White House Briefing Kayleigh McEnany (05-28-20) $10 Billion for Economic Growth, George Floyd and Voting

A number of issues were covered in the White House briefing that include $10 Billion for community business development, Justice for George Floyd, and voting ballots. I think $10 Billion is a good start but that our government may want to create a stimulus that allows for entreprenurial growth and development throughout the entire nation. That means streamlining small business development (I believe they are already streamlining regulations), low/no interest loans from business lenders for good ideas, and other types of pro-growth policies that could encourage our economy to make a major world come back. Such a strategy may pay dividends a few years down the road as some businesses succeed and grow (some may not) in a way that leads to higher job creation and higher wages.

There are studies that support entrepreneurship on economic growth...."for developed countries, generic entrepreneurial activity is related to economic growth, and its promotion is useful to increase the wealth of a country." (Almodovar-Gonzalez, Fernandez-Portillo & Diaz-Casero, 2020). That relationship is stronger in developed countries like the U.S. and when there is a focus more on exploiting opportunities versus being forced by necessity (As seen in poorer countries). Thus supportive loans can lead to exponential growth down the road and is likely a good move for a national policy that can rejuvenate our economy post COVID and make the U.S. an innovative center of international development.

Internal homegrown growth is awesome but so is the creation of an environment for international investment. Invent and build here along with invest here could enhance economic clusters throughout the nation. That in turn leads to stronger labor development, improvement education/skill trades learning, and a pro-export environment that retains attracts wealth and talent. That same investment strategy may do wonders for minority populations to encourage self-made wealth generation and improved standards of living, education, neighborhoods, health, and lifestyle. Each part of the system feeds and enhances the other parts.

Almodovar-Gonzalez, M., Fernandez-Portillo, A. & Diaz-Casero, J. (2020). Entrepreneurial activity and economic growth. A multi-country analysis. European Research on Management and Business Economics, 26 (1). https://www.sciencedirect.com/science/article/pii/S2444883419301913

Governor Whitmer Discusses State Budget and Asks for Federal Government Funds (05-28-2020)

Governor Whitmer indicated there is a $3 billion dollar shortage in the budget and is asking Federal government to adjust CARES Act to help out balancing state budgets. We knew this budget shortfall was coming for a long time due to business closing and the general impact of COVID. She will focus on education and funding policy & first responders. There will be priority in funding for research and research universities, roads, training, healthcare, college and other issues. Focus is on traditional institute support and development such as higher/primary education, road infrastructure, training to bring employees back into the market, and general healthcare.

Its a little of a mixed bag in the sense that these are the main institutions that we can fund and work with in a traditional sense. Helpful yes but within an existing economic context. One must wonder how to create more innovation to generate more wealth in the market. That is dependent on how we orient these businesses and attract new investment and innovation. Thus, there could be a short and a longer term more sustainable strategy. Funding many of these organizations may be beneficial but they don't necessarily generate new wealth directly; they are supportive in nature.

Its a chicken or egg concept. I would like to see more focus in this business generation arena to generate new wealth, jobs, and tax revenue. That is where different philosophies can balance out existing philosophies to create a more holistic approach. We often think of one or the other but there are often parts of different strategies that can work together. For example, training is awesome but if you don't have the jobs, don't have new businesses that need those skills, or are unsure of what skills to train on to compete in the new market then resources spent may not be as effective as they should be.

There are no easy answers here but lots of questions.

https://www.mistartmap.info/ to see risk levels on the area

Protests in Minneapolis-Is there a way to support law enforcement and the public at the same time?

Law Enforcement is a necessary part of our society and our economy. Good law enforcement improves the community and poor law enforcement creates problems. It is the same thing in any business that has a customer service (i.e. public engagement) aspect when deal with customers (i.e. society in general) We do know that the vast majority of law enforcement officials are good people who do the right thing in any given situation but there are "bad apples" that will cause these types of issues.

Thinking of this from a purely disciplinary labor relations issue it is important to have not only feedback loops but a review of employees who engage in misconduct. That is missing here and that is part of the problem. When there are enough complaints and other performance issues there should be an investigation and review that leads to removal. Without it people just continue on and on. It doesn't matter if its a company or a public service institution because it will almost always cause angst.

However, the stick approach doesn't create positive culture within organizations (i.e. there were officers standing around not saying anything). One must also think about rewarding good officers for their pro social and positive behavior. I have met them and these officers are an asset to their departments. Much is based in their personality and their desire to provide "justice" on a higher level. They go above and beyond to listen before acting and make wise decisions that protect the public in the short and long term. Such officers should be commended and rewarded for their behavior.

