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Hello, hello, is anyone in there?
Nod if you can hear me… is there anybody home?
Get this… tonight as I speak… (or write) there are at the behest of Nancy Pelosi 174 Democratic Representatives who have signed the letter in support of adding unemployment benefits extensions to the new budget about to be voted in….
Without them, everyone who is on extended unemployment, roughly 4.1 million do not receive an unemployment check in two weeks. They are destitute.
29 have at this point, not signed…. Here they are…..
Ron Barber (AZ-02)
Jerry McNerney (CA-09)
Zoe Lofgren (CA-19)
Raul Ruiz (CA-36)
Scott Peters (CA-52)
Susan Davis (CA-53)
Jared Polis (CO-02)
John Carney (DE)
Joe Garcia (FL-26)
John Barrow (GA-12)
David Scott (GA-13)
Robin Kelly (IL-02)
Tammy Duckworth (IL-08)
Peter Visclosky (IN-01)
Andre Carson (IN-07)
Timothy Walz (MN-01)
Collin Peterson (MN-07)
Sean Maloney (NY-18)
Bill Owens (NY-21)
Dan Maffei (NY-24)
Mike McIntyre (NC-07)
Kurt Schrader (OR-05)
Mike Doyle (PA-14)
Pete Gallego (TX-23)
Henry Cuellar (TX-28)
Eddie Johnson (TX-30)
Filemon Vela (TX-34)
Jim Matheson (UT-04)
Adam Smith (WA-09)
Time for your Democratic Nominee for next year’s Congressional election to have a “Come To Jesus Meeting” with his party’s faithful……
233 N King Street, Suite 200
Wilmington, DE 19801
Phone: (302) 691-7333
Fax: (302) 428-1950
Toll-free (877) 899-7872
1406 Longworth HOB
Washington, DC 20515
Phone: (202) 225-4165
“John Carney…. You are receding…. A distant ship’s smoke on the horizon…. You are only coming through in waves…..
You’re lips move…. But we can’t hear what you say!…….”
You have become……….
How does one grow Delaware Jobs?
- Does one say…. Here come here and will shave a penny off the cost?
- Does one say… If you work here, we will bend regulations to cost you less money?
- Does one say… Our productivity is high because our employees are smart?
- Does one say… There is no better place to live on this planet?
If you are good at what you do, you probably try all three…. (If that didn’t set off signals in your brain then step three is not even in the running).
We have strikes against us… We are are the 40th lowest economy, due to our small size… We have 39 bigger economies competing against us.
Any one of which can under-bid us on business taxes and make up the difference by raising their sales tax rate a penny….
So, against this, how do we increase Delaware’s jobs…
Well we’ve tried the carrot… Now the stick. There are businesses already heavily invested in Delaware…. Why not give them the option to write off new building costs?
In it’s simplest and most abstract form, it works like this:…..
Since paying taxes and building something both equally help the economy of the state, it makes no difference and is a simple trade off from the states economy’s point of view, as to whether the money goes directly to the treasury or indirectly, by being invested into new buildings on business properties… Therefore now is the time for businesses to expand, for that expansion can be written off the tax owed to the state…
The initial lost revenue will be returned in part by the taxes on the new jobs, and by taxes on the business transactions that mushroom as a result of this policy….
So as a business owner, you have this choice. You can pay the state and never see that money again, or you can build upon your property, and keep that money invested in the increased value of your assets… When you sell, you recoup the amount you invested so it is not lost revenue; it is not wasted… Plus the expansion now means your yearly net income is higher as well….
But at Delaware’s current abysmally low rates, even allowing the expansion write off, would benefit only a few of the larger, more prone-to-expand, business entities across this state…. Which is why it must be accompanied with a higher tax rates to create shock and awe among the principle players…
Taxes are based on the amount of money left over. Simply put, if there is no money leftover in a business, there is no tax… There is therefore incentive to maximize one’s profits in the field, and then minimize them on paper…. That incentive, creates the expansion that hires people… most particularly those in the construction trades….
