... was RE: John Travolta, and the demise of the American piano industry and some nonsensical comments from someone in Georgia. I've been very quiet and good, y'all have to admit. But falsehoods propagated on such a large forum deserve to be debunked. I will make this one response. You may read it or delete it ... Winston Churchill once said, "Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened." 1. The American work force, with the incredible rise in individual prosperity and living standard our wonderful country has allowed us over the last 50 years, or so--despite the insipid meddling of our federal government and its confiscatory taxes--has become increasingly unwilling to accept production and "menial" jobs. Just ask personnel managers at any of the remaining factories about their turnover and staffing problems! Workers naturally have increasingly demands for better wages and benefits, but this pressure can price them right out of the market. Unions, despite their often being necessary and beneficial to workers--especially in the past--now often exploit workers, blackmail corporations, and become just another "middle man" in the costs of goods and services. When vote-hungry politicians pander to people with laws requiring companies to fork over increased minimum wages, long-term unemployment, child-care, paid leave, etc.--while simultaneously gouging the corporations and their investor-owners for outrageous taxes--they force (yes, FORCE) companies into international competition for profits and, in many cases, survival. Add to all that the consumer's DEMAND for low-cost goods, creating such monsters as Wal-ChinaMart, and you begin to see that the problem is complex, nasty, and intractable. Blaming the individual worker for national policy fiascoes, world recessions, international competition, and management greed or shortsightedness is just not fair. I don't think Mr. Travolta had much to do with it, either, except to generate a lot of economic activity with his very popular movie. 2. Is the "national debt" a concern? Yes. The outstanding public debt as of May 18, 2003 at 03:27:49 AM GMT was: $6,487,335,802,041.31 (That's TRILLIONS with a "T", folks). In the time it takes you to read this, the debt will have risen by millions and millions of dollars (about $1.13 billion per day). Most people do not have a clue what comprises this debt, to whom it is owed, or why it keeps climbing. Here are some basic facts: The greatest part of the debt is money we owe to ourselves, i.e., American citizens. More generally, the national debt is the money Congress owes to whomever Congress has borrowed from. The national debt, more properly called the public or federal debt, is an accumulation of yearly Congressional budget deficits. Constitutionally, Congress has authority to borrow. In concept, Congress borrows much the same way you or I borrow when we sign an IOU for money received and then receive money. For example, Congress uses savings bonds and treasury bills to serve as the IOU. Congress also borrows through the Federal Open Market Committee. Actually, Congress only increases its self-imposed debt limit; the U.S. Treasury does all the work at auction through issuing and selling commercial instruments: bonds, bills and notes. The problem with the public debt is that through the machinations of the Federal Reserve and Treasury, Congress does not always borrow currency in circulation, but creates currency out of thin air. When that debt is purchased by individuals, currency already in circulation is used and that debt is not inflationary. However, when the Fed buys the debt, the Fed creates the currency out of thin air and this move is inflationary. This currency is spent on consumables and "entitlements." Such spending is backed by no goods and services, and hence, is inflationary. The government provides services but produces NOTHING in an economic sense. That's why an increasingly larger government work force actually reduces overall American worker productivity. Congress committed the American people to repay anyone holding there IOUs. Some holders are Americans, some are foreign and some are just internal bookkeeping between various government departments. Therefore, the national debt is owed by Congress, representing the American people, to whomever holds one of those IOUs. Please note that it is congress, especially the House of Representatives, that is almost solely responsible for spending and the lack of control or discipline therein. The Executive Branch can only propose budgets and arm-twist to try and get what they want. The president cannot, without the full cooperation of congress, add one penny to our deficits and debt. 3. Reduced Taxes = More money in the hands of business owners, investors, and consumers = more production demand and consumption, genuine economic activity and growth = Increasing money in circulation = More money in hands of business owners, investors, and consumers = more production demand and consumption, genuine economic activity and growth = Increasing money in circulation = More money in hands of business owners, investors, and consumers = more production demand and consumption, genuine economic activity and growth = Increasing money in circulation = More money in hands of business owners, investors, and consumers = more production demand and consumption, genuine economic activity and growth = Increasing money in circulation = More money in hands of business owners, investors, and consumers = more production demand and consumption, genuine economic activity and growth = Increasing money in circulation = More money in hands of business owners, investors, and consumers = more production demand and consumption, genuine economic activity and growth = Increasing money in circulation = More money in hands of business owners, investors, and consumers ... etc. ad infinitum ... Get the idea? Now, in all of that whirling financial activity, the government continues to dip its hungry mouth. They get a smaller PERCENTAGE share but a much larger amount in REAL dollars. So Reduced Taxes = More Money For The Government! You see? This is one of those simple little truths Churchill was talking about. Is this voodoo theory? No. Notwithstanding wars, disasters, and problems created by other governments (including state and local) and politicians who do not (or pretend to not) understand this simple formula--it works every single time it's tried, without exception. It's a proven winner. Kennedy did it, with great success. Reagan took us from the Carter malaise and double-digit inflation to the most vigorous sustained economic boom in American history, lasting about 20 years. Having the government put the squeeze on people--including the "rich"--works against all logic and fails every single time IT is tried. But it's that "Look, we're doing something ..." political lie. What they are "doing" is being horrible divisive while deliberately holding back the American worker and the incredible American economic engine. Thanks for listening. I'll step off the soap box now. Agree or not, please be kind. Alan Barnard Salem, MO -----Original Message----- From: pianotech-bounces@ptg.org [mailto:pianotech-bounces@ptg.org] On Behalf Of gordon stelter Sent: Saturday, May 17, 2003 6:14 PM To: Pianotech Subject: John Travolta, and the demise of the American piano industry. Dearest Tom, In case you did not notice, my comment was what is commonly referred to as a "Joke". But I remain curious as to why, exactly, both automobile and piano manufacture in America took a precipitously sharp decline in quality in the 1970's??? "Saturday Night Fever" is the most plausible explanation to have occurred to me, as of yet, and I observed it infect many of my friends not fortunate enough to take refuge in a profession such as ours! This easily observable decline in quality then made us simple prey for overseas manufacturers, and we are today running the worst trade deficit in U.S. history, as its aftermath. Economically, this means that U.S. cash piles up in nations such as China, which then loan it back to us, at interest, as the "National Debt". With Bush's tax cuts, that interest will soon pile up so that it is all we can do just to keep up with it, and we will not be able to put even a dent in the principle. And we will then be beholden to "Communist" china. I know that the Chinese are kind, generous, and truly lovely people, but I someghow find this disturbing. Thumpe Gordon, Revisionism raised to a new level! The leap to an expression of your Geo-Political-Economic theories escapes me. You disparage a group of people and accuse me of not getting the "joke". You have raised "tiresome" to the Bremmie level. Tom Driscoll RPT P.S. Sign your real name please--List etiquette _______________________________________________ pianotech list info: https://www.moypiano.com/resources/#archives
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