Another example of how ancient King Solomon proverbs written 3000 years ago are being affirmed as a result of the new Tax Bill approved by Congress.
The Chicago Tribune article titled, ATT giving $1000 bonus to every employee thanks to Trump tax plan passage.
King Solomon
It is by justice that a king makes a country stable, but one who levies taxes makes a ruin of it. (Proverb 29:4).
The tithe of grandees produces an abundance of food, but it is swept away for lack of equity. (Proverb 13:23)
In a previous post, I explained how these above proverbs relate in a similar manner of the reason why Henry Ford increased pay to his employees, so they could afford to buy Fords made by his employees in the USA.
In other words, the increased wage money was used as an incentive to purchase, increase production, and share in the equity of their company.
If interested, read how HERE
However,
Even though ATT action of giving bonuses, or sharing equity with their employees, the present problem in the USA is that if they use the money to buy manufactured products, the likelihood of the products will not be American manufactured.
In other words, the bonuses might likely result in larger trade deficits or unbalanced trade in the USA.
In My Opinion
The next logical step of the Trump administration should be to step up to complete the renegotiated fair and equitable NAFTA and China trade imbalances agreements to return manufacturing to the USA that was decimated by outsourcing industries over the past thirty years.
Regardless, the fact that ATT decided to give out the bonuses is an affirmation, and/or another example of the wisdom of King Solomon’s proverb written 3000 years ago to explain why unfair or unjust taxation can ruin a nation.
Regards and goodwill blogging.
.
Think about it. They reduced the tax on our corporations from 35 to 21 percent. That is just one tax.
What makes the USA competitive? Historically, the USA has been a good place to do business because we protected private property rights, had relatively little corruption, provided an educated, hardworking labor force, maintained a decent infrastructure, and let the free market do its magic. We need to focus on these basics. We cannot change our competitors, but we can change our own behavior.
Consider that government of has multitude of ways of imposing idiot costs on business. That is why when Trump started eliminating regulations the stock market took off. Businessmen saw in Trump someone who would take the shackles of burdensome regulations off of them.
Government is necessary. Regulations are necessary. However, government only serves a legitimate purpose when it serves to protect us from each other. When some faction or factions start using government just to get their own way, government becomes a problem. Therefore, our own pride and greed — our lack of virtue — will cripple us before anyone else will do so.
When our government starts telling companies how to design their products or imposing requirements the customer would otherwise be unwilling to pay for, that increases the cost of doing business in the United States. When politicians cannot be trusted and don’t know enough anyway, why would we want them choosing winners and losers in the business world?
What is a good example? We have a faction in this country that has what amounts to a religious belief in global warming. Not satisfied with the prospect of discouraging the use of fossil fuels by taxing them, they devise incentives and regulations designed to force electrical companies to use solar and wind power. In addition they provide outrageous incentives to pressure car companies to build electric cars. Thus, the real price of electricity is rising in this country, and we are building a costly infrastructure we will not be able to quickly and inexpensively replace. So industries dependent upon electrical power must and will leave the USA. To stay in business, these businesses must go where power is least expensive.
My point? To promote business in the USA, we don’t need to put tariffs on our competitors. Sometimes tariffs may be necessary, but the problems and costs we impose upon ourselves hurt us far more. We are our own worst enemy, not someone else.
LikeLiked by 1 person
I cannot disagree with any of your comments that in my opinion highlight the mistakes in government over the past 50 years.
I believe Trump is trying to steer us back on the right roads in both trade and governing more wisely.
In my opinion on trade he is striving to make trade agreements “fair and equitable
for both trade parties. ”
Somehow, since we cannot compete wage wise with countries workers with cost of livings that can live comfortably on $200 a month wages, whereas in the USA, rent alone is $ 800 a month, we need to seek a middle or more equitable trade agreements.
As for regulations, the USA needs some regulations,, but of course, give people a job to make regulations, and they become too creative and excessive in order to keep their jobs rather than serve a prudent purpose.
Regards and goodwill blogging.
LikeLiked by 1 person
Does not work that way. There are two ways we can compete.
1. Education: Well educated people can do things the uneducated cannot do. Complex products require an educated work force to make them because they require complex tools to make them.
2. Infrastructure: We have built and maintain an advanced infrastructure that facilitates manufacturing and commerce. That infrastructure dramatically lowers production costs.
Consider how supply and demand work. Our pay is based upon the scarcity of our skills. People earn high wages because they are productive and located where the work they are needed to do is done. When people are not sufficiently productive and not willing to be where they are needed, they will not get those high wages.
Why do unskilled workers earn more in this country? So long as we don’t let in millions of illegal immigrants, there will be a shortage of unskilled workers. Therefore, unskilled workers can demand higher wages too. In fact, the shortage of unskilled workers makes it profitable to teach them how to operated complex tools so that they too can be more productive.
LikeLiked by 1 person
I’m for anything that might work for USA workers. Charity begins at home,, regardless of globalists propaganda and/or economic theories.
I know too many good people who wound up on the short end by globalism.
Regards and goodwill blogging.
LikeLiked by 1 person
Frankly, I don’t know what globalism means. If you look at different dictionaries, it is clear that a standard definition does not exist.
Dictionary.com has the definition I think you have in mind.
This is the attitude or policy the Democrats and some of the Republicans have been pushing. Trump is obviously opposed.
Why would the Democrats adopt such an absurd form of globalism. Three reasons, I guess.
1. They made actually think charity begins abroad instead of at home.
2. Foreign interests have bribed them.
3. Open borders allows them to pack the electorate with voters who can be easily and cheaply bribed with other people’s money.
When the Democrats are in charge, the tax, economic, foreign, regulatory, trade, immigration and various other policies of the USA often favor foreign interests at the expense of our own. After the last 16 years of Obama and Bush (who was also something of a globalist), Trump has lots of work to undo.
LikeLiked by 1 person
It is in all probability even worse when you consider the information you sent me about Iran and cocaine. I am including it in a post I will publish next week.
One wonders how some people can sleep at night after a days work in a political position. and knowing what is not being revealed to the public.
Regards and goodwill blogging.
LikeLike