REDISTRIBUTION

Responding To Income Redistribution

To provide an analysis with response

Tim Kelley
English Composition
Dr. Greer
June 16, 2014

REDISTRIBUTION
Responding to Income Redistribution
The title to this report sounds like the worst case scenario and many cant believe it will
happen here. This concept is not new in our country. The U.S. Government as of 2009; budgeted
1.75 trillion dollars in redistribution to lower income Americans, this was obtained by a
progressive tax table to tax higher income Americans for redistribution. This has become
justified and accepted by the American people. So wage increase for unskilled labor or low wage
positions would not be a difficult hurdle for the current Administration. However, this new
policy, which is estimated to take effect in the first quarter of 2015; will directly affect the US
Firms and the Countrys number one resource, it labor force, by displacing millions of workers.
As well as directly affecting US Companies ability to realize their opportunity for profits. This
report is based on this disaster and how we can do in preparation and the strategies to use during
the destabilization and how to move on after. We will adhere to our Mission Statement in
concern for our Employees and the Community, by keeping in good business practice for the
stock holders as our main priority and motivation.
In accordance to providing direction and guidance to all departments in this time of
unfamiliarity we must prepare for the advent of this drastic policy by restructuring the
companys labor resource. The goal would be to ensure full employment for all remaining
employees. This can be achieved by promoting all hourly wage employees to the anticipated
wage increase, by retraining to perform additional duties at higher standards of performance.
This action may cause some employees to leave but as a result we will have increased labor
efficiency and maintain full employment for the remaining work force.
It is also anticipated that prices will go up and our value will go down. These conditions will
make credit tight as we increase our debt. It is advised to incur short term debt, now at current
REDISTRIBUTION
interest rates to increase our inventories and production now while we can realize a profit and
also invest in a higher priced period this will be a short term fix but the crisis will stabilize too.
And last is to sell as much of our long term assets that will not affect operations, while they have
todays value.
During the upcoming economic fluctuations; it is key that we make only prudent
decisions and actions that show confidence by sticking to our mission statement. This will
provide reassurance to our employees, community, suppliers and the industry as a whole.
By avoiding knee jerk reactions we can protect our resources and maintain our advantageous
posture to exploit any new opportunities that present themselves. Prices will be very low and
willingness to sell will be higher during this period. Our position of leverage will allow us to
acquire what we need. I can imagine it will not take long before some in the industry to start
crying Uncle as soon as this new wage increase takes effect. Also the atmosphere of doing more
with less will be expected by the workforce. We must allow the employees to use their incentive
to increase operational efficiency by promoting a bonus program for ideas. We will get everyone
on board for this get positive feedback.
After next years crisis we need to consolidate what we have and learn the lessons and
sustain and improve. We will reorganize to what we have gained or lost and determine where we
are in relation to before. Then we must determine where we can realize our opportunity for profit
in the global market. This may be the only long term solution to our future woes but we must not
be the industry followers in any case. Another solution to the labor problems will be to contract
for labor. The benefits would be a workforce that can be under one price without benefits of any
kind and also hired out as needed. The drawback would be inflexibility, training, availability but
these setbacks will be offset by this industry, expanding tenfold across the country and thus
REDISTRIBUTION
specializing more to our needs. This will have to be looked into at the earliest opportunity to take
full advantage of its availability and profit.
Many US Firms will be caught off guard due to the dis-belief of this worst case scenario
because it would directly and immediately increase Americas unemployed numbers. That and
the Market reality will force Firms to make practical decisions based on that reality unless the
Government takes further steps to control the economy which will in turn cause greater fear.
Through preparations and the actions during and after this crisis we may be able to weather this
disaster with confidence and be in the position to take advantage of opportunities as they present
themselves and emerge a more powerful company based on the our values to provide value and
quality for money. To conduct our business, to earn a profit and not to forget, the end does not
justify the means. No one will come out of this with their hair un-messed. When the industry
begins to recover from this disaster, many of the upper echelons will be blowing snot bubbles, as
they do the suit case drag home. I, for one; will not be one of them, as this is the first air
conditioned job Ive ever had!

I wanted to investigate this highly controversial subject for a business as a co-worker to
gain consensus on how to make lemonade out of lemons type scenario without inserting a point
of view. I personally think we are going to need a new economic theory to understand Post
Obama economics.