Full Employment

Unemployment rate approaches 10%.

But what is full employment?

What is a healthy rate of unemployment?

We have been led to believe that 4% is full employment. But at that level we usually get inflation and labor shortages and lots of illegal immigrants taking jobs. That is an overheated and overstimulated economy.

I propose that full employment is 8%.

We should gear all our expectations around that number.
Then the number of "problem" unemployed is much smaller than we think.

We work too much.
We produce too much.
It makes us sick.
It makes the earth sick.

We would do well to be content with less and stop being so angry.

Better to live simply than to live in anger.

DOW 10,000 and California government bankrupt

The DOW 30 looks headed for 10,000 soon. 4% up from here is all it takes. That could happen by the end of September!

But California looks more likely to become more insolvent as time goes by.
When will the end come? I expect it some time in the next ten years. Business is fleeing the state, tax revenues continue to go down and "needs" go up. THe rest of the country is recovering but California is still falling. Where is the bottom?
And what will happen?
Things will go on but there will be many losers.
The losers will scream loudly.

SAVE MONEY BY STRETCHING IT OUT

Medical costs

doctor says come back in six months
say OK I'll see you in eight months

doctor says some back in 12 months
say OK!
see you in 15 months

saves a lot by stretching it out

California Fires

A lot of houses have been built in dangerous fireprone areas.

I heard a fire chief advocating more brush clearing.

But this destroys habitat. This damages ecosystems.

We should preserve the natural environment.

We should not listen to the cry, "HUMANS FIRST!"

Learn to live at peace with nature. That is the best approach.

Income Tax Should Be More Progressive

Here is an issue that cuts across many debates.
People are unhappy about executive compensation.

Solution

Higher tax rates on high incomes.

If John Crookedpants makes 50 million running a company then he should pay a lot of income tax.

People are unhappy about the cost of medical care.

Somebody is making a lot of money providing the care.

Maybe a doctor

He should be paying more income tax.

And also close loopholes.

We need some higher brackets. Maybe they should kick in at $300,000 and go from there.

The treasury needs the money also.

So three issues here would be improved.

Executive compensation
High price of medical care
Government budget

Who is against a higher tax on someone who makes a million dollars?