Dr. Stone peered through the small, hazy window between his heavy eyelids. For a moment he had the decision to return to his dream world, but the sight in front of him prevented it. He considered the possibility he was still sleeping and widened his eyes with awe and disbelief. This is what he had come for, it was a moment he had anticipated for over twenty years. The giant blue globe shined brightly in front of him, occupying his full field of vision. The detail at this distance was astounding. The continents were smaller than Earth's and obfuscated with white billowy clouds. He could see the mountain ranges and rivers he had studied in as a child. He knew within days his life would begin again. He had made actually made it.
He raised his hand with great difficulty and noticed unfamiliar wrinkles. His last memory was sealing himself into the hyperbaric chamber as scientists observed him in wonder - as if his insanity was complete. It was the first and only time he had second thoughts. Apparently, that moment now rests in history as he notices the monitor in front of him. "November 6, 2049." He is now 50 years old biologically, although the relativistic effects of his voyage have pushed him well beyond that. He ponders his hibernation, which has a sobering effect on his arrival. He reminisces little before the fire ignites in his soul as it has for all of his short adult life. "How could have it come to this?" he wonders. He could make the journey, but others would not. He left many loved ones behind.
Like many of the time, his youth was spent in blissful ignorance. The deception was silent and took control over many generations - far too gradual for anyone to notice. Looking back it was almost impossible to blame them. People were busy with their jobs and families. Few had the time and inclination to investigate, and those who did weren't taken seriously. The thought that there could be sinister wheels turning behind the scenes was seen as ludicrous, and even dangerous. It was a world too complex for anyone to comprehend, and could easily baffle even the most intelligent. It was an open door. In fact, complacency was so prevalent any mention of an impending economic disaster or state corruption was dismissed. In these conditions the unsavory remnants of former kingdoms was free to conduct business unlike ever before - beneath the shroud of plasma televisions, hybrid cars and iPhones.
When the depression struck Dr. Stone was one of the first to feel the effects. He had just finished his doctoral defense at the Stockholm School of Economics and planned to move to London with his wife in search of employment opportunities like many of their contemporaries. It was hard for some to imagine why so many students of economics moved out of Sweden so quickly. Unfortunately Dr. Stone was still in the country when all passports were suddenly suspended and the borders closed. Sweden, the country that was once to be the socialist model for all countries, had buckled under its own weight. With more demand from its people than productivity, the state was finally forced to blame someone, and finally crumbled to a totalitarian oligarchy. Its National Guard crushed all resistance with stunning precision. The Swedish population found themselves refugees in their own country.
Dr. Stone and his wife Maud barely escaped to the United States in a friend's sailboat, bewildered and angry. As the world's last superpower, they decided the US would offer them the most protection from the global economic depression. They were mistaken. Upon arrival in New York, the Stone's were greeted with mayhem. The fall of the Federal Reserve had reduced the value of the dollar to $0. Individuals were walking the streets trading jewelry for food. All production and business had long ground to a halt and rioting was a common sight. They wondered if there was a refuge left on earth where their talents were of any use.
There wasn't. The Stone's only escape was the 20 year journey to the smallest moon on 55 Cancri's fifth planet, the only known habitable place in the universe other than earth. It was a cold place with strange wildlife and little wealth. But it had a radical new kind of society, one based on individual liberty and human rights - well, new to anyone currently living.
Dr. Stone marveled at the new world and anticipated great things. His life would perhaps be somewhat more difficult that on Earth, but the rewards would have no equal.
Tuesday, November 6, 2007
Monday, November 5, 2007
Remember Remember the 5th of November
Remember, remember the fifth of November,Happy Guy Fawkes Day!
The gunpowder, treason and plot,
I know of no reason
Why gunpowder treason
Should ever be forgot.
Saturday, November 3, 2007
More vacation for eveyone, Yay!
