Democracy Alert

Truth & Transparency = A Stronger Democracy

May 1, 2015 by Ted Leave a Comment

Announcing Citizen Job Solutions


Boston, MA (PRWEB) February 06, 2014

Citizen Job Solutions is the new, dynamic voice in a world of tired, old talking points and so-called advocacy “research”. It offers original, specific job creation solutions that are truly of the people, by the people and for the people. In a world devoid of solutions drowning in blame and the same old cataloging of problems, it is the source for original, specific job creation solutions.

Citizen Job Solutions is the first to use crowd-solving in tackling America’s anemic job growth. Crowd-solving leverages the innovation, drive and expertise of the more than 240 million adult aged Americans to solve America’s greatest deficit – the jobs deficit. The founder of Citizen Job Solutions, Neil Macke, has seeded the process with a “Top 20” list of job creation solutions.

Citizen job solutions will also provide truly original thinking and perspectives on current economic, financial and political topics. Topics will include outsourcing and in-sourcing, U.S. trade policy, deficit reduction, minimum wage, upward mobility, welfare, income inequality, the U.S. financial system, Congressional accountability and U.S. corporate tax rates among others. These can be found in the “Hear It Hear 1st” section of the Citizen Job Solutions website (http://citizenjobsolutions.com/category/hihf/).

About the founder: Neil Macke is a contributor to the Federal Reserve Beige Book and currently advises both regulatory agencies and institutional investors. He holds a BA in Political Science from the University of Southern California where he studied political campaign strategy and finance. He earned an M.B.A. from the Kelley School of Business at Indiana University. He has guest lectured at Harvard University, Columbia University and the University of Southern California among others on various issues including business cycles, investment strategies and the impact of politics on economic output.

Top 20 List of Job Creation Solutions

Category: Increase Return on Taxpayer Dollars

1.    Replace universal corporate tax rates with merit based individual corporate tax rates i.e. corporate tax rates determined by how many full-time jobs each company creates. Link: http://bit.ly/1gDvWEj

2.    Stop giving tax breaks in hopes that they will create jobs. Instead, give tax breaks to those who created jobs…in America. Link: http://bit.ly/1aABqXW

3.    Any state that is a net recipient of Federal funds is prohibited from using tax incentives to poach companies from other states: Link: http://bit.ly/L3xgmn

4.    Either a. Obtain market rate returns on investment, the nearly $ 147 billion in federally funded research and development projects or b. Let the private sector fund the $ 147 billion (see Solution #10 for b.)

Category: Increase Transparency

5.    Have members of Congress track their time down to the 10 minute increment resulting in a searchable database showing how much time they spend fundraising and meeting with lobbyists. Link: http://bit.ly/1f3ukkt

6.    Term limit lobbyists to no more than two years.

7.    Tape and put online all Congressional phone calls. If the NSA can listen to the average American’s phone calls surely the American people have the right to know who the people it elects to Congress are talking to and what they are saying.

8.    Add Job labels (similar to nutrition labels) to each product sold in America showing how many Americans were employed making the product, how much they were paid an hour, whether they received healthcare insurance from the company and how much welfare was received by the employees. Like a nutrition label but for jobs.

9.    Using the data from #8 create a searchable database showing company level job, wage, healthcare and employee welfare benefits. Only then can we know who the real American job creators are.

Category: Deficit Reduction (through reduced government spending and increased business investment)

10.    End U.S. R & D funding saving $ 147 billion while corporations increase their R & D investment by $ 147 billion.

11.    Companies reimburse the Federal government for every dollar of federal welfare their employees receive.

12.    Companies not providing healthcare insurance pay a higher corporate tax rate.

13.    Allow the Federal government to negotiate drug prices in Medicare Part D program as opposed to the current prohibition against the Federal government using its size to negotiate better pricing

Category: Stop Being the World’s Global Trade Patsy

14.    If other countries require a company to manufacture the products they want to sell to those countries in those countries then we require the same of those companies if they want to sell to Americans.

15.    End Most Favored Nation Status

Stabilize the U.S. Financial System

16.    Don’t limit pay at financial institutions, rather…

17.    Require “C” level executives, loan officers and anyone receiving bonuses or stock options at federally insured institutions be paid based on loan performance, NOT loan volume. Link: http://bit.ly/1nbtFPu

18.    Require “C” level executives, loan officers and anyone receiving bonuses or stock options at federally insured institutions be paid over time in the proportion to the portion of the loans paid back.

19.    Decrease required bank capital ratios during economic recessions, increase required bank capital ratios during economic expansions.

