The contents of the article 

    1. The motivation for writing the article

2. The thorny situation of Canadian industries

3. The inspiration from the success of Germany

4. The huge potential for reviving the economy of Canada

       4.1. The potential from ISO50001 saves energy 30%

       4.2. The potential from Canada’s mid-sized firms disappearing

     4.4. The potential from national’s entrepreneurial spirit and hard work spirit

    4.5. The potential from common problem in Canadian corporate management

5. Legislation by imitating ISO to enforce business management

6. To increase the share of work performance-related payment

7. Employee-share-profit can promote productivity to highest level

    8. To provide services as that of the board of directors or advisory

    9. To reduce lending rates for businesses and increase the one for real estate

    10. To Set punitive taxes to curb speculative real estate activity

    11. Low interest rates can not effectively promote economy

    12. To invite existing good manufacturers globally

    13. Local governments must be self-reliant

    1. The motivation for writing the article

  Oct. 26, 2014, after read Oct. 23, 2014 article that Stephen Poloz awaits sunrise after Canada's long industrial sunset: Don Pittis, I produced a idea that Mr. Stephen Poloz and Mr. Joe Oliver are the downright debtors due to that as the state-owned bank's governor, and a country's finance minister, they are responsible to raise money to pay debts off.

  Suffering with the difficult economic situation, most of local officials of Canada are eagerly appeals for the financing support from the Federal Government, such appeals are certainly belong to the public social issue, however, ultimately, the public issue will become the personal headache of Mr. Stephen Poloz and Mr. Joe Oliver, due to that any cents of the financing support for local officials have to hardly manage out by two gentlemen.

  No doubt, in Canada, among all officials, they are the most concerning about money issue and the most eager for more sources of gaining money - state tax revenue providers - enterprises. However, the key motor of the economy, the Canada's mid-size firms declining at an alarming rate. 

 When looking at the photos below, I can not help but feel sad with tears.

             Mr. Stephen Poloz                    Mr. Joe Oliver

      http://www.canoe.ca/Canoe/Money/News/2013/10/23/21216256.html 

      http://argent.canoe.ca/nouvelles/leconomie-du-canada-nest-16062014     

    The gentlemen who are rational with strong social responsibility should not be tortured by the irrational reality.

 Today, I would like to tell the two gentlemen that Canada is a country that is the most promising than that of any of others with rich natural and human resources.

 There is enormous potential within the Canadian enterprises that is not been fully exploited only due to the poor management. There a good example is that 3M Canada saves Energy 30% by ISO50001.

 The achievement is great, but the method for getting it is very simple, just by putting responsible label on the individual forehead to make be able to exactly identify that who should be punished or awarded. In this way to enforce every member in 3M Canada doing their right business as an employee should do normally.

 We are clear that, the cost in business operation is not just limited to one aspect of the energy, we can imagine that, if we make all aspects of the business operation to save 30% by simply copying ISO standards to improve our enterprises management, the cost-saving will be amazing and Canada will be a brand new look.

 I will discuss this issue with a special section.

 The Management is the Art of Playing Human Nature, there is ultimate space for improving the efficiency of the production by promotes the maximum exertion of the labor’s intellectual and the skills, while effectively inhibits the brain crippled to make trouble in the work place.

     If we effectively improve our business management to dig out huge internal potential, that making money will be as easy as that of picking up watermelons. This is the conclusion from my observation and study over the past 13 years as a general operator intendedly works in different businesses of Canada. 

 2. The thorny situation of Canadian economy

 2.1.. The energy wealth of Canada is in devaluating

May 14, 2013, US shale oil supply shock shifts global power balance. Dec. 4, 2013, Opec losing control of oil prices due to US fracking. Oct. 13, 2014, Oil prices could fall below $80 as Opec keeps pumping fight for market share.

The development of wind energy, solar energy, and nuclear energy, are also rapidly replacing traditional petroleum.
    April 6, 2015, Canada Sells GM Stake Worth $2.7 Billion Before Budget: Canada has agreed to sell its 73.4 million shares to Goldman Sachs & Co. in an unregistered block trade. The proceeds will help Harper stick to his promise of balancing the budget this fiscal year even as he delivers tax cuts and transfer payments ahead of a general election in October. Falling oil prices means annual revenue will be on average C$7.6 billion ($6.1 billion) less than forecast by the government in November, according to the parliamentary budget office.

Feb. 04 2015, Ontario sells remaining GM shares acquired from bailout: The Ontario government has unloaded the last of its shares in General Motors as it looks for cash to build public transit and highways.

2.2.. The non-energy manufacturing of Canada is in declining

    The article Stephen Poloz awaits sunrise after Canada's long industrial sunset said with that "Bank of Canada governor Stephen Poloz says non-energy manufacturing and exporting have gone through a long and damaging period of decline while the Canadian dollar was high or climbing." "Since 2000, Poloz noted in his speech, many export sectors have shown steady declines, sucking billions of dollars out of Canada's export economy." 

     Aug. 20, 2014, the article that Canada losing steam in its push for an export boom said that “It is now cheaper to make goods in once-high-cost countries such as Japan or Britain than in Canada, according to a new map of global manufacturing competitiveness.”

    "The consultants' report benchmarks the relative cost of making goods in the top export economies by comparing the cost in each country to levels in the U.S. On an index where U.S. costs are equal to 100, Canadian factories tick in at 115 - a rise of 11 points since 2004.”

