Nothing much new today, however yesterday's entry has kept me thinking about what I believe is a root cause of our nation’s, and the world’s, economic woes. And I keep harping on the economy because that’s what the provides the financial wherewithal that keeps everything else humming.
In that regard, as I often do, I draw on my own experience whereas it provides significant insight as to how and why most people, and especially political types, think as they do.
First and foremost, very few people have training, exposure, nor certainly day to day involvement in significant financial matters. And that makes absolute sense, because other than those seeking knowledge from a purely inquisitive perspective, there’s no reason whatsoever for most folks even bothering to learn about sophisticated finance. Because except for those requiring mortgages, financing vehicles, major purchases and the like, most folks have no regular need to concern themselves with financing at all.
Similarly, even those involved in any way in business, regardless of the positions they hold, don’t spend very much time analyzing financial transactions because they so rarely arise. Acquiring equipment, property or other significant assets isn’t ordinarily a common task for most of the business world.
Consequently, those like myself occupied in offering alternative methods of financing costly acquisitions spend a significant amount of our time educating prospective customers, most of whom don’t even know where to begin gathering proper information needed to formulate a well-founded financial decision.
However, simply because most people aren’t intimately familiar or current with what goes on in financial circles doesn’t meant that the fiscal world is stagnant, because, it’s anything but. Rates, terms, regulations, money supply, borrowing conditions and lending laws, just to mention a few considerations, change almost instantaneously when circumstance demands.
Therefore, to have people like David Cameron, Prime Minister of the UK say yesterday in regard to big businesses avoiding taxes that, “It’s simply not fair and not right what some of them are doing by saying, ‘I’ve got lots of sales here in the UK but I’m going to pay a sort of royalty fee to another company that I own in another country that has some special tax dispensation’.”
After reading the PM’s comments I looked him up and found that other than a stint as Director of Corporate Affairs at Carlton Communications for seven years, he’s been a student or politician all his life. And there’s the rub. Because guys like him, and our own incumbent, have no real clue as to how businesses work, nor the hands on experience or background that provides understanding of how businesspeople act and think. So, instead they attempt to apply theory that’s not only out of step, but was out of date when printed because the real world reacts to current monetary events and conditions much faster than that when they have to. In fact, business adaptation is so fast government often hasn’t enough time to blink.
And now, in conclusion to all this I come back to my continual question of late which is, when will these so-called “leaders” stop and admit that they simply have no clue as to how economic success is attained? And when will they finally figure out that successful, growing business owners are likely their most valuable allies? Which says to me that the government is far better off having these creators of wealth willingly contribute to the cause as opposed to hiding, moving or otherwise disguising their assets.
However, its obvious that those at the top of government will likely never figure out a sensible, fair solution. Because if they were capable of really intelligent thought themselves, they’d be out in the real world too becoming successful instead of wracking their brains finding ways to steal from everyone else.
That's it for today folks.
Adios
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