Exploring the Idea Of Lower HQ Taxes and Its Potential Impact on Supplier Networks (Calibrated Tax Structure)

Ideas are only ideas unless we find a practical way of taking these ideas and evaluating them for beneficial application. Its not my place to say at this moment which tax system is likely to work the best as different policies are discussed and debated among lawmakers. Some will advocate for high taxes and some will advocate for low. Each one has their own supporters that come from a long line of economic theorists. There are also other alternatives strategies we sometimes miss because of social aspects of arguments and adherence. We may also consider maintaining lower headquarter (HQ) and normal/moderate taxes on suppliers as a mechanism to attract back to North America manufacturing interest.

There is a difference between exploring ideas for future research and trying to definitively make conclusions without an actual investigation. The one thing that is not helpful for researchers is to make a conclusion before understanding the actual questions or looking at the pieces of information that lead to an affirmation of the connection between question and conclusion. We see this all the time when doctoral students are interested in a topic and then seek out only those answers that justify the conclusion (researcher bias). 

Thus, taxes have become a big issue in our country and its been debated for some time (See cognitive teams). While I cannot say this to be a fact, I can say that in my experience the ALL THIS and ALL THAT answers are rarely correct because they are exclusive and seem to ignore the vast majority of exceptions that are a natural part of life (This is why unexplored option C sometimes works). Thus, one can only say in my experience I believe there is a possibility that having lower headquarter taxes and moderate supplier taxes might lead to attracting intellectual capital and suppliers back to the U.S. 

To help ensure that I'm not biasing the questions it is helpful to keep a couple mental anchors in mind. 1.) Being indifferent to the results helps maintain a level of objectivity. Coming to a wrong conclusion and proposing that as truth could damage and hurt a lot of people and waste others resources (In formal research this would be the long-tail consequences of skewed research).  2.) There is no "proof" that something IS, but only that it is a logical possibility (a little more qualitative) and additional research will determine the probabilities (a little more quantitative) likeliness of outcome (predicting the environment). 

There are four fundamental questions (different researchers might see the questions differently) we want to ask when trying to determine if one can create the basis of a chain of logic. I put them into a typical research format although this is more of a essay explanation (Disclaimer: In very formal research I might have lots of literature supporting each of the points in the logical chain and look to existing research to fill the gaps. Probability of something would require a creation of logic and the determination of probabilities through observation, manipulation of variables, and supported instruments. That would take a long long time!😾 So think of this as a "thought" experiment or a type of investigation of pure reason.): 

R1: Does attracting corporate headquarters improve on economic investment?

R1-1 Large manufacturers and non-manufacturing firms are more likely to invest in R&D activities. The large manufacturers have a stake in the research to develop new products. Small non-manufacturing firms are also investing in R&D. Small firms in design & engineering, technology, and small manufacturers might be interested R&D pooled investment opportunities. See Firms R&D. Digital Era Infrastructure Draw

R2: Does lowering (maintaining low) headquarters tax attract business to the U.S.? 

R2-1 HQ can be attracted and retained through 1. better clustered communications and knowledge exchange, 2.) focused capital, resources, talent spill over, and shared services, and 3.) lower costs and higher legal and regulatory environment (Baaij, et. al 2015). See Attract MNC Innovate  Tax Environ and 15% Global Tax Floor

R3: Will supply chains be inclined to follow parent company headquarters?

(One might consider a couple of sub questions for each such as R2-1, "Under what circumstance will suppliers follow headquarters?", "Are there employee size differences?" "Which industries are most attracted?", "What is the expected return rate to companies/governments from infrastructure improvements?", etc... R2-2 to100)

R4: Are businesses willing to pay (direct and indirect) for national infrastructure?

Because I would like to devote a little time to each of the questions mulling the possibilities I think it would be best to give each its own article to minimize confusion. None of them will be in great depth but just a connection point. Each question would have to be supported through additional significant research (That isn't the goal today!😢).  "Connecting" them through some basic research studies might show at least a possibility of a relationship for future exploration. At some point one might move beyond this essay discussion down the chain of logic to extrapolate a larger conclusion. 

This is part of a larger research that explores the possibility of using academic, labor, and creative capital within global-export oriented clustered environments to create rapid industry expansion and economic growth/prosperity potential. You can see the unfinished Theory of Transactional Clusters and Perpetual Sustainable Development. They look like they are different but one is the pathway to understanding the practical utility of the other.

