Trush about American Wages

September 6th, 2008

I read this  http://taxprof.typepad.com/taxprof_blog/files/120TN0887.pdf
today.  It was written by David Cay Johnston, former tax reporter for The
New York Times.

The article basically says US wages for the 99 percentile has hardly increased (and in fact, real
wages of the lower earning US workers have in effect decrease from 2000 to 2007) and call for policy
that protect worker’s wages.

BUT… the sole reason of depressed wage level in the US and most of the west is that the West has been having it too goo for too long. In economic term, their super-wages will have to come down to the mean when more and more labour, who are getting more productive by the day, enter the market.  Unless western workers become more productive (e.g. 1 person can produce more than, say 10 people in China), then cannot realistically expect their wages to be 10 times more than China over medium term.

Those who are argue for higher wages (without higher productivity) often forget that while in isolation, it looks like it is good for the worker, in reality, it is unlikely to be so (unless of course he is the only person who get higher wages in the economy).  This is because at current wage level, he can get a McDonald burger for say £2.50.  If every McWorker get paid £10 per hour (vs around £5.50), the price of the burger will likely to double to £5.  That goes with all services that he/she use.

Also will a conssumer buys a American DVD player that cost 4 times as much as a China made DVD player that has the capabiltiy - extremely unlikely.

Higher wages without higher productivity means one thing - just look at GM (lots of benefit) - Bankruptcy. Of course, when the employer goes burst, the wages becomes ZERO.

Those who are still dreaming the American Dreaming (or UK/France/German dream) needs to wake up.  The super-normal wages occured because most Asian (and now Arabs, African, Eastern European) competitors were sleeping.

Coincidentally, HSBC Chairman stephen green said here

http://www.bloomberg.com/apps/news?pid=20601087&sid=a7_nACEQnBlQ&refer=home

Sept. 5 (Bloomberg) — HSBC Holdings Plc Chairman Stephen Green foresees financial markets shifting toward Asia as emerging markets grow faster than the rest of the world economy.

So..wake up & work and stop dreaming.

OFCOM / Receiver pay scheme in UK (vs current calling party pay)

September 3rd, 2008

http://www.ft.com/cms/s/0/5fc31674-794f-11dd-9d0c-000077b07658.html?nclick_check=1

Ofcom is keeping all channels open

Published: September 3 2008 03:00 | Last updated: September 3 2008 03:00

From Mr Stuart McIntosh.

Sir, You claim (“Ofcom mulls charge to receive calls”, August 29) that “mobile phone users may have to pay to receive calls, as they do in the US”. Mobile termination rates – the charges companies pay each other to connect calls – are currently set until 2011. Our consultation on the mobile sector examines what should happen to this form of regulation after this date. There are a number of options, ranging from keeping the rates as currently determined to scrapping them altogether. Given the nature of the current regime, it is right that we ask from first principles whether or not there is a better approach.

We are well aware that moving to a system that involved making users pay more to receive calls would be deeply unpopular. But we need to consider all options with our central aim to ensure that consumers get the best from their mobile services in the future.

Stuart McIntosh,
Competition Partner,
Ofcom


Another option would be to charge a setup fee of say 20p for calls into the Mobile network and then remove the per minute fee. This would prevent telemarketing spam calls while keeping the price of calls low.

But then of course we can kiss goodbye to all the free handsets and cheap PAYG phones.

Perhaps a better way OFCOM can do this is to allow the use of GSM Gateway to allow onnet calls to be routed efficienctly (carefully planned GSM Gateway does not damange the network) and let the market sort itself out.

At the end of the day, someone needs to pay and if there is no money to be made, there will be no mobile network…

State Funded Holiday

August 10th, 2008

http://www.timesonline.co.uk/tol/news/uk/article4493655.ece

“Ministers are also drawing up a scheme to pay for pensioners to take holidays in British resorts with relatives who look after them. The government would not only pay the hotel and travel bills of a pensioner but also provide a professional carer to accompany them.”

It is fine if this comes from Gordon’s or Darling’s pocket money. To spend tax payer’s money to send some one off to holiday is just plain madness.  (OK, they have the need, I too have other needs, and so are many other people).

