| Remember the saying from one of Clint
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| | amounts of money on programs that can't
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| Eastwood's Dirty Harry movies---"A man
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| | be sustained. Eventually tax rates will
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| has got to know his limitations". This
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| | go up no matter who is in the White
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| applies equally well to the art of
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| | House.This is unfortunate because large
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| economic forecasting. The art (not
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| | cuts in marginal tax rates is the one
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| science) of economics is useful in
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| | thing that can produce both sustained and
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| forecasting what the predominant risks
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| | substantial increases in economic growth.
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| are facing our national economy and the
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| | In the l920's then Secretary of the
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| resulting consequences. With this in
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| | Treasury Mellon went through an
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| mind, let's examine our national economy
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| | exhaustive study to determine what top
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| and see why liquidity, both on a
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| | incremental tax rate would maximize
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| professional and personal level, will be
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| | income to government yet, also, provide
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| king for the next decade at least.Do you
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| | meaningful incentives for individuals to
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| have a metal chain in your house? Take a
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| | take business risks. The answer was a
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| look at it. You will notice all the
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| | top rate of 25%. This is far lower than
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| links are of equal size. The U.S.
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| | the current top rate of 35%.The question,
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| economy can, in a way, be represented by
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| | then, is how do you grow your business in
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| the links in a chain. But, the
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| | an environment that will be highly
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| difference is that the economic links are
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| | competitive and turbulent. The most
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| not of equal size. In addition, some
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| | logical answer is to increase prices of
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| links are weaker than others.The biggest
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| | the goods and services your company
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| link in our national economic chain is
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| | offers. Logical-- yes, but it is not
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| the consumer or more explicitly,
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| | realistic. If anything, with the
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| consumption expenditures. This link now
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| | economic environment described above, the
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| represents 70% of our Gross Domestic
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| | market will be dictating downward
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| Product (GDP) and dwarfs all the other
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| | pressure on prices--not upside. This
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| economic links combined. This link is
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| | leaves one other alternative: going after
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| also the weakest link in our chain and is
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| | market share.We have had the mistaken
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| the one of most concern.To put it
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| | belief in this country that the business
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| succinctly, the consumer is tapped-out.
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| | future belongs to the big and the mighty.
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| With the direction of interest rates
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| | This is nonsense. The future belongs to
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| trending higher, Americans can not
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| | the swift. The swift are those men and
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| continue spending money they do not have.
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| | women whose businesses have liquidity
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| Household borrowing is increasing
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| | (low debt levels) and are generating
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| substantially faster than incomes. In
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| | sufficient levels of free cash flow to
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| addition wages earned are bearly keeping
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| | take advantage of opportunities that will
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| up with inflation. This trend can not
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| | be presenting themselves. Free cash flow
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| continue forever. We use to talk about a
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| | is the wherewithal, the stuff, that
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| healthy savings rate in this country.
| |
| | successful business people can use to
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| Now, we have little to none. The most
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| | innovate new products and services, which
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| important link in our economic chain is
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| | along with effective marketing and
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| extremely illiquid. This will have
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| | customer relations can be used to grab
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| long-term consequences for economic
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| | market share from your
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| growth and, hence, the ability of
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| | competitors.Additionally, those
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| companies to maintain their profitability
| |
| | businesses that have liquidity and cash
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| and grow their top-line.There are some
| |
| | flow can also secure market share by
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| things worse than having a recession,
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| | lowering prices while still maintaining
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| which is, having none at all. Recessions
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| | profitability. This line of survival
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| provide the impetus for both consumers
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| | thinking falls under the category of
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| and businesses to rebuild their
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| | guerrilla marketing. Let's face it--it
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| liquidity. It is a painful process, but
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| | is a jungle out there, and the swift and
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| it sets the stage for the next strong
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| | nimble are the ones who will prosper in
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| upward expansion. For example, in the
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| | this environment.People tend to make
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| early l990 recession the average American
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| | situations more complex than they are
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| household pared their debt by an
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| | are. This evolves from a tendency in
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| inflation adjusted $410. This helped set
| |
| | human nature to drift from the simple to
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| the stage for the strong expansion in the
| |
| | the complex. But, in business it does
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| l990's. In the 2001 recession, the
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| | not have to be this way. If you can focus
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| average U.S. household added $1,420 to
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| | on building-up the free cash flow in your
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| their debt levels.It is possible for
| |
| | business (and it wouldn't hurt your
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| awhile to avoid a business recession
| |
| | personal life either), you will both
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| through Federal Reserve policy of
| |
| | increase its value and have a competitive
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| manipulating interest rates. But, the
| |
| | edge in the marketplace. It is that
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| price to be paid is high. The economy
| |
| | simple. Good hunting!Sanford Kahn,
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| can flounder along in a tepid sluggish
| |
| | Business Author/Speaker, has been a
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| manner and can easily stumble into a more
| |
| | professional speaker for over 30 years to
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| serious recession. You are sort of
| |
| | both the corporate and national trade and
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| operating in an economic Twilight Zone
| |
| | professional association markets. He was
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| between growth and stagnation.Another
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| | the host and producer of the popular
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| consideration is the unusual political
| |
| | Times mirror cable vision series "Ask the
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| alliance in Washington. Democrats and
| |
| | Economist". Mr. Kahn has authored many
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| Republicans in Congress disagree on many
| |
| | articles on the business impact of future
|
| political matters, but there is one
| |
| | economic trends. His most recent
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| fundamental economic point they do agree
| |
| | publication is The Great Economic &
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| on. They both like to spend increasing
| |
| | Business Myths That Dominate Our Lives.
|