    "Statistics Canada data show that only 1.7 million Canadians were employed in the manufacturing sector this year compared to more than 2.3 million a decade ago. Auto makers, in particular, have been pouring billions of new investment dollars into the United States or Mexico while giving this country the cold shoulder.” 

    Jun. 01 2012, The Globe and Mail article Vanishing act: Where did Canada's mid-sized companies go? questioned with that:

    “The mystery of Canada’s disappearing mid-sized firms has even some of Canada’s top economic thinkers puzzled – and racing against time to turn clues into a cure.”

 "'Where did they go? Did they become smaller, because of the state of the economy, did they merge with others, get bought up by other [foreign or Canadian]companies? Why is the number decreasing?’ asks Pierre Cléroux, BDC’s vice-president of economic analysis. ‘We’re trying to understand it better so we can propose a solution.’”

 In Aug. 12, 2014 article Finance Minister Joe Oliver warns global tensions threaten Canada’s growth due to that the world’s two biggest economies — the United States and China — have struggled recently and that geo-political concerns in the Middle East and parts of Eastern Europe could threaten global trade at a time when Canada needs to grow its exports.

   Faced the non-energy enterprises decline and adverse international environment, what is the way out for Canada? 

Following I will discuss the answer and the solution.

First of all, we need to update the philosophical concepts for economic development.

 Back to Top

    3. The inspiration from the success of Germany 

   Nov. 4, 2014, after read Sep 30, 2014 article Germany’s Trade Surplus and Exports Reach All-Time Highs, I wrote an article Smart German created a economic model for Canadian to follow, in which I indicate with that “2008 financial crisis and the European sovereign debt crisis caused economic recession and great many officials complain that downturn of world economy drags down their national economy, but, the economy of Germany has been in better developing with creation of a new record in both employment and economy to outshine others.” 

   Canada and Germany are both the countries of relatively affluence. However, the ways for getting the affluence are fundamentally different.

   Canada: vast incredible wealth of natural resources of  contributes significantly to national economy. Resource industries play a critical role in delivering jobs, growth and prosperity for Canadians.

   Germany: relatively few domestic natural resources, imports most of its raw materials, the most crude oil and petroleum products are imported.

   It is clear that affluence of Canada is mainly depended on the vast incredible wealth of natural resources; the Canadian dollar is even viewed as a petrocurrency. But the Germany has to mainly depend on the hard work to continuously manufacture popular products – the outstanding Made in Germany.

   In Feb. 16, 2014 article that Why German Economy Can Fly Against Economic Recession, I indicated that, the outstanding of German economy is from the outstanding of the national governance and corporate management.

   There many wise practices in Germany are incredible for any people from other countries. Such as, that salary of the boards member is lower two grade than that of general workers, while many countries increased the minimum wages, but Germany lifted the restriction on wages to have boosted employment historical high with the increase of the businesses and jobs in lower payment.

   The Agenda 2010 was painful and unpopular reforms on German social system and labor market to have paved foundation for Germany's economy regaining the vitality from the Sick Man of Europe.

   In the same nation with the same national, only by improved governing policy, Germany achieved brand new look. The achievement lessons us that objective economic environment are not the main cause of the economic downturn. The key is that the government how to wisely play own governing role to well play of the internal potential.

   According to my observation and study, that what Germans can achieved, Canadians can surely be able to achieve. Also Canada has unique advantage of Natural Resources that Germany never has.

   This is what I have confidence to prepare pleasing drink for Mr. Stephen Poloz and Mr. Joe Oliver. 

 Back to Top

 4. The huge potential for reviving the economy of Canada 

   Obviously, compared with that of Germany in lack of natural resources, the resource-rich Canada has a unique advantage.

   2014, in annual world competitiveness index of the World Economic Forum (WEF), Switzerland remains the top and followed by Singapore, and Canada only was ranked 15th.

   We should note that Switzerland and Singapore are both limited in Natural Resources, too, which are the strong support that Canada has favorable potential to rapidly develop economy.

   Given that our energy wealth is losing the value, and the over exploration of Oil sands is harming the economy, Canada is in a vital juncture to get rid of dependence on oil production by restructuring the economy for well play the advantage of our strengths and potential.

   The vital hope is in the outstanding manufacturing, and value-added high quality agro-products. 

   Indeed, the government of Canada has always attached importance to the development of the enterprises, with providing support from economic policies, financial subsidies, especially, actively exploring the international market, at this point; Canada is in the leading position. In July 30 2013 article The Oncoming Era of the Globalized Free Trade, I have clearly showed my view. 

   However, the decline of the mid-sized firms’ show that those efforts of the government are far from enough, the current form of the efforts of government departments and relevant social institutions have not reached in the perfect place.

   We have been a lot of study reports regarding the industries, but, they seem to make Aerial Photography that is beautiful enough with nice graphs and tables, which shows the reporters’ superb academic skills, but, that seem to fight on paper, without personal experience in the battlefields. So that, they recommended solutions can not effectively prevent firms from decline.

   According to my experiences from intendedly working in different companies as general operator in past 13 years, there urgent need for rescue enterprises from decline is to support those entrepreneurs who are hardly struggling in the plight by deep into detailed daily operations to strengthen and refine their management in step by step.

   The inspiration of Buckets effect / Cannikin Law:

   How much of a bucket filled with water, does not depend on the highest piece of wood on the sides of casks, but rather depends on the shortest piece on the sides of casks.

