Thursday, October 14, 2010

My Sour Note for Today

Here is a Post which leads me to contest the rest of current economic thought in the Country. Every Easing of Finance in this Country has worsened the conditions under which this Country has to operate. We are leaving the Cash in the hands of Those who are not operating in the native economy. Whether Consumer or Business personnel are spending the Dollars from the Easing, they are spending those funds on foreign product. I must take the Readers on a far distant reach here, but it is the only resolution which makes sense: Current economic policy effectively only increased the Profits of Exports, even where there is no growth in Exports. This devolves into capital concentration within the Export sectors, with a discrimination against the capitalization of domestic industry. The upshot of this directional flow insists that Prices will increase in the domestic market, while Prices in the Export markets will be suppressed. Domestic Income will face increasing Price discrimination, while American Incomes will be drained.

People ask me what Solution I would advocate for a better Recovery. I suggest the truly hated venue–higher Taxes. The one aspect of Government Spending which makes it advantageous remains the fact that the funds must be spent within the domestic economy–which means Jobs. Higher Taxes suck a great amount out of Disposable Income, leaving Tied Income relatively alone; else there are many Politicians who face worse than Hanging in effigy. This decreases the Profitability of Imports with a favoritism shown to domestic production in the long-run with their wedge pricing for profitability against set production costs. Both Government and Private Sector begin to hire domestic labor as enhanced rates, while Imports reduce to resource necessities.

I am neither a liberal Democrat, or a capitalist Republican. I dislike Government Spending in almost every case, except for infrastructure construction and mass labor projects based upon minimum wages. Readers should be able to understand the first is for the advancement of Production, the later is to spur the economy under levels of unemployment. The first actually increases the Income levels in the areas impacted, while the later raise the Household Income of the labor involved; which is almost entirely spent on Consumer Goods. I do not believe, Now or Ever, that anything can be achieved by granting Rich people even more Tax Breaks. I do believe a change in philosophy must occur before We get a rising Standard of Living. lgl

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