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If wishes were fishes…
I’d go catch me one…..
What would I wish for? A great economy. That would take care of so many problems.
The issue within the economy that gets the most attention, is jobs. Not enough people are working. And the reason not enough people are working is because not enough money is getting spent, to add on additional help.
What we need is to get more money spent, and then add on extra people to assist with that increase of business. So, how do we do that?
Here are the old tried and true was trotted out long ago.
1) The government can hire. Those people spend money into the economy.
2) The government can award contracts. Those people now working, spend money into the economy.
3) The government can dole out more tax cuts. If people get more in their pocket they will spend more.
We’ve tried that, but the amount the government needs to spend to cover the salaries of 16 million people, would be (at $50,000 each per year) would be $800 billion. (Does TARP come to mind?) That is just a too big job for government to handle by itself…
Who on earth has $800 billion. Are we doomed?
No, corporate America makes almost $2 trillion of profits per quarter. By now all of you should know that is every 65 working days.
So who do YOU think should be hiring all these unemployed workers? The government that is in debt ($16 trillion) up to its eyeballs, or…. corporate America that after all expenses, has a new $2 trillion every 65 days to play with?
I hope you said Corporate America. We now know the cost: $800 billion/year. We now know the profit: just under $8 trillion per year (four quarters).
So the cost to Corporate America of putting all these unemployed back to work, is in percent: 10%. So instead of making a full dollar in profit, Corporate America makes 90 cents on the dollar.
If that seems like a lot, keep in mind we are not discussing an expense here. That is not a 10 % cost incurred that the business has to scramble and find some method to compensate. Historically profits are not this high. In fact, they never have been this high in the history of the United States, at least according to the records kept today of long ago. So these very high profits are a new phenomena… They are probably occurring because business just aren’t hiring;
Remember: profit is what is left over after everything has been paid off. So having businesses take ten percent of their “profits” and put people to work, doesn’t cost them anything. They just don’t record dream level profits anymore. Instead, they just have healthy profit levels..
So let us review. We have 16 million unemployed and out of work, who for just $800 billion could be working at $50,000 a year. That would give us zero unemployment. And we have Corporate America making $8 trillion a year earning profit that is so much, they have no idea or way to spend it.
So, all we have to do is make, force, impose, compel Corporate America hire 16 million people.
But wait. Wasn’t everyone up in arms over forcing, imposing, and compelling Corporate America to pay for health insurance? Saying things like the government “can’t make anyone do anything?” Didn’t a whole bunch of patriots emerge from the woodwork with that philosophy in mind?
Justice Roberts opened the door. And he showed Congress the way. Raise taxes on Corporate America; its legal; Congress can raise taxes. . Raise taxes and take their money… But, if you want to be sporting, you can allow them to not record profits as high as they have. You could also allow them to write off the amounts they invested in building new plants, establishing budgets for R & D. Hey, they could even pay you more. Better to have you a happy camper than give that money to the IRS…..
So you see, if we just raise taxes, the economy takes off. And raising taxes is really just a trick with words. All we are really going to do is raise the tax rates. The amount of taxes a corporation actually pays will stay the same or maybe be less, because their profit (by their choice) will go down and so though they will be asked to pay a higher rate, it will be on far less “income”. And where does that money go? If they act in their own selfish interests and choose to invest the money in themselves so they don’t have to fork it over to the FED’s, .. all that money goes to new jobs. 16 million of them.
The solution is plain as the words on this page. Raise the tax rates, watch corporations reinvest in themselves here in America, watch the hiring begin en masse, and watch the economy get roaring again.
It is nothing new; it is the way it always was, up until the Bush Tax Cuts were passed. How many of you remember old Delaware, where around the middle of December, Dupont’s tax division presented the data to the chairman, “this is what you gotta spend”; and building contracts came flying out of 1007 N. Market Street.
We should have never stopped the gravy train, but we did. It’s time we return to reality and raise those Federal Tax rates. It wouldn’t hurt to remove every Republican from office while we are at it………
I think I just caught me a wish…….
The current party system is broken. Gridlock ties up DC, even to the point where the Republican Party will filibuster a bill that they themselves proposed when both houses were Republican. The filibuster is only pursued because if passed it will be considered by us, the public, to be a success for the standing president.
You can’t blame Republicans. They are just trying to survive. Tying up Washington so that nothing gets done, is the only option they have.
Which leaves us with a choice… Should WE the voters continue this same gridlock? Or shall we take matters into our own hands and do something about it?
If we split our votes, the Gridlock continues.
The only way to prevent future gridlock is to make the penalty for doing so, so severe that any future party treads very lightly if it dares try using gridlock as a political weapon again….
That penalty needs to be that the party obstructing all activity in Congress, not receive any votes to return.
