The prevailing theory is that losses and budget deficits arise because an organization has spent too much money. But that is not possible. Organizations keep accounts and know exactly what they have done with their money. While the characteristic of losses and budget deficits is precisely that the accountant does not know where the money has gone.

There is only one possible explanation. For autistics this explanation is obvious. But neurotypicals do not see it.

If you have too little money and the expenses are not too big. Then the income must be too small.

It is not possible to process in the accounts that expected income has not been received. This is not a problem for your private income. Because you receive 1 salary per day/week/month. If that is missing you will notice it soon enough. But small organizations receive tens of thousands of amounts per year. Large organizations a few million. The government even a few billion. If 2% of that does not come in, nobody notices.

But (if I calculate correctly) 2% of the annual turnover is 80% of the amount needed monthly to pay salaries. For subsidized organization 2% of the annual budget is 74% of the amount needed to pay salaries. (Companies reserve 40% of turnover for raw materials and 20% for VAT. The total of the annual net salaries is 20% of turnover and 50% of the subsidy.)

Laying off employees increases the budget deficit. Other cuts do not affect the budget deficit at all, but do increase costs. Accountants who cut back make a mistake that causes a liquidity problem that causes organizations to go bankrupt.

Posts from https://x.com/Alt_Budget_cuts

00N1/42 Introduction to the cause of losses and budget deficits

Companies cut back because every two years they encounter a loss/budget deficit so large that it threatens bankruptcy.

The root cause of losses is that neurotypicals don’t remember their mistakes. As a result, at the end of the year, they don’t understand why expenses exceed revenues; they call this a loss. Over the past 5,000 years, neurotypicals at companies have sought solutions to this problem. But these solutions contain errors that exacerbate the problems. Cutbacks increase costs. Laying off employees causes bankruptcies or increases budget deficits. Meanwhile, governments have been trying to solve a different problem for 3,000 years. But that solution, too, is flawed. The new business accounting method, mandatory worldwide since 1995, contains errors that cause even larger budget deficits and liquidity problems.

Cutbacks cause low wages and high unemployment. Society incurs high costs, in the form of benefits or additional police, to deal with the unemployed. Organizations that use slaves (American prisons) have lower costs but higher losses. Most slaves are not motivated to learn, which is why they make more mistakes and cause more losses. The flaws in the new business accounting method allow entrepreneurs and shareholders to become (super)rich. But they also cause a few percent of the (super)rich to go bankrupt every two years.

00N2/42 The problem with cutting back on road maintenance 

Asphalt roads last twenty years. In the following ten years, they develop more and more potholes, which become increasingly larger. Patches on potholes wear out just as quickly as the rest of the road. After thirty years, an asphalt road turns into a gravel road. An asphalt road has a capacity of 2,200 cars per hour per lane at a speed of maximum180 km/h (top speed in Germany). A gravel road has a capacity of a few hundred cars per hour at a speed of maximum 30 km/h. At higher speeds, cars fly out of every bend.

00N3/42 A politician’s trick: Why are civil servants personally liable for the mistakes politicians make, while implementing road maintenance?

In 1946, judges ruled that “order is order” is not a valid excuse. The person who executes the orders is responsible for the orders they carry out.

But soldiers who refuse orders during wartime are shot on the spot. During peacetime, they receive life imprisonment. Civil servants and employees who refuse orders are summarily dismissed. Meanwhile, the person who gave the orders appoints a new person.

How can the executor be responsible if the alternative is being shot, imprisoned, or fired, while the order is still being executed?

If the person who executes the orders is responsible for the orders they carry out, does that mean the person who orders them is not responsible?

Adolf Hitler and the German government ordered the murder of millions of Jews and members of other minorities during WWII. Does this mean they were not responsible?

Was Adolf Hitler innocent of the war crimes he ordered?

How could the Nuremberg judges have made this mistake?

In 1946, it wasn’t yet common knowledge that America also had concentration camps for Americans of Japanese descent. But the American government and military leadership certainly knew this. So, to avoid being held accountable, they pushed the responsibility as far down the line as possible.

Since 1946, governments have used this trick to blame civil servants for the consequences of budget cuts: In the Netherlands, we had a fraud scandal in the 1990s. While prices rose as a result of the cuts, civil servants were ordered to do whatever was necessary to build expensive buildings that politicians wanted. When it became public knowledge, civil servants were punished for it. As a result, civil servants now protect themselves by treating road maintenance like new construction, which makes it considerably more expensive.

00N4/42 Why are American and European production capacity doing so badly and why are all these refugees coming here? #Economy #CauseBudgetCuts 

In 1999, structural road maintenance was cut in America, Europe and Russia. In the rest of the world, it was cut in the 1980s. Good roads are not only needed to supply supermarkets but also to transport raw materials to factories and products to the consumer. In Africa and South America, this is no longer possible. As a result, all these people have become unemployed and are coming here.

I advise millionaires/billionaires to invest in road maintenance companies.

Thanks to the mistake of accountants (00N15) and the excessive reservation for hours worked (00N17), companies always have to cut back. That means low salaries. That means China.

Now that companies are going to increase their added value, they need well-trained employees who can produce a high-quality product. That means America and Europe. Just building up that high-quality

production capacity will give the American and European economy a big boost.

Doesn’t this create additional environmental problems? It doesn’t have to. Now that companies no longer have to cut back, they have money to build clean factories.

00N5/42 Demonstrating against layoffs #endlayoffs #economy 

Demonstrating against layoffs is just as effective as demonstrating against cancer or punctures. Companies claim they have a problem that they are trying to solve through layoffs. To get rid of layoffs, we need to be able to offer a better solution.

Despite the shortage of workers, companies continue to cut costs. Once every two years, 99% of companies lay off 2% of their employees because they are trying to cover a loss/budget deficit.