Polly Toynbee and David Walker’s “Unjust Rewards”

August 5th, 2008

In the book, which an extract is given here

http://www.guardian.co.uk/money/2008/aug/04/workandcareers.executivesalaries

Polly questioned whether the bankers work 10 times as hard as a shop worker to deserve a 10 times salary.

But well… a we can see here

http://www.gmgplc.co.uk/Portals/7/GMGAR07.pdf

Guardian directors isn’t exactly being paid £30k per year for their service either.  A Labour prime minister of the UK commands a Salary of s £127,334 in addition to their salary of £60,277, plus lots of fringe benefits. He isn’t exactly working 10 times as hard as a shop worker, does he ?

Polly wants to sell her book for £12.99 each. That is porbably 1 month salary for an African who live on less than $1 a day. How can she and the publisher be rewarded many months salary of an African for just writing a book ? But then here you go.

In this globalised world, that is just how it is as the free market forces determined the correct level of reward - over the long run.  In the medium term, there will be people who are unjustly rewarded (Labout government who destroyed UK economy were no doubt richly rewarded with their salaries and pensions despite doing a crappy job), and those who are underewarded.  The complexities of these relationship is far too complex for a bureaucracy staffed by mere mortals to fully comprehend and direct. Therefore, it is best that these bureaucrats stay away from interferring, but rather to concentrate their effocts on law, order, education and creation of opportunities.

In the globalised world, a small advantage can translate into huge gains. In a university, a man who gets 1 mark short to obtain an honour degree do not just see 1% less opportinties opened to him, but a hell lot less.

Please concentrate your effort to help to bring everyone up (perhaps Guardian can create some cleaning job paying £100k pa ?) - i.e. teach, help them to do / earn more, rather than trying to get the banker to earn less !   Ultimately, we have to accept inequality and diversity - some people are just born better in some areas that happened to be in huge demand.  Some other specialise in areas that are hugely rewarding and make themself very happy, but less financially profitabable.

That is just how it is

They are not allowed to do that

August 1st, 2008

I recently involved in a complain case and then the Power to be told me that “they are not allowed to do that”. and then the power to be stopped there, offering no tangible remedy.

BUT, “they” already done it. Allowed or not, rules are being broken in the real world - through ignorant, arrogance or recklessness.  Often, many rules are prescribed in the UK with no remedy being offered or a proper path of actioned being prescribed. So, for the rogue guys, it is no deterrent whatsoever. In the real world, anything can happened and those “power to be” guys who sits in the office obviously do not live in the real world.

Sometimes back I was asking for VAT receipt from another company. The company said they don’t have to provide one (actually they do, but the junior staffs are just plainly ignorant of the fact).  I complained to HMRC and they told me that - they must give you one.  But well..if they don’t, then there is no remedy.

That is UK for us.

NHS Scandal - no parallel private treatment allowed

July 27th, 2008

http://www.timesonline.co.uk/tol/life_and_style/health/article4040146.ece

Reported that a patient who opted to use her saving to pay for private treatment was banned from continuing her free NHS treatment despite her full National Insurance contribu8tion. She subsequently died.

Also, in the NHS, a patient is not allowed to pay for additional drug and must accept what is on offered.

“Alan Johnson, the health secretary, claims that co-payment would create a two-tier NHS, with preferential treatment for patients who could afford the extra drugs. Last year he issued guidance to NHS trusts ordering them not to permit patients to pay for additional medicines.”

So, we are back to typical marxist-socialist ideology that if not everybody can have a car, then no one should be allowed to have one either (Except the top leadership perhaps).  It is a state says so central planning style governance that made so many suffer in the USSR era.

A reader commented that if he hires private tutor to help his kids, does that mean that he has to pay the full cost of the state education (because this would create a two tier schooling system)?

Such restriction / contract would no doubt be outlawed by the court if made in any other situation (e.g. if there is a standard contract that says if I use a private parcel company that I am banned from using Royal Mail), that would have been rejected by the court.

It is people’s life that we are talking about here and each living thing has the full right to try to remain alive using all means tat their disposal.

