I feel for Paul Krugman, though I do not think he is right. He states that he felt that the magnitude of the Stimulus was not large enough, while I suggest Stimulus would never have worked no matter it’s size. He would, like a Gambler, double down and go for broke. The Question to be asked is What to try next if such an effort failed; which it would. Here is where it will get tricky, and I will expect full hatred as We turn to an alternate Plan.
Government needs to spend Big, but We cannot collect those Treasuries. It means More, not Less, Taxation. The easiest mode here is to let the Bush Tax Cuts run out, which they truly should. They were a bad Bet from the Start, and enriched the wrong people. We did not need to turn the Rich into the Uber-Rich. Poor people got enough from the Bush Tax Cuts to pay for one month’s Utility bills. The Rich tripled their Wealth within a decade. Some people claim that this was the great American economy at Work; I claim it was the great American Criminal at Malfeasance. Either Case assures than great maladjustments occurred within the American economy. Elimination of the Bush Tax Cuts would help rectify the inequity of the current arrangement.
A greater source of Government revenue will be needed than simply asking the Rich to start paying some back taxes. I therefore propose the great Draft Tax, where every Check, Debit, or Credit transaction will be assessed $1 in Tax. This Tax will be assessed on Banks, financial institutions, and Card companies. It will be up to these institutions to raise their charges for the financial services. It is clearly an adjustable Tax for Households, who could probably limit their taxation to $30 or less per month. It will not be so easy for Business to avoid the taxation. Some repayment of said taxation could be possible to the Poor, but I would not advise it. There will be claims that the Tax will incite Consumers to return to Cash payment for Purchases, but such activities are limited in nature, and will be a benefit salvation for many Consumers; leading them to avoid adverse Credit rates from these financial institutions. I will at this time not go into Why I believe this approach to be the best venue for economic performance, except to say I know that it will unfreeze Wage demands among lower Incomes, and retard unwarranted gain for Those excessively paid at the Present. lgl