Decentralization = Real Solutions

Decentralization is the process of dispersing decision–making governance, as well as production–consumption cycles, into local communities and smaller business circles. Regarding the current state of affairs in government, energy generation, city planning, employment, banking, healthcare, manufacturing and agriculture, a policy of carefully planned decentralization would provide countless benefits to our citizens, and save our government hundreds of billions of dollars.

Decentralization of essential services is inevitable. As a nation we can either be proactive, or simply wait until current systems deteriorate to the point of collapse. Healthcare is one of many examples.

We’re all painfully aware of the current healthcare debacle in Washington. Both sides, left and right, cling to a seriously flawed agenda. To begin, ‘ healthcare’ is mistakenly defined as ‘ access to services’. While we can all agree that affordable access to quality care is vital, a centralized system that pays only when critical services are rendered is a win–lose proposition. Healthcare providers are paid more when the community is more diseased (assuming patients are insured or can pay their bills!). Hospitals would go bankrupt if the community suddenly became vibrantly healthy, and they do go bankrupt when uninsured patients can’t pay. Bankrupt hospitals (and patients!) are now more common than ever around the country.

Imagine if firemen were paid (by the federal government!) only when they put out fires! Imagine policemen who earn a paycheck only when they apprehend criminals! Hospitals are not paid to safeguard health and well–being. They should be. 25% of Americans are uninsured. 25% of healthcare premiums are allocated to insurance company administrative costs. Hospitals and associated healthcare networks are as vital as fire and police protection. Sending insurance premiums directly to local hospital networks – if executed wisely – holds incredible positive potential to foster health and well–being within local communities.

• Local farming is an explosive new trend, (actually 10,000 years old!) and is directly tied to everyone’s health & well–being. www.100milediet.org/
• Wind and solar energy means decentralized power generation: www.skystreamenergy.com
• Telecommuting eliminates employee travel to central corporate offices: www.flexjobs.com/

Why Bail Out Big Business?

New Business Is The Key To Getting Americans Back to Work …

Since 2007 mega–corporations have methodically laid off workers in their attempt to curtail losses and improve net earnings. It’s working and Wall Street has responded favorably … at least for now.

Meanwhile, the Obama administration claims the $787 billion fiscal stimulus package saved or created 640,000 jobs so far. With unemployment over 10% it’s debatable whether they should be proud or embarrassed by that fact. What more can be done to get Americans back to work? Carl Schramm President and CEO of the Kauffman Foundation says ‘ plenty can be done’.

Research done by the Kauffman Foundation, which is dedicated to the cause of entrepreneurship, shows 80% of jobs, in good times and bad, are created by firms started in the last five years. Mr. Schramm has several ideas to boost new businesses and create jobs:

Make it a priority. Instead of bailing out huge companies that are currently in the business of cutting jobs, the government should focus on getting new firms established & helping young firms grow.

Provide access to capital. As Schramm writes in a recent Wall Street Journal Op–Ed: “The Obama administration has recently expanded some of the Small Business Administration’s loan programs, raised the caps on others, and offered more aid to community banks. These are steps in the right direction. But in the longer run, we need a fundamental revision of bank capital standards, which normally do not vary with the economic cycle.“

Unleash America’s academic entrepreneurs. Currently, a university professor with an idea may commercialize it only by using his university’s technology licensing office. This is an inefficient, monopolistic arrangement that can take years to unfold. Schramm says we need to break down the bureaucracy in order to let the best and brightest ideas into the marketplace.

Meanwhile Goldman Sachs is teaming up with Warren Buffett to invest $500 million over the next five years to provide thousands of small business owners across America with education grants, and boost their access to capital. Sound great? For the record, Goldman’s executive bonus pool, for 2009 alone, totals about $21 billion! ???

Its continued strength throughout the downturn allowed Goldman to quickly repay the $10 billion government bailout it received at the height of the credit crisis. That repayment was also done, in part, to rid the bank of restrictions on annual compensation that were attached to the loan.

Goldman set aside $16.71 billion through the first nine months of the year for compensation, including salaries, bonuses and other benefits. The potential payouts its workers may receive for 2009 have drawn criticism from lawmakers and others. Andy Stern, president of the Service Employees International Union, on Monday led a protest in front of Goldman’s Washington, D.C., offices to try to sway the bank to redirect part of its anticipated $23 billion bonus pool to families facing foreclosure.