Episode Transcript
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Speaker 1 (00:05):
Today on the show, Norm Blumenthal, Man, I am excited
to have Norm on the show. He's going to be
talking about some changes that I think you and I
will find very interesting. It's just to me, it's a
great idea. But anyway, Norm Bloomenthal is an attorney for
workers and consumers. Selected as one of the top attorneys
(00:26):
in Southern California. Norm was also inducted and recognized as
one of America's most stressed lawyers in employment law. Norm Blumenthal,
welcome back.
Speaker 2 (00:36):
Nice to be back, Bert. What I want to talk
about today is what are the bullet points that the
Democrats need to concentrate on to take back to Congress
in twenty six They have to have the bullet points
that people are going to be in favor of, and
(00:58):
they have to stop worrying about what is you know,
socially correct and worry more about what is going to
bring the people back to their ballot box. I think
Trump has proven that he is a Republican. He's pro
(01:19):
concentration of wealth in the in the wealthy, and he
really doesn't much care about the middle class or lower
class in helping them, can be seen by his big
bed bill. So what do the Democrats have to do.
What do they have to sell? And so you know
(01:41):
it's it's a sales pitch because you're going against the
best salesman in the world, and so you have to
be able to beat him in his own game. Everybody
is very unhappy about people without current ideas. They can't
go to work, they can't go to the movies, they
can't go out, and you know, he has basically destroyed
(02:04):
a lot of people's life just through the paranoia of
arrest and deportation. So the first thing to do with
the easy part is everybody will agree, I hope by now,
is to keep the borders clothed to illegals. And I
think Trump's done a good job of closing the borders,
and we should all be in favor of knowing who's
(02:28):
here and keeping the borders closed. We've always pitched that
as the thing to do, and Biden kind of threw
that by the wayside, and I think that's what costs
the Democrats the election. One thing also, next thing they
have to do is this big bad bill. If you
(02:49):
make over a million dollars a year, you're not going
to get any tax benefits from the bill. You're going
to pay your taxes. So you know, theople making over
a million dollars a year, the velocity of money is
just not there. You can't you can only spend so
much on so many things that you're making ten million,
(03:10):
twenty million, thirty million baseball players, one hundreds of millions.
You can't spend it and so you end up, you know,
putting it into the stock market. That says how you see,
because the velocity of money is turning to a crawl.
There's there's no turnover, there's no spence and spending, and
(03:31):
what ends up happening is people end up with putting
it into the bank. Those are the first two.
Speaker 1 (03:39):
Points, you know what, And I'm glad you brought these up.
I think that you call it a sales pitch, and
you're right. I think all politicians have a sales pitch.
I like to, you know, I like to kind of
refer to it. You have to be able to sell
that vision. Yeah, you know, if everybody can see the vision,
(03:59):
then there's a reason to vote. And I think you're
spot on as far as at least one of the
reasons that Biden and the Democrats lass so badly was
just the uh I think their their lack of concern
about the border and uh, this idea that men should
(04:20):
be allowed to not only play women's sports, but the
change in women's locker rooms, I think that also affected them.
But we can talk about that another time. But I
love this, you know. I I think that right now
more than ever, the Democrats need to come up with
a vision or a sales pitch that is going to answer, uh,
(04:42):
these questions that they have, which is, how am I
going to you know, how am I going to stay
ahead of this increasing costs? And and what can I
do to eliminate or reduce my taxes? And I think
that you're hitting the the you know, the what do
you call it, hitting the nail on the head?
Speaker 2 (05:02):
Yeah, give the tax deduction to people making less than
a million dollars a year, that's easy. And if you're
making over a million dollars a year, you pay the
taxes that you should be paying without this big, bad
bill coming in and giving you more money than you
deserve in the great scheme of things. So that's I
think those two are easy. And keeping the borders closed,
(05:25):
and also the third one's real easy. No changes in
Medicaid funding. You can't take food off the table someone
that has none. You just can't do that. You can't
take away there, you know, snap program and childcare program
and funding for medical needs of people, you can't do that.
(05:50):
It's the only civilized country in the world that does
this to its citizens. And that's how they're going to
give the Republican so they're big additional tax break. Make
no mistake about it, this is a Republican bill. And
we've always talked about management and labor, and what it
ends up happening is Trump has managed to convince the
(06:15):
working class to vote for him for reasons like you
talk about, uh, the idea of men in women's sports.
