Monday, June 29, 2020
Do you manage a chain of supermarkets or other retail establishment that offers buy one get one free?
Are you losing $1,000,000 a year or more due to a pricing or accounting mistake?
As a consumer, I love what you're doing
If I were on the board, you'd be out of a job
I don't do forensic accounting or financial analysis & consulting.
Especially where my grocery store receipt is concerned.
However, in a moment of whimsy,
I looked closely at my grocery receipt one day.
This is what I saw.
Your price.............................. $7.00
Discount 50% ..............5.00
Your price.............................. $5.00
Total Cost............................ $12.00
You exceeded customer expectations &
Cost yourself considerable revenue.
The result will be ill considered attempts to
cut costs by cutting corners and failures in
This is what I should have seen.
London Broil........... $14.00
Your price.................................. FREE!
The smaller the price gap, the smaller the loss.
The greater the price gap, the greater the loss.
You work with a 1 to 1.5% profit margin.
How do you intend to cover your loss?
P.S. If you find anything here to be helpful,
please don't hesitate to send me a really tricked
out MacBook and to tuck a few dollars into the
envelope along with the thank you note. Slim.
Pen Argyl, PA 18072
Copyright © 2020 Robert Asken
All rights reserved.
Friday, March 20, 2020
EU VIRUS 19
While the Covid Virus 19 may have started in China and while it may have come from bats, the epidemic became a pandemic when EU officials fed the disease.
"Did you ever notice how some people, when confronted with a problem, will coagulate like white corpuscles, to defend the body against the medication intended to heal the illness."
The Quotations of Slim Fairview © 2020.
Ursula von der Leyen issued a bold statement recently. The politicians underestimated the severity of the epidemic. While this statement may exhibit the worst of politics, there are two overriding issues.
Politicians did not underestimate the severity of the epidemic. The politicians caused the severity of the
Using the word politicians is a transparent effort to hide EuroLeaders, read: Brussels, behind a smokescreen of all European leaders. Brussels owns the blame. Blame is not a game. Blame is not the name. Say responsibility.
President Trump took bold action early. People called the China travel ban racist. His actions were not racial. his actions were geographical. Proof of this came late. It came when the EU recently banned travel into the EU. Still, they did not formally ban travel within the EU.
Ursula von der Leyen, President of the European Union cited the World Health Organisation when she announced that such bans were or would not be effective. This, before shifting blame from Brussels to the politicians for underestimating the severity.
Then, in an effort to help The WHO save face, border control measures were put into place, surreptitiously, while Italy, the epicenter of the epidemic in Europe sequestered regions.
Paris shut down business activity, as did Italy and others.
Brussels is now a ghost town.
The WHO embraced what I call Merkelism. More on that later.
Then, in what I consider to be veiled capitulation to common sense, The WHO issued this health warning to Africa.
Prepare for the worst. Don't assume you won't get it. Assume you will get it. Prepare for the worst.
The mishandling of the epidemic by the WHO is one reason I suggested, among others listed in my PowerPoint Presentation, the Forming of an Emerging World Health Organisation. An EWHO.
And why I issued severe warnings about Africa doing business with Europe. I cited the mishandling of the European Economic Crisis by Brussels. Read: Germany.
For a decade, I inveighed against Merkelism with the celerity of a honey-badger.
Merkelism: an economic system based on the fear that someone, somewhere is earning a living. At the heart of the matter was German economic hegemony. And that played out when EuroUnion officials placed ideology over the lives of the Europeans. EuroCrats were more concerned about the concept of open borders in the Schengen area and enforcing policy, than they were about taking propter hoc action to save lives. They should have followed President Trump's lead. But that would contravene the foundations of Merkelism.
And we see that playing out in this country.
California is finally calling for shutdowns after health officials predicted that half the California population will become infected.
Florida kept beaches open for Spring Break to insure the infections spreads among the party hearty crowd before they returned home to spread the disease around their local communities. Profits over people.
Governor Cuomo of New York issued a blanket "No Shutdown Policy" despite The WHO updated warnings and advice on containing the disease. In other words, the shutdown will happen when it's too late to save lives. To Governor Cuomo's credit, he is taking pro-active action to protect the lives of people and clarified a remark to emphasise that his remark was not political.
Ursula von der Leyen criticised President Trump for the EuroTravel Ban days, or perhaps weeks, before the EU banned travel into the EU zone. This to save lives. A day late and a Euro short.
If you remember Austerity--the failed policy of Austerity--you will understand. When a group of youngsters majoring in Economics attempted to duplicate the numbers in the original paper, they were unable to do so. When they notified the author(s) of the paper, the reply was less than satisfactory.
However, austerity did justify German economic hegemony. It allowed German leaders to feed the German economic machine at the expense of satellite nations in Southern Europe.
Brussels fumbled. Ursula von der Leyen fumbled. Ms. von der Leyen should receive a yellow card.
