Small banks wondering what they did wrong
November 25, 2008
Citibank is a big bank, one of those companies that are just too big to fail. When the government steps in to help a single bank – like Citibank – with an infusion of $20 billion in cash and more than $300 billion in loan guarantees, you’ve got to wonder how Citi’s competitors feel about all of this.
Let’s say you ran a small business the right way, with a solid business plan, focused leadership and sound financial principals. A large competitor in town is failing, and the government is going to provide them with some cash and guaranteed loans to help them out. How does that change your business model?
Redistribution – evil concealed by money
November 19, 2008
Another great Walter Williams column today. I enjoy reading Prof. Williams since he does something similar to what I try to do here at Conservative247. He just does it so much better.
So, can an evil act be “transformed” into something that seems much more legit? Onward to your next lesson – using great analogies – about conservative principles.
Everyone lines up for a bailout
November 17, 2008
The day the $750 billion dollar federal bailout figure was mentioned, every single Fortune 100 company, state and city chief financial officer started planning. Not only would this level of federal involvement in these institutions be unprecedented, it would actually dramatically change the way everyone did business.
Let’s say you owned a small ice cream stand in a city with three other ice cream stands. The owners of those stands paid their employees too much, offered crappy service and featured ice cream that tasted terrible; they were going bankrupt. But since those stands employed a total of 100 people, the government came in and offered grants and subsidized loans to these owners so they could continue to keep the doors open. How would this government action change your business plan?
Are families and individuals moving into higher income brackets?
November 6, 2008
In my post from Nov. 1, A close look at the federal tax burden of corporations and individuals, I provide details about the large increase in federal income and corporate tax revenue after the 2001 and 2003 tax cuts. The piece also displays how the federal tax burden moved from corporations, to individuals and back to corporations between 1995, 2001 and 2007 respectively.
One of my readers mentioned the population increase between 1995 and 2007. An increase in population alone could result in these changes. More people working and companies doing better – both very good things – could explain the increase. We could be pessimistic and say the rich got way richer and the poor and middle class were left behind.
After a review of additional IRS tax data, it’s clear there was a shift. Most everyone improved their status.
Updated: Questions to ask Obama and Biden
October 28, 2008
I’ll keep adding more economics questions to the list as I have time. But will someone ask Obama and Biden at least one of these?
