Stay Local – Ride a Bike

Surfed today!!!! Went out at Tiburones at low tide. The sun was out and the wind was just for texture. The surf wasn’t big, but I got some fun ones. The first weekend of March continued to provide beautiful weather and plenty of outdoor time. The surf took a sabbatical, but low tide boning, the bike, and music kept be busy. Thank you. Pics show Bill going JTH—-

Gasoline prices are up and probably going up as you read this. All manner of bullshit is flying about. Of course, we’ve been here before, but who’s paying attention. The loudspeakers are blaming the Fed, O-lame-a, and the lack of domestic oil production. The fact that we’ve had a mild winter and natural gas production is outstripping demand is not mentioned. How about this: demand is booming in Asia and the Former Soviet Union, offsetting mediocre demand in the U.S. and Europe; inventories are low; and supply has been hit in several countries due to geopolitical and technical problems. And, a road we’ve been down before: over the past year, refineries have faced a classic margin squeeze. Prices for Brent crude have gone up, but demand for gasoline in the U.S. is at a 15-year low. That means refineries haven’t been able to pass on the higher prices to their customers. As a result, companies have chosen to shut down a handful of large refineries rather than continue to lose money on them. Since December, the U.S. has lost about 4 percent of its refining capacity. Really, the industry has no reason to keep gasoline production at capacity. Similarly, the industry has no motivation to take on more exploration or production. XL-Pipeline – its an avenue to oversees markets – its got nothing to do with the USA – except in that corporate deals will come and go – most of us will see no benefit and the use of our commons will once again be pawned off to the in-crowd. It’s hard for some to realize, but when demand is down and margins need to be maintained, prices increase – it has nothing to do with the Fed or the president.

“Capitalism might be the greatest engine of prosperity and progress ever devised, but in recent years, individuals and communities have grown increasingly disgruntled with the implicit contract that governs the rights and responsibilities of business. The global economy and the Internet have heightened our sense of interconnectedness and sharpened our awareness that when a business focuses only on enriching investors, it implies that managers view the interests of customers, employees, communities and the fate of the planet as little more than cost trade-offs in a quarter-by-quarter game.

It’s time to radically revise the deeply-etched beliefs about what business is for, whose interests it serves, and how it creates value. We need a new form of capitalism for the 21st century, one dedicated to the promotion of greater well-being rather than the single-minded pursuit of growth and profits; one that doesn’t sacrifice the future for the near term; one with an appropriate regard for every stakeholder; and one that holds leaders accountable for all of the consequences of their actions. In other words, we need a capitalism that is profoundly principled, fundamentally patient, and socially accountable.” – We Need A New Form Of Capitalism for The 21st Century, Polly LaBarre, Harvard Business Review.

It’s been said here before: A new report by the Center for Tax Justice has found General Electric made $81 billion in U.S. pretax profits over the past decade but paid just 2.3 percent of its profits in taxes — far lower than the official 35 percent corporate tax rate. Between 2006 and 2011, GE received a tax rebate of $2.7 billion.

And: A New York federal judge on Monday dismissed a lawsuit brought by thousands of organic farmers against the agribusiness giant Monsanto. The farmers were seeking to prevent Monsanto from suing them if their crops become contaminated by Monsanto’s patented products, which can drift onto nearby fields. Does this sound right?

This from Robert Reich: “But many of the gains are distributed narrowly in the form of profits to owners, and fat compensation packages to the “talent.” The share of the gains going to everyone else in the form of wages and salaries has been shrinking. It’s now the smallest since the government began keeping track in 1947. If the trend continues, inequality will become ever more extreme.”

“We’ll also face chronically insufficient demand for all the goods and services the productivity revolution can generate. That’s because the rich save more of their earnings than everyone else, while middle and lower-income families – with fewer jobs or lower wages – no longer have the purchasing power to keep the economy going at full tilt. (Before 2008 they kept up their buying by sinking deep into debt. This proved to be an unsustainable strategy.) Insufficient demand – as everyone but regressive supply-siders now recognize – is a big reason why the current recovery has been so anemic and the pie isn’t growing faster.”

“So while the productivity revolution is indubitably good, the task ahead is to figure out how to distribute more of its gains to more of our people.” Solutions offered by Mr. Reich include: higher taxes on the rich that go into wage subsidies for lower-income workers, combined with job sharing. We also need better schools (from early-childhood through young adulthood, followed by systems of lifelong learning) so everyone has a fair shot at a larger share of the gains. Finally, the benefits of the productivity revolution should be turned into more abundant public goods – cleaner air and water, better parks and recreation, improved public health, and better public transit.”

Lets take a look. Higher taxes on rich that go into wage subsidies and job sharing: First, job sharing. Sounds good, but an aspect of education – how about Corpgov use some of those large profits to train and advance their workforce, bring in new lower-skilled workers, good retirement and public service for those who have served, and keep the wheel turning? Benefit – skilled, educated, loyal, happy, self-fulfilled employees, homeland peace corps, and participation in a sustainable endeavor. Next, taxes to wage subsidies. All sorts of folks balk – suggesting its just wealth transfer – government Robin Hood. Think a little deeper; consider that a portion of those massive profits could be used to provide  higher wages instead of zombie capitalism. Now, Corpgov distributes profits over a narrow range of investors and executives, and looks to the federal government to make up the wage difference by providing food stamps, health care subsidies, child care, and a number of other programs – funded by wage-earner tax rates. Instead of tax redistribution – how about soul capitalism that looks to take care of all stakeholders and a tax system that fairly looks to all of us to support our country. Benefit: consumers without debt able to participate in the market, demand for goods and services, self-reliance, self worth, pride in self and country, and less stress (more health).

Now – schooling, training, life-long education – not even a discussion – it would only make us a better nation, a better society, and a society able to make better decisions. And public good – infrastructure, clean air and water – like it or not – even Corpgov needs these things. We all benefit. So why not look to Corpgov – taxes and profits – to maintain the public good.

Drew says: Want war – how about a war tax on every citizen and corporation. Still indirect participation, but participation nonetheless. He who feels it knows it. Maybe if we had to pay a war premium, we would pay more attention to the whole boondoggle.

It is astonishing what foolish things one can temporarily believe if one thinks too long alone – Keynes

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