20.    End deduction of loan losses which creates a moral hazard by reducing the cost of loan losses to banks.

MEDIA CONTACT

Founder Neil Macke    

Email     mediainquiries(at)citizenjobsolutions(dot)com

Phone     773-766-7900

Website    citizenjobsolutions.com







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Filed Under: Moral Hazard Tagged With: Announcing, Citizen, Solutions

April 13, 2015 by Ted Leave a Comment

Center of Concern Challenges Strength of European Commission Legislation to Avoid Transfer of Financial Risk to Public Sector


Washington, D.C. (PRWEB) February 13, 2014

The European Commission recently released a legislative proposal on structural reform of EU banks following two years of work by a High-level Expert Group HLEG, chaired by Erkki Liikanen, Governor of the Bank of Finland. In response to the proposal, European Commissioner for internal market and services, Michel Barnier, says, “This legislation deals with the small number of very large banks which otherwise might still be too-big-to-fail, too-costly-to save, too-complex-to-resolve.”

Analysis offered by international economist and lawyer Aldo Caliari, director of the Center of Concern’s Rethinking Bretton Woods Project, challenges the European Commission’s claims that its proposed measures will "further strengthen financial stability and ensure taxpayers don’t end up paying for the mistakes of banks.” Caliari says, “While the EU is barely emerging from a recession and its citizens continue to feel the pain of job losses and the removal of services, the European Commission's proposals fail to offer the energetic action that is required to avoid such transfers of private risk to the public sector in the future.”

Putting the need for stricter legislation into context, Caliari says, "Since the beginning of the crisis, more than USD 400 billion have been spent by governments in rescuing banks, in addition to commitments of monetary support offered by the European Central Bank."

Referenced in an European Union press release, February 12, 2012, the HLEG mandate asked the group to pay particular attention to reducing the risks of the banking system as a whole, reducing the risks that individual firms pose to the financial system, reducing moral hazard by making market exit a viable option also for largest and most complex institutions and thereby reduce government guarantees, promoting competition, and maintaining the integrity of the internal market.

According to Caliari, the legislation fails to meet the Commission stated objectives. Caliari says, “This was a missed opportunity. There were good ideas that the Commission could have built upon in order to ensure the separation of speculative and deposit-taking activities on a consistent basis across the European banking sector. But the Commission’s proposal will give those banks a pass to continue playing in the market with the money of depositors and taxpayers.”

Founded in 1971 at the United Nations, the Center of Concern's experts contribute research, education, and advocacy from Catholic social tradition in order to create a world where economic, political, and cultural systems promote sustainable flourishing of the global community. The Center touches centers of influence through its core competencies: ecology and development, faith and justice education, global women's issues, and multilateral finance and human rights.







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Filed Under: Moral Hazard Tagged With: Avoid, Center, Challenges, Commission, Concern, European, Financial, Legislation, Public, Risk, Sector, Strength, Transfer

March 13, 2015 by Ted Leave a Comment

The Search for a Monetary-Policy Wizard and Political Moral Hazard

The Search for a Monetary-Policy Wizard and Political Moral Hazard
The relentless focus on monetary policy creates serious moral hazard by taking attention away from elected officials' failure to act on the fiscal, public-investment and structural issues that are the key to short- and long-term economic success ...
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Moral Hazard and College Football Recruiting
Economists refer this kind of situation as a “moral hazard.” It describes a scenario in which one party engages in risky or detrimental behavior because he or she is shielded from the full costs. For instance, imagine if taxpayers had to bail out a ...
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Pension Protection Fund settles moral hazard claim with Russian companies
Having been unable to persuade Severstal to voluntarily contribute to the scheme, the trustees encouraged the Regulator to exercise its “moral hazard powers”, designed to prevent employers from deliberately avoiding their obligations by requiring them ...
Read more on Lexology (registration)

Of debt, moral hazards and governance
Debt forms the second leg of the three-legged stool that is funding in Kenya's public finance. The other two are taxes and donor funding. National debt can be a potent moral hazard to any leadership and while it may be a truism that there is no such ...
Read more on The Standard Digital News (satire) (press release) (registration) (blog)

Filed Under: Moral Hazard Tagged With: Hazard, MonetaryPolicy, Moral, Political, Search, Wizard

February 21, 2015 by Ted 10 Comments

Econ in HD: Moral Hazard and Adverse Selection

An explanation of Moral Hazard and Adverse Selection using a simple example. Enjoy! (I am aware that the constant camera zoom adjustment is annoying. It is a...
Video Rating: 4 / 5

13. Sequential games: moral hazard, incentives, and hungry lions

Game Theory (ECON 159) We consider games in which players move sequentially rather than simultaneously, starting with a game involving a borrower and a lende...
Video Rating: 4 / 5

Filed Under: Moral Hazard Tagged With: Adverse, Econ, Hazard, Moral, Selection

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