Okay, in an earlier blog I explained why all us overworked and underpaid grunts who actually keep the world turning can't just all agree to tell the government to force our employers to kiss our asses and give us, say, 12 weeks of vacation a year. While it might seem to work right away, we would actually suffer from either a proportional amount of lower pay, having to work faster, or simply breaking the law and working more than the regulations specify (or all of these). Most importantly, we would be throwing many folks at the lowest end of the pay scale out on the streets, or more likely, on the dole paid for from increased taxes on our deflated salary. Yuk!
So, if we can't all bump up our vacation time by compelling, through state/federal regulation, our employers to change their benefits package, how do we do it? How do we all spend more time kayaking in Belize or hiking the Rockies while not working our fingers to the bone, living on less, becoming criminals, and disregarding the working poor? It can be done. But let's take a closer look at the animal so we know what we're up against.
We might ask someone: "So, what kind of vacation benefits does your company offer?" But that's only one interpretation, and one favorable to the employer. By becoming an employee are we really giving away every day of our lives to our employer? That seems to be the assumption. After all, an employer can't offer anything it doesn't already have. You should be asking: "So, how many lovely days in the sun has your employer contracted out of your precious life annually?" According to Wikipedia, that's 242 give or take a few days. That's 10 days plus 8 holidays and weekends. And, in most cases, employees really don't get much freedom to choose which days they prefer to work and which days they prefer to not work.
Paid Vacation. Is it really? Absolutely not! Your employer knows the least number of days you will be working and offers/adjusts your pay accordingly. A salaried position with three weeks of vacation pays less than the same position with one week vacation (considering equal obligations). Since all workers expect vacation time, employers must offer it to be competitive and attract talent, and the result is that everyone's salary is lower than it otherwise would be. So, while you may technically get paid for days you are scuba diving in the tropics, you have actually already been penalized for those days with a lower salary. So ENJOY IT!
Employers don't own our lives, just our work. We exchange our valuable time and hard work for pay, and that pay is ours to distribute as we see fit (or on our slightest whim). Vacation/time off is a reward we earn and any restriction on that reward by our employer should be seen as a benefit WE offer THEM. After all, if we are committing 242 days to our employer, the least we should get is straight talk and an ability to take days off when we see fit. Today, since workers generally volunteer their whole lives to their employer's, the specific days requested for vacation might not be "approved." (After all, this is "paid vacation" - how gracious they offer it at all). Isn't submitting this veto power a valuable thing in itself?
We'd all be a whole lot better off if we demanded to be compensated according to shorter contracts and by merit rather than by signing our lives away to be dictated at the digression of our managers; pay well for work and leave the rest up to the workers. Yes, the full solution depends in part on each worker demanding terms he/she regards as fair - it's a vital piece of the puzzle. But, even if workers across the land suddenly adopted this brand of thinking, they aren't all necessarily good at negotiating. They are good at flipping burgers, coding software, driving zambonis or grading papers, not haggling with business types. So, how do we save us from ourselves without asking the state to do it? Unions? No way! (They've got a track record of screwing workers). IMHO, you can really only do it by placing employers in a position that allows them to realistically meet a demand for more vacation from their employees. You can probably see where this is going - please bear with me.
The income tax accounts for approximately one third of federal revenue. Eliminating one-third of the proposed 2007 budget would leave federal spending at 1.8 trillion - a sum greater than the budget in the year 2000. All we need to do is cut federal spending back to 2000 levels and we can ALL GO ON VACATION FOR AN EXTRA COUPLE MONTHS EACH YEAR!
Things we could do to cut federal spending:
Basically we need to reassess the role of government and reconsider what is necessary and what isn't. I've asked many people if they can think of one thing from the federal government they depend on. It's usually nothing - roads are (mostly) from gas taxes, education is from (mostly) state taxes, snow plows are city. But if we did depend of the federal government, that would be an even bigger problem. Like I said, military is good, but not for inciting hatred around the world! Many feel less safe now than before the whole Iraq ordeal.
Whatever we are getting from the federal government, think about how it compares to everything else that constitutes your standard of living. Then, write out a check for 15% of your annual salary and take a look at it. What are you buying with this check? What could you do with it instead of sending it into the federal government? That would be life after the death of the Income Tax plain and simple.
