Democratic Party v/s Republican Party: At A Glance

Foundation for Better Governme

March 5, 2012.

Democratic Party v/s Republican Party: At A Glance.

By T.S. Khanna, March 5, 2012.

1. Democrat Party (D) supports entitlement programs financed by higher taxes; Republican Party (R) thinks such programs, without limits, serve as incentives to increase poverty;
2. D believes that people should be able to depend on government; R believes that government cannot be financially sustainable if increasing number of people continue to depend on government;
3. D sees government as the provider to the poor; R sees government as facilitator for economic activities, allowing reward according to the individual’s struggle;
4. D believes that government should be enlarged as a solution to the public problems; R believes that government should be kept small to keep it from becoming the public problem;
5. D believes that additional funds by higher taxes would allow government to provide additional public services; R believes additional funds with government only create more wealth consuming bureaucrats while additional funds in public sector create more wealth producing jobs;
   
6. D promotes government’s social responsibilities; R promotes citizen’s individual responsibilities and independence;
7. D emphasizes equitable distribution of the existing wealth; R emphasizes creation of more wealth by facilitating wealth producing incentives;
8. D believes capitalism makes people unequally rich; R believes socialism would make people equally poor;
9. D thinks political problems must be viewed with a heart (feelings); R believes that they can be solved only with a mind (rational plans);
10. D supports arms control; R supports citizens’ right to bear arms;
11. D promotes stronger federal government; R promotes greater independence of the states ;
12. D sees the political struggle between the corporations and the working classes; R sees the struggle between the working classes and the dependent classes. It believes that the poor are poor because they do not struggle to avail of the great opportunities offered in the country;
13. D is strict in protecting the environment; R is willing to compromises to create jobs;
14. D supports political solutions to economic problems; R promotes economic solutions to political problems;
15. D supports labor unions; R considers them responsible for outsourced jobs, bankruptcies in some local governments and budget deficits;
16. D places equality above morality and classic cultural values, especially in the domain of sexual behavior, e.g., same sex marriage; R strongly opposes that position;
17. D promotes the woman’s right to abortion; R strongly opposes it;
18. Both parties support elimination of budget deficit, D by raising taxes and R by cutting government expenses. Both parties did not accept the recommendations of Simpson-Bowels Commission supporting the national interest;
19. Both parties condemn illegal immigration, but neither party is prepared to take effective action for the fear of losing certain votes critical to staying in power. For each party, staying in power has higher priority than serving the national interest.

Saving the American Auto Industry

December 8, 2008.

Saving the American Auto Industry
By T.S. Khanna

The American Auto Industry that built, not long ago, many dream cars, with a moving living room comfort, is being decried today. Not saving it would be a disaster. Saving it without the application of sound economic principles would be even a greater disaster, later.

Some suggestions for saving the industry are presented:
• Fix the auto workers wages for the products to compete in the world market,
• The highest compensation paid to the company’s executives may not exceed some reasonable ratio to the lowest compensation paid to the workers,
• Revamp the industry with a focus on building reliable small cars with a five-star safety rating, giving 30+ mpg, while developing hybrid and electric cars within ten years,
• To minimize inventory expenses, build only to order, by showing sample models at the dealers,
• Reduce the retired workers pensions by 30% across the board,
• At this opportune period of low demand, develop a mutually beneficial agreement with oil producing nations fixing the price at $ 45-50.00 a barrel for the next ten years, not allowing the gas price to exceed $ 2.00/gallon in the USA.

In the Senate and Congress hearings, auto industry CEOs were shamed for using private jets and drawing high compensations while the Cos are going broke. Our nation is also going broke. Our elected officials are responsible for this mess. Should they also not be required to accept an annual compensation of one dollar, without benefits, until the economy is fixed?