]