The metrics are also part of the problem. The ultimate goal of law enforcement is "justice" and therefore that requires an open mind. The amount of tickets, amount of arrests, and amount of people put behind bars really isn't a great metric. It may be necessary at times but it isn't the ultimate goal. Such metrics influence behaviors and in turn influence outcomes and how people interact with the community. Hence the metrics and what is rewarded influences the cultural outcomes (i.e. culture as a determinant of how people are expected to act in a group).

Furthermore, we may want to consider a few other things such as recruitment practices, how public perception impacts available candidates in recruitment, and the type of personalities we want to recruit into such departments and how we select law enforcement leadership. On the back end we could also consider better support services such as counseling for law enforcement officials who struggle with their own personal problems and how that makes its way into workplace choices (i.e. kneeling until death).

We know there is work to do here and how that is left to the "experts". The problem is the "experts" haven't really solved the problem even though it has been brewing for some time and one could expect this very public feedback loop (i.e. rioting). This means the experts were trained in a certain methodologies and continue to use the same methodologies when understanding and solving similar problems. Supporting law enforcement is about supporting the ability to do their jobs effectively and that means rethinking how things are done so as to be the most effective system possible. Doing the same thing over and over is going to look more insane in the future.

Finally, I feel that sometimes helping people is a more important metric than actual enforcement. Educating people is helpful, referring people to mental health and other services can save tax payers a lot of money down the road through not having to incarcerate (i.e. 40k to 50K per year), and when necessary arresting those who continue to menace society without consideration to their superficial differences. In essence, we should ask people outside current law enforcement training and experts on how to better protect officers and protect the public at the same time.


 

Article "Schumpeter’s virus: How “creative destruction” could save the coronavirus economy"

The article "Schumpeter’s virus: How “creative destruction” could save the coronavirus economy" by economist Barry Eichengreen moves into how the Covid virus is going to fundamentally change how our economy works. We were already on this path but the virus pushes our companies to adapt in new ways. It is informative and well worth reading. We are an adaptive species and when we face a crisis we can turn it into a change agent for adaptation.

I'm working on a similar theory for the past 7 years and believe it matches much of what Dr. Eichengreen says here. The linkages and efficiency of those linkages improves productive capacity but also the way in which these businesses interact determine their innovative capacity. As we draw companies back to the U.S. we can think about how to utilize such supply chain and competitive/collaborative networks to improve our economic position. Its not a finished theory but you can sort of get the point. "The Theory of Interactive Clusters for Innovative Economic Growth".

Watch Space X Launch Live-Launch America

If this launch is successful it will start to change the dynamics of the space race and Space Force creating new horizons to explore and conquest. I still think the old KI Sawyer Airforce base would be a great place to manufacture, test, and launch new programs.

Enhancing Rural America Through Rural Water and Wastewater Infrastructure Improvements

Rural America has been on the decline for a long time and people will continue to naturally flock toward larger cities with more amenities. However, with the advent of the Internet it is possible for some small towns that are well managed and have opportunities to take their virtual businesses and work to places that better suit their families. Helping small towns rebuild their dilapidated infrastructure can set the table for growth.

That doesn't mean every town would benefit the same. Some towns can be realigned to the global market and if we can make them attractive to draw and retain young families we can reverse their decline.

The following was taken from a press release....

USDA Invests in First District Rural Water and Wastewater Infrastructure Improvements


Washington - Today, Rep. Jack Bergman announced that the U.S. Department of Agriculture (USDA) is investing $281 million in 106 projects to improve water and wastewater infrastructure in rural communities in 36 states and Puerto Rico. This includes six projects in the First District of Michigan, which total a federal share of $2.6 million in loans and $2 million in grants, benefitting thousands of rural residents.

The USDA is funding the projects through the Water and Waste Disposal Loan and Grant program. Rep. Bergman has been a vocal proponent of this program that helps rebuild local water infrastructure. Recently, he encouraged continued funding for this important program noting that it is "essential in helping small and rural communities overcome their limitations in providing safe and affordable drinking water and sanitation."

Eligible applicants include rural cities, towns and water districts. The funds can be used for drinking water, stormwater drainage and waste disposal systems in rural communities that meet population limits.

For application or eligibility information, view the interactive RD Apply tool or contact one of USDA Rural Development’s state or field offices.

In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force.