In fact there isn’t really a shortage of workers. There is a shortage of workers who are willing to work for a salary below living wages. Forty years of austerity by European companies has increased the cost of living by 400% while salaries have been raised by less than 100%. American companies have been cutting back for sixty years.

00N6/42 Living wages. What is the point of having a job if it doesn’t pay the bills?

Before 1980, the law of supply and demand determined the price of products and wages. When supply was high, prices fell. When many people wanted a particular job, wages fell. When supply was low, prices rose. When few people were willing or able to do a particular job, wages rose. After 1980, many types of work disappeared because they were so hard, dirty, or dangerous that workers were unwilling to do them for $10 an hour.

In the Netherlands these workers [in 1982: FRED DIBNAH shows HOW to erect a CHIMNEY SCAFFOLD at 200 feet!] https://www.youtube.com/watch?v=w3ma9iYx4rg (tl:dr watch the first 30 seconds) earned 10.000 guilders (= $5,000 then, $19,000 today) per day before 1980. (In another show Fred Dibnah was interviewed for, he said that when he started in his teens (1950ish) he was earning over £200 (= $11,000 today) a week, working on high church steeples.) From 1980 onward, tall chimneys were demolished because no one wanted to clean them anymore. 

Before 1980, people worked in construction from age 20 to 50 and earned twice as much as accountants. People worked in road maintenance from age 16 to 26 and earned 1.5 times as much as accountants. People who worked at the fish market always smelled of fish. To grease the wheels of a train, you needed an underground grease pit that had to be cleaned once a week by standing in it and scooping it out. Two jobs that weren’t difficult or dangerous, but so filthy that almost no one wanted to do them. Before 1980, these people earned more than construction workers.

00N7/42 Abolition of the law of supply and demand for real estate and skilled workers 

Due to budget cuts, salaries became so low in 1980 that the law of supply and demand for real estate and skilled workers was abolished and replaced by waiting lists.

Before 1980, the highest bidder was obligated to buy the house. So people never bid on houses they didn’t want. This made it very easy for developers to determine what type of houses to build. But because waiting lists last for decades, people register not only for the house they need now, but also for the houses they think they will need in 5, 10, or 20 years. This means that 100,000 people looking for a house can create a waiting list for 150,000 or 200,000 houses or more. This makes it virtually impossible for developers to determine what to build. 

Before 1980, if there were too few plumbers, wages rose, encouraging people to take up this profession. If there were too many plumbers, wages fell. For centuries, this was the mechanism that determined how many people worked as plumbers, carpenters, farmhands, and many other professions. 

If the sewer breaks and manure accumulates under his house, the owner is willing to pay more than if his faucet is leaking. Before 1980, this was the selection tool plumbers used to determine which jobs should be handled first. But with waiting lists, the leaky faucet can sometimes be the first one to go.

In every profession, new employees have to gain experience and learn skills. So, an experienced plumber could solve more complex problems and earned a higher salary for it. An apprentice plumber fixed leaky faucets, and an experienced plumber repaired broken sewers. With waiting lists, it can happen that an experienced plumber is asked to fix a faucet, while the apprentice waits all day for an experienced plumber to help him fix the sewer. Or worse, he tries himself and makes mistakes which exacerbate the problem.

00N8/42 A centuries-old lie #Economy #CauseBudgetCuts 

For centuries, employers have told employees that they are being laid off because they are not doing their job well or are not sufficiently trained. In reality, employers with losses feel that they have a choice between bankruptcy and layoffs. In bankruptcy, all employees lose their jobs and the entrepreneur loses his source of income. So layoffs are clearly the better choice. However, in reality bankruptcy is caused by an accountant’s mistake.

00N9/42 Personal Bankruptcy of Millionaires/Billionaires #Economy #CauseBudgetCuts 

Trump has promised to lower taxes for millionaires/billionaires. Unfortunately, the personal bankruptcy of millionaires/billionaires is not caused by taxes.

Every two years, the accountants of millionaires/billionaires make a very stupid budget-cutting mistake in January/February. The next big expense, they have a chance of going bankrupt. That big expense could be buying an expensive car, or an expensive vacation, or a yacht, or paying taxes.

Before 1980, millionaires/billionaires were given priority for repairs because they could afford the top price. Since 1980, they, like everyone else, have been placed on waiting lists. This means it can take years before the sewer system in their multi-million dollar home can be repaired.

00N10/42 Accounting has a flaw #endlayoffs #economy 

Accounting has a flaw that prevents it from posting that expected income/revenue was not received. 

This is not a problem for your private income, because people receive one salary per day/week/month and if that doesn’t come in, they will notice it immediately. But small companies receive several tens of thousands of random amounts every year and large companies even many millions of random amounts. If 2% of those amounts don’t come in, they won’t notice it. 

Correction to my calculation. The rule of thumb is that a company needs a turnover of $100,000 per employee to be able to pay salaries. That’s 40% raw materials, 30% VAT + income tax, 20% annual salary, 10% housing + tools. (In America, VAT isn’t included in sales, but it is elsewhere in the world.) So the total monthly salaries are 1.7% of annual turnover. A 2% budget deficit is fatal. But cutting back only exacerbates the problem. Subsidized institutions don’t have raw materials and don’t pay VAT. If I’m not mistaken, the total monthly salaries are 0.6% of the annual budget. A 2% budget deficit is three months’ salary for the entire institution.

So, to pay a higher monthly salary, companies must increase their annual turnover. But in the 1950s (America) and 1970s (Europe), companies discovered that this leads to higher losses (00N29).

00N11/42 The Cause of Losses 

In the production and sale of physical products, employees make mistakes or have accidents that damage the products, making them unsellable. The problem is that neurotypicals don’t remember these mistakes and accidents, so at the end of the year they don’t understand where the money went.