Okay, I think I'm done for now and am relieved to remove myself from this soap box. This is obviously an inadequate summary for such drastic measures, but big problems require big solutions. Most importantly, when things get too complicated, everyone is afraid to change them because they don't understand them well enough. It always seems easier to just throw more money at a problem and hope it goes away. Unless there is a broad understanding of our perilous economic condition I'm afraid it will spiral out of control into something other than a "soft" landing. That will mean much less vacation for everyone.
So, if we can't all bump up our vacation time by compelling, through state/federal regulation, our employers to change their benefits package, how do we do it? How do we all spend more time kayaking in Belize or hiking the Rockies while not working our fingers to the bone, living on less, becoming criminals, and disregarding the working poor? It can be done. But let's take a closer look at the animal so we know what we're up against.
We might ask someone: "So, what kind of vacation benefits does your company offer?" But that's only one interpretation, and one favorable to the employer. By becoming an employee are we really giving away every day of our lives to our employer? That seems to be the assumption. After all, an employer can't offer anything it doesn't already have. You should be asking: "So, how many lovely days in the sun has your employer contracted out of your precious life annually?" According to Wikipedia, that's 242 give or take a few days. That's 10 days plus 8 holidays and weekends. And, in most cases, employees really don't get much freedom to choose which days they prefer to work and which days they prefer to not work.
Paid Vacation. Is it really? Absolutely not! Your employer knows the least number of days you will be working and offers/adjusts your pay accordingly. A salaried position with three weeks of vacation pays less than the same position with one week vacation (considering equal obligations). Since all workers expect vacation time, employers must offer it to be competitive and attract talent, and the result is that everyone's salary is lower than it otherwise would be. So, while you may technically get paid for days you are scuba diving in the tropics, you have actually already been penalized for those days with a lower salary. So ENJOY IT!
Employers don't own our lives, just our work. We exchange our valuable time and hard work for pay, and that pay is ours to distribute as we see fit (or on our slightest whim). Vacation/time off is a reward we earn and any restriction on that reward by our employer should be seen as a benefit WE offer THEM. After all, if we are committing 242 days to our employer, the least we should get is straight talk and an ability to take days off when we see fit. Today, since workers generally volunteer their whole lives to their employer's, the specific days requested for vacation might not be "approved." (After all, this is "paid vacation" - how gracious they offer it at all). Isn't submitting this veto power a valuable thing in itself?
We'd all be a whole lot better off if we demanded to be compensated according to shorter contracts and by merit rather than by signing our lives away to be dictated at the digression of our managers; pay well for work and leave the rest up to the workers. Yes, the full solution depends in part on each worker demanding terms he/she regards as fair - it's a vital piece of the puzzle. But, even if workers across the land suddenly adopted this brand of thinking, they aren't all necessarily good at negotiating. They are good at flipping burgers, coding software, driving zambonis or grading papers, not haggling with business types. So, how do we save us from ourselves without asking the state to do it? Unions? No way! (They've got a track record of screwing workers). IMHO, you can really only do it by placing employers in a position that allows them to realistically meet a demand for more vacation from their employees. You can probably see where this is going - please bear with me.
- In the United States, the federal corporate tax rate is 35%. (35% of profits go to the government). Of course, a corporation is just a piece of paper. This 35% burden is shared by real people; consumers in higher prices, the shareholders in lower stock prices, and, yes, employees in lower wages. To be safe, let's say, without this tax, demand for workers would force corporations to increase pay an average of 10%. (This doesn't account for the lower competition in labor. Here's a short explanation).
- Federal Income Tax. A married couple earning, say, $70,000 combined pays 10% on the first $15,101 ($1,510), 15% of the next $46,199 ($6,929.85), and 25% on the remaining $8,700 ($2,175). Thats a total of $10,614.85. That's about 15% overall.
- State Income Tax. 7.85% for the same 70,000. That's $5,495.