You know, that's that's one where he can get people. Yeah, women,
men shouldn't be playing women's sports. I mean it's it's
(06:36):
a medical change. And just like steroids, you shouldn't have
steroids in in sports. This is also a medical advantage
that's that people take advantage of, which you know, fine,
if you want to change your sex, find but you
can't participate in sports. I agree with that, and I don't.
(06:57):
I don't think there should be any ISSU choose with that,
and you can leave it up to the States. But
that's neither here nor there. That's not an issue. That's
not a hot fun issue that's going to get votes.
Closing the borders, no tax brates for people making over
a million dollars, no changes in the Medicaid funding. Now
(07:21):
we're down at that housing. So we've got some money
in the bank, you're not going to pay. You're going
to get the tax break if you have make under
a million dollars a year. So out in California, the
San Diego School District just passed a law or voted
(07:43):
on a prospect where they're going to build housing on
school property for teachers and other personnel so that they
have affordable housing in the school district where they are.
And so that's in its formative stage. But that's another
(08:04):
big concept, affordable housing for school personnel. And so that's
another thing you want to deal with.
Speaker 1 (08:15):
Absolutely. Look, I think that right now a lot of
people are concerned about all the massive changes. Right we
have this crazy bill, and people have read through this
bill and it is cutting. They're trying to cut funding
not only for Medicaid but social Security. And at the
(08:40):
same time, what I find interesting is we've had this
I don't know what you want to call it distraction
circus thing where Elon was supposedly trying to cut two
trillion dollars from our budget and the chaos that ensues,
and we're not saving any money because all of these
(09:01):
people that are being laid off illegally are being returned
back to work and the introm there's multiple lawsuits, so
we're not saving any money. And then second of all,
in this bill, not only are they are they again attacking,
in my opinion, the less fortunate, the senior citizens, but
(09:23):
you're also adding I think the bill calls for adding
five trillion dollars to the budget, and I believe President
Trump is trying to eliminate what do you call it
the ceiling. He wants to remove the spending ceiling. And
so to me, it doesn't make sense. What was all
(09:47):
this stuff with Elon Musk If all you're going to
do is add more debt, it's a it's a confusing bill.
A lot of them are, but this one's extremely confusing
for that reason. But the fact that they're targeting Social
Security and Medicaid for what reason? Like you said, you're
(10:08):
going to make it harder for people who can barely
make it. Now, how can a human sit there and say, yeah,
these people, they're already struggling, let's make it even harder
for them. Again normal, it doesn't make sense.
Speaker 2 (10:25):
Well, you know, unfortunately, the electorate is felony stupid when
it comes to voting. They don't vote for their what's
best for them. They vote for all these hot button
issues that Trump comes up with, you know, men and
women's sports and hot button issues and so which affects
literally no, no, nobody, right.
Speaker 1 (10:50):
A tiny, tiny, tiny percentage.
Speaker 2 (10:53):
Yeah, and so for that, they're going to give up Medicaid,
they're going to give up they're tax breaks, they're going
to give up everything, and all the money is going
to go to the wealthy. And that's where we're headed.
We're headed to another gilded age where a small percentage
(11:13):
of the population have a tremendous percentage of the money
and there's no velocity to the money you get.
Speaker 1 (11:22):
Well, I'm glad you brought that up. I'm gonna interrupt you.
I apologize, but I want you to explain velocity of
money to our listeners.
Speaker 2 (11:29):
Okay, velocity of money. You make one hundred thousand dollars
a year, if you make one hundred thousand dollars a
year in this country, you're going to spend every penny.
You know, it's just between affordable housing, which we'll get to,
and food and entertainment and all the things you may have,
(11:51):
you're going to spend one hundred Let's assume that that's true,
and I think it is. But let's say you make
two million dollars a year and so, and they've got
tax breaks in it so that you keep most of it.
You're not going to be able to spend it. Unless
you're going to be extravagant. You're not going to be
(12:13):
able to spend it. Make ten million dollars a year,
some of these people are making one hundred million dollars
a year. You can't spend it. So what ends up happening.
There's no velocity to that money. You put it in
the stock market, you buy crypto. Crypto has no value.