But this is not a money problem. Neurotypical hunter-gatherers who had to build up a winter supply always had a 2% shortage because they didn’t account for their own mistakes or for the mice and rats that also ate grain. A 2% deficit wouldn’t be a problem if it were distributed fairly. But leaders hoard, leaving less. At every level within the tribe, leaders try to hoard as much as possible, leaving nothing for the people with the least power. They can only survive by robbing the most powerful. But usually it doesn’t get that far. When the tribe is 50% short in its food supply, it deploys 50% more people to increase its supply by 50%. But again, they fail to account for mistakes, mice, and rats. So, they still end up 2% short.

00N12/42 Why do companies miss so many payments? #endlayoffs #economy 

This is because people make mistakes. Neurotypicals make many more mistakes than they think. Monkeys and severe autistics have a photographic memory. Neurotypicals exchanged their photographic memory for an innate language center 2 million years ago. This makes communication and collaboration a lot easier. But it makes remembering mistakes almost impossible. Neurotypicals have to pay quite a lot of attention to an event in order to remember it. But mistakes are almost always fleeting moments that neurotypicals immediately forget.

00N13/42 Accountants have been making this mistake for over 3,000 years #Economy #CauseBudgetCuts 

Every two years, accountants make a mistake that makes the rich more rich, but also causes the rich to sometimes go bankrupt.

We could call this poetic justice, if it weren’t for the fact that this same mistake also causes companies and countries to go bankrupt. That salaries are cut and jobs disappear. The mistake also causes work to be outsourced to countries with lower salaries.

00N14/42 An ironic education problem part 1 #Economy #CauseBudgetCuts 

15-year- olds learn how to prevent the liquidity problem that accounts cause with their mistake and then they forget.

15 year olds learn at school that the total of the balance of the bank book + the balance of the ledger accounts is equal to the balance of the bank account.

So you can transfer money from the bank book to the ledger accounts without

affecting the balance of the bank account.

You can also transfer money from the ledger accounts to the bank book

without affecting the balance of the bank account.

00N15/42 Liquidity problems.  #Economy #CauseBudgetCuts 

Once every two years, at the end of a year of cutbacks, some general ledger accounts have a debit balance.

After employees are laid off on March 1st, they no longer receive a salary. So part of the salary budget has not been paid out. Companies have bought cheaper or fewer raw materials than planned. So part of the raw material budget has not been paid out.

Accountants think that when they transfer this debit balance back to the bank book, they will receive the same amount in their bank account.

The rich use this imaginary amount to give themselves a gift. Companies use it to pay dividends. The government uses it to hand out tax breaks.

But in reality, this causes liquidity problems. As a result, 94% of companies go bankrupt within 10 years.

Businesses and millionaires/billionaires should use internet banking to check the balance of their bank accounts. If they try to borrow money a second time while they are in the red, banks sometimes send a bailiff to declare them bankrupt.

00N16/42 The solution of business losses: High salary = high dividend #Economy #CauseBudgetCuts 

The Dutch East India Company invented share capital in 1606. They used this to cover losses (lost income due to damaged products). They reserved 5% of the added value each year to pay dividends.

The price of raw materials affects turnover but not the added value. To increase the added value, you have to sell high-quality products at a high price.

Entrepreneurs and employees were paid 90% of the added value of their own production (performance pay). This encouraged them to learn new skills. Companies paid for on- the-job training because it increased the quality of the products.

Small businesses used 5% of the added value to cover losses. The Dutch East India Company method of covering losses was based on a method that was invented about 800 years ago by the Amsterdam carpenters guild. My grandfather’s leather bags production and sales company was still using this method in the 1950s.

00N17/42 For the last 3000 years, there have been two types of financial problems #Economy #CauseBudgetCuts 

Small businesses have one problem. Governments had another problem. Large businesses have both problems.

Organizations with production and sales departments have losses due to lost revenue because products are damaged and cannot be sold. As a result, salaries of entrepreneurs and employees cannot be paid regularly.

Before bank accounts became mandatory for citizens in the Netherlands in 1985, they paid their taxes in cash. When governments received tens of billions or more in taxes in cash, they never counted their money. Because there was a high probability that accountants would try to steal some of the money. Expenses were often higher than expected. As a result, the money often suddenly ran out and salaries could not be paid.

Large companies have losses and sold millions of shares in cash and never counted their money.

The business accounting method that has been mandatory since 1995 has been invented many times in the last 3000 years. Always with the same mistakes. As a result it only works for organizations that can raise taxes or use share capital to pay salaries.

Over the last 3,000 years, governments and large corporations have repeatedly invented a business accounting method to ensure that there is always enough money to pay salaries, replace tools, and buy a new building in 20 years. Since 1995, this method has also been mandatory for small businesses.

But every time, the method contains the same errors: A budget deficit occurs when employees have not done their work, even if they have not done their job for legitimate reasons. Employees who have been fired for not doing their job well are (now) not doing their (former) job for legitimate reasons. Until they are replaced, a budget deficit occurs for every hour not worked.

After employees are laid off, a budget deficit occurs for hours not worked for all eternity. These budget deficits can grow into the trillions.

Too much money is reserved for each “hour worked”. A company with 10 employees can, based on the reservation, buy a building worth more than $300,000,000 after 20 years. But 94% are bankrupt after 10 years. These high reservations make dividend payments gigantic.

A better method is to give each department its own bank account and keep track of how much money they have by means of internet banking. Reserves for the new building should be arranged centrally. The costs of the building divided by 20.

00N18/42 Why do the rich keep getting richer? #Economy #CauseBudgetCuts 

The higher the amount that is not reserved for hours not worked, the higher the budget deficit. The higher the budget deficit, the higher the amount that has to be cut. The higher the amount that has to be cut, the higher the debit balance of some ledger accounts at the end of the year. At the end of the year an amount equal to the debit balance of the ledger accounts is paid out as dividends to shareholders.

So thanks to the mistakes of accountants and the efforts of workers to ensure that there is always enough money to pay salaries, a situation has arisen where the rich have an interest in companies with huge budget deficits. So they can get huge dividend payments.

