Twitter Updates for 2009-02-28

Twitter Updates for 2009-02-28

On the End of the Podcast Peer Awards

Yes, it is true. The Podcast Peer Awards has come to an end. I’m separating my podcasting posts from my financial/business/tech posts now, staying true to the theme running on taylormarek.com. You will find this article, as well as any podcasting article over at my premium site, http://www.podcastinsiders.com

Here is the link: http://podcastinsiders.com/2009/02/24/on-the-end-of-the-podcast-peer-awards/

2009 Tax Deduction Tip for Businesses

With 2009 comes another year, and with a new year comes taxes. Time for all business owners to pull out their books and tally up everything. But before you send it into the Fed, here is a tip.

Have you checked all your expenses? If you haven’t already, sit down with your accountant to see if there are any hidden expenses that could be reported. Mileage? Business lunch meeting? Equipment depreciation?

I was planning on linking to an article from CNN Money, and with it would have come more tips, but something just felt wrong when I was reading over it. Reading the article felt like it was “hiding” something or cheating on taxes, and with you small business owners in mind, it didn’t feel right posting it.

Take this tip to heart. It doesn’t hurt to double or triple check your expenses.

But I thought this stimulus package was supposed to help!

Honestly, I’m not trying to make this into a political blog, but this is just too funny to notice.

Browsing Reuters, I ran across this article: http://www.reuters.com/article/businessNews/idUSTRE51K0A920090221?feedType=RSS&feedName=businessNews&rpc=23&sp=true

I thought this stimulus package was supposed to pull us out of this “recession” and bring everything back to normal? Was I wrong in thinking this? Did we do something worse?

Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.

Yup, it seems we killed the market. We shall start noticing lines for food soon…

Honestly people, come on. I was being sarcastic when I made the past couple questions/comments and for good reason. We are in this mess because you are fooling around in the economy. Get your fat greedy fingers out of it and let it fix itself!

Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.

Oh, don’t even get me started on that path. I’ll let my tweets say it all (be sure to read these in order):

http://twitter.com/taylormarek/statuses/1162936839

http://twitter.com/taylormarek/statuses/1162969030

http://twitter.com/taylormarek/statuses/1162976422

http://twitter.com/taylormarek/statuses/1162981805

http://twitter.com/taylormarek/statuses/1162991444

If you haven’t already read this post, please do: http://taylormarek.com/2009/02/21/the-best-stimulus-is-no-stimulus/

The Best Stimulus is no Stimulus

I said I would explain this quote in the next post, enjoy.

In my previous post, I said, “The best stimulus to our economy is no stimulus at all.”

I am a free market capitalist, meaning that I prefer complete government absence from the economy. Markets and businesses can take care of themselves best if left alone. We’ve never really experienced this yet, but that is beside the point.

In simple economic terms, think of it this way. There are two variables, supply and demand. Supply is how much of something you have at a given time, demand is how many people want what is supplied. The more demand there is for supply, the more it shrinks to nothing. The more supply there is, the less people want of it, because there is so much supply floating around. Big and small companies deal with this all the time, hence why they try to find a nice median range to stick in.

That is a brief explanation of economics. Now lets apply this in a business sense and I will show you the meaning behind the quote I gave.

Businesses are here to make money, if they cannot generate a profit, the business will close shop. If they are able to generate a profit, they will stay around and grow into a bigger company. At this point, there are two possibilities. They might be bought out by another company, thus merging into that company and growing it bigger, or they will control a majority of the market, thus becoming a monopoly. Monopolies tend to last for a while, then implode, or become passed by from another company. This back and forth, from closing shop to a monopoly, is the way to finding a median. A median meaning making enough of a profit to continue, but not so large that they are a monopoly.

Are you noticing how businesses are self-regulating themselves? They are taking care of themselves, purging businesses that don’t work and knocking down monopolies in the effort that all the businesses in that industry share a happy median. There will always be this back and forth between companies in every industry. But what if that were not so? What if someone controlled whether your company lived or died?

Say that one person said one business was better then the rest, and killed the others in that industry, leaving that one. Is there room for improvement? How is that business to know whether it is doing a good job or not? Simply put, they have no idea. There is no competition, hence no improvement or measure to go off of. But what if that person let this competition and noticed one company dying. Say that person throws that company a lifeline, thus preserving the company. The company does good for a while, but then flounders around again. Why? It could be that the goods or service that company was providing was not working and no one was interested in buying what they had to offer. It could also be internal problems going on inside the company, thus an implosion is inevitable. Did that person do a good job helping out that company, or did it just prolong the suffering?