The income tax accounts for approximately one third of federal revenue. Eliminating one-third of the proposed 2007 budget would leave federal spending at 1.8 trillion - a sum greater than the budget in the year 2000. All we need to do is cut federal spending back to 2000 levels and we can ALL GO ON VACATION FOR AN EXTRA COUPLE MONTHS EACH YEAR!
Things we could do to cut federal spending:
- Withdraw our troops from Iraq and around the world. Huge savings here.
- Eliminate the IRS (a side effect of eliminating the income tax). Billions spent in enforcing and accounting could be saved (not to mention the savings corporations would see not having to pay lawyers to find tax shelters).
- Close the Federal Reserve - we didn't need it before 1913 and we certainly can't live with it now.
- Return the responsibility of education to the states. Eliminate the Department of Education.
- Eliminate the Department of Homeland Security. We don't need it. Our military rocks.
- Eliminate the Transportation Safety Administration.
- Eliminate the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Basically we need to reassess the role of government and reconsider what is necessary and what isn't. I've asked many people if they can think of one thing from the federal government they depend on. It's usually nothing - roads are (mostly) from gas taxes, education is from (mostly) state taxes, snow plows are city. But if we did depend of the federal government, that would be an even bigger problem. Like I said, military is good, but not for inciting hatred around the world! Many feel less safe now than before the whole Iraq ordeal.
Whatever we are getting from the federal government, think about how it compares to everything else that constitutes your standard of living. Then, write out a check for 15% of your annual salary and take a look at it. What are you buying with this check? What could you do with it instead of sending it into the federal government? That would be life after the death of the Income Tax plain and simple.
Okay, I think I'm done for now and am relieved to remove myself from this soap box. This is obviously an inadequate summary for such drastic measures, but big problems require big solutions. Most importantly, when things get too complicated, everyone is afraid to change them because they don't understand them well enough. It always seems easier to just throw more money at a problem and hope it goes away. Unless there is a broad understanding of our perilous economic condition I'm afraid it will spiral out of control into something other than a "soft" landing. That will mean much less vacation for everyone.
"If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." -Thomas Jefferson
Friday, November 2, 2007
Today's quote: The advantage of truth
Men are not more zealous for truth than they often are for error, and a sufficient application of legal or even of social penalties will generally succeed in stopping the propagation of either. The real advantage which truth has, consists in this, that when an opinion is true, it may be extinguished once, twice, or many times, but in the course of ages there will generally be found persons to rediscover it, until some one of its reappearances falls on a time when from favorable circumstances it escapes persecution until it has made such head as to withstand all subsequent attempts to suppress it. -John Stuart MillOkay, but what if it's never rediscovered?
Thursday, November 1, 2007
Cradle 2 Grave Inc.
Betsy was in the delivery room holding her newborn. "Hi Phillip" she said as he learned to take his first breaths. Phillip's father, Greg, knelt beside the bed admiring in wonder and awe his first born child. There was a sense of relief and jubilation in the room, as if all their troubles had dissolved into baby bliss.
The obstetrician had informed us of the post natal procedure so we were prepared as the crew arrived. They entered the room dressed in what looked like beekeeping suits. One carefully reached for the infant. "Thanks you ma'am" he said as the little one changed hands. They transplanted Phillip to a table on the other side of the room. "I'm sorry," the masked man said, "you'll have to leave the room now." The father rose and began pushing Betsy's cart across the room as the crying resumed. "Oh, can't we stay?" asked Betsy. Our large yellow escort shook his head and began to close the door. "Sorry ma'am, parents not allowed, Cradle 2 Grave company policy - you're parents did the exact same thing when you were born." "Yes, I know said, but...". The door slammed shut.
Besty's mother had told her of this ritual, and knew it was just a standard policy of the company. All its procedures are rooted in tradition and seldom altered. The baby would remain in the laboratory for up to one week while the specialists did their work. After that, the diet would be delivered to the mother based on the lab results - the most healthy diet based on the unique biology of the child of course. Every client follows their diet and every procedure dictated by the company. Not doing so would be risking severe consequences. The company is rather strict. There are few violations.