Tax increases drove the WWII economy. The post war expansion. The Clinton Revival. And now this year, 2013… States enacting tax increases such as California and New Jersey, are doing much better now than states reveling on their lack of taxation and their lack of regulation…
More is better in this case.
Delaware has one of the weirdest tax state income tax delineations. The percentage climb stops at $65,000…. A person who makes $65,001 pays the same rate as does someone who’s financial empire brings in $65 billion dollars… We have much room to pay with. This year Delaware needs its General Assembly to act and pass a state tax system such as below…. This is just a first draft that will, and should be tweaked by the lobbyists scrambled by the powers that be to do damage control….
$1 Trillion and above…. 15%
$1 Billion and above…. 10%
$100 million and above…9%
$ 1 million and above… 8%
$100,000 and above… 7%
No further changes are required….
As an example New Jersey’s economic stimulus new tax hike rate stands at 8.97% over $500,000…. No one is going to run away from Delaware because of our increased tax rate…. unless they run away in order to pay even more.
Based on sources inside Delaware’s Department of Revenue, this would increase our state’s annual revenue intake by roughly $220 million dollars or about 7% of our current revenues…
What that should mean for every Delawarean, is that there is a very good likelihood that most of this will be invested right back into this state, if a that change in state tax code is made, thereby allowing the complete write-off of all domestic construction on this tiny patch of earth, only 35 miles wide, and 96 miles long…..
If you build on that small patch, Delaware won’t tax you the amount you spend upon the building. Delaware needs to jump on this idea first. Otherwise other states will take even this competitive edge away……
On a different topic, this correlation does show how educational scores directly correlate to poverty… The more luxurious one’s lifestyle is, the more one learns….
That is so common-sensical it is almost laughable that America pursued the corporate get-rich-quick No Child Left Behind Approach and wasted an entire generation of talent, instead of focusing on the obvious. (Notice I said.. almost laughable. None of the Millennials are laughing at it these days.)
But that is not what I want to talk about right now. I want to address the bigger picture… I want to address why the US can’t have nice things too?
I need you to do two things…
- Find the US on the chart above.(The chart enlarges if clicked)
- Ask and answer this question to yourself, “why?”
Mexico, Chile, and Turkey, are the only developed nations having a higher percentage of families below 50% of the global medium income than the US. Now look at some who are higher….
- Slovak Republic
Does anyone remember what these countries were like in the 40’s? Why is it that the United States despite all its opportunities is barely above the status of being a third world nation?
This was reinforced earlier this week by an article using the same title I chose above, which was based off a returning Americans vision of our nation after being in Europe for a while….
It stated something like: imagine what a First World traveler must think after emerging from JFK and riding the New York Subway into Manhattan…..
That was one of those pieces that stick; I’ve been thinking about it ever since…
Why do we as a democracy, totally and fully support those who are pushing us lower and lower down on the global economic scale? What is so great anymore, really, about being an American?
Oh, I wish I could fly to the Canaries for the weekend… But I can’t. I’m an American.
Oh I wish I could hop on the train and see you a couple of hours (200 miles away) but I can’t. I’m an American.
Oh, I wish I could have healthy food to eat, but I can’t. My store won’t sell it. I’m an American.
Oh, I wish i had enough left over to go to the movies this weekend, but I can’t. I’m an American.
Oh, I wish our schools would teach that to our children, but they can’t. We’re Americans.
Oh, I wish someone would fix that damn pothole. I keep asking. But they can’t. We’re in America.
Oh, I wish I had enough money to buy everyone in my family a Christmas present. I can’t. I’m American.
Oh, i wish they’d kept those woods as a park, instead of making more trashy apartments. But, we’re American.
Oh, I wish they’d make that refinery stop polluting. But they won’t. We’re American.
Oh, I wish we could buy food that wasn’t Gentically modified. But we can’t. We’re American.
Oh, i wish someone would try to save the Monarch Butterfly before it goes extinct. Nevermind, I live in America.