                         

 According to my experiences working in Canadian businesses in past 13 years, I dared say that the management of Canadian businesses is just as that of the ugly as above picture of theBucket.

   The replacement of the shortest piece of wood in Canadian businesses management will certainly be the potential for reviving the non-energy manufacturing and thereby to revive the economy of Canada.

 Back to Top

4.1. The potential from ISO50001 saves energy 30%

    March 13, 2013, the Canadian Manufacturing Online published the report of Power play, said that 3M Canada saves Energy 30% by ISO50001.  

    The achievement was great, but the process was unexpected simple: ISO 50001 helps to develop a customized energy management system of a company-wide culture around energy related best practices. The plant manager is accountable for the entire system, and all operators and supervisors have Defined Roles to support the system and make sure it works.

    There are many reports taking the saves energy 30% as a proud achievement. However, I would like to question that, by the same group of people with the same equipments in the same place, why they could not effectively save the energy similarly before the implementation of ISO50001 standards?

    It is clear that ISO50001 plays a role as business law to have enforced every member in 3M Canada to do their right business, dared not play mindless as usual as before, since that the Defined Roles are playing the role as that of putting a responsible label on the forehead of the member in 3M Canada for identifying the exact person to be punished or awarded.

   The achievement of energy saving clearly reflects the CHAOS in the management of 3M Canada. It is common in many Canadian enterprises, which is one of the main reasons of the mid-sized firms is declining.

   We are clear that, in the corporate running, there are many management aspects besides energy saving with the plenty room for the improvement in cost-saving. We can imagine that, if 3M Canada improves efficiency by 30% in all of their management aspects, then, see, what will happen? If we all enterprises in Canada are able to improve the efficiency by 30%, and then, see, what it will happen?

   The success of 3M Canada has provided us good information that Canadian enterprises possess huge potential for making profit by a simple cost-free way that is to reversing the state of CHAOS in the management of Canadian enterprises by copying the model of ISO50001 standard to optimize or even say to enforce the management. 

4.2. The potential from Canada’s mid-sized firms disappearing

    My Dec. 21, 2010 article Canada's Corporate Management & Reducing Psychological Pressure in Workplace may provide an answer for that the mystery of Canada’s disappearing mid-sized firms.

   The reason that Canada’s mid-sized firms disappeared is incredible simple - poor management.

   Those good managed companies mentioned in the article, such as, that 1. An Electronics and 2. Sunrise Farms - DC Foods are still in health run.

   Those poor managed companies mentioned in the article, such as, ABC Company and DEF Company have both vanished already, which was without close relation with Financial Crisis at all.

   The ABC Company was a mid-sized PCBs manufacturer; the customer was GE that headquartered in the United States. The company was promising with good products and good customer.

    However, company closed before Financial Crisis 2008.

    In the article I have introduced the disordered management status, especially; there a operator named John is worth to special mention in here.

    He was a drunkard and heavy smoker. Due to the bad habit damaged his brain; he was unresponsive with hands palsy. He obviously can not do a perfect job, especially the production of PCBs, which needs more mental concentration and deft hands. But, because of that supervisor also was a heavy smoker and at break time they spited Clouds with swallowing fog together.

    John could not do any job properly, supervisor changed his job position many time, finally sent him to make final testing for PCBs by a test-machine. Obviously, this was a critical position that controls the quality before sending PCBs to customers.

    Soon, a large number of products’ returns happened, then the orders reduced, and then Company’ door was being shut down.

    Obviously, that John has played a key role in the closure of the ABC Company. We may say that is a mindless employee to have ruined a good business - good products with stable customers. But the key cause was the chaos in the management, it could not exclude such an incompetent staff timely.

    The DEF Company was a machine manufacturer with 1300 employee. There is a Labor Union. When I newly work there is with 6 people to assemble a machine. My job is installation of electrical wiries and switches on the empty case-frame of the machine, then other people install the parts insides and make final testing for sending to customers.

    The people are very friendly in the work team. After one hour of my first day’s work, a gentleman friendly told me that: “please do not work so hard like this; you may go to washroom to have a rest, or go to other work station to talk with friends. Any way, you should slow down the work.” Then, I noticed that other people were talking and joking with a slow working.

    Compared with other Companies, that DEF Company have occupied the top of the food chain with a welcomed end products, it certainly has greater profit margins supported by an enviable team of skilled technicians and operators. So that it should be running better and sustainable. However, it was being shut down earliest before the Financial Crisis 2008.

Now, looking back the overall production efficiency at that time, in my work team, only reached about 50% of total production capacity. Since that our team was in the final stage of the production line, so that have lowered the production capacity of whole line to 50% around.

A good run Enterprise closed, 1300 people lost high quality job - good paid with good work environment, which is the Prime Minister Stephen Harper has been hardly striving for.

The reason that relative cost of making goods in Canada is higher than that of the United States and the reason that business is in declining is very simple – the poor management of Canadian businesses.

 Back to Top

   4.3. The potential from employees’ work attitude

Jan. 27, 2014, in the article The Fatal DNA of RIM & Canadian Enterprises, I said with that:

“In nowadays hardship economic environment, the enterprise is the lifeboat sharing by all members for survival, but, less people understand this vital point to cherish their business and job opportunities."

“As management staff, some of them, the interests are more in the enjoyment of the privilege of dominating others, with less in consideration of the interests of the business. Once give them right for fart once, they dare explode nuclear bombs twice.”