April 17th Unemployment Rate Improves to 547K Claims

Unemployment is one marker that lets us understand whether employers are hiring and there is a level of  motivation to return back to work (i.e. those that are counted and actively looking for jobs). When the unemployment rate drops there will be some increased pressure on wages and thus companies will look for ways to save money (We are not yet there in these numbers). When production costs are high is when we experience outsourcing to China and other "emerging" economies. We may consider adjusting our processes to consider the possibility of our neighbors to the south (i.e. MX) to fill some of that low cost transition gap. 

As a general supply and demand mechanic, when unemployment rates are high then wages would not feel upward pressure because of oversupply. Even when unemployment rates go down to historical levels it doesn't influence wages 1-1 because companies are relieving wage pressure by moving overseas where cheaper labor rates and low cost manufacturing strategies don't require adaptation. Companies borrowed technology instead of going through the painstaking process of creating it.).  

When companies outsource overseas it forces the American worker to compete against cheap wages and borrowed American/international technology that didn't need the capital investment for innovation (In other words, American companies should be careful of corporate espionage and better to create innovation partners with those who can use that technology for fast adaptation in their industries thereby outpacing the value of low cost outsourcing and copying strategies. There are some additional long term benefits to those organizations sharing invention prospects as it helps create economic synergy and long term values for companies and governments).

When labor supply shrinks from an improving economy wages will generally rise (assuming we stop the outsourcing leakage). As unemployment claims decrease and pressure is put on labor supply companies will adjust by hiring from overseas, training, or implementing technology to offset costs. While technology is often seen as something negative to labor it doesn't have to be if technology and a booming economy raises productivity value of skilled labor through wearable tech. enhancements (....versus pure automation independent of human intervention and/or low option opportunities. There are also some benefits to using enhanced human labor because the randomness of mistakes and variability in highly skilled empowered labor can create additional innovation sources that isn't possible when innovation is controlled by the top through pure automation). 

I'm not an economist by trade..just more of a generalist so its just a few ideas to ponder. 👃👂

-Jobless claims 547,000 vs. 603,000 estimate
-8.32% Possible Q1 2021 GDP
-You may want to look at comparisons from the BLS between March 2020 to March 2021 HERE.
-If you click the Char tab you can pull a comparison for each state. For example, in Michigan we had a 3.7 to 5.% which is a 1.4% increase since March of last year.
-You can read the Department of Labor press release HERE.

I kind of thought of an idea to sponsor some orphanages overseas to help Mexico deal with a humanitarian crisis. Thinking along the lines of adjusting our foreign policy monies to help the most vulnerable through improved support, education, and opportunities at U.S./International companies that consider relocating parts of their operations through U.S. leadership. A peace dove of sorts that could create greater will and economic coordination between U.S., CAN and MX. 

NASA's Perseverance Rover MOXIE Makes Oxygen on Mars

We are in the beginning of digital transformation into the Information Age where micro robots and advanced manufacturing lead to new types of technology that will soon become part of our daily lives (i.e. toasters and television). What was seen only in science fiction comic books a few decades ago is now reality. Creating oxygen on planets (solid oxide electrolysis) not only opens these planets to experimental stations that host human inhabitants but also additional research into biomechatronic that can lead to mining new substances off of interplanetary stations (new rare metals that lead to emergent technologies). Managing rapid innovation will require adjustments in economic policies that lead to enhanced development of new technologies (i.e. development of entrepreneurial clusters) to reach those goals. The normal process of information transference and innovation (adaptation) across geographically dispersed regions within multiple industries may not function well when we need to bump multiple associated industries into uncharted territory quickly (space, military, advanced manufacturing, distribution, mining/metals, etc..). Because of the huge unknown potentials there may be first in market advantages to nations/companies that can get up there and create new discoveries. 🤷Working on a transactional cluster theory of industry innovation which will hopefully help better understanding how to infuse R&D and entrepreneurial/intellectual capital into a specific locations to create faster paced developmental/innovative system that leads to advanced prototype/small batch production products HERE that can be considered for larger scale production national/internationally. Its not finished so don't judge too harshly because there is some gap filling and rewrites needed 😬

Policing Laws Need to Change

I'm reading an article that discusses the rare conviction of officers when something like murder has been committed. You can read about Njeri Rutledge's article entitled The entire country needed a guilty verdict in Chauvin case. But laws still need to change. The article has some great points and prompts our national leadership to think long and hard about what immunity from criminal behavior means in law enforcement (not to mention how this might turn out a few years, or a decade, later if a couple more recorded and publicized issues occur). 

