Phased Tax and Investment Incentives for Economic Growth

Governments are always looking for new ways of enhancing the economy and putting it on a competitive stance. Throughout the years there have plenty of ideas that came and went. Ideas are often as plentiful as the politicians that bring them forward and the business investor class that seeks to make profit off of change. The opportunities to grow the economy why creating a strong return on investment from investment opportunities makes the fundamental difference between those cities that can grow and change and those that will die.

The entire cluster acts as a organism with lots of working parts. It is always adjusting, moving, creating, destroying, and working to fulfill its ultimate purpose. For the businesses in the area the purpose is return on income while for residents that may lay with quality of life and opportunity. Because collective organisms grow and change they have different needs to fulfill their existence. As they decline and change new money and ideas is needed to grow them again. If investment opportunities meet growth cycles the entire system can grow quickly.

Cluster stages of development have different needs at different times to help them grow healthy. Similar to company stages such as introduction, growth, maturity and decline a cluster will also grow and decline through different stages. In the beginning it will need entrepreneurs and angel capital. When it is in the growth stage it will need an influx of capital and supplier businesses. Eventually, when the companies within the cluster no longer produce meaningful products they will decline without reinvestment and rejuvenation of purpose.

Each stage needs its own type of investment at a particular time. As these stages grow and change investment in the infrastructure of the system, as well as investment in the companies within the cluster, will be needed to create the biggest impact. Investment in companies that exist within a growing sector will help the entire network of companies grow while investment in the infrastructure will allow the entire system to grow.

Infrastructure investment improves the overall growth prospects of all companies within the system. For example, providing investment in entrepreneurial creative spaces may help launch ideas but investment in education leads to long-term growth once these business have developed to a point where news skills are needed. The same can be said for high speed Internet, roadways, social places like bars and restaurants, housing, parking and just about everything else the clusters need to grow. Different times, have different, needs as the company moves through the different stages. While a random market hand may work government can apply the right pressures at the right time to speed up this growth.

Providing tax incentives and other incentives relevant to the stage of growth based on the needs of industry clusters encourages a coordinated boost to economic growth. Government should seek to maximize on existing trends and do so in a way that the return on investment is greater than any cost to public resources. Through strategic and scientific approaches government can continuously grow their coffers to catalyze additional growth into the future. As the investment pays off in terms of new money, employment taxes, and generated commerce it can reinvest this money through additional incentives and infrastructure improvement.

Coordinated institutional investors can create a big impact on the potential success of the companies. Their profits are derived from the ability to return greater value. In clusters, that value is created when multiple interrelated businesses attract new profitable business.  Pack investing can put the needed capital at important places within the cluster network that have the greatest return. They can "light up" the cluster network with injections of cash and liquidity to ensure that the growth stages are well lubricated and have what they need when they need it. Investing in groups of clustered businesses enhances all of their performance because they work in the market in collaboration as much as they do in competition.

Industry and government can work together to create something new that profits business, people and government. Yet they need to think about proper coordination of their efforts. When clusters move through different stages government can catalyze growth by providing the right incentives to attract growth and investment that later leads to "profit" through economic growth and tax revenues for government and greater returns on investment for investors. Research and awareness into how economic systems work opens the door to new possibilities of economic rejuvenation.

Happy Veteran's Day from President Woodrow Wilson

It is important to remember the veterans who have served our country. The day was sworn as one that helped end WWI and the great effort the country made to help their allies in Europe. During this time wars were more than financial arrangements. Entire countries needed to be mobilized to meet the agricultural and manufacturing needs of the time. We owned our own production and to send armies overseas for prolonged fighting was an extremely costly activity.

Our values were high during this era and we saw the world in a less complex but often more pure stance. We helped our allies with what we had and made great efforts to continue with a way of life. President Woodrow Wilson offered an address to the country.

ADDRESS TO FELLOW-COUNTRYMEN
The White House, November 11, 1919.

A year ago today our enemies laid down their arms in accordance with an armistice which rendered them impotent to renew hostilities, and gave to the world an assured opportunity to reconstruct its shattered order and to work out in peace a new and juster set of inter national relations. The soldiers and people of the European Allies had fought and endured for more than four years to uphold the barrier of civilization against the aggressions of armed force. We ourselves had been in the conflict something more than a year and a half. - With splendid forgetfulness of mere personal concerns, we re modeled our industries, concentrated our financial resources, increased our agricultural output, and assembled a great army, so that at the last our power was a decisive factor in the victory. We were able to bring the vast resources, material and moral, of a great and free people to the assistance of our associates in Europe who had suffered and sacrificed without limit in the cause for which we fought. Out of this victory there arose new possibilities of political freedom and economic concert. The war showed us the strength of great nations acting together for high purposes, and the victory of arms foretells the enduring conquests which can be made in peace when nations act justly and in furtherance of the common interests of men. To us in America the reflections of Armistice Day will be filled with - solemn pride in the heroism of those who died in the country’s service, and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of nations.