Cradle to Grave Inc. (C2G) is the worlds largest corporation with a client base of five billion people. Obviously, serving half he worlds population makes it somewhat of a monopoly, but that word doesn't have the negative stigma it once had. After all, C2G employs 5 billion as well. Betsy and Greg work for C2G, so they thank it for pretty much everything they have, as do all clients. After all, its life services include virtually every possible human want.
Right now Betsy and Greg are on the "Bronze" plan along with all their friends and family. It covers all food, housing and entertainment for one monthly fee. Of course, now with child care, that monthly fee will be quite high - about the same as their monthly income. But, there really isn't much of a choice. Children of clients are automatically enrolled. Anyway, they work for C2G, so they enjoy a very nice benefits package.
Employees of C2G get 6 months of paid vacation a year. Then, with a 3 day work week, they hardly even think about work. They spend much of their time in the alps hiking. There is a large reservation specifically allocated for such activities of about 15 square miles. Rock climbing is also available. A U train stops right in the middle. (The underground transportation system is second to none). The Bronze plan is billed as the "freedom" plan, so it's designed specifically for an active lifestyle. Bronze members are allowed to join one rock band, and are provided any instrument they want. There is a warehouse to choose from. Popular bands can even get additional credits for performances if other C2G members want to use their credits to watch the performance. Most performances are free and usually at least one band is playing in one of the five available C2G clubs.
C2G membership is life long provided you do not violate any of the regulations listed in the C2G code book. Violations are rare but strictly enforced. For example, Betsy's violation of the birth code could have resulted in an ejection. C2G has an obligation to keep its babies healthy and strong. After all, new clients are the cornerstone of any successful business. As a matter of fact, no one remembers life before C2G and no one could imagine life without it. It is the most important thing anyone has, so they make sure to take following its code very seriously.
But code violations were far from Betsy and Greg's thoughts now; they had a new life to look forward to (and after). They walked back to their spacious 600 sf apartment on the 250th floor and indulged in a night cap of grape juice. Now that she had delivered, in the morning they could login to their C2G consumer account and browse through a selection of Bronze plan baby furniture. They slept well.
The obstetrician had informed us of the post natal procedure so we were prepared as the crew arrived. They entered the room dressed in what looked like beekeeping suits. One carefully reached for the infant. "Thanks you ma'am" he said as the little one changed hands. They transplanted Phillip to a table on the other side of the room. "I'm sorry," the masked man said, "you'll have to leave the room now." The father rose and began pushing Betsy's cart across the room as the crying resumed. "Oh, can't we stay?" asked Betsy. Our large yellow escort shook his head and began to close the door. "Sorry ma'am, parents not allowed, Cradle 2 Grave company policy - you're parents did the exact same thing when you were born." "Yes, I know said, but...". The door slammed shut.
Besty's mother had told her of this ritual, and knew it was just a standard policy of the company. All its procedures are rooted in tradition and seldom altered. The baby would remain in the laboratory for up to one week while the specialists did their work. After that, the diet would be delivered to the mother based on the lab results - the most healthy diet based on the unique biology of the child of course. Every client follows their diet and every procedure dictated by the company. Not doing so would be risking severe consequences. The company is rather strict. There are few violations.
Cradle to Grave Inc. (C2G) is the worlds largest corporation with a client base of five billion people. Obviously, serving half he worlds population makes it somewhat of a monopoly, but that word doesn't have the negative stigma it once had. After all, C2G employs 5 billion as well. Betsy and Greg work for C2G, so they thank it for pretty much everything they have, as do all clients. After all, its life services include virtually every possible human want.
Right now Betsy and Greg are on the "Bronze" plan along with all their friends and family. It covers all food, housing and entertainment for one monthly fee. Of course, now with child care, that monthly fee will be quite high - about the same as their monthly income. But, there really isn't much of a choice. Children of clients are automatically enrolled. Anyway, they work for C2G, so they enjoy a very nice benefits package.