“As production operators, some of them, the interests are more in enjoyment of chiseling holes on the lifeboat, with less in consideration of how to make lifeboat safe, with the mentality of gaining more with contributing less as the smart, even intendedly troublemaking for other operators or for normal production.”

Such a comment is produced from my terrible experiences when working in Canadian businesses, especially when facing those good businesses has to close.

Nobody will understand my feeling that besides the sad and sigh, I could do nothing when seeing those ignorant people to engage in pushing enterprises increasing decline, and finally closed.

I strive to do a better work on my position, thus caused resentment of others.

The famous Gresham's law that bad money drives out good is suitable for describing that what has been playing in Canadian businesses, some mindless individual, even management staff organizes others to crowd out those who work full-hearted.

I took helpless mood to talk about such phenomenon with American friend. He said, in the companies of the United States, it is just on the contrary. Those employees who are lack a sense of responsibility will be squeezed out by others. Because of, suffered the pain of unemployment, many Americans has recognized the important to protect their jobs. Face with such good employees, even in the business difficulties, the business owners were never easily dismiss employees, to try to work together to fight through the hard time.

The different of work attitude between Canadians and Americans is the main cause of that relative cost of making goods in Canada is higher than that of the United States and Canadian business declines.

   And this is why that 3M Canada can save Energy 30% by ISO50001.

 Back to Top

4.4. The potential from nationals’ entrepreneurial spirit and hard work spirit

Many studies on business productivity are mostly focus on the macroeconomic policy, economic environment, business environment, exchange rate fluctuations, wage levels, and so on. As my view these are not the deciding factors without touch the nature.

Oct. 15, 2014, I wrote an article that Sony predicts increased losses in 2014, why?     

    "It has been over two decades since the popping of Japan’s economic bubble and the country is still actively battling with deflationary forces that are so powerful that near-zero interest rates, repeated bouts of quantitative easing (some call it “money printing”) and constant Yen-weakening currency interventions have barely made a dent." “After the crash in late 1990, economic growth stalled various government-sponsored fiscal and economic stimulus measures, including trillions of yen in failed public works projects, did nothing to revive the economy.”

    In the article I cited the article of a Japan scholar Mr. Kondo Daisuke, in which, he revealed the reason that Sony has been in declning, Sony has lost excellent tradition of entrepreneurial spirit and bold innovation.

The reason for that Japan's economy has been in a slump, my Aug. 24, 2014 article that Over-heated real estate market is ruining Canadian economy from Japan mirroring Canada - 2 has provided an answer.

    When talking about the main cause of Japan’s declining from the economic powerhouse? Most people blame the Plaza Accord that forced appreciation of the Yen to cause Japanese products losing competitiveness and the Bubble Economy.

    The reason, as my view, all of those stimulus measures are from the macro elements of the economy, with ignoring the most basic micro elements - the quality of the people, the work-ethic of the labor, the efficiency of the production and the capacity of the innovation.

    The Bubble Economy has rewritten the code of the DNA of the quality of Japanese people, from enthusiastic in hard working into enamoring in greedy speculating, thus, further affected the social moral and national’s spiritual, thereby cause the decay of whole society of Japan.

    The easy gaining excessive profit from speculative activities have fueled Japanese speculative mentality with unearned ideological. It entices people keen to make living by speculating instead of hard working and less concerning on the interest of own company. I think, such negative impact is more terrible, even fatal.

    In essence, the national is the decisive factor for a nation’s economic development; a nation's economic decline is the decline of the quality of its national.

    Whether it is a business or a country, if its member is full of concerning for the self interest, without or lack of concerning for the public interest, it will doom to be extinction.

    So, I firmly believed that the impact of the Bubble Economy on the economy is just a curable social flu, but, the impact on the national’s spiritual is incurable social cancer.

The fact of the Japanese companies loses competitiveness and falling into declining are the vivid proof. The shortsightedness and lack of entrepreneurial spirit of the management team, the lack of work enthusiasm of the employees is the main reason, and also it caused Japan's economy can not recover as expected.  

The sad facts in Japanese companies are also existing in Canadian businesses, the difference is more or less.

 Back to Top

4.5. The potential from common problem in Canadian corporate management

    If we take a country that is in good governance as a machine that is running on the track of the rule of law, then a company that is in good management will be as a machine that is running on the track of the detailed management regulations.

   The Canadian companies in Chaotic management are mostly lack of management regulations, or, though there are rules, but, not be strictly enforced, so that every member dared do what they preferred according to the personal accord. 
    As mentioned above, the closure of many good enterprises of Canada were only caused by some foolish individual with mindless behavior in the workplace. 
    Besides those foolish employees, a number of management's staff in Canadian Companies seems lack of rational thinking ability also, if, to give them the right to fart once, they dare to put the atomic bomb twice, as that of the supervisor John that introduced in my article Family Business and Management Board. 
    It said that once a certain limit is reached, a change in the opposite direction is inevitable, which means that good things and bad things can transform into each other, the bad things is perhaps the basis for the good things.
   The Chaotic management of Canadian companies is huge potential for gaining more with cost-less.

 Back to Top

5. Legislation by imitating ISO to enforce business management

    The best way, as my view, is not negatively awaiting and lowering the interest rates, but, actively action to develop detailed strict regulations according to the ISO standards and the practices of the successful world class companies to create a ensured business environment by putting the responsible labels on the forehead of the individual to identify the exact person for punishing or awarding. 