00N19/42 The cause of budget deficits: Of every 100 activities that employees, entrepreneurs, and CEOs perform, two go wrong. #endlayoffs #economy

• Administrative employees, including CEO and CFO, make mistakes that prevent scheduled tasks from being performed. This causes budget deficits in every department that uses the accounting method that is mandatory since 1995. 
• Employees on the shop floor make mistakes in which tools and machines become damaged and have to be repaired or replaced. This reduces turnover, but does not affect losses/budget deficits.
• Employees on the shop floor make mistakes that damage raw materials or products in production. These raw materials cannot be processed into products and damaged products cannot be sold. As a result, the company misses payments. This is called a loss. Losses only occur in production and sales departments. (Procedures to prevent mistakes result in many cheap mistakes being replaced by a few expensive mistakes).

00N20/42 Over the last 3000 years, governments and big companies have many times invented an accounting method to ensure that there is always enough money to pay salaries, replace tools/equipment and buy a new building in 20 years. But when implementing this method, the same three mistakes are always made.

00N21/42 First mistake 

After 20 years, this company building is quite worn out. But how much money do you need for the new building? Not only are prices rising, but how big does that building need to be?

That you have encountered a budget deficit means that the growth of your main branch has stagnated. But in principle, you can open an infinite number of branches that can theoretically become just as big as your main branch. So in 20 years, do you put all those people in one building or do you give each branch its own building? Management always thinks that it is best to reserve as much money as possible, because if it doesn’t help, it doesn’t hurt either. But then there was the second mistake.

(Of course you could make a reservation per location, but management doesn’t do that because of the budget cuts.)

00N22/42 Second mistake 

One of the tasks of managers is to fire employees who don’t do their job on the spot and replace them with new employees.

(Based on the planning, it is calculated how big the reserve should be at the end of next year. For every €$10/hour an employee makes, €$1000 is reserved for salaries, tools and a new building in 20 years. If, at the end of the year, the actual reserve is smaller than the calculated reserve, an organization has a budget deficit.) But as an extra (??????) measure, managers think that no money should be reserved to pay salaries to employees who don’t do their job. Do managers plan to not do their own job??

Employees who are fired because they didn’t do their job will hopefully be replaced within 20 years. So a reservation must be made for that new building. But because employees who have been fired no longer do their former job, no budget is reserved, creating a budget deficit.

For employees who are laid off, a schedule is made for tasks that they have to perform until eternity. But of course they don’t do that and a budget deficit is created. (Some US companies are still scheduling tasks for employees who were laid off in 1851.)

The larger the reservation for housing, the larger the budget deficit, the larger the dividend payment to shareholders.

00N23/42 Third mistake. 

At the end of the year, a number of general ledger accounts have a debit balance. When the accountant transfers this money back to the bank book, he thinks he will receive the same amount in the bank account and spends this money.

From January to December, the bank account has a higher balance than the bank book. In January of the next year, the accountant makes his mistake and the balance of the bank account is equalized with that of the bank book. This makes it seem as if the problem has been solved.

In reality, organizations that can use taxpayer money or equity to pay salaries have a deficit in both their bank book and bank account. This deficit amounts to a default budget deficit of 2% of the annual budget/turnover times the number of years the organization has been cutting back. Plus €1.9 million per year since employees were laid off . Plus the additional budget deficit that arises when managers request additional budget 

00N24/42 The biggest mistake when cutting costs: No cost-benefit analysis 

When a new organization is established, hundreds of cost-benefit analyses are performed to determine which raw materials and resources are the cheapest per year.

When cutting costs, no cost-benefit analysis is performed. Instead, management opts for the cheapest per unit. The cheapest per unit is, on average, 100 times more expensive per year. In cheapest per unit the unit is usually smaller. Packaging and transportation costs are higher, and a relatively high proportion of the company’s fixed and variable costs are added to the product price.

Budget deficits are caused by errors in the business accounting system which ensure that part of the budget is not booked. Even if management manages to reduce costs, this has no effect on the budget deficit.

The only cutback that affects the budget deficit is employee layoffs. But that increases the budget deficit.

A ceramics factory uses $8.50 clay packs of 40 pounds. After cutting costs, they switched to $3.85 per pound. Forty times that price equals $77 for 40 pounds of clay. Why is that smaller package so much more expensive? Not only because the packaging and transportation costs are relatively high, but also because companies pass on a larger portion of their fixed and variable costs to a smaller package. If you’re making something out of clay with your children on a Saturday afternoon, $3.85 for 1 pound of clay doesn’t sound unreasonable. But if you do the math, you discover that $8.50 divided by 40 equals at most $0.22 of clay. This means that $3.63 is the total of the packaging costs, transportation costs, and fixed and variable costs. Something similar likely applies to other small packages.

(Of course, these costs must also be calculated for the large package. This results in a lower net price, and the net price divided by 40 is even lower. This results in packaging and transportation costs, as well as fixed and variable costs, for the small package being even higher.)

00N25/42 Why do companies continue to schedule for employees they’ve laid off?

There are two natural scenarios in which employees leave companies. These employees always perform tasks that are essential to the company, and they are always replaced at short notice. Therefore, it’s perfectly normal for companies to continue scheduling.

These two scenarios are summary dismissal because an employee isn’t doing their job and retirement.

This means that companies don’t have procedures for stopping scheduling for employees who leave.

Then the losses/budget deficit hits, and business owners/CEOs panic. They make one mistake after another, and when, in utter desperation, they lay off several employees, they don’t consider that they need to develop a new procedure to stop scheduling for these employees.

Businesses and governments always think that one cutback is enough to cover the loss/budget deficit. So they never develop procedures for subsequent cuts. There are American companies that have been cutting back for over 150 years, yet still believe they can solve the problem this time.

00N26/42 The best solution for budget deficits

Use online banking regularly to compare the balances of your bank book and your bank account.