Employees of C2G get 6 months of paid vacation a year. Then, with a 3 day work week, they hardly even think about work. They spend much of their time in the alps hiking. There is a large reservation specifically allocated for such activities of about 15 square miles. Rock climbing is also available. A U train stops right in the middle. (The underground transportation system is second to none). The Bronze plan is billed as the "freedom" plan, so it's designed specifically for an active lifestyle. Bronze members are allowed to join one rock band, and are provided any instrument they want. There is a warehouse to choose from. Popular bands can even get additional credits for performances if other C2G members want to use their credits to watch the performance. Most performances are free and usually at least one band is playing in one of the five available C2G clubs.
C2G membership is life long provided you do not violate any of the regulations listed in the C2G code book. Violations are rare but strictly enforced. For example, Betsy's violation of the birth code could have resulted in an ejection. C2G has an obligation to keep its babies healthy and strong. After all, new clients are the cornerstone of any successful business. As a matter of fact, no one remembers life before C2G and no one could imagine life without it. It is the most important thing anyone has, so they make sure to take following its code very seriously.
But code violations were far from Betsy and Greg's thoughts now; they had a new life to look forward to (and after). They walked back to their spacious 600 sf apartment on the 250th floor and indulged in a night cap of grape juice. Now that she had delivered, in the morning they could login to their C2G consumer account and browse through a selection of Bronze plan baby furniture. They slept well.
Wednesday, October 31, 2007
Spooky Economics 101 (not voodoo!)
A socialist comrade and I have been discussing the need for more vacation among our overworked brethren. He insists a European style state-regulated system is required. I insist we increase vacation time more dramatically and without all the evil. Here's what I mean...(comments please!)
Securing more vacation time is too valuable to release to the black hole of governmental regulation. The consequence of such plans almost always has the opposite effect of what their well intentioned advocates expect. Passing a law such as this has the unavoidable consequence of lowering the amount of income that can be devoted to vacation days.
Oh, you don't mind trading income for vacation? OK, let's assume you only want to earn $1000 a year for food and take the rest as vacation.
Let's say your skills are worth (for easy math), $52,000 a year on the free market. You sign a contract to work for a company for one week. You plan to earn your $1000 and take the rest of the year off.
But wait, the government suddenly passes a law requiring 25 days of vacation per year - this is 10 more days than before. The company currently employs 100 other employees and now must hire approximately 3 additional employees to make up for the 1000 days of work being missed this year. Of course, the company needs to get the same amount of work done in order to pay its existing employees' raises etc. It simply adds 3% to its workforce.
Now, let's take the best case scenario and not include any costs of finding the new employees, providing medical insurance, or training. Let's say the additional three employees magically appear and pick up the required work perfectly. Since this is a national law, all companies need to do this.
Wait! the country doesn't have 3% more people - certainly not 3% more qualified people! Why didn't we think of that?! Oh no's.
The company now requires its workers to be 3% more productive, but they were already working at 100% productivity. The company loses revenue, and cut expenses. This is a technology company, so its workers are its primary expense. All employees get a wage reduction of 3%.
This 3% translates to a hidden tax lowering the amount the company can pay any new employee for any position. (This would be much higher considering training etc.)
Instead of $1000, you are only offered $970 for the same week's work. You are now required to work either 3% more productively or 3% longer than before the vacation law.
Now, in reality, this type of law simply increases the lowest common denominator for worker requirements. It now can only afford employees who are much more productive - especially considering the extra expenses (medical, training etc.). This is why the unemployment rate is about 10% in Europe compared to 4% in the US. More unemployment means higher corporate taxes to afford the expanding welfare state. Higher corporate taxes means less money for payroll = less money for vacation and even higher productivity requirements to keep the company competitive - which is a losing battle.
As much as they try, these workers will not be able to make up for the difference and will end up working during vacation being paid under the table (breaking the law) to keep the company afloat while perfectly able workers beneath the government manufactured productivity threshold are eliminated from the workforce and destined to ride the wave of the welfare state.