    The fact that 3M Canada saved Energy 30% by implement of ISO50001 reveals the huge potential for gaining profit with an easy way.

    In China, as a senior Materials Researcher, I once participated in the drafting of the application documents of the ISO90001 for Oil wells drilling pipe. The deep impression on the documents is that every aspect of the whole production to be refined and provided concrete steps with formulates specific instructions and regulations. More importantly, each specific operation puts specific person in charge. The responsibilities clearly assigned to specific individuals.

    There have been great many discussions for the corporate management, but most of them from macro strategically in lesser touching the micro practically, so there few people can learn that ISO standards are acting as the powerful business-law to regulate the behaviors by putting responsible labels on the forehead of each employee, to identify clear those who are responsible to be punished or to be awarded.

    This way will dramatically motivate employee's self-esteem, and the self-esteem driven them consciously and actively full-hearted work in avoiding mistake.

    In this way, the management is being conducted by the written instructions and to be enforced by written regulations, rather than by the management staff orally in person.

    Because, only in this way, 3M Canada can enforce those irrational staff who have no rational sense for doing a rational job to have to do a rational job, and to provide a reason for those rational staff to do the rational job happily without worry about.

    It was that ISO50001 Standards saved 3M Canada.

   As long as we can strictly control the management, almost all Canadian enterprises can reduce the production cost by 10% -30%, which is the net profit. In this simple easy way, that a lot of Canadian companies will continue health operation to keep the job position.

   The success has provided us an inspiration that is to enforce business management by ISO standard.

   However, the register of ISO standard will cost a lot, which may not be acceptable by great many businesses. So that the best way is to set detailed regulations as that of ISO standards according to the industry classification, then to be excerpted for use by the business with own practical need. 

   If we legislate the regulations by federal government – the state apparatus, it will be much powerful and effective than that of ISO Standards.

   6. To increase the share of work performance-related payment

   Feb. 09, 2014, in the article that  Management is the Art of Playing Human Nature, I indicate that:

   Human behaviors are determined by dual natures: The culture nature of those acquired qualities, and the animal nature of those inborn instincts. 

    The Management is to finish purposeful tasks with the culture nature driven by meeting the animal nature with payment under the enforcement of regulations.

    The best example for understanding human natures is the process of taming animal actors, in which, the beastmaster tempts animals to learn cultural nature for serving human by meeting their greedy of animal nature with foods under the enforcement of whipping.

    In consideration of human natures, we may say that, the Management is the Art of playing human natures, which is to finish purposeful tasks with human culture nature by meeting human greedy of animal nature with payment under the enforcement of regulations. 

    For the success of taming animal actors, the foods and the whips are equally important, both are indispensable. In the same way, for well playing the Art of the human natures, the payment and regulations are both indispensable. 

    The failure of the socialist practice was not fully due to the Autocracy Governance and the Planned Economy, but essentially was due to that it over relied on the human culture nature by madly suppressing the exertion of human animal nature under the enforcement of State Apparatus.

    There were a lot of researches on the economic success of China, and most of them attributed the success to the magic of the Invisible Hand. But, that was not fully true with ignored the essence - it was that China has broken the egalitarian wage system, that implemented for decades in the socialist period, to have largely increased the share of work performance-related payment. 

    The driven force for German outstanding manufacturing mainly comes from their legislated management for rationalization proposals, which is to extract bonus from the profit gained in the application of the rationalization proposals to motivate all staff to pay their full talent into the business running since Mr. Krupp initiated it in 1872. That is 142 yeras ago. 

    The payment of Canada with less work performance-related is following the dust of failed road of former Socialist Camp. It is the main reason that Canadian firms are less competitiveness or even vanished, and it provided significant potential and direction for saving our firms.   

 7. Employee-share-profit can promote productivity to highest level

    Nov. 4, 2014, in the article that Why am I concerning the corporate management?  I said with that. 

    In China, I once worked in an Iron & Steel Research Institute of an Iron & Steel Company. It is the oldest Iron & Steel Manufacturer in China with a century’s history.

    At the start, my salary was not associated with my work performance. It was unified nationally, which was copied the wage system of the former Soviet Union. When the Economic Reform promoting nation-widely from the Experimental City - Shenzhen, my Company freed from the rigid planning economy, and accessed to independent operation rights. The significant one was the right of freely deciding the payment. 

    Besides the regular salary as that of before, my research Institute got profit-sharing policy that amounted to 20% of the net profit obtained by the implementation of our research projects in the large scale production. 

    In my Research Institute, there 20% of the funds from the Profit-Sharing were used as bonus for those who finished research project, and the remaining was divided into two parts: One was shared by those who worked in service position, such as, accountants, and other one was used to build residential apartments, which was allocated according to the contribution.

    As the returns of my talent and hard work, it was not only my salary largely increased, but also my family's living condition largely improved, too. My home became spacious with well-equipped.

    The Profit-Sharing Policy largely changed researchers’ behavior of mediocrity and complacency to have released their work enthusiasm, and incented them to look for researching project from the large scale production, such as, the development of new products, the improvement of the production technologies and so on. The Company has got rapid development from the new products and new technologies.

   It was said that, in public ownership of the means of production, the property of the interest is not clear. Lesser people care about the public interest. The rigid wage system lacks incentive, the payments are always the same regardless of the work is done more or less, work quality is good or not.