It's there's nothing behind the curtain. It's the wizard of os. Right. Yet,
(12:35):
people because they have so much extra capital, they have
no place to put it, and it's a greater fool theory.
They keep buying it and it goes up. You know,
Bitcoin with the original it starters a bitcoin. My understanding
of it is is that they paid eighty cents per
share and now it's over one hundred thousand a share.
(13:00):
But there's no value, you know, there's nothing there. They
can't spend it. There's just no place to put the money,
and so the money has no velocity. There's no turnover,
there's no it doesn't go in the in the gross
domestic product, and so there's less and less money in circulation.
That's velocity. The guy that's spending it on the food.
(13:21):
The money goes to the food, to the grocery stores,
The grocery store pays its employees, pays its rent, pays
for the food, and keeps and it keeps going, and
it's it's spent all over and the person has a
job makes his money back. That's velocity. You want as
much velocity as you can get in your dollar, and
(13:44):
right now we're getting less and less because the money
is in the hands of fewer and fewer people. So
that's a problem that we need to face. And giving
tax breaks the millionaires and billionaires is just not something
that we want to be behind. And another reason to
vote for Democrats who will put this behind them. And
(14:09):
you know, you've got to go against Trump and all
of his great ads and these brilliant at advertising. He's
brilliant and what he does, and you've got to look
past that and look to what's good for you. And
so that's what a velocity is.
Speaker 1 (14:33):
I love that. It's a great explanation. Real quick back
to the what the Republicans have been calling the Big
Beautiful Bill, which you know I always tell people is
you know, when it comes to marketing, when they tell
you it's healthy, it's probably not. It's just it's it's
(14:54):
a marketing slogan. Right, Hey, these are great healthy meals. Uh,
these sugary cereals are a great way to a great
start for breakfast. None of that is true. And I
think the Big Beautiful Bill is also the opposite. And
that's why they're calling it the Big Beautiful Bill. Catchy title,
like you said, Okay, Trump's great with these little titles.
(15:14):
But you know, some of the things in the bill.
We've talked about how it's gonna affect Medicare, it's also
going to affect people who are on snap.
Speaker 2 (15:22):
It is.
Speaker 1 (15:22):
It's also in the bill it is it wants to
sell off public lands, and waters. This is the thing
public lands and waters to billionaire polluters. It's it's allowing,
it's protecting the other thing in the bill, it's protecting
billionaire polluters. And you don't have to take my word
(15:44):
for it. There is a conservative group. These are Republican conservatives,
and they have an organization called League of Conservative Voters
LCV dot org. You can check it out there. These
are conservative republics and they walk through and tell you
how the bill is going to affect, you know, social
(16:07):
warfare as well as environmental impacts. And so it is
an atrocious bill. And as you pointed out, he's giving
tons of money to billionaires. And for what reason, Because
billionaires like Elon Musk I'll use as an example, can
(16:28):
can throw money at things. And you know, we saw
we saw Elon Musk up there, you know, promoting, Hey,
if you do this, I'm going to give you a
million dollars. Well, a lot of people got excited about that.
They did what he said, and then he renigged on
that million dollars.
Speaker 2 (16:46):
I think that the best visual you can have of
this is when Obama was elected president, he attracted a
few million people to the to the all for his inauguration.
When Trump was elected here, he couldn't even fill the
(17:06):
Congressional Hall of a few thousand people because that was
all he had were the oligarchs and the people of
the new guilded age that we're living through right now.
So that's where the money all is going. And the
(17:26):
debt we're now at thirty something trillion dollars. It's going
to be up another five or so trillion, and they're
not dealing with that. That's something they don't want to
talk about, and it's it's it's bigger than all of us,
and so you know, we don't know how to handle
it except for put somebody into office that is is
(17:47):
going to be respond responsible for at least getting a
balanced budget in place where we aren't increasing it. That
would be wonderful, and then eventually turning it around. It's
going to have to happen. And the way it's going
to happen is you tax the billionaires and trillionaires. We're
(18:09):
on our way now and that's the focus of the taxation,
not only people making one hundred thousand dollars a year
or two hundred thousand dollars a year, which brings us
down to another big point that needs to be addressed
as affordable housing. And right now I'm going to try
(18:35):
to explain this in the easiest way I can. Somebody
owns a piece of property at the apartment building. It
has ten units, and he wants to sell it. He's
owned it for twenty years and he wants to sell
it for a million dollars that's one hundred thousand unit.
