Since before the 1980’s our economy has run on Voodoo Economics. It is also known as Trickle Down economics. The basic assumption is that if you give more money to those who are rich they will ‘Trickle’ the wealth back down to us.
Stop and think about what plan has given us as Americans. Go ahead and look away from the article. I am not going anywhere.
Our wages are stagnant. Our social goods, such as our infrastructure, is falling apart. We have depowered the collective bargaining power in the form of unions.
All because of this misguided idea that if we fill the pocket books of the wealthy they will uplift the common man. “A rising tide lifts all ships.” This was a common phrase said by Ronald Reagan, a main proprietor of the idea.
I am here to you unquestionably and without debate that this is a lie and does not work. That the previous generation’s mantra of ‘greed is good’ has destroyed America and continues to do so. This can not persist.
At this point I am only speaking to those who already knew this. You knew already the WHAT is wrong. To assume otherwise would challenge your intellectual prowess. It is the why that might elude you.
Here is the why and even the how. The economic term is called the fluidity of money. A very wordy way of to talk about how easily money changes hand. The economy is the social construct of how rapidly money exchanges. Without question a high level of fluidity is important.
If a billionaire or millionaire receives another thousand dollars a month how would that affect their spending habits?
Now if you or I received that money how would it affect us?
Don’t know about you, but that money would be gone faster than I could explain on what. Mostly bills, so spoiler alert. That is the point though. The common man and woman spend roughly 90% to 110% of their income. Also part of the reason we have a debt bubble growing, but that is a larger conversation.
This is the very fundamentals of the economy. You give money to someone who will spend it. They spend it at a business and both get taxed for it. The government makes money and so does the business. The company starts seeing an increase in sales and is able to expand or just hire new people. The new people have more money and are able to buy more things. With each and every time money exchanges hands a little bit is taxed.
This is how an economy grows. With real growth and not the speculative kind that has led to our economy crashing every ten years. If society invests in its people, then the people invest back into society. This is Econ 101.
This next part is how I would want to change things. I want to run for office and this is the policies I would fight for. Feel free to ignore or share this part.
In FDR’s days of being in office the tax on major business was roughly 90%. That is not 90 cents on the dollar was taxed, not that every dollar lossed 90 cents. We need to return to that so companies pay their share. In other words if society invested in their ideas, they can invest back in our society.
Follow this up with closing all tax loopholes. I want to remove all deductions available to them, save one. If company A opens a new distribution plant in America or a manufacturing plant in America. Half of its cost can be subtracted from its tax revenue. If a new job is created above a living wage, but below 500K, their salary is tax deductible for that fiscal year.
There would have to be a minimum that they can reduce their taxes too. However this is meant to incentivize companies to invest in America, instead of offshoring our jobs. The final straw on this is the level automation. If companies like McDonald’s start automating to much work, they should start paying a tax on every job lost from it.
This is how we need to move forward. If you feel I am a voice of reason I hope that you share my work and support me when I finally am able to run for office. If you disagree or just don’t like me, it is ok. I still support you and will fight for your freedoms. I swore my oath in the service and it still hold true to this day.
“Enemies, both foreign and domestic.”