As I sit here, very late on Christmas Eve, I realize just how thankful I really am. I lost my job earlier but actually retired in 2001 so I have a pension. I am an independent contractor so losing a job is actually rather temporary. I am just waiting for the next opportunity. I have health, my wife is healthy, and both of my college age sons still live at home attending a local university. We just this evening played domino's with my Father after we attended church.

I have many blessings,

• My church - where I feel like family
• My pastor - who cares, and tends my spiritual needs
• My family - My wife who cares, and my sons in whom I am proud
• My friends - who enjoy the same things I do - Boy Scouts, camping, and church.

So while there is much to rant about, tonight I am not ranting, rather I am thinking how truly blessed I am.

Thanks to my church, pastor, family and friend for making this all possible.

So long on a very merry Christmas.

My father was over the other day and recommended that I read a good novel and forget politics. Well, as much as I would like to do that, I am afraid that so much is at stake that I feel it is very important to follow what is going on. It really does seem the country is leaning left with massive government bailouts, and an new government proposals for a massive infusion of cash. If we have more bailouts similar to the last one, no one will have any idea where the money is going. If the Democrats are upset over the Bush problems, wait until they have the reigns. The chance for corruption will be huge. Further, there is a plethora of data showing that reducing taxes has a huge influence in turning the economy around. FDR's bailouts were in place for 10 years before anything really started. It took WWII and the battle for England before America really began to produce long term jobs. Work on the infrastructure will create more jobs but not for the overall population. Roads are not made by hand with hand tools anymore. They are constructed by skilled labor using heavy machinery. We need to remove taxes on investment so people will save and invest. This is especially true for the rich. Re-distribution of income is a misnomer. The best way is to create income. Use the rich investments to generate new jobs and wealth. As more get rich, even with lower taxes, government's revenue increases. Unfortunately, the Democrats seem to want to punish success rather then reward success and creation of wealth and jobs.
We shall see what happens. Hopefully the new administration correctly reads the situation and does the right thing.
Thanks for reading.

OK, I am starting to get upset. It doesn't seem to stop. Are we to go through the New Deal again. Increase taxes, more government programs, and make work jobs? Massive public works may be necessary because as a country, we have ignored our infrastructure. But that isn't the way to generate long term jobs. If we start working on new roads, how many new jobs will this create. Further, the kind of jobs these create are skilled with heavy equipment.
I just finished reading REAL CHANGE by Newt Gingrich. I feel he has the right idea. The US government main business is governing as small as possible. National Defense, International Relations, and domestic policy is rightfully the government. But lately we have moved beyond that and actually have engaged in managing the economy. Here is what I think:
1: Reduce Taxes. I agree with Speaker Gingrich. Remove current tax policy and change the mission of the IRS. Go with a Flat tax or 17% and remove income tax on corporations. Remove or vastly reduce investment income.
2: Encourage savings. This is related to the point above. Removing or vastly reducing corporate taxes creates new permanent jobs, not make work jobs. Removing or vastly reducing taxes on investment income will create incentive to invest and save.
3: Encourage business to invent and create new solutions. The speakers idea here was to set up competitions, and incentives to create new solutions.
4: Work to create an environment in the US that encourages new business rather then discourage.
If we start working toward this, I believe we will pull out of this mess sooner than later and be a much more fun place to work. Also if we really concentrate on fixing our education process, we will raise a new crop of young adults who are well trained in math and science.
More later.

Well, so much as happened since my last post. The Democrats still feel that the solution to everything is more money with more regulation and total control, or no control. And now we are changing the rules and bypassing the established route for bankrupt companies. Why can't the car companies go that route. It seems to me that they can use Chapter 11 bankruptcy. They could really restructure like they should and recast the labor contracts to bring back into line the benefits. But maybe they don't want to restructure so they went to congress instead. We aren't playing here. This is for keeps. We don't want GM, Ford, or Chrysler to disappear but they need to build viable business. They should have started this as soon as they noticed sales falling off. They are correct that they have ignored the guy buying the car or truck. Styling of off or behind the foreign car manufactures. We started this whole thing yet lost our way. Well this economy is tanked everywhere so now is the retool, and re-invent the design process. Simplify the process so a car can be designed and marked within one year. That way they can take advantage of new designs, inventions, and products to manufacture up to date cars. Imagine that, beat the competitors to the market. Instead of saying boy the Germans really know how to engineer, say the Americans out engineer the Germans and Japanese. We can do it. If we try. But not the way things are now.
Government does have a part of this. Reduce Corporate taxes so Corporations have more money for R&D, promotion and retooling. And reduce the amount of regulation so the companies can be more nimble in responding to market conditions.
More later!

There is so much going on that I am at a loss as to how to start. Big three bailout, Massive infrastructure package, reported higher job losses, now the Tribune company is filing for chapter 11. Then I read how the Democrat left wing is up in arm over being left out of the Cabinet picks so far. It seems to me that everyone is missing several points here.

1. Raising taxes: As discussed, do we want to create temporary work with the infrastructure works bill, or figure out a way to create new jobs. Democrats seem to have this fear of business, yet new jobs are created by those who have enough money to invest. I don't have any problem with the rich. I, along with everyone else, would like to be rich myself
2. Massive Big Three bailout: I am beginning to believe that solution is to let GM and Chrysler declare Chapter 11 and give them the time to rebuild the companies, even if they are smaller. And allow them to build the pickup's and SUV's

So what is the right answer. I don't know but I think the Democrats don't know either.

Well, now what. We have been hearing from the big 3 about how important it is to provide the $34B. And we are concerned that this may not be the last. Also there is the issue between lost jobs and the whether the government should be in the business of saving companies from their own mistakes. There is some argument in the government saving the financial companies since it was the government intervention that caused the problem, but did the financial crisis cause the problem with the big 3. I don't think so since they were already in trouble. They went critical almost immediately after the credit market dried up so they had not cushion or spare cash. They need to really renegotiate the labor contracts and gain the union buy-in for total modernization of the factories to reduce the industry high cost of goods sold. If they can reduce the COGS, they become competitive. So can the government loans allow for that. I don't think the government can effectively monitor anything. I wonder if the best solution would be to file a government managed Chapter 11 bankruptcy. This would all the big 3 to renegotiate labor contracts, dealer contracts, and supplier contacts.

I will use this blog to discuss the issues important to me. With the election of a Democratic president and congress, I feel it important to exercise my rights of free speech and express my reactions to what it happening in Congress, and the economy. What ever violates my sense of reason will be discussed in this blog.
Right off the bat, the state of the economy is poor and getting worse. I was recently told my services were no longer required. Even though I had been expecting it for some time, I was surprised to find that no one was even hiring additional Christmas help. Where there was work, 70-150 people were applying for a single job. Further, my area has heavy defense contractors who, when hiring, need engineers and technicians. So everything is timing and my situation is no different than anyone else. Actually it might be better. I was an independent contractor and still am. If the company I worked with continue the path they initiated some months ago, I will eventually have work.
So much of my issue with congress is that they mess with the economy with some political or social agenda in mind and really destroy the economy in the process and proceed to blame someone else.