(18:55):
And the problem is under existing tax law, because prior
to depreciation he would have taken on the property, he
has a negative what's called a negative basis, and he
would pay more in taxes when he sold it than
he would receive. And so he doesn't sell it. He
(19:18):
can't sell it. He has to either put it into
an exchange at ten thirty one or gifted out to
his children and grandchildren who can't sell it either. So
there's no market for the property, not because there's not
big buyers that are interested, but because there's sellers that
(19:41):
just can't afford to sell the property. And at the
same time, there's potential people that would be interested in
buying a unit in the property but can't afford the
entire property. So what do you do? You incentivize the
sale of the property as condominiums. So if you own
(20:06):
a ten unit apartment building and you want to make
a million dollars on it, and you divide it up
into ten units, that's one hundred thousand dollars a unit,
and the seller gets to keep whatever money comes in
without any recapture, and the buyers all give units at
one hundred thousand a unit. So now we've opened up
(20:30):
a massive new marketplace for the transfer of affordable housing
instead of being rentals their ownership with this condo condomizing
of the property.
Speaker 1 (20:51):
Yeah, and I love this idea to me, it makes
sense on so many different levels. As you point it
out already. It makes housing more affordable, it helps the
sellers to easily get rid of these properties. It's a
(21:12):
win win for everybody, especially again for the consumer. I mean, look,
the starter homes that most people are acquainted with, they're
all gone. I mean, you know, I guess, I guess
you could still call them starter homes, but you're paying
four to five hundred grand for them.
Speaker 2 (21:30):
Yeah. A lot of times now builders seeing that there's
you know, instant profit in those homes, they don't sell them.
They go and raise private capital and they turn around
that what used to be a starter home at four
hundred to five hundred thousand, they turn around and make
it a rental unit, and so the same thing happens,
(21:52):
you know, all over again. So the concept is is
that incentivize that you have to change the federal text
law to incentivize owners to condomize their property so that
instead of only being able to sell it as one property,
you can sell it all the units separately, make us
(22:16):
money that you otherwise couldn't because of recapture. That's a
wind situation for the seller. At the same time, because
you've turned them into condos, it'll be a win situation
for the buyer. And you only allow no private firms
to buy it, only allow individuals to buy into these units.
(22:41):
So this is the concept to get affordable housing with
just a stroke of a pen. You don't have to
do anything else, and you can turn what would otherwise
be no affordable housing into a glood of affordable house.
Speaker 1 (23:01):
Yeah, and let me tell you every state in our
nation needs that right now. The homelessness is I think
an all time high. If you we spent quite a
bit of time in Vegas and you can go to
(23:26):
many of the parks in Las Vegas, and you will
see nice cars, some of them are even brand new.
Where people are living in the car. They have to
live in their car. They have a job, and they're
still living in a car because they cannot afford housing.
Speaker 2 (23:47):
And that's because people that own the housing can't afford
to sell it right because they would recapture all of
the depreciation that they took on the property at the
time they owned it, because the tax laws do not
reward their ownership and transfer to affordable housing. They only
(24:13):
reward them if they exchange it into more property or
sell it as a block to a private equity firm.
So it is a situation that the Democrats need to
get behind and promote this change in the tax law
(24:35):
to create affordable housing without being required to spend a
bunch of money on building it, because it already exists,
but it just can't come to market, and so we
need to work on that. We need to have affordable
housing for school teachers and school personnel by allowing school districts,
(24:55):
and you can start this right away to build housing
on school property for teachers who need to have that
kind of connection to the community by living on school
property and helping the teaching process. So those two points
are big democratic points. The idea that you know, don't
(25:20):
end medicare funding, you know, continue the Medicare funding. Only
give tax breaks to people making less than a million
dollars a year, and keep the borders close to illegals.
And you're you're on your way right.
Speaker 1 (25:36):
Uh, you know, I want to I want to bring
this up specifically because you have your your lord, you
have this legal background and and excuse me. One of
the things included in the bill is a provision that,
in my opinion, and I want to get your opinion
(25:56):
on this, undermines the rule of law. So one of
the things that they're trying to do that Trump administration
is trying to do. As as everybody's already seen, Trump
and administration does not like judges who rule against them.
