Japanese business begins to disintegrate the remaining Employee/Employee relationship which was so admired back in the days of my youth. Brand loyalty cannot seem to suffer in any part of the business matrix under the impact of rising Populations. A great part of this is the demanded high level of Profits from Investors, though it is a lesser part than Most would Think. Stock Dividends have been marginalized over the decades as a component. Most of the new Corporate fear resides in loss of Product demand to new entrants into the Consumption markets. Corporate leadership insists on maintaining the capital to finance an introduction of a new Product line to compete in an already over-filled Market. The Recession only heightens that fear.
I agree with this blog entry totally, and not at all. It is a prime period to renovate State Tax codes, if the objective is greater rationality–not Tax Cutting. We need to eliminate Tax preferments, special allowances, and complicated Tax payments dependent on the amount of Tax which is paid to the federal government. The Task would be helped by getting rid of the idea that the entire burden should be thrown on the Consumer, a common advocacy among business personnel, but a delusional attitude which ignores the real retardant to Consumption. Business is better placed both to Account and Pay for taxes, and to organize to suppress excessive taxation. Consumers are already overburdened with paying Bills and federal taxation, and don’t need large-chunk tax extractions for State revenues. Business should accept their own Share of Property taxes, a minimal taxation on their own Profits, and undertake payment of major Sales Tax imposts; charging the entire load off as normal Operating Costs. The Concept of throwing Tax payment off onto a disorganized Consumption market will only distort already erratic Consumption patterns.
I sort of like this Teaser from Tyler Cowen, though he gives only enough to tantalize. I decided to explore, and found the authors as reticent of expression as Tyler; neither Abstract or Introduction presenting much delineation of the three scenarios under discussion. I was most interested in learning of the long-term consequences of the scenarios, but was left wanting. It is my idea that long-term deficit financing of fiscal policy will inevitably lead to loss of normal economic incentives, and therefore produce a reduction of actual economic performance. I will have to break down and read the Paper, as the authors desire, or be left with my preconceptions; a circumstance not unfavorable as I dislike being contradicted, but not truly of good academic performance (Hint to Those Readers who are econ students). lgl