The Fiscal Cliff Crisis is a Process Management Problem
"The fiscal crisis is not an economics problem. It is not a political problem. It is not, as one pundit put it, a math problem. The Fiscal Cliff is a process management problem." Slim Fairview.
The Negotiation Procedure
The standard procedure for negotiations:
You express you opinion.
I express my opinion.
You give your facts.
I give my facts.
You offer your conclusions.
I offer my conclusions.
We resolve nothing.
My procedure.
You express your opinion.
I express your opinion.
You give your facts.
I give your facts.
You offer your conclusions.
I offer your conclusions.
Result. If I am wrong and you are right, I learn something. If you are wrong and I am right, you learn something.
The impediments:
- Who's to say what's right or wrong?
- We should be building bridges not walls.
- There is no right or wrong.
- We should try to find a win-win resolution.
Now to solve the problem.
This is reminiscent of a joke heard on Fareed Zakaria GPS with Fareed Zakaria.
"Two Soviet economists were talking about the economy. One was explaining his solution to the economic crisis. When he was finished, his colleague said, "Yes, it will work in practice, but it won't work in theory." Therein lies the problem on Capitol Hill.
I did prepare a Fiscal Crisis Solution Worksheet. You may want to review it.
The Republicans
The Republicans claim that closing loopholes will solve the problem. Hold their feet to the fire.
Slim Fairview's Four Rules of Communication:
- Precision
- Concision
- Enumerate
- Specify
Demand a bulleted list.
The list of loop-holes to close.
The number of dollars that the Government will receive as a result.
Close all the loop-holes for everyone earning more than one million dollars.
The Democrats
The Democrats demand tax increases. Okay, have them start producing numbers.
After we come up with the increased revenue figures from closing the loop-holes, we subtract that from the number of dollars we need. Then we start raising tax rates and calculate the number of dollars the Government will receive.
The top 0.5% How many dollars?
The top 1.0% How many dollars?
The top 1.5% How many dollars?
The top 2.0% How many dollars?
We add up the number of dollars that the government will receive.
Wealth
The Petersons own a home. Their only asset. If they sell their home and pay off their mortgage, they will have a net worth of $50,000.
The Andersons own a home. Their only asset. If they sell their home and pay off their mortgage, they will have net worth of One Million Dollars.
The Petersons earn $250,000 a year. Their taxes go up.
The Andersons earn $200,000 a year. Their taxes don't go up.
That is a problem. Fix it.
Spending
Demand that the Democrats produce a bulleted list of cuts and the number of spending dollars that will not be spent as a result of cuts. (Not as a result of programmes ending. Not as a result of paying bills later. I didn't just fall off the back of a turnip wagon.)
Provide that there will be no spending increases for 18 months. Except!
The Stimulus Money requested by The President.
I once pointed out that 800 Billion Dollars would employ 4 million people for 5 years at $40,000 per year. (Please check my math.) Those jobs never materialised. This time, a list of who receives money and how much they get!
The nice thing about this process is that it follows the spirit of the old Soviet joke.
A Soviet farmer is attempting to plow his field. He struggles behind a plow pulled by a mule. Off in the distance he sees his neighbor plowing his field. He easily follows his plow pulled by two mules. He looks up to heaven and prays: "God, I have one mule and I struggle to plow my field. My neighbor has two mules and plows his field easily. Please, God, kill one of my neighbor's mules."
The solution above will allow each party to feel that it has killed one of the other party's mules.
Regards,
Slim
Copyright © 2012 Slim Fairview
All rights reserved.
If you find anything herein to be helpful, please don't
hesitate to send me a really tricked-out lap top and to tuck more than a
few dollars into the envelope along with the thank-you note. Slim
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