THE ENTERPRISE
While the past week's economic results might seem counter to my worries of last week, I am still sensing a plateau in the economic recovery. What happens from here with inflation and interest rates could have a lot to do with whether this is a pause before another climb or before a decline.
A taxing thought
I called a friend to wish him Happy Birthday today. Later, I realized that both his and my birthday are past now, so Uncle Sam is probably no longer collecting taxes from us. No, I'm not confused. I know the tax filing deadline was April 15 and that's a month past. I mean "Tax Day" which just occurred recently--April 17. That's the date on which the average American starts earning for themselves. Until then, we are working for the government, to pay taxes.
Tax Day was 2 days later this year. Last year it coincidentally fell on April 15, the day on which taxes are due/collected. If history is any guide it will be still later next year. And, if you are unlucky (or unwise) enough to live in a state with higher-than-average taxes (which I am and do), you're probably just getting out of the government servitude and earning for yourself. No, wait, if you are self-employed you are probably still paying both the employer and employee's portion of Social Security and Medicare, so you won't be in the clear until even later.
Pay them in cash? OUCH!
I once knew a CEO who theorized that if taxes in the US were paid the old fashioned "pay window" way, we'd throw out the politicians who assessed them. In the old days, you received your gross pay in cash at the pay window. If you owed the company for anything, you paid them back in cash, at the next window over. If you had to count out the money that goes to the Federal, State and Local taxes each pay period, and actually give it back right then in cash, you'd realize just how big a bite it is. I don't know if he was right or not, but it was an intriguing idea; one that is particularly timely in these days of media debates about Taxes and Social Security.
Media--Old vs.New
In case anyone hasn't checked, the old mass media IS declining--but it's still powerful. Traditional news media is falling while new media (blogs to name just one format) is growing. Newspaper circulation--down from 62.3 MM to 55.2MM; readership getting older, much older: Age 60+ @ 60%; Age 50-64 @ 52%; Age 30-49 @ 39%; Age 18-29 @ 23%. Viewership of network evening news down to 28.8MM from 52.1MM in 1980; median age of viewers--60!
In 1972, nearly half of those 18 to 22 read a newspaper every day. Now less than a quarter do. 68% of kids 8-18 have a TV in their rooms. 79% of 8-18 year olds have portable CD, tape or MP3 players; 55% have hand-held video game players. Other media-morphing forms: mega-networks like Clear Channel's 1200 radio stations; Sirius and XM Radio's 100+ channels each, and of course, the Internet--which is bigger than ever.
A new party is evolving--the NOP!
President Bush is being crucified at every turn (especially on his Social Security proposals) by the New Obstructionist Party (formerly called the Democratic Party, back when they had any ideas about what TO DO instead of just opposing everything.)
All media--old and new--should like one thing about the New Obstructionist Party (NOP). Like the GOP (Grand Old Party), the NOP is a nice acronym, and best of all, it aptly describes the party line on almost anything proposed by the GOP--"Nope!"
I think we were better off as a country when we had TWO parties actually debating how to improve government, where BOTH parties brought new ideas and proposals to the table.
Best, John
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