Let me say I am 100% for law enforcement and 100% for reform. I know their value to society and the community. Most departments focus on what is right and love to help others. Reform is about raising that value of the profession by increasing trust and integrity of the institution so that it better ensures its effectiveness and capacity to recruit from a wider base of talent. 

Laws are subjective by nature and how they are applied often determines their forthrightness to the people that live by them. Enforcing the law with those who enforce it, is highly important for integrity and validity. To fix this problem might require some changes in policing and prosecution practices. More regulations are unlikely to improve the situation until we install ethics in all behaviors and cultural artifacts (psychological and physical) of the field (A couple of recommendations in Oaths and Ethics).

I've met so many awesome officers that are willing to do the right thing. They are forced to make split second decisions over dangerous situations on a regular basis (mistakes will happen). The vast majority would only shoot in the worst situations where they feel themselves or someone else is under threat. Trigger happy sadists should not be on this force; or any other force where lethal capacity exists. 

I'm not talking about those who make natural mistakes in the course of their dangerous jobs. For them training and new non lethal weapons might be useful (We might want to develop a line for use domestically and/or internationally in peace keeping missions. I wonder if clustering businesses to tackle this issue might be helpful? 🤔). Who I'm talking about are those who never had the right personality for policing in the first place and are well known to lack integrity or good judgement.

This is something I've experienced in real life and in real time action. The involved officer wasn't making a mistake, they knew what they were doing, and were reinforcing their fundamental beliefs/identity within their social network. That social network also has a history of bullying others and contains within it the propensity for hate based behaviors and coordinated intimidation. It just took the right self-consumed personality to light and then throw the match.

That officer is already forgiven because I understand the difficulty of their background (Broken home, low self-esteem displayed as arrogance, the need to feel better than others, always putting others down, aggressive personalities when alcohol removes inhibitions, etc... all the signs of a pained soul. ). While mental health help for officers is important, we also must consider laws that ensure intentional violators of sound moral judgement are removed from the force to protect the public. We just have to decide what the essential purpose of policing is and move to adjust our policies to create a healthier organism in closer alignment with shared American values. There is no good reason why we don't remove bad officers and remove barriers for good officers (from an HR perspective). 

Changes by wiser minds that understand the bigger picture likely coming. You can read about Attorney General Merrick Garland launching investigation policing practices....HERE

The solutions are simple but changing the egos is hard! There should be no politics in this at all. 😢 There are no more blind eyes. 

Presidential Remarks on Verdict in George Floyd Case

Presidential discussion on the recent conviction and hopes for a more insightful and prosperous future for all Americans. The conviction helps us understand that there are times when justice can peek through the hazy fog of doubt. Divisive issues don't need to destroy us, but they can push us to change for the better. What we learn from this situation will say volumes about who we are as a people. 

Shooting at National Guard Not Acceptable Form of Protest

We are in difficult times and one can hope that peace is going to be the primary goal that holds each of us together. Most protestors want to find a way to a world where hate is no longer acceptable. They want reform and to put institutionalized racism into a challenge of the past so they can move on and live happy lives. The worst possible thing to happen, is to allow a few to turn a difficult situation into an impossible one (.....not to mention the long-term ramifications if this becomes common practice).  If people have legitimate concerns they should not let illegitimate agendas derail their voice (See Distorted Decision Making).

The National Guard is made up of our community members, our families, and our friends. Instead of shooting at them it might be wiser to wave "Hi", offer bottles of water, lay down flowers, and sign up to serve our communities in a meaningful and helpful way (A positive outlet for feelings of angst). The National Guard and Military were one of the first institutions to equalize racial disparity. Let us honor the sacrifices of our fallen warriors with love. I'm more than sure most of those soldiers are hoping and praying for peaceful resolution so they can go back to mowing laws, spending time with kids, and taking care of their domestic affairs. Peace has a purpose!

I encourage our leaders on both sides of the perspective to think long and hard about what values they hold and where we want to go as a nation before giving advice to others. See Critical Thinking and Critical Action

April 16th, 2021: Congressional News and Global Opportunities for the U.P.