Liberty and Justice, is Malaysia in the dark age?

July 19th, 2008

Let me begin this with the respond - not really.   Often, fellow country man like to quote how free it is in the western states and how opressive Malaysian government is.  Let’s put this in a side by side table and see how bad Malaysia actually is, or how advance western democractes are in ensuring liberty and justice to its subjects.  While  I completely agree that Malaysia still has much room for improvements, I think - (i) the West are not that far ahead and (ii) The west has plenty of room of improvements as well.

West Malaysia
Limitation on free speech Anything involving race and colour In Germany/Austria, denying the “H” word Anything involving races and Bumi privileges
Respond to breach (in UK at least), police at your door faster than police would appear if your house is broken into Police at your door as well
Judiciary and Justice Guantanamo Bay, UK 42 days detention without trial, Council use phone taps powers on minor tipping offences etc ISA



How the Law Is Lost


about how prosecutor abuse the law to achieve convictions, despite the injustice. In 1934 Supreme Court Justice George Sutherland summarized the dual role of prosecutors: The United States Attorney is the representative not of an ordinary party to a controversy, but of a sovereignty whose obligation to govern impartially is as compelling as its obligation to govern at all; and whose interest, therefore, in a criminal prosecution is not that it shall win a case, but that justice shall be done. As such, he is in a peculiar and very definite sense the servant of the law, the twofold aim of which is that guilt shall not escape or innocence suffer. He may prosecute with earnestness and vigor — indeed, he should do so. But, while he may strike hard blows, he is not at liberty to strike foul ones. It is as much his duty to refrain from improper methods calculated to produce a wrongful conviction as it is to use every legitimate means to bring about a just one.[24] Justice Jackson saw it the same way: [Prosecutors who focus on building] up statistics of success ha[ve] a perverted sense of practical values, as well as defects of character. . . . [T]he citizen’s safety lies in the prosecutor who tempers zeal with human kindness, who seeks truth and not victims, who serves the law and not factional purposes, and who approaches his task with humility.[
Similar things happen, including the use of these are political tool
Corruption Cash for honours (UK), MP expenses, BAE-Saudi case close down, Tax Heaven London, Washington Lobbying Plenty
Liberty Confiscation of income through high taxation Not as greedy
Faces more checks and fingerprinting at US/UK airport Easier to get through Malaysian airport, often swipe and go
Terrorised by yobs where the state turns a blind eyes and if a resident do something to them, the resident is charged with criminal offence. The right to defend one’s property is lost At least either the police do something or the residents can form a group and take the appropriate action without fear of THEM becoming the criminal instead
Thief/Intruders who becomes injured can sue for compensation No such non sense

So…no Utopia I am afraid but we can strive to make things a little bit better at a time.

Dropouts Gates, Jobs, Dell Unworthy to Get U.K. Visa

July 16th, 2008

http://www.bloomberg.com/apps/news?pid=20601109&sid=aDVHMGLPhow4&refer=home

Bloomberg reported:

July 16 (Bloomberg) — Gordon Brown says he wants the brightest people in the world to come live in Britain. Unless they are Bill Gates, Steve Jobs and Michael Dell, all of whom would be excluded under the government’s new immigration rules.

The founders of Microsoft Corp., Apple Inc. and Dell Inc. are ineligible for the top tier of the U.K. visa system, the one aimed at attracting highly skilled people, because they lack college degrees. The rules, which didn’t require Parliament’s approval, are under attack by lawyers and lawmakers who say the country risks excluding the kinds of people it needs.

“It’s a dumbing-down,” said Sophie Barrett-Brown, head of the Immigration Law Practitioners Association. “If you’re a 20- something American with a bachelor’s degree and you earn 26,000 pounds ($52,000) a year, you’re a high-skilled migrant. You can come in, but Bill Gates can’t.”

The prime minister is trying to reduce the inflow of immigrants after the arrival of more than 500,000 a year for the past five years. The record numbers since the Labour government took office 11 years ago have put a strain on schools, police and hospitals.