Let’s examine this proposition…
Assume all Democrats and no Republicans return to Congress starting 2013. The House would be completely 100% Democratic, and the Senate Republicans would drop down to 36 if all 11 Republicans up this year lost and all Democrats won.
We would have a one party system… or would we?
The Democratic party would soon split. The Progressives from the Blue Dogs… We would continue to have two parties in Congress. It’s just that that they wouldn’t be jockeying around for political points against the other side.
Instead we’d have what Congress was supposed to do. Debate bills on their merits, and once all facts are on the table, vote them either up or down based on the personal convictions of each Senator or House Member…
We’d still have the same debates as the powerful lobbyists swirled around those who would most likely represent their interests…
But if would be as if America took one step to the left. As if the entire political tone of Congress, just shifted left.
Would the same thing work if the Republicans are put into all seats they run for?
No, and here is why. Republican policy is what got us in this mess. Phil Gramm deregulated derivatives. Eventually that caused the enitire markets to catch up to where Enron went earlier, and collapse. It was the Republicans who decided over Democrats objections, to not raise taxes on the wealthy in order to pay as we went for two wars. So now, we we have a bill coming titled “Payment Due,” for those two wars plus interest. It was Republicans who because we had a surplus, decided to stop that money coming into the Treasury that was paying off our debt. So under them, we added debt on, and stopped paying our payments. No wonder the deficit is so high.
They are the wrong person to put into unlimited power.. simply for when they were there, the got to exercise with impunity all their dreams. We are bankrupt now…
Harken back to the era of Clinton, and everyone was making money… whether you were poor, middle, or rich… You made money and had more left over to spend on yourself, than you do now…
That simple comparison is why we need to go to an all Democratic Congress and not an all Republican one.
We will always have divided government. It is just that when it becomse divided along party lines, and not along the lines of the American people, that we get the gridlock we see happening daily today…
Republicans are the cause.. Their elimination (no offense to the nice Republicans I know) will be the beginning of a new day for America.
The last time we eliminated Republicans was in 1932. It took 64 years for them to return. Those were the best years America has ever had.
Democrats Rule: Republicans Drool….
Third Quarter 2006 — Bush/Cheney
Fourth Quarter 2006 — Bush/Cheney
First Quarter 2007 — Bush/Cheney
Second Quarter 2007 –Bush/ Cheney
Third Quarter 2007 — Bush/ Cheney
Fourth Quarter 2007 — Bush/Cheney
First Quarter 2008 — Bush/Cheney
Second Quarter 2008 — Bush/Cheney
Third Quarter 2008 — Bush/Cheney
Fourth Quarter 2008 — Bush/Cheney
First Quarter 2009 — Bush/Cheney
Second Quarter 2009 — Obama/Biden
Third Quarter 2009 — Obama/Biden
Fourth Quarter 2009 — Obama/Biden
First Quarter 2010 — Obama/Biden
Second Quarter 2010 — Obama/ Biden
Third Quarter 2010 — Obama/Biden
Fourth Quarter 2010 — Obama/Biden
First Quarter 2011 — Obama/ Biden
And the climb back begins………
Second Quarter 2011 — Obama/ Biden
So, where as under the Bush/Cheney doctrine it took 11 financial quarters of downward pressure to get us into this hole, it’s taken only 8 quarters to begin lifting us out….
I would call that a win for the Democratic leadership and a win for the economy.
Because usually when a team comes from way behind to win the game, one usually has to give the team the credit……
“Should the debt ceiling not be lifted in time by May 16, in order to prevent the Treasury from running out of funds, I am hereby using the emergency powers given to the Chief Executive by the Constitution, to temporarily suspend the Bush Tax Cuts until: 1) either we can legally borrow the funds to continue paying on our commitments, or 2) we bring our debt down to the 2008 level by having much more tax revenue pour in.
This is in effect, immediately, and I have instructed the IRS to recalculate all 2010 tax forms over the level of $2 million dollars, and asses those individuals and companies, for the differences.
We must take this action because Republicans want to pay politics with your lives. As Chief Executive, I am responsible to you, not them. I won’t let that happen.
With these tax cuts out of the way, and with our austerity programs already in effect, that windfall of profit the Treasury will receive, will be entirely funneled towards the paying off our debt.
This policy will continue until Republicans can act reasonably and in a productive fashion.
Buried in yesterday’s announcement was this nugget.
27,400 new homes were sold this period. That’s up 4100 up over last period.
440,000 existing homes were sold this period. That’s up 48,300 over last period.
This period, 233,700 were first time buyers. That’s up 26,200 first time home buyer over last period.
That’s 6700 first time buyers over this time a year ago. Although 12,700 fewer homes and 2,300 brand new homes were sold against last year.
Bottom line, new housing construction is down. Existing houses are moving on the market, and most of the new growth in that area is coming from new home buyers who are maturing and now entering the market.