Global Economy and Competitive Development [Growth Scenarios]

I am currently using the World Economy Comparison presentations as foundation to model various growth scenarios. The analysis variables are by country / region using economic growth and population growth estimates over a 10-year timeframe. The most likely analysis estimation with the greatest variance to experience is the global rate of population growth. The analysis presumption is that greater economic activity will reduce the rate of population growth which also means an estimated increase in global economic participation. 

This was not planned to be a forecast of the global economic future. However, it was prepared to give perspective on the impact of economic growth relationships and international economic alliances.

Comparative Incentives and Interests: Government and Business

Updated with commentary: Although not specifically stated, Development encompasses international economic commerce of manufactured goods and services' markets and diplomatic relationships. Generally seen as an ongoing, implied responsibility. Government institutions refer primarily to the regulatory-legislative, judicial-legal, and education systems. Skill employment includes both skilled and non-skilled defined labor. The technical reference is recognition of a company's employment objective(s).

Reasons for strong central government, regulatory organizational structure, and inequality economic focus measurements for better distributive balance.

Business Industry and Profitability

I was recently thinking through the relationships of business, industry, and profitability compared to the general outline used in my blog themes. So, I attempted to categorize a sample of businesses using the Basic Summary of the Business Process to obtain a "rough" measure of corresponding operating profitability. Many arguments can be made for some of the companies in the reflected categories relative to their business and industry contributions. Generalizations on functional identity had to be made and their respective traditional structure definition difficulty "game changing" contributions show in the comparative operating margins. The innovative, integrated nature of many of these companies means that operations encompass more than one of the basic categories and industries.

What becomes very apparent is the impact on profitable return compared to control/ownership of resources: Natural Resources, Intellectual Content, Distribution and Allocation Methods. Although not completely reflected in this summary analysis due to multiple factors including timing is the housing "bubble" impact on industry. Lumber, homebuilders, and realtor businesses are operating at best, break-even. The financial industry which distributed the funds financing the "bubble" seems to have absorbed the industry risk and continue to remain profitable due to their infrastructure role in the US economy [Just a thought!]. Operating margin data used is the latest available reported annual earnings where available (FY2010).

The United States Constitution with Amendments [Foundation]: A Moral Reflection of Evolved American Values

Constitutional development was a result of competing ideas on societal governance related to group or “family” differences of cultural traditions. The basis of the Constitution recognizes the relative importance of religious beliefs and various interpretations. To accommodate differing perspectives and remain consistent with the duty of societal governance, the document emphasized the protective liberties and rights of every person within the U.S. authority; including flexibility of the people to live according to these belief systems without violating individual/personal rights and related freedoms of choice. These initial recognitions were based upon religious moral foundation recognition of all Human Value existing within humanity since Earth’s creation.

Freedoms and choice recognition established within the legal and social design creates the adaptability within societal governance for a coexisting population. However, maintaining respect for individual human rights free from exploitation is a requirement. These include the right to choose a relationship partner irrespective of ethnicity and relationship commitment procreation decision rights anywhere in United States of America. Humankind manipulations that violate rights [human simulation] to alter development determinations inconsistent with this legal rule basis of society should be considered illegal acts and crimes against humanity.

Evidence of these intended protective rights and liberties are evidenced in the created organizational systems structure of governance: Executive, Legislative, and Judicial government segments; Individual rights and human protections; Religious independence recognized in separation of church and state; Federal and State legal systems with Appellate system processes as a balanced check against bias and concentrated power/loyalty/”family” authority rule; historical economic industry development and regulatory legislation. 

Taxation Concept for Competitive Development II

The following presentation updates the Taxation Concept for Global Competitiveness with an idea for how the industry categorization approach could work. Included is a reflection of the current industry tax contribution based upon the Industry Summary of the Top 60 U.S. Companies document previously used in the Corporate Financials blog.

A clarification of the proposal using the “Flat Tax” terminology was not an idea altering the United States' philosophical application of the progressive tax system on earnings. In my opinion, a federal income tax based on sales revenue increases the investment technical calculation breakeven hurdle limiting economic expansion and business creation. Political opposition could easily make the case that the government is placing collection priority ahead of the American people and their earnings.

Global Competitiveness [Taxation Concept] and Industry Relationships