Just some random thoughts… proving that compared to other nations… as the chart well shows, we really do have it bad….
Now why is that so?
Why is the supposedly richest nation in the world, on it’s own accord forcing itself to live in austerity, when it has all the possibilities that have ever been open to the race of men?
Obviously other nations aren’t so picky. They are living much better! So why can’t we have nice things too?
Why can’t we pay ourselves enough to fly to the Canaries for a weekend?
Why can’t we invest more and build ourselves a train system equal to China’s and Europe’s
Why can’t we have healthy food to eat by having unhealthy food cost more to cover it’s future medical expense?
Why can’t we earn enough per week to have enough left over to spontaneously go to the movies this weekend?
Why can’t our teachers teach three foreign languages to all our children by age 8?
Why can’t they fix that damn pothole?
Why can’t I spend what I wish on everyone I love and still have enough to live on later?
Why can’t we keep those woods as a park? Why do we had to commercialize absolutely everything?
Why can’t we establish rules that stop pollution, or cause a non-compliant place to close shop?
Why do we have to have everything genetically modified, even if it kills us later?
Why did we do nothing and let the Monarch butterfly go extinct… when we could have easily saved it?
The easy answer is that we chose to go down that path… Putting blame on any and everything else is a cop-out. We collectively made choices and this is the choice we made….
The hard answer, the one we struggle with, is why did we make that choice?
Why did other nations not make the same choice as did we, and now have all these nice things, while we are entrapped by our poverty and have really very little to show for all our good productive work? How come they got stuff, and we didn’t?
Why does Israel, which lives with rockets falling on top of them daily, live better than do we?
Why does tiny Denmark have so many wealthy people?
Why is the quality of life in the United States more closely ranked with that of Turkey, Chile, and Mexico?
Why are all the nations called Socialist and Communist by the Tea Party and the Republican Party of the United States of America, all doing better than us, and nations where cut-throat self expression is honored, are nestled at the bottom against us?
Time for a new scatter chart…
Courtesy of New York Times. (Click image to read)
Riffing off a Beatles tune title, “Happiness Is A High Progressive Tax Rate.”
Those people above who are happy, who have all those nice things… aren’t Socialists. They just come from a highly progressively tax country. People with no taxes are horrifically bitter… don’t believe it; you should try living in Somalia. Of course, no taxes are great if you are wealthy… but as one takes away each tax, one reduces the number of wealthy one will eventually have left…
So when America decided to reward the rich, and let their wealth and abundance “trickle down” all over us, we chose to go down this path of austerity. Without first thinking clearly that no one gives up their money unless forced, we assumed the bounty would flow to all.
The wealthy kept the money, and it has grown immensely. For them.
So now, they can afford to pay us lower than our worth, because others will jump at the chance to take our spot.
So now, they can afford to buy those who pass laws. to make laws for them, at our expense. For what we think doesn’t matter; they can buy the election.
So now, since they can afford cabs, we don’t need trains.
So now, since they can afford private schools, public schools should be mined to earn them even more money.
So now, since they can eat healthy food, we can’t because the profit margins are higher when they serve us sawdust, instead of real protein products.
So now, with copyrights paying them across two lifetimes, they don’t need us to go to the movies as they in the past.
So now, that pothole which affects only 1000 cars a day, can wait for the intersection into their newly developed shopping center to be completed.
So now, just why should they pay workers a living wage. They’re starving. They’d work for free if we’d just let them.
So now, parks are a nuisance and an extra cost. Better to develop the land underneath and collect rent instead.
So, now because it costs money to stop pollution, we don’t. Cuts into profits too much.
So now, all food is genetically modified… Cheaper to produce and that makes it more profitable.
So now, who needs a dumb-assed Monarch butterfly? It creates no benefit, costs money to save, it should just die and decrease the surplus number of species this planet is gasping to carry…..
