Taxes are Good!!!

It indicates the status of American society that this article on Unemployment could occupy four pages of the Sunday NY Times. The key component in this article is the Statement that the Job market does not have the Hiring lists to justify the Advanced Training, which Economists claim is the real Solution to the Unemployment problem. The key factor here remains that though Business has repetitiously been given Tax breaks to cut their Production Costs, this has not been a spur to raise Production and hire on more labor; Business choosing to translate the Tax breaks into higher Business and Trade Profits. The Problem with this Business policy consists of the lack of American production has eroded the value of the Dollar, leaving actual real Business Profits, adjusted for Inflation, at approx. the same level; all this while destroying the economic viability of American labor. It is long past Time to stabilize the Dollar, even by the hated medium of raising overall Taxes, especially the hated Business taxes.

Now that Everyone has had the opportunity to scream in Outrage, We can turn to examination of the actual facts. The first consideration establishes the Economist belief that no fiscal or economic policy will much affect the current level of GDP, basically due to the American Consumer already living on what constitutes a Consumption Diet, and has been ever since the Mortgage Crisis arose last Spring; it does not matter that the Diet is incredibly high Calorie by World Standards, this is America after all. The second element states that the lowered Business taxation is not translating into increased real hard Capital investment, only Paper instruments which only act as a real drain on Production Profits; a State of increasing the parasitic drain of Middleman Costs–this time from the financial sector. Trade Import Costs increase at a rapid rate, as the Dollar devalues, and those Imports find alternate Sales throughout the World; such Sales fueled by the switch of the American economy to foreign production. The American economy is buying itself out of real involvement in the World economy.

The American economy has to go back to Work, discontinuing the practice of finding a foreign bidder for the Production. The later practice has to be suppressed, and national economic policy must be the suppression factor. There are basically only two methods to attain this End, taxing the Imports, or raising Taxes overall, so that Americans must find a higher level of Income; current Profits flow ratios insisting such channeled Income could only come through increased native Production. The less-articulate Economic thinkers can subsist on the Statement: Increased Taxation will propel Business leadership to go back to Work, rather than play on the Markets; because they will not like the loss of Income. The reapproachment of Business to Production will find incredible opportunity to compete with foreign production with high Profits; introducing more technologically-advanced Product, more efficient Sales and Distribution methods, and creation of new American Consumer desire. The really hard Job will be convincing a bunch of conservative Businessmen and Economists of the Proposition: ‘Taxes are Good!' They pay Government bills, and provide financial incentive to increase Income to maintain Investment schedules. They employ people who need more Income. American Business leadership responded to the clarion call of ‘Greed is Good!’ trumpeted by a long-ago movie. Let Us hope that they will integrate the new Call to Arms. lgl