WOODROW WILSON

The Deeper Meaning of Language Choice

The words we use determine the way we think. It is reflective of how we are raised and how we see the world. Negative words are a reflection of negative thoughts. While we are not always aware of it the way in which we communicate, matched with our non-verbal cues, tells us a lot about people around us and how they see the world. If you want to know someone well then you should simply listen and ask a few questions to clarity.

Most of us never really take much effort in listening to other people or understanding what they need and want. We simply listen to the socially acceptable terms in which they express their needs. What we don't see is the thoughts, feelings, and beliefs that often make up those communication patterns.

It should be noted that all language and words are symbols that are created from other people. As we socialize with others in our youths we learn the basic meaning of certain words and our neuro thought patterns are created. We add onto that understanding throughout our lives but very few of us actually change the general patterns of what we are thinking.

The words (or better expressed as picture symbols) we choose and the way in which we construct our sentence tell us how we "envision" the world and way in which we construct those symbols to tell our own person story. Language thus has significant more depth to it then what we originally perceive.

It is also helpful to view the facial expressions, body posture, and the overall unconscious "language" people display when they think and talk about certain topics. Their emotional state determines how important the topic is to them and what they "feel" about such such topics. The emotional state becomes part of the deeply embedded history of the individual.

When we have the word (symbols) choices, the construction of how those symbols are connected together, and the emotional state associated with those symbols we may want to look at patterns of interest. Understanding what someone talks about a lot tells us where their focus is and their potential intentions toward certain objects and people (can be positive or negative).

Tempo of the language indicates how fast the brain is processing information and the overall excitement level of the person. If they are moving fast, calculating fast, and making proper associations between different concepts they are in the process of brainstorming and new discovery. Their tempo indicates an engaged mental process.

The next time you have a conversation with someone think about these language aspects to gain a better understanding of their meaning.

1. Words and their Symbols: What is the meaning of the words and how they use them to represent certain images, values, beliefs, and things.

2. Subconscious Language: The "hidden" or "honest" language that most people can't hide that shows emotions and values.

3. Construction of Sentences: The emphasis of value and the way in which symbols are connected to display larger ideas.

4. Tempo of Language: The excitability and interest of the person. It can also indicate the amount of mental engagement a person has.

Sailing Hot Rum Races with Fitness Gloves-Did they hold up?

You wouldn't believe me if I told you I tried out a pair of fitness gloves that I used for lifting at the gym during a heated Hot Rum Races on November 4th. Over 133 boats participated and San Diego Bay was packed. Having the right equipment is important but knowing what works and what doesn't can make a big difference.

I have these gloves and I was trying them out for new uses to see if they hold up against significant abuse. It just happened that one of our teammates forgot her gloves so I offered my leather pair to her and used the gloves I bike over with. Because I wasn't sure of how well the gloves would hold up if you are a "grinder" the deal was I would get them back if I need them. 

 If you are running the Jib sheet you will soon find that leather gloves slip and get worn out quickly. When the wind blows you need to pull with significant strength on the jib lines. Gloves slip which require ever more levels of effort to not only pull and grind the sheet in but also to hold onto the line so it doesn't slide back out. 

The same can be said with the spinnaker and the need to chronically adjust the lines so it doesn't collapse with wind changes. Without having strong gloves that can grip the line it is possible to make mistakes and shave off seconds that lose race. In this particular battle, we even overpowered the boat and had to let the line out in a controlled manner so we don't "wind up".

What I found out is that these "fitness" gloves worked better than the standard leather sailing gloves you pay $30 or more for. There was almost no slip and they didn't have a single market on them. Stitching was solid and the microfiber held well after 5 hours of hard core rope gripping.

1.) Durability: They lasted significant abuse after gripping the rope and grinding the jib and spinnaker sheets.

2.) Excellent Fit and Grip: The functionality of the gloves was solid. The microfiber gripped the rope better than my leather gloves and I had complete functionality of my fingers and hand.

Why are Small Business Having Such a Hard Time?

The answer to the question of why small business having such a hard time is dependent on whether you are looking at it from the perspective of the small business owner or the legislation processes that hampers their growth. Small business struggle from many facets that range from skill all the way to financing. This article discusses some of their biggest problems.

Business Owner Perspective:

-Finance: Unable to find needed capital to grow the business.
-Skills and Wages: It is difficult to find wages and labor that will improve the business at a price the establishment can afford.
-Skill: It takes years to build a business and gather the knowledge and ability. There is a need for very specific education and certificates.

From a Macro Perspective:

-Legislation: Legislation is designed to cater to big political donors and big businesses but neglects small business and their ability to compete. They simply can't pay enough or have their voices heard through lack of budget and brand.
-Local Regulations: Many local regulations are not small business friendly. Instead of supporting small business they often block them and discourage the development of clusters and innovative communities.
-Small Business Tax: While large companies often get tax breaks small businesses pay a high percentage. They do try and deduct as much as they can but at the end of the day taxes impact them. Simpler and pro-business tax can help.