Now, if any of the above makes sense, I can also tell you how we could just as easily increase worker income about 30% (which would translate to 30% more vacation without any sacrifice to standard of living) while lowering unemployment and increasing productivity. I'll save this for another blog.
Securing more vacation time is too valuable to release to the black hole of governmental regulation. The consequence of such plans almost always has the opposite effect of what their well intentioned advocates expect. Passing a law such as this has the unavoidable consequence of lowering the amount of income that can be devoted to vacation days.
Oh, you don't mind trading income for vacation? OK, let's assume you only want to earn $1000 a year for food and take the rest as vacation.
Let's say your skills are worth (for easy math), $52,000 a year on the free market. You sign a contract to work for a company for one week. You plan to earn your $1000 and take the rest of the year off.
But wait, the government suddenly passes a law requiring 25 days of vacation per year - this is 10 more days than before. The company currently employs 100 other employees and now must hire approximately 3 additional employees to make up for the 1000 days of work being missed this year. Of course, the company needs to get the same amount of work done in order to pay its existing employees' raises etc. It simply adds 3% to its workforce.
Now, let's take the best case scenario and not include any costs of finding the new employees, providing medical insurance, or training. Let's say the additional three employees magically appear and pick up the required work perfectly. Since this is a national law, all companies need to do this.
Wait! the country doesn't have 3% more people - certainly not 3% more qualified people! Why didn't we think of that?! Oh no's.
The company now requires its workers to be 3% more productive, but they were already working at 100% productivity. The company loses revenue, and cut expenses. This is a technology company, so its workers are its primary expense. All employees get a wage reduction of 3%.
This 3% translates to a hidden tax lowering the amount the company can pay any new employee for any position. (This would be much higher considering training etc.)
Instead of $1000, you are only offered $970 for the same week's work. You are now required to work either 3% more productively or 3% longer than before the vacation law.
Now, in reality, this type of law simply increases the lowest common denominator for worker requirements. It now can only afford employees who are much more productive - especially considering the extra expenses (medical, training etc.). This is why the unemployment rate is about 10% in Europe compared to 4% in the US. More unemployment means higher corporate taxes to afford the expanding welfare state. Higher corporate taxes means less money for payroll = less money for vacation and even higher productivity requirements to keep the company competitive - which is a losing battle.
As much as they try, these workers will not be able to make up for the difference and will end up working during vacation being paid under the table (breaking the law) to keep the company afloat while perfectly able workers beneath the government manufactured productivity threshold are eliminated from the workforce and destined to ride the wave of the welfare state.
Now, if any of the above makes sense, I can also tell you how we could just as easily increase worker income about 30% (which would translate to 30% more vacation without any sacrifice to standard of living) while lowering unemployment and increasing productivity. I'll save this for another blog.
Tuesday, October 30, 2007
Smoke on the horizon
The bright light seemed to advance and he focussed on it calmly. It was like a tunnel drawing him in, only partially aware of the silhouettes in the periphery. It was the opposite of fear; wonder, strength, lucidity. This meditation brought him supreme comfort. Creativity flowed through his being as the dark figures' lips recited in unison. Through the hazy looking glass they bobbed like buoys under a brilliant moon, silent and graceful. Peace could be attained in this place, and nowhere else it seemed. "How did we get here," he asks himself. The distractions are few and welcome. "Hmm, front row - she looks like a Mary and is quite possibly the Antichrist." Here he exercises his petty thought crimes with impunity and encouragement as the magic fingers pluck in an order they had before.
His purpose is no longer in question, at least for the next hour, and he remembers the last time he sat down with himself to have a similar dialog. It was last night in a place far away but exactly the same; his clandestine solitude behind an army of millions. In such moments, unencumbered by rationality, he entered his universal thought window; an unexplainable unified consciousness of some kind. This number somehow evoked such irresistible nonsense. He imagines his next poem and lets an open chord fade into surreal silence.
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