The Upper Peninsula of Michigan has been ringing in Congress's ear as of late. With global shifts and emergence from COVID the U.P. and its strategic interests to the rest of the nation are becoming increasingly apparent. We are not just a land of beautiful shores and dancing celestial lights, but also a hardy people that can sharpen the pick axes of the past to pierce the global market of the present with ground breaking products and innovations. Keeping the 906 thriving will mean attracting and retaining international investment in emerging industries that are in line with global/national demand. Staying abreast of market changes sometimes leads to the opening of a window of opportunity where the right investment at the right time creates a butterfly effect throughout multiple industry lines leading to national transformation (see Schumpeter Entrepreneur and Digitized Productivity and Government Innovation Methods)

There are are important considerations of infrastructure,, international collaboration(....if we call Canada international. I grew up in the U.P. and Canadians were more like cousins who happened to like Curling. Mostly we see them on the holidays. 🤷), military & space stuff, COVID tax help and other activities like Plug In the U.P. (See Rural Advisory Committee). As plans formalize you will notice that further collaboration between North American countries is likely as manufacturing supply chains are drawn back home (Unless someone wants to make them longer? 🙉 Thinking U.S., CAN and MX). The U.P. once fueled our wars with raw materials, and may come to fuel the materials and technology needed tomorrow.

Reading below you will notice that the National Defense Authorization Act (NDAA) has been on the lips of our politicians. There are lot of interesting things going on in the U.P. as it relates to private and public investment in the aerospace, military, and logistical industries (Perhaps we can improve Great Lakes Shipping. See Shipping Infrastructure)(I have a few ideas on how to push the industry to grow and adapt faster than our competitors. See Start-up and Incumbent Firms Delta County and Military Innovation). The Act extends to include the Space Force that will rely on radical technologies not yet available on the market. 🤔🚀(As Buzz Lightyear and Woody in Toy Story say, "To Infinity... and Beyond!"...it means endless possibilities and even beyond that into the unknown.). If you are the explorer type that might sound kind of cool! 

You might also want to consider the needs of our U.P. workforce to learn new STEM skills and create other leading market capital. The U.P. may soon be a hot spot for great ideas (Hopefully, Delta County with under developed opportunities in engineering, logistics, metals/mining, manufacturing/testing, and micro-tourism industries....or variations thereof. See Creating New Innovative Industries). Matching local skill with Industry-University R&D can be a lucrative match (See Industry-University Research).

What happens in the U.P. could impact opportunities throughout the region and nation (See Regional Industry Cluster Detection) as we try to find footing to compete with China. Wouldn't it be great if we were able to rejuvenating our fighting spirit with the collective effort not seen since the Greatest Generation(See US-China Econ Platform)? Yes the tools have changed, skills have adjusted, and we are now in an global era (See Global Managers) but the ultimate mission of our nation hasn't changed at all!  The youngsters today might want to take note of a generation that overcame serious international challenges because it was the "right thing to do!" (The struggle continues on with the spirit of the past and the idealism of today's youth!👥)

The following was taken from Congress Bergman's Brief HERE. If you like to keep up for the news you can go on the site and subscribe. I encourage people to stay as informed as possible. Keeping up with the news can help businesses find new investment opportunities. Industries that are recovering from COVID are seeking new locations for investment. That can't happen unless they understand opportunities and information that creates an investment rich environment (See Trade and Investing in Global Supply Chains).