To make a reserve for salaries, replacement tools/equipment, and the new building in 20 years, it’s best to record it at the beginning of the day/week/month/year instead of after a task has been completed. Making booking errors after the task has been completed will result in budget deficits. Making booking errors at the beginning of the day/week/month/year will result in a budget surplus. With a budget surplus it is no longer needed to cut costs and accounts can’t make their liquidity mistake.

(Because some American companies are still scheduling work for employees laid off in 1851, there is a budget deficit of $330 million per employee as of January 1, 2025. This money was paid out as dividends due to the accountant’s liquidity error. However, if the reserve had been booked at the beginning of the day/week/month/year, there would have been a budget surplus of $3.5 million per employee as of January 1, 2025. The budget surplus represents unpaid salaries. The budget deficit represents the unallocated reserves.)

00N27/42 History of budget cuts. The American dream part 1: Thanks to the abundance of revolvers, it was possible for American gamblers to become millionaires in the 19th century. #endlayoffs #economy 

In the 19th century, small business owners did not keep books. In the morning they had to have enough money to buy raw materials, pay employees and replace tools if necessary. What they had left in the evening was their own salary.

In the third year the day came when they did not have enough money. In Europe they could tell their employees at the beginning or end of the workday and in both cases employees walked away. But in America, employees had revolvers and reacted badly when told at the end of the workday. Relatives were left with a successful company that they wanted to get rid of as quickly as possible. So anyone with a few thousand dollars to spare could buy a company.

When the buyer started working in the business, he had a good life for almost three years. (Operating costs were 2% higher for the new owner, but he didn’t know that.) In the third year came the day when he didn’t have enough money in the morning. When he told his employees that in the morning, they walked away and he was left with a company that was widely known to be very successful. He was able to sell this company for a few ten thousand dollars.

The buyer also had a good life for almost three years. But the seller naturally thought he would get in trouble and left town as quickly as possible. In the next town he was able to buy a larger company whose owner had suddenly died and again he had a good life for almost three years.

This worked until the gambler had about a million dollars. If he put that money in the bank and lived frugally, he could leave his children a lot of money. His children were able to make a lot of money by investing in monopolies.

However, the American dream did not protect against managing big companies badly, disease, robbery and investing in the wrong companies. The right type of companies started in the late 19th and early 20th century.

In the Netherlands for centuries some family owned businesses had a method to cover losses. They did not understand how the method worked, so everyone had to strictly follow the rules. The method was lost in the late 1960s. In the rest of Europe small business owners/subcontractors in the third year no longer had money to pay their own salary and the salaries of their employees, so they started doing other work. Almost three years later they started doing other work again. Almost three years later again. Etcetera. In general, small business owners had a good life. But they never became millionaires.

This meant that people learned a wealth of skills over the course of their lives. Which made them more and more valuable. So if a 16 year old went to work in shipbuilding, he could hammer in nails. But for a 40 year old there were a thousand jobs he could perform.

Only in the 1950s it became possible for small companies to borrow money from banks to make payroll. Banks forced companies to make cutbacks. This made it possible for entrepreneurs to become rich by pocketing the proceeds of the cuts.

00N28/42 History of budget cuts. The American dream part 2: When all companies that cut back go bankrupt. How come people like Elon Musk and Jeff Bezos are so rich? #endlayoffs #economy 

The wholesaler assumes that there are two situations: Supply stagnates while prices rise. Supply stagnates while prices remain the same. In the first case, a company reduces its production and increases prices because fixed costs now have to be paid from smaller sales. In the second case there are problems with the supply chain.

But there is also a third situation. When a company cuts back and lays off employees, forcing them to reduce production. Companies that cut back never think about it and forget to increase their prices.

When a monopolist cuts back, the wholesaler sees supply stagnating while prices remain the same, starts hoarding and orders extra. Because if the supply stops completely, he can raise prices and make a lot of money. The monopolist now sees demand for the product increasing and uses equity to hire additional employees to increase production. The wholesaler sees that there is sufficient supply again and first dumps its stock. As a result, the monopolist sees that demand for the product collapses again. (In industries where wholesale has disappeared, this effect is replaced by “hype”.)

Monopolists and shareholders think they can make a lot of money if they can increase production quickly enough. For that reason, shareholders like to invest in these types of companies. This allows companies to hire additional employees. During the next round of cutbacks, they can lay off an additional number of employees. As a result, the proceeds of the cuts/profits are extra large.

The bankruptcy of millionaires and billionaires starts with a budget deficit of $2000 in some budgets. Followed by all the mistakes with cutbacks that companies also make.

00N29/42 History of budget cuts since 1945 #Economy #CauseBudgetCuts

With the industrial revolution, performance pay was abolished.

In 1945, 70 million soldiers with PTSD were sent home where they resumed their jobs. In 1952, they started thinking about WWII and started working much slower, causing the entire world to fall into an economic slump. In the Netherlands, performance pay was reintroduced and in America, they blamed foreigners and abolished immigration in 1955.

To prevent losses, the sales market has to grow by 2% per year. Thanks to more than 2% immigration, companies in the eastern part of America had never had losses. That changed in 1955. Companies raised their prices but found that this increased losses. In the late fifties, companies started to cut back and entrepreneurs paid themselves an amount equal to the debit balance. By the 1970s, tens of millions of businesses had gone bankrupt.

In the Netherlands, salaries increased by an extra 1% between 1953 and 1965. Between 1965 and 1972 by 5%/year. From 1972 by 12%/year. In the late 1960s, the method of controlling losses was abolished and companies ran into losses. Companies raised their prices but found that this increased losses. Companies began to cut back around 1975. In 1980, performance pay was abolished, millions of employees lost 40% of their salary, slowed down and lost their jobs. This was the start of the crisis of the early 1980s.

Everything that has happened since then is a reaction to these events.