We made that choice. This is our legacy. The good news is that we make choices every day. This choice we once made defines us now, but does not have to define us forever…
I’ll now leave with words from Dicken’s, rather proper for this time of season….
“I see an empty place at this table. I see a crutch without an owner, carefully preserved. If these shadows remain unaltered by the future, the child will die.”
Well, I’ve said too much. I…You’re the People here. You do what you want with this thing. Just one more thing, though. This planet needs this measly one-horse institution to change its course, if only to have some place where people can come without crawling to the 1%.
Just think about it over these holidays… Why is it that the US can’t have nice things too?
One of the nice things about this past-time is that one sees trends flow across one’s desk….
Right now, look at what is happening.
- Gigantic Power Plant Being Rammed Through Newark.
- Gigantic Scheme to Funnel Billions of Educational Dollars to Private Firms Through Common Core.
- Gigantic Scheme to Cut Government Spending Despite It’s Known Benefit to the Economy
- Gigantic Scheme to Funnel Money Out of Social Security Into Privately Managed Accounts.
- Gigantic Scheme to Funnel Your Money from Medicare Into Private High Cost Health Care.
- Gigantic Scheme to Prevent the Breakup of Gigantic Medical Conglomerates by Obamacare.
Common thread? There is too much money, and it can now do gigantic things….
Like putting out a gas fire, the first thing is to shut off the gas… Control the money.
We first broke monopolies . When they grew back, we instilled Income tax. When that was rescinded, it eventually created the Great Depression so afterwards, we then put them back in. While in place we had outstanding economic growth from 1930- 2001. That has never happened in any economy before income taxes were invented.
We rescinded taxes again, and got 2008… We puttered until 2013, when taxes were added to the top half of the top one percent. Just that has driven growth alone. More would be better.
It is obvious that raising taxes on the top one percent forces reinvestment back into the economy of this country that does not happen by their altruistic, philanthropic tendencies alone….
If none of these entities had so much money to burn, smaller amounts of money would now be burning in each of these cases attacking the very foundations of American economic stability and health….
Taxes are good. More taxes are better than less taxes… Taxes don’t take money; they allow for better choices to reinvest that money, and all become richer in the process, not just those already rich beyond all means of being able to spend it……
So again, tell me why Newark should have to breath uranium residue just so they can get richer?
So please continue to fight these little battles. Just realize where the reinforcements are coming from, that every fiscal year they are spawned anew, and acknowledge they’ve been beaten before, and can be again. Particularly when the odds are 99 to 1 in OUR favor…..
If you do the above on Grover Norquist’s group for Americans For Tax Reform, or ATR…. you will find that Grover’s group reported ATR reported spending $15,794,582 on political ads to the FEC… but told the IRS it spent only $9,791,515 on its 2012 campaign activity, a disparity of $6,003,067…..
ATR spent a total of almost $30.9 million in 2012, meaning more than half of the spending it reported to the FEC for the year was on politics, a clear violation of its tax-exempt status.
Companies in violation, must pay taxes on their income. It’s the law.
Now find your own company to bust… I’m sure you have one, or two, or three….
Focus on the Green… Notice that during the worst Recession since the Great Depression, not once did after tax corporate profits dip below to where they were in the late ’90’s, when we were at our most successful economic expansion ever. Only one report even came close.
At one glance one can see what it wrong with the economy. Money that once kept the economy going, so well it ate our national debt, is now sucked out of our economy in the form of corporate profits.
Raising taxes on corporations back up to the levels of the nineties, when we had the greatest economic expansion in the history of the modern world, is how we create those missing jobs.
If one looks at the chart, all that money above the year 2002, should going back into the economy, not getting pulled out of it. If the amount of profit made everyone wealthy in the nineties, making the same amount, and making us all wealthier in the process, should be the direction we need to take….
Raising the tax rates on corporations, will not make them pay anymore in taxes. They are smart enough to know where to bury it and create jobs, to keep it untaxed.
As long as the growth begins… that would be fine with me…
Bottom line is in one glance, one can see exactly why our economy has been sick since the Bush Tax Cut went in effect in 2002.