Obviously, this is nothing more than head line grabbing journalism.  It is true that Bills, Dell, Jobs would not get HSMP, but they would qualify under other categories of Visa.  Anyone with £250k (sometimes even £200k) to invest in the UK with a reasonable business plan will get a Visa.

As for Gordon wants the best coming to UK, it should benchmark itself against Singapore who dishes out PR in a very practical way, without all those Human Right nonsense to whoever who can contribute to the economy.  One of the reason UK is so scared of non degress holder to come here is because it is still a welfare state and they are dead scared of people coming here to claim benefit.  The human rights and the judges would then prevent any law excluding these new comer from benefits either.

World competition is heating up…UK is now just UK, not the Great Britain, and Gordon should stop speaking or acting like the leader of GREAT Britain.

David Cameron: Fixing our Broken Society

July 9th, 2008

http://www.conservatives.com/tile.do?def=news.story.page&obj_id=145626&speeches=1

Some sense and hope is coming back..

David Cameron: Fixing our Broken Society

David Cameron: Fixing our Broken Society

In a speech today in Glasgow, David Cameron said:

“I’m so pleased to be here in Gallowgate with Davena Rankin and Iain Duncan Smith to launch our by-election campaign for Glasgow East.

“Gallowgate has a very special place in the story of the modern Conservative Party. Iain first came here as leader of our Party and it inspired his crusade for social justice. He set up the Centre for Social Justice, fast becoming the nation’s leading voice on British poverty and how to end it. With his poverty-fighters’ alliance, he has built an inspiring and ever-growing army of charities, community groups and social entrepreneurs who are bringing new ideas and new energy to some of our country’s toughest places and toughest problems.

“And under Iain’s leadership, the Social Justice Poverty Group produced two landmark reports, Breakdown Britain and Breakthrough Britain. Together, they have played a big role in shaping our arguments and policies.

“Like Iain, Davena is a fighter for her beliefs. To be a Conservative trade unionist in Glasgow - that takes some bottle. She may not start this by-election as the favourite to win. But if Glasgow East is looking for someone to speak up for the people who live here and to speak out against the Labour neglect that has done so much damage here they will not find a better local champion than Davena.

LESSONS FROM GLASGOW EAST

“There has been a lot written about this constituency since this by-election was called. Most of it has been negative. People have focused on the fact that public health is so bad, you’re likely to live longer in Gaza or North Korea. That welfare dependency is so bad, half the adults are on out of work benefits. “That social breakdown is so bad, Channel 4’s Dispatches documentary on knife crime found kids here talking about being stabbed as if it was no worse than grazing your knee.

“And it’s important that we learn the lessons from Easterhouse, from Shettleston, from Gallowgate but today I don’t want to focus on the negative. Or even on Glasgow East alone. Because the social breakdown you can see here is just an extreme version of what you can see everywhere.

“With over five million people in our country on out of work benefits, many of them on Incapacity Benefit, welfare dependency is now a crisis for the whole country, not just this corner of it. And you don’t need to come to Glasgow East to know that the casualisation of carrying a knife, and the horrific crime that goes with it is now keeping mothers and fathers, brothers and sisters awake at night in London, in Leeds, in Manchester, in Bristol. It feels as if none of our towns and cities is safe from the tide of violence.

“So I don’t want to come here to Glasgow and make out that this is some uniquely damaged community. It’s a community that’s been damaged all right: but the cause of that damage is wreaking havoc not just here, but everywhere. That’s why we’ve got to learn the lessons properly, and that’s what I want to do today.

THE BROKEN SOCIETY BY-ELECTION

“This is the broken society by-election. It comes in a place where the people are shouting: “Gordon Brown, wasn’t Labour supposed to end this degrading poverty?” It comes at a time when the country is asking: “what is going on with the knife crime and violence on our streets?” And it comes at a point when the voters are saying: “yes, the Conservative party may now be addressing these issues - and we like what we hear - but what would you actually do?”

“So let’s make it clear in this by-election. We have a clear mission and a clear plan. Everything depends on a strong economy, so we will rebuild our economy, battered by the Brown years of reckless spending and borrowing, taxing and regulating.

