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Strategies & Market Trends : New US Economy Policy -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (254)	1/14/2001 4:45:22 PM
From: Arthur Tang	Respond to of 435

Why planned obsolescence and replacement is working as the main factor in our new economy? Or is it how do we plan new economy? The plan for demand side economy is based on per capita income. The first step is looking at the income per month. One fourth of that income is divided for shelter, auto, food and other parts of life's necessities. So, the income is always hopefully adjusted to meet all ends. Now that $7/hr wage is achieved, auto gets $220/month, but rent of $650 requires sharing an apartment with two other $7/hr wage earners. $19/hr wage is the middle class of our citizens, who can afford a small apartment and car, and all other amenities. This wealth factor now must be factored into automobile obsolescence, which should be a 6 year cycle for a $12,000 car. The car after 6 years will be worth $4-6,000 for a down payment towards another new car. The theory of planned obsolescence is so that there are customers for new cars each and every year. The auto obsolescence example is carried into all walks of life. It will include any and every product and service cycles. New will replace the old, so the economy will be steady except for population growth. Overproduction of some products will drive prices down(deflation) and the savings will promote job creation for other products in demand(A rolling economy). So much for that, thank you, Alfred P. Sloan(the inventor of obsolescence and replacement theory at GM). Wall street, therefore, will be demanding all the top management of public corporations to plan their obsolescence and replacement to steady their performances and earnings.

To: Arthur Tang who wrote (254)	1/24/2001 4:02:52 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 435

Education bill George W proposes is not what the new economy wants. Public schools are based on real estate taxes locally. The verification process of students' achievement records are limited by the equipment the schools can provide locally. Whether it is computers or sports equipment, the local real estate taxes limited the schools and its pride and achievement. ie., Golf professionals all use magnum drivers to put the ball on the green in two strokes. Without the fancy equipment, their performance is merely amateurish. Therefore, the federal government instead of punishing the town with poor real estate; they should provide low interest loans to get the best equipment for those schools which are behind in their budget. Good schools raises real estate value; and real estate taxes can always pay back low interest loans. As far as vouchers for private schools($1500) are concerned, it is damaging in several aspects. One is brain drain in the town. The other is depletion of federal surplus for a few privileged individuals. Good students are needed in schools which are behind in the learning process to have good students collaboration with the poor students. George W. Bush started on the wrong foot because he does not understand human nature. Punishment never gets the standards higher. You have to provide the necessary funds to improve schools. On top of that. you have to build up pride of a good school with all the good equipment for teaching. It is not the teachers, but it is the preparation of the teaching material on the computer that helps students who are poor in understanding of terminology used in their text. Tax cut and other matters will be discussed once Bush proposes or the administration reveals their plans.