    It caused the social production inefficiency and became one of the reasons that socialist camp collapsed. 

    In the early days of China's economic reforms, many companies are still in state-owned. In the situation of public ownership has not been changed, just by giving independent policy-making, especially, the flexibility in the payment, to have largely increased the share of work-performance linked wages and bonuses, the productivity is greatly increased.

    The success of China's economic reforms, it was not by changing the form of public ownership of enterprises, but, to give enterprises more autonomy in policy-making, in particular, the large increase of work-performance related payment.

    Here, I dared say that, for the fast economic development of China, the key was that largely increased the share of work-performance related payment. It is the root for improving social productivity -  the root of economic development. 

    Dec. 21 2010, in the article that Canada's Corporate Management & Reducing Psychological Pressure in Workplace, in the section 2. Sunrise Farms - DC Foods, I introduced DC Foods, now has been acquired as Sunrise Farms - DC Foods.

    In 20 years ago, at the start of the DC Foods, the business founder took 5% of profit to share with employees; in beginning, everyone was equal without any additional required conditions.

    Later, due to that employees’ absenteeism has greatly affected the normal production, they took staff attendance as the assessment reference to decide the amount of the Profit-sharing, thus effectively improved employee attendance.

    After the acquisition of DC Foods, the new owners of SunriseFarms that headquartered in Vancouver, B.C. Canada has inherited the original Profit-sharing system.

    The new owner is Peter Shoore, my  Jun. 25, 2013  article that My view on Entrepreneur and Enterprise inspired by Peter Shoore was inspired by him.

8. To provide services as that of the Board of directors or advisory  

    Feb. 13, 2013, Business Development Bank of Canada (BDC) issued survey report thatCanada's mid-sized firms in decline with a subtitle - Manufacturing sector suffers biggest blow. It said that   Canada’s mid-sized companies saw their numbers decline by 17% — from 9,370 to 7,814 — from 2006 to 2010, in which, the manufacturing sector reduced more than half, from 2,807 to 1,381 between 2001 and 2010.

    The report emphasized that Mid-sized firms are a key motor of the economy of Canada. Although they represent 1% of the total number of companies, but contribute disproportionately to the Canadian economy, accounting for 16% of Canadian jobs, 12% of GDP and 17% of exports.  

    The report pointed out the reasons of the firms’ decline: the rapidly appreciating Canadian dollar, financial crisis, recession, fierce competition, availability of financing and employee acquisition and retention. 

    The significant was that the report also said that mid-sized firms with a board of directors or an advisory board are most likely to say they expect sales to go up.

    Here, I think, we should question that, in the same poor economic environment, why there many companies are still survival, even against the plight to have grown and further developed? Also, why, as reported those mid-sized firms with a board of directors or an advisory board are most likely to say they expect sales to go up.

    As mentioned above, in my Dec. 21 2010 article Canada's Corporate Management & Reducing Psychological Pressure in Workplace, today, 4 years later, those good managed companies are still in good run. 

The facts tell us that management is the key for the enterprises healthy running, and also the improvement on the corporate management can create big profit by reducing the cost of the production.

    To set special agencies to provide services as that of the Board of directors or advisory will largely promote the health development of Canadian businesses, in which, my Jan. 23, 2013 article that Gov-funded R&D Center Boosts Taiwan as One of Four Little Dragons may provide a good reference.

9. To reduce lending rates for businesses and increase the one for real estate

    There increasingly arguments are concerning that low lending rates will further fuel heated real estate market, while increasing the lending rates may hurt the development of the businesses. Then, the perfect way will be that sets double track on lending Rates, which is to further reduce lending rates for businesses, to increase the one for real estate.

    Thus, at the same time stimulate the real economy, but also suppress the overheated real estate market,

10. To set punitive taxes to curb speculative real estate activity

    Apr 25, 2014, the report that Stephen Poloz says low interest rates may be here to stay indicates that the new normal will be lower rates than in the past and people should get used to that. Since that the super-low borrowing costs are generally acknowledged to have aided the economy through the 2008-09 crisis and soft recovery — stimulating borrowing and spending among Canadians and businesses — but not without costs, including an overheated housing market and record high levels of household debt.

    As my view, that through low interest rates promoting productive investment is feasible, however, we must take punitive taxes to curb speculative real estate activity, since that overheated real estate market will be not only hurt the life of ordinary people, but also, will destroy the business in commercial and manufacturing, according to the experience of over-heated real estate market of Japan's bubble economy 1980s.

   We must rationally curb real estate market to avoid it overheated to push high business operation costs as that of what is happening in Vancouver and ensure that non-energy manufacturing sector can be health development.

 Back to Top

11. Low interest rates can not effectively promote economy

    On other hand, as I introduced in Oct. 15, 2014 article that Sony predicts increased losses in 2014, why?  The experience of Japan shows that low interest rates is not a effective way for promoting economy.

   "It has been over two decades since the popping of Japan’s economic bubble and the country is still actively battling with deflationary forces that are so powerful that near-zero interest rates, repeated bouts of quantitative easing (some call it “money printing”) and constant Yen-weakening currency interventions have barely made a dent."  

 Back to Top

12. To invite existing good manufacturers globally

    After the creation of the ensured business running environment, we may start to select and invite those existing good manufacturers globally to establish production branches in Canada with their forward-looking good products, unique technologies, advanced equipments, funds, and suitable technical staff, which is a only way that is able to quick form a scale in the employment and the revenue. 