00N30/42 Schools and prisons #Economy #CauseBudgetCuts

The Roman Empire discovered 2,000 years ago that bored, unemployed youth destroy infrastructure. That is one reason why 10% of the American population is in prison and 30% of the Dutch population is in school. The other is that if you take millions of people out of the labor force, unemployment decreases and it is less difficult to find a job. But more than 12 years of education does not affect the chance of a job.

Employees who can read well can learn skills faster. This has a positive effect on the course of their careers. Countries where more than 60% of the population can read have a stronger economy.

Learning to read takes 10,000 hours. In the Western education system, that is divided into 11 years + 1. Many children encounter problems that prevent them from learning for a period. It is cheaper to offer children who live with their parents an extra year of schooling. Than to expect companies to invest extra time in teaching those people skills for the rest of their lives.

10,000 hours is 2,000 hours to learn the technique +4,000 hours of geography and 4,000 hours of history to get up to speed. In the late 19th century, when the education system was developed, these were the only subjects you could read 4,000 hours about without repeats.

00N31/42 Subscriptions for parts you’ve already purchased.

More and more companies are requiring consumers to subscribe to a component of a device they’ve purchased. For cars, you have to subscribe to drive a little faster or use the air conditioning. This is a form of shrinkflation. The buyer receives 90% of the capacity of the device they purchased. If they pay extra, the capacity is increased to 100%. So this is actually a huge price hike.

Manufacturers do this in an attempt to reduce their budget deficit. But it doesn’t work. The budget deficit depends on total annual revenue, including revenue from extras and subscriptions.

The budget deficit is 2% of total annual revenue times the number of years the company has been cutting costs plus the additional budget deficit caused by managers (00N32) plus the budget deficit caused by employee layoffs (00N22).

00N32/42 The average citizen can hardly imagine how it was possible to get 50,000 people together to build Stonehenge or the pyramids. At the same time, citizens complain about governments that keep growing. But they never see the link. #endlayoffs #economy  

Budgeting/budget financing was invented to ensure that there was enough money to pay salaries at the end of the week/month/year. But soon managers discovered that they were facing a budget deficit at the beginning of the next week/month/year. As a result, they had to lay off employees, which prevented them from completing their tasks.

They discovered a very simple solution. A manager can request an additional budget by planning additional tasks. But to actually receive that extra budget, those extra tasks have to be carried out. Additional employees are required for this. Who are entitled to a salary that was not budgeted for. That salary is paid by another department, but from the manager’s budget. As a result, the manager cannot see what is causing his growing budget deficit. So he solves the problem by requesting an additional budget by planning additional tasks. When the department becomes too large, it is split into two departments with a budget deficit. So now there are two managers requesting extra budget by planning extra tasks.

The Egyptians discovered halfway through their first pyramid that they suddenly had a hundred times as many employees available. So the second part became a hundred times bigger. But 1000 years later, there were suddenly not enough new people in the country to give departments a budget raise. As a result, the economy collapsed and it was suddenly impossible to pay salaries. So they suddenly stopped building halfway through a pyramid. Thanks to modern means of communication, it is possible for governments to attract an almost infinite number of civil servants. As a result, departments always receive extra budget in the next round. In order to pay for all these budget raises, taxes must of course be raised regularly. But in the US and Europe the problem with the road maintenance backlog will likely cause us to starve well before our economy collapses.

00N33/42 Is this information reliable? 

Neurotypicals like to think that they judge new information on its merits. But I hear neurotypicals say over and over again, “That can’t be true, because I’ve never heard of it.” Or “Yes, I know, because I’ve heard of it before.”

Neurotypicals experience new information as unreliable, simply because it is new. Neurotypicals never think about the causes of losses and budget deficits, so this is new. Give it a few weeks and the information will start to feel familiar.

00N34/42 An ironic education problem part 2

Fourteen-year-olds learn in school what causes obesity and then forget it.

Muscles use sugar as fuel. When muscles become weak, those sugars are stored as fat.

The rectus abdominis, obliques, and back muscles should be engaged 24/7 and burn about 12 grams of sugar per day. When these muscles become weak, the sugar is stored as about 5 grams of fat per day, or 2 kg of fat per year, or 20 kg of fat per decade.

00N35/42 The real cause of obesity https://howtogetthin.eu/

14 year olds in the first six months of their growth spurt complain that the sit-up has suddenly become a lot harder and ask if they can do the alternative, the roll-up. Sadistic gym teachers have forbidden this for thousands of years. As a result, the first 3 parts of the rectus abdominis become weak. Then the 4th part becomes weak and the intestines start to hang out of the abdominal cavity, causing a fat belly. The obliques become weak and the love handles develop.

Muscles use sugar as fuel. When muscles become weak, the sugar is stored in the form of fat and people start to grow by 0.09 oz per day.

Most (male) car owners know what causes a flat tire and how to fix it. Obese people eat 650 grams of food daily and gain 5 grams of weight. If the cause of obesity is truly common knowledge, how is it that more than 50% of the population is still obese? 

Grok is right. My ideas about obesity are completely at odds with current scientific ideas. That’s the whole point. Hence the words “Real cause.” But, as I mentioned before (00N33), neurotypicals have difficulty processing new information, simply because it is new.

00N36/42 New. Learn to walk and run naturally https://howtogetthin.eu/

Humans naturally walk and run by contracting their rectus abdominis muscles and falling forward in a controlled manner. From over half a million years ago until the 1960s in the US and the 1980s in Europe, people used a running technique that allowed them to effortlessly run 15 km/h (9 mph). This allowed them to hunt large land animals.

I remember natural running from my childhood in the 1960s and 1970s. It felt like flying. During lockdown, I tried it again. My muscles weren’t strong enough to use the technique. But it quickly became clear how it works.

As you train the muscles you need to walk and run naturally, your love handles, butt, and belly will slowly get smaller.