“The NHS is our number one priority, so we will improve it by ending the top-down targets and micro-management, making doctors answer to patients, not politicians. Strengthening our economy and improving our NHS: these are essential tasks for the next Conservative government.

“But our mission is to repair our broken society - to heal the wounds of poverty, crime, social disorder and deprivation that are steadily making this country a grim and joyless place to live for far too many people.

“Because while our society is broken today, it is not broken for ever. We can and will repair it. We can and will bring hope and aspiration to places where there is resignation and despair.

“Whether it is knife crime or any other symptom of our broken society, we will repair the damage by treating not just the symptoms but the causes too. I want the strength of our commitment to inspire faith; faith that our present social breakdown is not inevitable; that this is not a one-way street, faith to replace the disbelief we feel as it dawns on us that we are living in a country where being stabbed is no longer the dark make-believe of crime fiction but the dreadful reality of our children’s daily lives.

“And there is a thread that links it all together. The knife crime. The worklessness. The ill health. Above all, the wasted lives:

“A sixteen year-old boy stabbed in north London; a sixty year-old man sitting around in Easterhouse who’s never had a job. A twenty-eight year-old woman stabbed in south London; a forty-eight year old woman dying from heart disease in Gallowgate.

“The thread that links it all together passes, yes, through family breakdown, welfare dependency, debt, drugs, poverty, poor policing, inadequate housing, and failing schools but it is a thread that goes deeper, as we see a society that is in danger of losing its sense of personal responsibility, social responsibility, common decency and, yes, even public morality.

“In this by-election campaign, we will explain what we’re planning to do about it. How we will focus on the radical social reform required to deal with these problems. How we’re going to be uncompromising in taking on any vested interests or establishment cultural attitudes that stand in our way. And how we won’t pretend that politicians, politics and policy alone can do the job.

KNIFE CRIME ACTION PLAN

“So first, people can expect a Conservative government to take tough action to deal with the symptoms of crime and disorder.

“Today we publish our knife crime action plan. It includes policies to prevent knife crime. Policies to crack down on knife crime and criminals. And policies to deal with young offenders once they’ve been convicted. Above all, we have to send a clear message that carrying a knife on our streets is completely inexcusable and unacceptable in a civilised society.

“So we are proposing that anyone convicted of knife crime should expect to go to jail. I don’t believe that the government’s ‘presumption to prosecute’ is enough. It doesn’t send a strong enough signal. We need a ‘presumption to prison.’

“Tougher punishment, better policing, better rehabilitation - these are all vital in the fight against knife crime. But if anyone thinks that criminal justice measures alone will halt the violence on our streets, then they do not understand the scale and the nature of the social breakdown that is its cause.

UNCOMPROMISING ON SOCIAL REFORM

“That is why we have to be utterly uncompromising on the key social reforms that will together help us repair our broken society.

“On school reform, we think the current school system must be replaced with a new system that breaks the stranglehold of the educational establishment and gives parents what they want and what their children deserve: innovation, choice and competition that delivers high standards for everyone, everywhere. We will simply not tolerate objections to our plans from the people and organisations who are responsible for the continuing failure of too much of state education in this country.

“On welfare reform, we think we need to end the idea that the state gives you money for nothing. If you can work, you must work. We will insist on it, and believe me, we will stick to our guns when the going gets tough.

“And when it comes to perhaps the most important area of all, families we will take action not just to support marriage and family stability, but on business too, to make Britain more family-friendly.

“This is a bold, reforming policy agenda. But there is more to repairing our broken society than policy and politics.

MORALITY

“I think the time has come for me to speak out about something that has been troubling me for a long time. I have not found the words to say it sensitively. And then I realised, that is the whole point.

“We as a society have been far too sensitive. In order to avoid injury to people’s feelings, in order to avoid appearing judgemental, we have failed to say what needs to be said. We have seen a decades-long erosion of responsibility, of social virtue, of self-discipline, respect for others, deferring gratification instead of instant gratification.

“Instead we prefer moral neutrality, a refusal to make judgments about what is good and bad behaviour, right and wrong behaviour. Bad. Good. Right. Wrong. These are words that our political system and our public sector scarcely dare use any more.

