Vin;

Lost of thoughts from your interesting reply. Sorry to jump around and I realize it only adds confusion but then life can be interesting!

I would add “economic stability” to “politically and socially stable environments” to your list. I agree that social programs including unemployment help to stabilize our economy. Some states have stricter regulations to which we add federal regulations. Another factor to add in is taxation from local, county, state and the federal governments. As an example, in California less than the ideal climate exists for a business to be profitable due to taxation and other costs.

When we get into exports we have additional regulations from our own and different countries to follow as wells as taxes in the form of duty and tariffs. Some countries have been known to subsidize entire industries of their nation to under price goods such as Japan did to the United States electronics manufacturing industry during the mid 1960 to 1980 period. Color television sets made in Japan and sold in the United States were sold for less than the cost of manufacturing. They cost a fraction of what U.S. makers had to charge to be competitive.

Japan compensated each of its manufacturers for lost revenue. They had a 20-year plan to take over manufacturing of televisions from the U.S. By the way color televisions in Japan were much more expensive than what Japan charged in the U.S. As we know Japan was successful in taking over this and other manufacturing industries. When this was realized it was announced in the 1970’s that we would become a “Service Oriented Society”.

Speaking of Reagan, he stated, “Taxes should hurt”! Interesting he paid no taxes the year he made that statement.

I have met some very sharp politicians who have a good balance between society and business. Unfortunately our political/economic/ business system is so complex having competent people in charge means little. Too many variables are involved such as lobbyists, attorneys, and greed in general.

A study we did in college indicated that 50% of the cost of welfare was for administration at all levels of government. We were in a Sociology class and our group was comprised of all Vietnam Veterans. Our conclusion was to eliminate all government employees and buildings concerned with welfare.

At each Post Office and other public places post cards would be available which would allow anyone to apply for welfare. We felt there would be abuse but the total cost would be less than the cost of administration. Our feeling was that the majority of people are honest and in the end God only knows what is right. :)

Tom