Information on the grants and loans for the City of Houghton, Villiage of Benzonia, City of Manistee, and City of Manistique can be found HERE.

What is Governor Whitmer's Workshare Program for Partial Work/Unemployment Benefits

We know that labor has been hard hit this season because of the Covid Plague. The state is running some serious budget shortfalls and they will need to start cutting back quickly in order to survive and keep the "lights on". One of the big holes is the unemployment insurance that people were forced to use to pay their bills while they couldn't work.

The plan brought forward appears to encourage employers to start hiring people on a part-time basis. It leads to budget issues and the need to start getting people back to work. The longer we stay closes the bigger the aftermath economic costs. There has been some push and pull on opening dates but this program seems to start preparing for the necessary inevitable. 

I highlighted some of the important points. Seasonal workers are not included. I'm not sure why other than perhaps most are young or that calculating from season to season is difficult as it is not regular employment. .... it looks like this program is focused more on regular and consistent living wage kind of employment.

A couple of "Hand Out" Pieces of Information

Work Share Program Information

Work Share Brochure

Work Share Employee Guide

Work Share Under Executive Order 2020-57

As a result of Governor Whitmer's Executive Order 2020-57, Michigan's Work Share program eligibility requirements have been expanded.

If business demand is down, employers participating in workshare can preserve their workforce while reducing hours and wages by 10 - 60%.
Waived the length of time requirement that employers must be in business.
Waived the requirement that employers have a current or positive balance with UIA.

Work Share Requirements:​
Employers are given flexibility to organize which employees are in a Work Share plan.
A plan must include a minimum of two employees and an employer can have multiple plans.
Plans may be approved for a period of up to 52 consecutive weeks.
Employee hours/wages may be reduced by a minimum of 10% up to a maximum 60%.
Part-time employees are eligible, but Work Share does not apply to seasonal, temporary, or intermittent employment.
Employer must obtain approval of any applicable collective bargaining unit representative.
Employers participating in Work Share cannot modify employees fringe benefits.

Under the Federal CARES Act:
Employees that receive a percent of Michigan unemployment benefits (including Work Share) also receive an additional $600 federal payment in Pandemic Unemployment Assistance through the CARES Act through July 2020.

How It Works
With the Work Share program, a worker receives a reduced salary from an employer, but is given a percent their state benefits plus the additional $600 federal benefit through July. The reduction in work hours must result in an equivalent reduction in wages.

Example: If a worker’s weekly wages are $1,000, yet the employer needs to reduce their salary/hours by 30%. Under Work Share, their weekly salary would be $700 ($1,000 – 30% = $700). Plus 30% of their state unemployment benefits ($362 maximum x .30 = $108), plus an additional $600 federal payment in Pandemic Unemployment Assistance through the CARES Act through July 2020.

With Work Share, the employee would earn $1,408/week through July 2020 vs. $962 without Work Share.

As businesses are reopened, Work Share can help employers bring back their employees from unemployment faster and allows employers to retain their workforce and avoid layoffs.

COVID-Work Share by Dr. Murad Abel on Scribd

President Trump Briefing May 26th, 2020 Healthcare Insulin Costs Reduced

Lots of different questions but revolves around seniors and insulin costs.

You can read the transcripts from the White House.
You can read transcripts from Kayleigh McEnany

Stock Markets Rises DOW crosses 25,000. S&P 500 over 3000

There is a large push to opening the market and what we find is that there is a response in the investment markets. People want to open up their businesses and find ways to invest and make money. When banks and hedge funds rise we know there is great anticipation because such people have spent a lifetime trying to "crystal ball" the economy. They are also really good at risk management. That doesn't mean they can't make a mistake but it does mean that their "animal spirits" are high. We can further say that much of the world market has a wet blanket on it so the U.S. may be a safe place for investors to come.

AEI Author Brooks Discussion Capitalism and Economic Recovery

The video discusses our economic recovery. He is correct in that capitalism, when ran properly, is way more innovative than other forms of governance. It is also the best current governance mechanism to pull us out of this crisis. The motivation to create and invent leads to new products and market wealth generation. That doesn't mean that pure capitalism doesn't have problems with shared opportunities but those problems can be mitigated when road blocks are removed for all people to rise on the economic ladder based on their skills/abilities. This means that education, hard work, entrepreneurial spirit should be protected through our social values (core American principles) and our institutions (employment, education and law enforcement). When the true power of the American people is unleashed through enlightened leadership and modern economic and social policies there is nothing than can stop us.