Are you starting to notice the meaning behind my quote? If you are able to understand well enough, you will come to notice that this is prolonging the suffering to the market as a whole. This is not allowing the markets to purge that which needs to be purged, thus preventing our economy as a whole to return to a happy median.

Economic Stimulus Package

Ok, let me get one thing out of the way before I begin. I am opposed entirely to this notion, partly because I am a free market enonomist and partly because I can see right through the red tape in the government.

From a general standpoint this looks like a good idea right? True, but here is some history. The money you hold in your hand is worthless, look at what it says, “Backed by the full faith of the US Government”. It started when it was taken off the gold standard in 1971. All you hold in your hand is a piece of paper, fiat currency for a better term. The government can print as much money as it wants now, dumping it in as fast as it can print.

In simple economic terms, think of it this way. There are two variables, supply and demand. Supply is how much of something you have at a given time, demand is how many people want what is supplied. The more demand there is for supply, the more it shrinks to nothing. The more supply there is, the less people want of it, because there is so much supply floating around. Big and small companies deal with this all the time, hence why they try to find a nice median range to stick in.

That said, apply the same to the government printing money. If more and more money is printed (supply), the less people will want of it (demand). It will literally become worthless if there is too much of it. If you understand this concept, you are on solid ground.

Now back to the topic at hand: the Stimulus Package. Think this will work, applying what you just learned? Absolutely not and here is why. Throwing money at a problem will not fix the economic mess we are in. If anything, it will make it worse. You are once again bumping the supply factor out more to the point where the demand is less and less. Secondly, this is not going to create jobs or stimulate the economy. Why? This money is just going to places to try and bring it back into the black. The majority of it will not reach there though. Why? Greed. I can smell it written all over this package, literally it reaks of the odor.

If this was really a “stimulus package”, here is where it should go. It should be going to the local economies to help prop up the businesses there. Strong businesses mean a stong local economy. Stong businesses mean more money is flowing around to the various areas. Strong businesses also mean they can support more employees, hence they hire more people. See what I am saying?

Although the best piece of advice regarding this whole matter is… “The best stimulus to our economy is no stimulus at all.” I’ll explain this quote in my next post. In the meantime, what do you think about this? Anything you care to add, anything you need clarified? Comments are open.

Downloads will now be taxed

Yes, you heard me right. This makes me mad to no end. Why? Ugh, don’t even get me started….

First off, taxing the internet period is just dumb. Its virtually impossible to enforce, and even if it was able to be, you would have the masses to deal with.

Second, how in the world is this going to work? Is this going on your internet bill, or is it being footed directly to the businesses?

Thirdly, if the US government was really having a problem with money, they would be cutting things back like crazy, like any normal business would, and re-organizing on the inside. Oh, but wait. What about the stimulus package that is supposed to help? Is that not doing anything?

Really guys, this is not creative thinking at all. I expect better of you or I will boot you out of office on your next term.

Now I’m not trying to make this into a political post, but this just makes me mad.

What can we learn about this?

To apply to your personal finances, watch your spending. If you don’t have the money, don’t buy it. If it seems money is escaping through a hole, find the hole and plug it. Do not make it bigger or try to hide it. If it is a legitimate thing that needs to be cut off, cut it off.

What about business? If there is some expense that is draining your business, cut it off. Also look through your entire business to see if there are areas you can improve and save money on.

What about Technology? Simply put, trying to tax something like downloads is impossible to enforce, it only makes the masses mad at you.

http://www.fox6now.com/news/sns-ap-wi-xgr–budgetwoes,0,5520090.story

What do you think about this? You’ve heard my end, and I would love to hear yours. Lets get a conversation going around this. Did I mention this will be signed into Wisconsin law this Friday (2-20)?

New Google Tool

Hey all,

I originally wanted to post this early this month, but with my blog crashing and everything, never had a  chance to. Now I can, so here it is.

Ever wanted to see if you were getting what you paid for when it came to your ISP? Well, Google is working on a tool that will do just that. Now you can see if your ISP is throttling your internet or not. The project is called M-Lab, and withing a few clicks, all this information will be at your fingertips.

Here is a link to the article I found on it: http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9126997

Here is the link to M-Labs: http://www.measurementlab.net/