I was awaiting the Mayor’s comments on what he would do about the violence in our city….
“Nothing. It’s the Parent’s fault” he said. If one remembers the campaign taking place just a year ago last week, one remembers the current mayor Dennis Williams as a candidate lambasting the former Baker administration and its proxy, Bill Montgomery, for echoing these same exact sentiments.
“You’re not doing anything about it; blaming vague root causes is not going to take care of the real problem, which is bullets flying up and down our city streets!” he repeated many times of his campaign.
This week’s announcement was a tremendous statement. It acknowledges failure. When one falls back upon the same defenses as one’s political opponent, that means one has failed.
Blaming vague routes for the problem. Here is the reaction to Dennis’s statement.
“Ok, Dennis. You are mayor. Fix it.. Fix every parent taking care of their child. How are you going to do that?”
The answer is no one can do that. No one can pass an enforceable law demanding good parenting. Therefore using this excuse is one’s acknowledgement that it can’t be fixed. The solution is then still out there, still needed. There are very viable solutions out there to counter this problem; and answers come from recognizing first what the problem is.
The real problem is heroin. Come right out and say it… I will take the liberty to write here how Dennis “should have” handled the question…
Hi, I’m Dennis Williams, and I approve of this message. When I took over as mayor of the City of Wilmington, little did I know that the tightening of the control of prescription drugs would become so effective, it would make heroin the least expensive alternative. The heroin business in Wilmington is booming. When criminal businesses, which are businesses run by rules outside the canons of law, become profitable, they change ownership by means also outside the canons of law.
Heroin is dealt in this fashion these days. A supplier drives in from a safe spot outside, drops off prepackaged bags, and gives you a bill of sale. If you choose to deal, you sell the product, then pay the seller for his money. If the seller doesn’t get his cut, you don’t last long. Now you have to sell. You sell heroin compartmentalized so no one knows the whole operation. One person you pick makes contacts at Glasgow High, another at Brandywine, you pick one at Olive Garden, one at Red Lobster, etc. One sells to the local IBEW; another supplies Bank of America. These are people you know; and they sell to people they know.
Bringing it on property is too dangerous. They deal in phone numbers. A cell phone number puts you in touch with a guy on the street corner. You call, say who gave you the number, and get told where to make the transaction. You put the address in your GPS, and drive. You call, he comes over to say hi, you say hi back and hand him the money, he drops the bag in your car, says have a nice evening, and you drive off…. You and your friends share the heroin and take off to go clubbing in Philly with no more thought to it than like having a beer before hitting the road.
Obviously the sectors close to exits off 95 are prime commercial real estate. Most of our shootings happen right off 202 and 95. Easy off – easy on. If you are selling down-stream, you get fewer customers… If you are selling $200 a night, and the guys up the street whom you can plainly see are doing $2000 a night, you are going to look at all options on how to increase you sales. In this business, it is all about location.
Almost all our shootings are a result of drug trafficking. Whether for non-payment, for elimination, or for reprisals, almost all our shootings are related to this industry… Very similar I might add, the same way all of Chicago’s shootings were related to the illegal alcohol trafficked through the Prohibition years in that metropolitan area.
