Monday, June 21, 2010

The Two-Tier System

Sometimes Robert Reich is very right, and sometime somewhat wrong; this being one of those wrong times. First Republicans lambasted Bill Clinton’s agenda, now it is the Democrats’ turn. Bill Clinton raised Taxes and brought forth a Boom, lowered Taxes and achieved a Tech Bubble for Us. Democrats want to praise Clinton for the later, I wish to acclaim the former trend. The Tax increases led to a return to high employment, while the Tech Bubble led to eventual Bust. Democrats have a simplistic view of just spending Money which the Government does not have and refuses to take. The Republicans have an even more simplistic view of simply cutting Taxes wherever and whenever possible, ignoring the fact that the Profits of Production and Retail are drained into debt; most of which can never be repaid. Give me an old-time Socialist any day, who only wanted to Soak the Rich, to give the Poor a Minimum Wage insufficient to even pay the Milkman. More intuitive reasoning might be called forth!

I personally dislike Business Tax Breaks of any kind. I am not a wide-eyed Revolutionary; though almost everyone would employ such derogatory labeling. My way of thinking suggests that the best way to generate Growth in the economy would be to take away a significant portion of the Business wealth to pay for Social services, inducing them to work harder to maintain the Income which they desire. This would also have the added benefit of eliminating a non-Risk style of Paper investment in excessive Government financial paper, forcing investment into riskier ventures of increased employment. I personally like this avenue, of course it means higher Taxes; a bane for true Conservatives.

I would further suggest a program of two-level Government Spending. It might be hard to explain, but I will of course try. All Government Spending should be classified as Restoration or New Construction. All New Construction on the part of Government should be suspended anytime Construction Costs have risen more than 6% in the previous 3 years. Restoration Spending would include Welfare Costs as well as Construction, but both are of immediate Need. My plan would stipulate that Government Spending could not be reduced from the previous Year, even though all funds are devoted to Restorative projects. Restorative projects require about 40% more labor than does New Construction, whether it be for Social services or Construction in nature. This aids the Conservative desire for less Government Spending, impels Democratic appeals for greater Social Welfare Spending, and allows for higher, better channeled Taxation. All Sides can start to Curse now! lgl

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