Extortion and the Abuse of Police Power

Cactus at Angry Bear provides two Graphs which should make the Reader contemplate current Conservative economic theory. Marginal Tax Cuts do not appear to operate as economic theory would dictate. I have previously written of my belief that higher Tax rates with sound Tax collection practice, if not beyond the absorbent qualities of the economy, provide a spur to economic growth; my position being that Management is forced to work harder, greater Wage Demand exists, and Service industries expand to acquire the added Wages generated. Cactus may focus on the lax Tax collection practices under Republicans, but the real Story is that there is a spur to economic growth under higher Taxes, and elimination of a spur to growth with Tax Cuts.

The EPI studies the better outcomes of Canadian health care compared to the United States system, while the U.S. spends almost double that of Canada. They also note that Canadians consult with Physicians almost twice as often (6.0 v. 3.8). The American practice of limiting Medical School enrollments has been a major factor in the last statistic, which is not endured by the Canadian system. The limitation has cost the American economy greatly, ever since the Grenada invasion to rescue American medical students. Why must Americans go Overseas to attain Medical School, if We possess the finest health program in the World?

This Piece brings Us back to the original paragraph, but ties in with the second paragraph in an insane manner. My Comment on the Free Exchange Post is that if the American economy was overheated by the low Taxes, the disparate Government Spending deficits of the Bush administration, and unsound Pork Barrel Spending of both Parties, then an excess of liquidity will not propel growth, only Inflation. Mark Thoma makes the essential point that Consumers are in the mood to pay down Debt, rather than engage in further Spending. I do not like the arguments of Thoma, and agree mostly with William Polley. He thinks there should be a lower funds rate, which I happen to also disagree with in both theory and practice. My Solution would be to eliminate the impediments to economic growth now on the books, like the above difficulty of obtaining a medical license if qualified. I would also incite new laws, like compelling fines for use of Tires more than 50,000 miles (Fine to be equal to the replacement cost of the Tires). A spectacular number of things can be accomplished with the simple application of Fines for non-performance, like a $200 Fine for filing a late Income Tax Return. Employment would rise if there was a $100 Fine per Compliance Report not filed upon scheduled Date. There are multiple way to affect Change. lgl