Changes are required beyond me to fix this problem completely. For this is an ongoing war that can never be won by using the same weapons we’ve been using over the past 50 years. People are resourceful; if they want something they find a way to get it, around every roadblock we can impose. They do not stop wanting this product. The alcohol violence in Chicago only went away when alcohol again became legal. It is time to consider what might happen, and how we could control it if we chose to make heroin legal. For when one can buy heroin in Wal*Mart, with no stigma, and trust that some government entity has verified its purity, and lack of harmful substances, no one in their right mind would drive into the city to make a transaction for what could turn out to be corn starch laced with arsenic. And if no one is driving into the city, there is no money to be made. If there is no money to be made, there is nothing to be gained from the illicit drug trade. If there is no money in crime, crime goes away…
There are very easy ways if we make it legal, to control usage. One, small nightly dispensations could become the rule, so overdosing would be impossible. Two, addicts show up regularly become readily apparent , and could be directed by Wal*Mart to various appropriate detoxing agencies. The possibilities are endless. But it would not destroy society because it would be regulated and taxed and otherwise like every other vice that has followed the same pursuit, liquor, beer, wine, cigarettes, cigars, gambling, could become a beneficial revenue source for the government…
Without going this far, there are some things that can help immediately, maybe save a life or two, though not take care of the problem. If you see a drug deal, call the anonymous number. Say, “I have someone dealing on the corner of Baynard and 22nd.” Dealers’ fear of the unknown is our greatest defense against these street corner transactions ever happening. When we start getting calls before murders take place, fewer murders will take place. Putting up cameras just moves the transactions to where there are no cameras. Same with putting police on corners. Our best bet is to have dealers so fearful someone will rat them out, they don’t come out, anywhere. They find another way to sell. In doing so, we’ve destroyed the property value of the prime real estate, so that it is not worth killing for. We cut crime.
With your help, we can do that. However everyone needs to recognize that the problem is one of business. These are business killings. They are about business. People need money to live and unfortunately with an illegal business, a lot of people have to die to keep that type of business alive and afloat.
Likewise picking up the random car bringing the packets in, means another car gets dispatched the same night and makes the drive down to fill the hole in supply…
The same with guns.
We can also crack down. Make it unprofitable so the sellers choose to sell in Elmere, New Castle City, Newark, Christiana, Claymont. The crime moves there and we cheer our gun deaths are down. All we did was transfer the problem to my friend Tom Gordan.
The long term option is to make it legal, and by doing so, suck all the money out of that business. If one can walk into Walgreens, present an ID, sign forms and pay $2 a small bag, and then go home and sleep it off, the $50 bags on the street corner are going to disappear. The same person, goes home and sleeps it off, in either way. One way costs them $50, costs us $150 a bag in trying to interdict it, and continues eating up our young urban men. The other way, generates taxes, keeps control, drops crime, makes money for Walgreens, creates new jobs, and allows for $48 dollars to be spent into our economy for other commodities. Again, either way, the same person sleeps it off.
I am calling for a new conversation, a bold, innovative way we can get drugs off our streets entirely. I’m am calling for a way we can remove the market of illegal substances out of our neighborhoods, off our streets, and into the business world where it really belongs. It’s a business and should have the legitimacy it deserves. It has a demand that will be met, if not legally, then it must be met illegally. We haven’t changed that in 50 years of trying. Only the opposite approach, of making it legal, controlled, available, and legitimizing it, will take the illegal activity currently devoted to filling that demand….
It is the only smart thing to do.
Every smart thing requires a person of immense courage to start the ball rolling. Although I have no more courage than the next person, I do recognize that I am in this position at this time, and must do something. I am starting the call to legalize these narcotics as being our most effective method of attacking the ills of this business while it is allowed to remain illegitimate.
This is very unlike my predecessors blaming the parents… I can do nothing about fixing parents. I can work our legislators and become a public spokesperson for making this business legal again, so we, society in general, can control it…
There will be those who through shallow thinking may not agree with this long term solution. Not everyone is smart. But, we have an great opportunity in this city, with a complete lack of Republican countervailing power which always make progress unattainable because of their higher-than-thou moralistic posturing, to actually make something happen. We have the resolve, we just need the release to allow us to make progress happen.
The arguments they will use against it, are the same once used against smoking, against drinking, and against gambling. WE legitimized all those businesses and the sky didn’t fall. It is time to accept rationality and begin the process of this one… In the meantime we will continue fighting against the symptoms of a social disease our current processes will never fix. Any help or information before a crime is to be committed or immediately afterwards, will be highly appreciated in our endeavor to make Wilmington, which is truly a wonderful city, again become a great place to live…… For despite our inability to eliminate the overall big picture, every life we save, is an actual life we save… There can be put no price too high on that. We need your calls.