They they they are trying to eliminate judges power, and
(26:18):
so they one of the things that they want to
do in the bill is reduce the amount of power
judges have when especially when it comes to things like
holding somebody accountable or in contempt. So they in the
bill there's a provision that would reduce those powers and
and actually reduce funding to make it even harder. So
(26:43):
I want to get your thoughts on this. Is that
a big deal? I mean, if a judge is powers
are reduced, or if they cannot put somebody in contempt,
what's your take on this?
Speaker 2 (26:55):
Well, you know, I haven't read the bill, so I
just want to put that caveat in. But as you
as you describe it, it's, you know, it breaks the
principle that no one's above the law. And one of
the cornerstones of the Trump administration is that they've, in
(27:17):
my opinion, have taken some people and some industries above
the law. And that's where we are. Where we are now,
and we have to live with with this unless we
get the Democrats back in power, starting with Congress, who
(27:37):
support a putting the people in charge and not putting
the leaders in charge. And that's what we have here.
We have unlimited power to our leadership. And that's you know,
just a small part of where we are. We need
(28:00):
to get Congress back, and it's it's got to happen
in this election. And the first thing we have to
do is tell our representatives that we don't believe in
the Big bad Bill, and if they vote for it.
That would be the last vote they're going to cast
before the election, and by the time that time that happens,
(28:22):
they won't be getting re elected. But the problem is
the Democrats are in disarray. They fight about the little
things and miss the point. You know, it's a sales pitch.
Trump gets it. He's there, he's always selling, and the
Democrats are always contesting. They you know, they come up
(28:46):
with no plan. So what we want to do today
is come up with this five point plan to get
the Democrats on the side of selling. But hope, you know,
fact that we won't hear much of it. But unfortunately
there are ideas out there. This isn't the only one,
(29:07):
but there has to be a sales pitch from the
Democrats that people can want to live with. And this
five point plan would be a good start. Giving people
affordable housing, reducing their taxes if they make undred a
million dollars a year, keeping our borders closed and protected,
(29:32):
and not messing around with Medicaid. I mean, that's not
too much to ask, and all the Democrats should be
behind this type of legislation.
Speaker 1 (29:44):
And I agree. I think that, as you mentioned, continue Medicare,
and I think there's ways to make medicare more efficient,
but you don't have to gut it the way the
bill wants to gut it. I agree with you about
(30:05):
closing the border. There's nothing wrong with that. We should
know who's in our country. And sixty minutes came out
with the report. It's available on YouTube where twenty percent,
I believe it's twenty percent of the illegal immigrants coming
over the border are from the Chinese. And they have
video footage of the Chinese just coming in over the border.
(30:28):
And so when you look at our history with illegal aliens,
most of these guys work hard and they send their
money back to their families. The Chinese, it's a different,
completely different take. These guys have money, they're coming over
and they're not coming over here to work. I look
at you know, people are speculating as to what they're
(30:51):
doing here. Reducing the taxes for working class steps again,
that helps everybody. It's one of those things that will
really help ninety of the people, eighty percent of the
people in affordable housing. Again, that's only going to help
(31:12):
eighty percent of the people. It's a it's a huge
win when you're able to do these things. And I
think one of the issues with the Democratic Party is
they don't have a clear leader. As you're saying, they're
they're constantly bickering among themselves. I just don't see a
clear leader. I don't see anybody that people can point
to and say that's the guy or that's the girl,
(31:33):
that's the person that can that can make things happen.
I think that's the first thing they need to do,
is they need to they need to find a leader
who can rally around these points that you're bringing up.
Speaker 2 (31:47):
Yeah, they need to get to get some courage, and
we need that leader that we don't have. But someone's
got to step up and say, yeah, I'm gonna step up,
this happen, and here's what I'm for. And I'm not
going to worry about the you know, side issues. They'll
take care of themselves at the state level, you know,
(32:09):
women in sports or men in women's sports, and the
issues that should you know, they've made abortion legal in
most states now and so that's all going to be
taken care of it and of itself. So these social issues,
but the bottom line is the big issues, the one
(32:30):
that the money issues they don't talk about, right, you know,
that's My concern is do we have a Democratic party
or is it just a bunch of people, you know,
bickering amongst themselves over issues that have no no wait
with a guy working all, you know, forty hours a
(32:53):
week plus two jobs and trying to get this family
buy and you know, people getting stopped on the street
because of the color of their skin. There's things that
just have to end. You know, we have to move forward.