Merkel should be shown the red card. And Brussels should put The WHO under investigation.
EU Virus 19
Copyright (c) 2020 Robert Asken
All rights reserved.
Pen Argyl, PA 18072
Aux Etas Unis.
Tuesday, February 25, 2020
Tuesday, October 22, 2019
If you can believe the Bloomberg Headline
Taxing the Rich to Fund Welfare
Is the Nobel Winner’s Growth Mantra
You will be enraged by the paradigm of keeping poor people shackled to poverty by keeping poor people shackled to poverty programmes as a pathway to closing the gap.
And I haven't any Nobel Aspirations. My outrage is a moral one, not a personal one.
And I don't know which is more repugnant.
The economic legerdemain or the linguistic legerdemain.
As the article reads I must focus on two points
1. Giving tax cuts to the rich to create jobs is a fantasy because the rich have massive funds available and they will only invest the money to make more money.
2. I never said anything about giving tax cuts to the rich to create jobs.
Years ago I emphasised this.
"Mr. Widget will not hire one additional widget maker until he has an order for one widget more than he can produce when operating at maximum capacity and optimal efficiency."
The Quotations of Slim Fairview © 2019
One of the few things Robert Reich ever said on the topic of economics that I believe makes any sense:
If you want to close the gap, you give tax cuts to the people who spend money.
This was adequately demonstrated by Henry Ford who doubled his employee's wages from $2.50 a day to $5.00
a day. And cut the work week to 40 hours.
In so doing, Henry Ford made it possible for his employees:
To buy a Ford
To buy a washing machine
To buy an ice box
To buy a radio
To buy a Sears Roebuck house. Some assembly required.
He, in effect, launched the middle class.
Needless to say, the African American community was left out. Racism, segregation, and discrimination were operating in full vigor. And still are.
Robert Reich is also the fellow who extolled the virtues of the 93% tax rate. He told of how well the country was doing. Peace, employment, factories humming away....
What Reich did not say about the 93% tax rate is another example of economic smoke and mirrors.
When the tax rate was 93%
A Black man earned half of a White man's wage.
Women were kept barefoot and pregnant.
Mexicans and Filipinos were picking lettuce and grape for pennies a day.
There was no EPA and those factories were polluting the environment.
We were rebuilding Europe after WWII.
The 93% tax rate is a celebration of
Throughout the Obama administration, we heard about creative, innovative, high-tech entrepreneurs.
Richard Nixon had a plan for promoting entrepreneurship within the African American community. Congress would not fund it.
Not too long ago, a Black civil rights leader said, "When White people die, they leave their homes to their children. This keeps the wealth in the family."
So, too, "When White people retire, they leave their businesses to their children. This keeps the wealth in the family."
A solution to closing the wealth gap is to close the income gap. Help the disenfranchised start their own businesses. Make profits. Grow their businesses, Buy their own homes, and, ultimately, keep the wealth in the family.
You can't leave Public Housing to your children.
Let's now focus on Slim's Paradigm:
Capital Investment + Economic Stimulus =
Economic Development + Growth
When people who spend money buy things
People who make things must make more things.
To make more things, they must hire more people.
They make more money.
At this juncture they can afford to pay hire wages. That or end up subject to competition, regulation, institutional investors dumping their stocks.
This is the paradigm established by Henry Ford.
When China elevated 700 million people from poverty to the middle class, China
Created a consumer class.
Created an investor class.
Gave the Chinese people a buy-in. A vested interest in the success of the Chinese Economy.
The alternative would be for big business to continue as it has with stagnant wages and ultimately triggering a backlash. Routinely at the polls.
However, before you worry, there is little evidence that Congress ever raised taxes on the rich. Or that they will.
The ruling party notwithstanding.
Conventional Wisdom: The Democrats don't want to tax the rich. They just want to blame it on the Republicans.
~ Slim Fairview
Well, how do we move from here?
If you want to close the gap you redistribute the money.
Henry Ford did not redistribute his wealth. He redistributed the money.
Wealth is what you have.
Money is what you make.
One idea, which needs some economic modelling, runs like this.
A corporation gives its employees an immediate $5. an hour raise. In exchange, the corporation takes a $10. write-down for labor costs.
The benefit to this is the multiplier effect.
The multiplier effect is NOT trickle down economics.
In the illustration on PowerPoint on SlideShare, I created such an illustration. Caveat: This has nothing to do with an $800. coat. The $800. coat represents all the small purchases of the middle class, the working class, the working poor, in a one month period to coincide with that $5. an hour raise.
(40 hours a week x $5. an hour = $200. x 4 weeks = $800.)
There are several other articles on the matter.
If you find anything here to be helpful, please don't hesitate to send me a really tricked out Mac Laptop and, in lieu of a Nobel Prize, tuck a few dollars as a gift into the envelope along with the thank you note. Slim
Pen Argyl, PA 18072
Copyright © 2019 Robert Asken
All rights reserved.