   The free trade market of North America is a irresistible temptation for any entrepreneur. The only need is to provide full support for them running business in Canada.

   We are aware that continued economic recession has been forcing the governments of great many countries to attract international investments with everything possible. This is a smoke-free war, but, more brutal, due to that the only result is win or death with no surrender available for a loser. 
   Since that competing for attracting international investments is acting as that of many hungry people competing for a size determined pie, in which, who are with the courage and the talent to grab more will eat more, the loser will starve to die.
   Please do not negatively await, or oral appeals, or fight on papers, but actively act.

13. Local governments must be self-reliant

    Local governments must be self-reliant to seek a way out, rather than passively waiting for Federal funding, but also, they should create revenue for Federal Government.

    We must understand that without enough tax revenue, there would be no a stable Federal Government and thus would be no stability of Canada.

   The enormous potential is there in ready, but, to make it become the real wealth, it needs more smart ways.

Canada Shows Minimum Wage Has Minimal Effect

Stephen Poloz awaits sunrise after Canada's long industrial sunset: Don Pittis

   Bank of Canada governor sees U.S. economy gaining traction is sectors beneficial to Canadian exports

   By Don Pittis, CBC News Posted: Oct 23, 2014 5:00 AM ET Last Updated: Oct 23, 2014 5:00 AM ET              

   Bank of Canada governor Stephen Poloz says non-energy manufacturing and exporting have gone through a long and damaging period of decline while the Canadian dollar was high or climbing. (Canadian Press)

   Not even Bank of Canada governor Stephen Poloz escaped the effects of yesterday's attack on the heart of Canadian democracy.

   The bank issued a written report that points to a very long, very slow recovery in the Canadian economy, but because of what the bank called "the incident in downtown Ottawa," Poloz released but did not read his speech. A question-and-answer session was cancelled.

   According to bank spokesman Alex Deslongchamps, because Poloz's news conference was scheduled right across the street from the violence on Parliament Hill, the decision to cancel was made "pretty quickly."

   "He is safe," said Deslongchamps, speaking from lockdown at the Bank of Canada's Ottawa headquarters. For security reasons, he couldn't say more about where Poloz was during and after the gunfire.

• Bank of Canada keeps interest rate steady at 1% again
• Stephen Poloz explains why he won't tinker with the Canadian dollar

   While the governor was safe, the bank could not guarantee the same thing for the Canadian economy.

   What you might call the soaring loonie effect has had a severe long-term impact. 

   "The good news," Poloz said in the speech he was unable to deliver, "is that the U.S. economy is gaining traction, particularly in sectors that are beneficial to Canada's exports." 

   But there was bad news, too.

Long decline

   Canada's important energy sector has suffered from falling prices. And despite some recent "help from a lower Canadian dollar," Poloz says non-energy manufacturing and exporting have gone through a long and damaging period of decline while the dollar was high or climbing. 

   Since 2000, Poloz noted in his speech, many export sectors have shown steady declines, sucking billions of dollars out of Canada's export economy.                    

   "Had the export of these products instead risen in line with foreign demand," said the speech, "they would have contributed about $30 billion in additional exports last year."

   Effectively what is happening is that during this long, slow business cycle, factories have closed or cut capacity and the result has been a permanent loss of jobs.

   A lot of those jobs are in what we used to call "sunset industries" — manufacturing processes better done abroad by cheap labour or consolidated by automation into more labour-efficient factories. That's what happened when jobs at Heinz and the former Stelco moved from Ontario to the United States.

   Poloz fears it will be a long wait for the "rebuilding phase of the recovery," where sunrise industries will expand and finally use up Canada's excess capacity of workers and capital.

   We still don't know what those new industries will be, but if we are lucky, they will create sophisticated, high- tech jobs to employ what Karl Marx might have referred to as our "labour reserve army" of educated youth.

   But the bank doesn't expect those surplus employees to be put to work until the second half of 2016.

Threats on the horizon

   While Poloz's speech did not mention it, yesterday's Monetary Policy Report warned about threatening economic problems on the horizon,

   From global economic uncertainty to the damaging effect of lower oil prices on energy investment, Poloz sees potential trouble looming. Closer to home, he worries about the danger of a "disorderly unwinding" in Canadian house prices and its impact on consumer spending.

   As the report says, one of the biggest uncertainties is whether the smouldering U.S. economy will suddenly burst into a "stronger-than-expected" economic recovery.

   Such a "rekindling of animal spirits" would have positive effects on Canada, says the bank.

   Poloz did not get into the messy details, but surging animal spirits would not be entirely good for Canada.

   They would push up U.S. bond rates and thus Canadian long-term mortgage interest rates, which are set in U.S. bond markets.

No more 'forward guidance'

   Unless Poloz wants to make the market even less stable, short rates set by the Bank of Canada will also have to rise.

   The governor made a virtue of the fact that the bank will no longer be giving "forward guidance" on Canadian interest rates.

   "Some of you may be wondering why we aren't being more specific about the likely future stance of monetary policy," the governor said in the speech he didn't have a chance to give. 

   Except for saying it was something the bank would reserve for special occasions, it was a question Poloz didn't really answer in the printed speech.

   But it does mean the bank is no longer guaranteeing that it will keep interest rates low.

