Saturday, June 05, 2010

The ole Snake Oil Salesman

I don’t know what these Economists think; I only believe that Government Spending which is not labor-intensive in policy are worthless, and that the real culprit is the Tax Cuts themselves. Be sure to read the Commentary on the Post. We have a problem with Private Sector lack of investment opportunities under shortened Consumption schedules, and Tax Cuts simply provide funds to invest in the rising Government securities. It remains a question of proper investment, and neither Government or Private Sector is accomplishing that reality.

I sincerely believe that a 4% rise in the real Tax rates would be an immense benefit to Government, Consumer, and Investment circles. I like that idea so much that I will advocate for a 7% real Tax rate increase, though I know I could never achieve any support. Here is the Thing: Nothing We have tried has yet to increase Private Sector movement to greater activity. We will get nowhere with Government Spending until we get that activity. We must get that performance, even if We have to reopen the CCC camps. Government Spending must reach beyond paper instruments if it wants to attain Stimulus status, and everything done to this Point has been directed towards maintaining the Status Quo.

The average Taxpayer wants to know that He or She is involved in something which is Real, even if it costs more. Business is in distinct disagreement with that assessment, but business personnel are getting tired of Returns which do not match their Bottom Line Costs. They are stymied by rising Costs matching the Inflation rate, with inability of raising their own prices without further loss of Consumer Demand. We are in a Poker Game where everyone is holding a poor hand, but have too much in the Pot to be bluffed. No one will get out if the Bets are too low, but no one will make a Bet which puts them at further risk. It is exactly the time for Government action, but Government insists on acting like just another Player. A Tax increase would jolt odd Players loose, they realizing that they will be going down if radical change is not introduced on their part. lgl

1 comment:

rjs said...

dr lux; just want to let you know i continue to read most of your posts, even though they are seldom linked by others..