“Of course as soon as a politician says this there is a clamour - “but what about all of you?” And let me say now, yes, we are human, flawed and frequently screw up.

“Our relationships crack up, our marriages break down, we fail as parents and as citizens just like everyone else. But if the result of this is a stultifying silence about things that really matter, we re-double the failure. Refusing to use these words - right and wrong - means a denial of personal responsibility and the concept of a moral choice.

“We talk about people being “at risk of obesity” instead of talking about people who eat too much and take too little exercise. We talk about people being at risk of poverty, or social exclusion: it’s as if these things - obesity, alcohol abuse, drug addiction - are purely external events like a plague or bad weather.

“Of course, circumstances - where you are born, your neighbourhood, your school, and the choices your parents make - have a huge impact. But social problems are often the consequence of the choices that people make.

“There is a danger of becoming quite literally a de-moralised society, where nobody will tell the truth anymore about what is good and bad, right and wrong. That is why children are growing up without boundaries, thinking they can do as they please, and why no adult will intervene to stop them - including, often, their parents. If we are going to get any where near solving some of these problems, that has to stop.

“And why would a different government be any different? Not least because we understand that the causes of our broken society lie not just in government policies but in our national culture.

“Changing our culture is not easy or quick. You cannot pull a lever. You cannot do it top-down. But you can give a lead. You can give a nudge. You can make a difference if you are clear where you stand.

“Imagine if there was a Government that understood, really understood, that encouraging personal and social responsibility must be the cornerstone of everything that it did and that every move it took re-inforced that view.

“Saying to parents, your responsibility and your commitment matters, so we will give a tax break for marriage and end the couple penalty. Saying to head teachers you are responsible and if you want enforceable home school contracts and the freedom to exclude you can have it and we will judge you on your results. Saying to police officers you are responsible and the targets and bureaucracy are going but you must account to an elected individual who will want answers if you fail. Saying to business, if you take responsibility you can help change culture and we will help you with deregulation and tax cuts … but in the long run they depend on the steps you take to help tackle the costs of social failure that have driven your costs up and up.

“It is the responsibility agenda and it will be the defining thread of any government I lead.

CONCLUSION

“Above all, I believe that this cultural change needs to start at home. The values we need to repair our broken society and to build a strong society are values that should be taught in the home, in the family.

“That is why I have put the family right at the heart of my programme. Action on knife crime. Better policing and criminal justice reform. Reforming schools. Reforming welfare. These are all vital components of the social reform we need so urgently.

“But in the end, the state cannot do it all. In the end, the best regulation is self-regulation, not state regulation. That’s why the family comes first. That’s where we can really turn things around and start to repair our broken society.

“My focus on social reform does not mean for one second that I don’t believe the next Conservative government won’t have urgent work to do - to rebuild our economy or improve our NHS. But the nature of the changes will be different in those areas.

“It is in social policy that we mean to be most bold and radical, and for that I need a mandate. I need to make clear today the scale of our ambition so that everyone knows what they will be voting for at the next election.

“I want a mandate for restoring responsibility to our society. A mandate to call time on the twisted values that have eaten away at our social fabric. A mandate for tough action to repair our broken society.”

Yobs throw stones and your house and you chase them - who gets arrested ?

July 9th, 2008

http://www.dailymail.co.uk/textbased/news/article-1033266/Pensioner-facing-jail-chasing-stone-throwing-yobs-property-plank-wood.html

Mr Davis’s 42-year- old wife Pauline dialled 999 when their home came under attack yet again last week, but two and a half hours later officers had failed to arrive.

After two hours of bombardment in the latest attack and no sign of the police, the 65-year-old retired builder decided enough was enough.

As a particularly large missile landed in his kitchen, he grabbed a plank of wood from the garden and ran towards the gang to scare them away.

The police arrived just in time - to arrest Mr Davis for possession of an offensive weapon

When officers arrived outside his home in Swindon, Wiltshire, Mr Davis was handcuffed and led away to the cells, where he was later charged.

Yesterday a spokesman confirmed that no youths were arrested in relation to the incident.

Madness again..