According to my GP, the liver is capable of converting fat into sugar. The obliques and rectus abdominis burn 80% of the available sugars. The calves and feet burn 10% of the available sugars. The remaining 10% is divided between the thigh muscles, arm muscles, and stomach and intestinal muscles.

This workout trains your calves, obliques, and rectus abdominis. After a few months, your feet will turn forward again.

00N37/42 Autistic people encounter many problems. But upon closer examination, these problems fall into two categories. If you solve the second category, the first one will disappear automatically.

1. People who have been abused or raped have difficulty recognizing their own feelings. They struggle with change and surprises. They have difficulty with being touched. Coincidentally, these also appear to be symptoms of autism.
2. To be able to have conversations and take control of your own life, you need to master several skills that neurotypical children learn independently at age five. Autistic children develop differently, and they don’t learn these skills independently. However, it is quite possible to learn them within two years at school (00N38).

00N38/42 Autistic people are very easy to recognize. Like predators, we naturally only make eye contact when we are in conflict. (Scold an autistic person and he will look at you angrily.) 

Neurotypical children learn at age five that:

• When people aren’t looking at you, they aren’t listening.
• When people look up and gape, they are not interested in your story.
• When their facial expression changes to something that matches your story, then they have understood you. (Research shows that autistics can recognize facial expressions faster than neurotypicals).

Children who have learned the first three skills learn a few years later that:

• When someone makes a strange comment: Laugh. He was joking or you misunderstood him. (In verbal communication there is a 30% chance of errors, so good error correction is very important).

00N39/42 Since 1880, mental health organizations have had an alternative method of making money from minorities. 

– From the 1880s to 1973, they used abuse to treat homosexuals for abnormal behavior. The Commissioner for Human Rights has put an end to this.

– From the 1950s to 2012, they used abuse to treat transgender people for mentally disturbed behavior. The Commissioner for Human Rights has put an end to this.   

– The test for the severe form of autism has not been performed since 1999. As a result, 40% of severe autistic people are wrongly diagnosed as mentally retarded. 

– Because autistic people are not taught the skills needed to have a conversation and ask for help, we encounter many problems and go to mental health care. Since the 1960s treatment of autistic people has generated more than $150 billion per year.

– Autistic people naturally vacuum once a week and do laundry and dishes when necessary. When an autistic person requests guidance because his personal problems have overwhelmed him, he is advised to start a cleaning schedule. It is virtually impossible to create a correct schedule if you assume an odd number of days or an odd number of tasks. Long after all personal problems have been resolved, the autistic needs guidance every four weeks to “fix” the schedule.

00N40/42 The solution to the “Sally and Anne Test”. Autistics are still very angry about this.

In the early 1990s, hundreds of thousands of psychologists told the following story to millions of clients and asked them what they thought of it.

Six-year-old children are shown a puppet show. Two puppets, Sally and Anne, were sitting in a room. Sally gets up, puts a marble in a basket, and leaves the room. Anne gets up, takes the marble from the basket, and puts it in a box. Then Sally returns. The children are asked where they think Sally thinks the marble is. Neurotypical children think Sally thinks the marble is in the basket. Autistic children think Sally thinks the marble is in the box.

The clients all thought the autistic child gave an abnormal answer, and psychologists confirmed this.

Psychologists learn during their studies that autists recognize this situation as tidying up. Marbles are toys. Six year old Sally put toys on the table. Parents regularly put their children’s toys away in the toy box or toy cupboard. Neurotypicals don’t remember this, partly because they have very poor memories and partly because they learn the prejudice at age five that men are big slobs and women always put their things away neatly.

But I wondered what was being tested here and what the purpose of this test was.

In 1973, the Human Rights Commission put an end to almost 100 years of fraud involving homosexuals who were treated for abnormal behavior through abuse. The Commission explicitly prohibited psychologists and psychiatrists from using the terms normal and abnormal because they are not scientific.

I think the test was to determine whether it’s possible to present information to a majority in such a way that they automatically conclude that a minority is abnormal.

I think the purpose of the test was to show the Human Rights Commission that psychologists are so clever that they can declare an entire new minority “abnormal” without the Commission being able to do anything about it.

00N41/42 Why do neurotypicals have such poor memories? Neurotypicals have an internal dialogue. They tell themselves two or three stories a day about remarkable events. They remember some of those stories. If something happens a few times a day, it’s clearly not remarkable, so they don’t tell themselves a story. Severely autistic people have a camera in their head that’s always on and a photographic memory. The fact that something happens a few times a day actually makes it easier to remember.

Now, the number of times toys are put away isn’t important, of course. But there are also important situations where the difference in how our memory works does make a difference. The success of shops and cafes, for example.

The number of people watching a shop on fire is a remarkable event that neurotypicals can remember well. But the number of people walking down a street on an average weekday isn’t remarkable enough for neurotypicals. This is a problem because the success of a shop or cafe depends on the number of people walking down the street. If something changes on the street and suddenly halves the number of people walking by, a shop could go bankrupt without the neurotypical owner understanding what’s happening. Without ever thinking of asking an autistic person for advice.

When closing their accounts at the end of the year, the neurotypical entrepreneur discovers that expenses exceed revenue. That’s the only information they have. Therefore, they’re unable to tell themselves a story and, quite literally, unable to think about the problem. As a result, they panic and make a lot of mistakes.

The autistic entrepreneur remembers that they made a lot of mistakes throughout the year that likely cost them money. Therefore, it’s not unreasonable to assume that the loss is caused by the cost of their mistakes. A reserve of 5% of the added value is roughly enough to cover these losses.

00N42/42 Problems with learning adult behavior for sons of divorced parents

In 1991/’92, I wanted to retrain and completed the first year of a counseling program that was just being cut, where, among other things, you learned to observe behavior. After that, I started volunteering at a youth center. After a few years, I noticed that I could tell from the behavior of boys aged 13 and older that their parents were divorced. I found this strange enough to investigate further.