That is what Williams should have said.
Economic theory, which is basically bullshit, is often coached in mathmatical terms to disguise the fact that it is pure bull. However there are some very simple concepts which make very good common sense, and if one looks at that, instead of how to use current data to justify one’s action politically, one comes up with obvious surprising results.
Labor Demand < Labor Supply
That is why so many people are out of work. Now here are the players.
- Workforce Market
- Commodity Market
- Foreign Investments
- Financial Markets
Government is our last option.
So our workforce if we compare the same counting today as was during the Great Depression, is running at 85% capacity. Meaning 15% are unemployed.
Going down the list then,
Corporations are at their best ever. Corporate profit the highest percent of GDP ever.
Financial Markets also are at their best ever. Dow Jones is at record highs.
Commodities are performing well, all indications are of a long term bull market.
Foreign Investment is at an all time high. Never have we had this much outside money.
Real Household Income is declining. We are headed downwards and are currently tied with 1994 as it rose out of the 91 recession, and prior to that, tied with 1984 as we were coming out of the 1982 Recession.
Bottom line with government out our equation, we have the investment side of our economy all doing spectacularly well, and the household side going down.
Proof enough that the free market system, or capitalist system does little for the good of any nation, just as little good it did prior to the legislation that became law after the crash of 1929 when Democrats swept the Federal Government.
Government is the great equalizer. For a fix, government needs to step up and side with We the people (or households), and as a referee would in any sporting event, make the playing field fair.
It can to it in either of two ways. It can impose necessary restrictions upon businesses which increase their demand for labor at the expense of their corporate profits. For example, pass legislation to imprison CEO’s for malfeasance. Only then in order to keep their heads out of hot water, they hire environmentalists, social engineers, accountants, and other highly trained personnel whose prime function is to make sure the company is not doing anything shady.
It can also split the corporations into multiple smaller ones, each now requiring a new president, several new vice presidents, new HR’s, new financial planners, etc and with one fell swoop, increase the demand for labor. This too, comes at the expense of corporate profits, which are currently huge primarily due to economies of scale.
And it can indirectly create demand by raising taxes. When taxes go up on profit- earned, less profit gets earned by design; less “reported” profit, less money handed over in taxes.. Meaning the bulk of that money is now spent being reinvested into the business just so it can’t be taxed. Building projects, higher wages, more R&D gets spent into the economy, This too, comes at the expense of corporate profits on the books.
But that is why higher tax rates are actually the best alternative. Higher tax rates tend to create less taxes, so government still needs to stay small. The revenue collected is lower for the simple reason that if there was absolutely no tax, all the money earned would belong to me. But if more of what I earn goes to you, then I will figure out a legal way to keep more for myself, and report less. So whereas as tax rates go up, total tax revenue comes down; the net effect is that more money goes into our economy thereby creating more demand.
The demand for labor then gradually rises to equal the supply and if it continues on its upward path, yes, yes, so there are more jobs than workers, then competition begins pushing the individual wage rates higher.
Which adds to the increased demand.
Using tax rates works best for now instead of the government interfering with day to day operations of all businesses, it actually creates an environment where each business can operate independently to its own best interest, and as they do, the demand for labor rises even more…..
Anyone who argues for less government input into the economy is in the wrong century and can’t read economic figures that are plain as day. So how does one interpret the cries for less regulations that are hurting corporate profits? Easily. One realizes that sooner or later corporate profits have no choice but to fall, so our household income can increase. Loss of corporate profits is a “good thing”.
One should mention in the same breath, that labor’s percent of wages is deteriorating all across the world. It is a world wide phenomenon. The answer is simply that deference of all governments over the past decade and a quarter, has been given to those in charge of investment.
Policies favoring Investment must now take a back seat to those which put people back to work, which if done, raise the incomes of all of us… Even those of the 1% , though not as much as they have been lately been accustomed. But everyone still benefits.
Raising taxes is where we need to go.