We're never going to solve the problem. But you know,
(33:14):
if you're an illegal and you're caught committing a crime,
well then you're going to have to be deported. But
to go out and go into you know, Dodger Stadium
or attempt to to you know, scare people away from
going anywhere. If they've been here, regardless of the amount
(33:34):
of time, ten years, twenty years, that they don't have
good papers, they could be sent back to a country
they never lived in. Right.
Speaker 1 (33:45):
Well, and again I think that people forget when Trump
was in office last time, that he scared the migrant,
the cross pickers, for lack of better terms, the uh
and and farmers in California suffered severely because of that.
(34:08):
Nobody was there to pick the crops.
Speaker 2 (34:11):
Yeah, they it's it's a big problem with you know,
at some point in time, you have to have a
process to keep these workers and they have no fear
of being reported unless they committed a crime. And let
them work. I mean, you know, if it ain't broke,
(34:33):
don't fix that. The system has been working and they
don't have to become citizens. That's proven. But they stay
out of trouble and they work hard. They should be
rewarded for that, right.
Speaker 1 (34:46):
And I do want to point out that President Trump
uh has had numerous illegal aliens or undocumented employees working
at all of his places. I think that he stopped
it once he, you know, became a politician, but there's
(35:08):
tons of documentation that shows that, you know, just like everybody,
just like everybody else, they hired people who were willing
to work hard when other people weren't willing to work
those jobs.
Speaker 2 (35:22):
You know. And it's it's not just you know, it's
it's in hospitality, it's in agriculture, Uh, it's in uh,
you know everything. You can't get anything built without having
a day labor. They scared them off at some Hope
home depot so that they couldn't have their day laborer's
(35:43):
because they don't have papers, right, It's just that that
that's simple. So we have to turn the page on
all the issues of border patrol because you know, Biden
made a terrible mistake in opening the borders, and you
know now the Democrats have to pay for it. But
(36:04):
at least let's start a clinging slate and keep the
borders closed. That's got to be a win for the
Democrats too. If everybody agrees on that, we're on our
you know, halfway there without checking the people who are
in front of home depot looking for today labor. We
(36:27):
don't need to do that.
Speaker 1 (36:30):
Absolutely normal. We're out of time. I want to thank
you so much for stopping by, and I love these
bullet points you come up with. And I want to
point this out. I'm not saying this just because you're
a regular guest here, but this is what John F.
Kennedy said. Don't ask what your country can do for you,
ask what you can do for your country. Could you
(36:51):
imagine what would happen to our nation if people would
just sit there and say, okay, how can I help?
What ideas can I come up with? And maybe you
don't have the resources to put these ideas into action.
But you have the resources to come up with the
ideas and send them on to your politicians. Hey, what
(37:12):
about this solution? What about this solution? If we start
sending solutions to our politicians, maybe some of those would
become law. Could you imagine if somebody takes your bullet
points and says, hey, I don't know who this Norm
guy is, but I like these bullet points. Let's see
what we can do with them. And all of a sudden,
(37:33):
they take, you know, one or two or three of
them and put them into action. This is how America
stays America.
Speaker 2 (37:41):
Yep. Create affordable housing by changing the federal tax.
Speaker 1 (37:44):
Though, Norm, thank you so much for stopping by. Looking
forward to have you back again.
Speaker 2 (37:49):
All right, BERTI thank you. You enjoyed it.
Speaker 1 (37:52):
Good stuff there from Norm Blumenthal. Norm Blumenthal is an
attorney and heense working class stiffs like you and I.
He's a consumer attorney. He deals with all sorts of
consumer issues. So if you have questions about what he
said tonight, you want to reach out to him. Maybe
you agree, maybe you disagree, maybe you have a solution.
(38:14):
You can reach him at BAM Law CA. That's BAM
Law caa BAM law CA. Thank you so much for
stopping by. Please, let's share this episode with everyone you know.
Let's get the conversation going. Let's get everybody thinking about
what they can do. Maybe you have an idea, maybe
your friend has an idea. But could you imagine how
(38:34):
radically different the world would be if we came up
with some positive solutions and some of them were enacted.
It doesn't take a lot. Remember you were created to succeed.