It seems that 13-year-olds need to learn how to behave as adult men/women. They do this by carefully observing their same-sex parent for a few hours every six weeks for a year and a half. Boys do odd jobs with their fathers. Girls go shopping with their mothers.

When the father is absent (due to work, divorce, or death), boys look for a replacement. From 2,500 years ago until 1975, boys began apprenticeships at companies at the age of 12, where they were assigned a mentor the same age as their father. The mentor was well-equipped to demonstrate adult behavior.

In 1975, the apprenticeship system in the Netherlands was abolished. Until the early 1990s, these boys sought role models in men who washed their cars on Saturday evenings or walked into garages to chat with mechanics. There were a number of other opportunities for boys to interact with adult men. But from 1990 onward, society changed. Environmental and safety regulations made it impossible to wash cars on the street. Other changes also made it impossible for boys to interact with adult men.

Since 2000, I have regularly encountered these young men in society. They are now between 20 and 45 years old. Some mistakenly believe they are gay. If fathers haven’t learned adult male behavior, they can’t model it for their sons either. Judging by their behavior, they seem to feel quite lost. This feeling affects how they interact with people. I suspect it also affects their work and relationships.

The solution doesn’t seem very difficult for young men who understand the problem. For the past 30 years, I’ve seen boys/young men every six weeks seeking out a man 20 years older, whom they’ve currently find in the hospitality industry. But then they sit with their backs to the man, so they don’t see how he behaves and can’t imitate his behavior. How do these young men know if it’s the right man? I suspect that if they feel he resembles their father, even though he doesn’t in appearance. This means the man behaves similarly to their father, making him a suitable role model.

Old posts

In response to the question whether companies have enough money to increase salaries:

00AA As a result of three accounting errors

000A An ironic education problem #Economy #CauseBudgetCuts

000B Cold feet? #Diabetes2 #ColdFeet https://howtogetthin.eu/

000C Don’t you hate it when companies refuse to raise salaries? #Economy #CauseBudgetCuts

000D A centuries-old lie #Economy #CauseBudgetCuts

000D2/H Personal Bankruptcy of Millionaires/Billionaires #Economy #CauseBudgetCuts

000E Accountants have been making this mistake for over 3,000 years #Economy #CauseBudgetCuts

000F 15 year olds learn at school #Economy #CauseBudgetCuts

000G donate https://go.dojiggy.io/alt-budget-cuts/

000I Liquidity problems. See story post 26/26 #Economy #CauseBudgetCuts

000J High salary = high dividend #Economy #CauseBudgetCuts

000K Schools and prisons #Economy #CauseBudgetCuts

000L For the last 3000 years, there have been two types of financial problems #Economy #CauseBudgetCuts

000M Over the last 3,000 years, governments and large corporations #Economy #CauseBudgetCuts

000N Why do the rich keep getting richer? #Economy #CauseBudgetCuts

000O Brief history of budget cuts #Economy #CauseBudgetCuts

000P Why are American and European production capacity doing so badly and why are all these refugees coming here? #Economy #CauseBudgetCuts

000Q Is this information reliable?

000R The best solution for budget deficits (see post 27/27)

0000 In the Netherlands we have a saying “The right of the strongest”. This is a lie. With a weak government it is possible for the rich to steal, bully, rape and murder. But that does not mean they have that right.

1/27 The real cause of obesity https://howtogetthin.eu/

2/27 New. Learn to walk and run naturally https://howtogetthin.eu/

3/27 Demonstrating against layoffs #endlayoffs #economy

4/27 Despite the shortage #endlayoffs #economy

5/27 The cause of loss/budget deficit #endlayoffs #economy

6/27 Why do companies miss so many payments? #endlayoffs #economy

7/27 Of every 100 activities that employees, entrepreneurs, and CEOs perform, two go wrong. #endlayoffs #economy

8/27 How can we abolish budget deficits? #endlayoffs #economy

9/27 Does your company have an administrative procedure #endlayoffs #economy

10/27 The Crital cutback mistake #endlayoffs #economy

11/27 Why do the general ledger accounts have a debit balance at the end of the year? #endlayoffs #economy

12/27 Where does the money that companies use to reserve for salaries come from? #endlayoffs #economy

13/27 An alternative to budget cuts #endlayoffs #economy

14/27 The American dream part 1: Thanks to the abundance of revolvers, it was possible for American gamblers to become millionaires in the 19th century. #endlayoffs #economy

15/27 The American dream part 2: When all companies that cut back go bankrupt. How come people like Elon Musk and Jeff Bezos are so rich? #endlayoffs #economy

16/27 How can big companies increase salaries and dividends by stopping budget cuts? #endlayoffs #economy

17/27 What happens with the budget deficit when employees are replaced with computers and robots? #endlayoffs #economy

18/27 The average citizen can hardly imagine how it was possible to get 50,000 people together to build Stonehenge or the pyramids. At the same time, citizens complain about governments that keep growing. But they never see the link. #endlayoffs #economy

19/27 Autistic people are very easy to recognize. Like predators, we naturally only make eye contact when we are in conflict. (Scold an autistic person and he will look at you angrily.)

20/27 Since 1880, mental health organizations have had an alternative method of making money from minorities.

21/27 All dentists in the world have a budget deficit. But instead of closing it, they abuse and steal from their patients.

0000 In the Netherlands we have a saying “The right of the strongest”. This is a lie. With a weak government it is possible for the rich to steal, bully, rape and murder. But that does not mean they have that right.

23/27 Over the last 3000 years, many times an accounting method has been invented to ensure that there is always enough money to pay salaries, replace tools/equipment and buy a new building in 20 years. But when implementing this method, the same three mistakes are always made.

24/27 First mistake

25/27 Second mistake

26/27 Third mistake. See pinned post 000i.

27/27 The biggest mistake when cutting costs: No cost-benefit analysis