Week in Review

This week in D.C. has been quite busy with meetings, votes, interviews, and roundtables. Often while in DC, each half hour is filled with “virtual” and in-person discussions on differing topics. Discussions this week ranged from infrastructure priorities with the International Brotherhood of Electrical Workers (IBEW), savings and money policy with students from Boyne Falls, economic partnership priorities with Ontario, defense priorities for the National Defense Authorization Act (NDAA), a VA Health Subcommittee meeting, legislative priorities with constituents, and a meeting with VA Secretary McDonough - just to outline a few. I love the opportunity to discuss the broad array of issues affecting the daily lives of those who call the First District home. This week I introduced an important piece of legislation in support of our First District workers. Recent COVID-19 relief legislation gave a $10,200 tax deduction to individuals who lost their job over the past year and claimed unemployment. I found it incredibly frustrating that no such tax break was given to Americans who continued to work through the pandemic - keeping our economy functioning and running. This legislation would provide the $10,200 tax exclusion to all Americans making less than $150,000 if passed into law. Our workers - from our grocers to our nurses - deserve this tax break after the year they’ve gone through. I hope you take a few minutes to read more about this bill below. I appreciate each of you and look forward to talking more. Respectfully, Jack Bergman Bergman Forms Rural Connectivity Advisory Committee Rep. Jack Bergman announced the formation of the Rural Connectivity Advisory Committee for Michigan’s First District. The Committee will serve as a forum where Rep. Bergman, internet service providers, local and tribal leaders, and stakeholder groups can share ideas, opportunities, and solutions in the fight to address the critical lack of connectivity in Northern Michigan and the Upper Peninsula. Some key goals of the Committee include: Identifying underlying issues behind the lack of connectivity in Michigan’s First District; Exploring actionable solutions to bridge the digital divide in Michigan’s rural communities; Seeking coordination among federal, state, local, tribal, and private partners; Informing members and constituents of ongoing efforts and available resources; and Hearing from relevant government officials involved in broadband programs. Read the full release here The U.S. Patent and Trademark Office Offers Presentation USPTO Midwest Regional Outreach Office will present to the Michigan UP community, an overview of intellectual property types. About this Event: Although this event is virtual, and open to anyone, it is specifically reaching out to the communities serviced by the Michigan Small Business Development Center (SBDC) at Michigan Technological University servicing the Upper Peninsula of Michigan. Regional Outreach Officer and Assistant Outreach Advisor will conduct a discussion will present a discussion that will cover: an overview of intellectual property types: patents, trademarks, copyrights, and trade secrets, why innovators and entrepreneurs should consider protecting their IP, and local resources and assistance available through the USPTO and other agencies. Register Online and ALSO CLICK HERE to register at USPTO to receive the webinar connection information. Michigan Teacher Announced as Space Foundation Teacher Liaison The new flight of Teacher Liaisons will be honored at the Teacher Liaison Virtual Workshop during Space Foundation’s upcoming 36th Space Symposium. In addition to the recognition activities, Teacher Liaisons will participate in a workshop featuring special guests and speakers. Read more here House Armed Services Committee On April 14th, Rep. Bergman attended a full committee briefing on “National Security Challenges and U.S. Military Activity in North and South America.”  Members heard testimony from the Department of Defense, U.S. Northern Command, and U.S. Southern Command officials.  Testimony covered topics including U.S. force postures in the regions, security challenges, partner capacity building and defense of the homeland.  During the briefing, Rep. Bergman questioned whether current assumptions about the threat to the homeland are correct and the preparedness of U.S. Northern Command to conduct operations in the homeland.   He also questioned which naval platforms should be considered for use in U.S. Southern Command. Follow Team Bergman on Social Media I want to stay connected with my constituents in the First District. Follow me on Facebook, Twitter, and Instagram to stay up to date on the latest events, news, and information

Sunset Cliffs Video San Diego

This video was taken over week ago and let me say it is one of the most beautiful places in California. I keep thinking I want to grab a friend, a safety float and snorkel the place with camera in hand. I'm not sure what the rules are when it comes to certain locations but its best to check local ordinances. These are beautiful places and we should protect them from pollution and damage so we don't hurt our fragile ecosystems. 

It should be remember that the less variability in the world's species there is an increased chance that we won't be able to adapt to problems (COVID or anything the future brings).

In the next decade or so I think we will get really smart about our world and will take more coordinated efforts to preserve (someday to enhance) the natural world we live in. I suspect we could design cities in a way that all of the run off gets recycled and/or cleaned before making it into "nature". 

Federal Reserve Governor Christopher Waller Discusses 2021 Economy

 Federal Reserve Governor Christopher J. Waller discusses 2021 economy in recent interview. A few short hand notes that seem to follow closely with Chairman Powell. You can read more about Mr. Waller HERE.

See below......

1. Ready to Rip!

2. Projection 8% GDP Growth Q2 

3. 6.5% GDP Growth for 2022. 

4. 2.5% inflation.

5. Surge in opening of economy and then back to fundamentals. 

6. Making up for lost ground. 

7. Still 8 million jobs lower than last year. 

8. No plans to remove support anytime soon. 

China GDP Flourishes 18.3% Q1 2021 -American Debate Action

China experienced 18.3% GDP growth in its Q1 2021 and it is expected it will maintain 8+/-% for the rest of the year based on global goods demand. While the market is heating up and will be renegotiating production contracts that impact global supply chains, the U.S. isn't yet ready to fully engage the global market. Political stagnation and party line economics have taken precedence. I wonder if we will get the same opportunity again reorient our manufacturing supply chains back North American (U.S, MX, CAN) and our global trading partners?🤔(See Time and Choice Economics) At this juncture American politicians probably should avoid the inefficiency of squabbling and focus on quickly settling those things they agree upon and in turn place to the side those that are not so important. (See Negotiation and Org. Health) Greasing the wheels with small agreements can lead to bigger agreements if people are capable of compromise (Compromise as a Value). Decisions are not made in a vacuum and impact employment, families, and the opportunities of our children.

You can read more on the National Bureau of Statistics of China HERE.