Saturday, April 27, 2013

Greece: Divide and Conquer

Greece is failing for sclerosis and plans to save the country by cutting back on the civil service, freeing people to work in the private sector.  Nice plan.  But wait!


The mass layoffs were announced last week in a televised address by the Greek prime minister himself,Antonis Samaras. Despite the massive unemployment in Greece, the goal of the government has become the laying off of 180,000 civil servants by 2015. “This is not a human sacrifice," said Prime Minister Samaras. “It’s an upgrading of the public sector and it’s one demand of Greek society.”
Samaras though, promised new positions to be created: “An equal number [of employees] will be hired on merit,” he added.

How will this help?

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Friday, April 26, 2013

Costco Gets Japan Wrong

But Japan adapts to Costco.  Flying from Honolulu to Hilo today I sat next to a young woman from Japan who told me Costco was completely wrong for Japan, what with Japanese buying frequently and small amounts to match their lifestyles and space constraints.  Costco was wrong in concept for Japan.

But Costco is doing well in Japan.

How so?

The Japanese housewife will buy the Costco meg-pack and part it out among friends.  Like the "Cheese Conspiracies in the 1950s which housewives banded together to buy 220 pound wheels to cut up amount members, so Japanese housewives are banding together to buy bulk at Costco and then divide up the product and savings.

File this under... interesting.

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Thursday, April 25, 2013

Designers Gone

"All are dead who knew how to make coverings and loincloths and skirts and adornments and all that made the wearers look dignified and proud and distinguished."

Samuel Kamakau, Hawaiian historian, 1870.

He was referring to clothes made of bark.  Designers, get busy!

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Wednesday, April 24, 2013

Grover Cleveland and Hawaii

The USA treatment of Hawaii was one of the earliest examples of the USA shift after the USCivil War to imperialism.  President Grover Cleveland was raised in USA before the shift began, so he understood what a free USA was like.

The Hawaiians did a great job of maintaining their independence by playing off the British vs the Americans (look at the Hawaiian flag today, they are naturals at it...) but eventually USA imperial interests organized a committee of safety (sound familiar?) to protect Hawaii (from whom?) and overthrew the Queen.

Rather than allow a war to break out, which no doubt unarmed Hawaiians would have lost badly to the well-armed US Marines,  Queen Lili'uokalani abdicated.  This was too much for Grover Cleveland, who tried to undo the criminal act.  But the victorious US imperial interests refused to back down, and the end of the Cleveland presidency was replaced by McKinley who supported the take-over.  President McKinley was he imperialists' man as president and led the government in the Spanish-American war that gave us Cuba, the Philippines and so many other "properties."

As an aside, Cleveland was the last US president to veto a spending bill for lack of constitutional warrant.  He and Jimmy Carter are my two favorite US presidents.

But go forward 50 years.  From Japan's view, the attack on the US Military in Hawaii was in order to liberate Hawaii from the American colonists.  Regardless of suspect motivations by all government plans, what is fascinating is how the USA governor at the time refused to follow the orders of Washingnton DC.    Instead of rounding up those of Japanese on the Islands, as was done on the mainland, he left them unmolested.  By treating people well and fairly, he had internal security.

What happens to Hawaii is largely up to the Hawaiian people.  But I will note, as they say, pride before the fall.    As at that time around the world monarchs in their fine palaces were being overthrown, King David Kalakaua built the first royal palace to have electricity and modern plumbing.  That necessarily had to be paid for by imperial business practices.  If the missionaries who first came to teach Christianity had done a better job, they might have pointed out that the "David" that the King was named after was not allowed to even build a palace for God.

If there was to be a palace, it ought to have been built by Hawaiians.  Once you take credit from imperialists, they own you.  Says so in the bible.

Something tells me Hawaii was much closer to a free market before imperialists showed up.  Maybe Hawaii is another candidate for a free market, one country two systems zone.

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Tuesday, April 23, 2013

Democrats Don't Pay Taxes

Mish has a delightful graph done on who at what income levels pay taxes.  I wanna know who earns over $100,000 and pays no taxes.  If is funny, if tendentious, for the creators of this graph to use blue (democrat) to denote those who do not pay taxes, and red (republican) to denote those who do.

Of course since the Republicans are all about war, it is only just that democrats don't have to pay.  On the other hand, the democrats do not object to war because they get farm subsidies and welfare payments for their constituents, so they lay low.

So, the next time you cash a welfare check (or now, use your EBT) thank a Republican.



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Taxes: Google No, Users Yes

While the rest of us are coming to grips with the horrors of the suspicious bombings in Boston, the politicians are business pushing through things they cannot otherwise: gun seizure, more spying more taxes.

Taxing the internet, the last free market in USA, has long been a goal, and we're getting there.

In the meantime, the "Google pays not taxes" flash is playing out, this time in the UK.

But in an interview with the BBC, Mr Schmidt defended his company’s practice, suggesting that its contribution to the UK economy was more important than the tax it paid to the Exchequer. “We are investing heavily in Britain,” he said. “We power literally billions of pounds of start-ups through advertising networks and so forth, and we’re a key part of the electronic commerce expansion of Britain, which is driving a lot of economic growth for the country. So from our perspective, I think, you have to look at it in a totality.

Again, corporations cannot pay taxes.  Only end users, consumers, who buy something ar ethe ones who cover all previous axes.  Until the end user consumes the item, all taxes are inputs toward the final price the end user pays.

This is one reason used goods cost so much less.  The taxes have been paid, by the poor schmuck who paid retail.

Taxes can be used to kill a company, but it is impossible to tax business, unless the business, having paid the taxes, goes under.  In that case, the dead business acted like the end-user.

The question is, what do we get for our taxes?

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Monday, April 22, 2013

Czech Ambassador Obliged to Give Geography Lesson

Sigh...  The Czech Ambassador to USA was obliged to explain the difference between the Czech Republic and the Chechen Republic.

After USA was attacked by Saudis on 9-11, USA invaded Iraq.  I can understand Czech uneasiness.

The amount of money we put into education in USA, and the impoverished results is something that could be resolved with deregulating education.

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Sunday, April 21, 2013

Exporting As A Product Development Strategy

It has occurred to me that even if we compete on design, and we must design products for the USA market in USA, that we might test our new ideas by selling them into export markets first.  This may seem contradictory, but designing a product for the German market on the behalf of Germans may get a company 80% or more the way to a USA product.

If an when the product is German-approved and selling, then work on a USA version, shortening the time and lessening the cost of the USA-centric new product.  I've been thinking of this for a while, something made me think of it, and now I am looking for examples.

Now, one thing I am not suggesting is using foreign markets as guinea pigs.  Not to put too fine a point on it, but BigDrug has been doing this for years.

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