   When he finally gives his news conference, we will have to ask him about that.

Economic Adjustments Will Bring Benefits to All, Says Bank of Canada Governor Stephen S. Poloz

Why southwestern Ontario's manufacturing rebound is missing in action

Canada's manufacturing heartland is trying to diversify itself to end a 'lost decade'

By  Peter Armstrong Economics reporter A former host of World Report on CBC Radio, Peter Armstrong has been a foreign correspondent and parliamentary reporter for CBC. He is currently CBC News Economics Reporter, based in Toronto..

CBC News Posted: Feb 16, 2015 5:00 AM ET Last Updated: Feb 17, 2015 4:10 PM ET

"The past is a foreign country: They do things differently there." — L.P. Hartley

Southwestern Ontario's past is well known. The region was the industrial heartland of Canada. It was here they made everything from cars to ketchup.

For a long time, this manufacturing model worked. It served people in the region remarkably well.

But the model has been showing cracks for years now.

"It's been really tough time for the region," says economist Mike Moffatt. "We have some success stories, but over all it's been a bit of a lost decade."

• Robots expected to slash manufacturing costs in next 10 years
• Mexico passes Canada in car-making terms

Moffatt grew up in southwestern Ontario. He saw the landscape changing. And now much of his research at Western University's Ivey Business School is into how to get the region back on track.

He says it's just not realistic to think the future lies in the kind of large-scale manufacturing it's known in the past.

The current oil shock and plunge in the loonie serve as a case in point.

Oil drop

As the price of oil began to fall, many said manufacturing would benefit from a low dollar. The theory was that energy costs would be lower and the lower dollar would make the price of exports more attractive to foreign buyers.

But even as the dollar hit 78 cents, Canada's manufacturing industry continued to struggle. There have been some limited signs of encouragement, but they’ve been few and far between.

The fact is, many plants closed their doors in the wake of the 2008 financial crisis.

These factories have moved away. And the low dollar isn't as strong an attraction as some thought.

"We had a lot of companies in 1998-99 that really try to take advantage of the low dollar and got decimated when it went back up," says Moffatt. "Memories around here are really long, so people are not going to make that mistake again and start building new factories assuming that the currency's going to stay low."

• LISTEN: Are things looking up for Ontario's manufacturers?

Moffatt can rhyme off the many failings that have led us to this point. But he gets most exercised when talking about how to move forward.

More than three million people live in southwestern Ontario. That's about the size of Atlantic Canada. So, he says the Canadian economy can ill afford to let the area languish.

But moving forward means changing how businesses, governments, universities and entrepreneurs approach the region.

New economy    

"People realize that the old models of the 1970s and '80s don't work," Moffatt says. "There is a recognition the new things need to happen,  we just need to figure out what those things need to be."

Many here say that "new thing" is actually quite simple. That the future is not in large-scale factories, but rather in supporting dozens or hundreds of small businesses.

Businesses like Voices.com in London, Ont.

Ten years ago, David Cicarelli and his wife Stephanie were the sole employees occupying a small, London recording studio.

Today, the company has branched out to become an online agency of sorts for voice actors around the world. They have a roster of more than 120,000 actors and provide services to some of the biggest companies in the world.

And it seems that just about every week, they’re hiring a new employee in their London office.

• Union makes the case for Ontario with GM president

“We’ve gone, really in the last couple of years, from 25, 50 and now 70 and it’ll be 71 starting next month,” says Cicarelli.

New thinking

The question then becomes how to help local success stories build and continue to grow?

Part of the problem is convincing governments to change the way they invest in the region. And old habits are hard to break.

For generations, the job of governments was focused on attracting big companies to build big factories. For governments, that was easy, write a big cheque, create lots of jobs and move on. But as the dynamic changed, governments have struggled with what to do.

"They just don’t know what to do. They’re stuck in these old models of writing big cheques," says Moffatt.

But progress is being made. Ciccarelli was approached by the London Economic Development Corp. about grants available from the federal government through its program called Federal Development Ontario.

• Oil swoon prompts hope Ontario can return to engine of growth

“We completed the application and just went through a long due diligence process mapping out a $3.6 million project over a number of years, and received $900,000 in reimbursable funds,” says Ciccarelli. It was a loan for new hires and some new technology.

So, the process is changing. Many here look to the success of cities like Waterloo and Pittsburgh, where small start-ups are flourishing, and say, why not London or St. Thomas?

Manufacturing will likely always play a role in southwestern Ontario. But to see any serious level of jobs come back, economists and entrepreneurs say empowering small businesses to grow and prosper may be the best bet.　

洛克菲勒的成功之道：严密的成本管理

http://m.58cyjm.com/html/view/19831.php

無疑有諸多因素，但最根本則是成本管理嚴密精細。他能準確查閱分析呈報上來的成本和開支，銷售及損益數字，並以此考核每個部門的工作。他甚至把提練一加侖原油的成本，計算到一分錢的千分之一！1879年, 他寫信給一個油廠的經理質問：“辦什麼你們提練一加侖原油要花1分8厘2毫，而東部的一個煉油廠干同樣的工作只要9厘1毫？就連價值極微的油桶賽子他也不放過。他曾寫過這樣的信：“上個月你廠報告手頭有1119個塞子，本月初送給你廠1萬個，本月你廠用去9527個，你廠報告現存1012個，其他580個下落如何？“洞察人微，刨根究底，不容你打半個馬虎眼。