One Fish, Two Fish

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…….  

 

 

 

 

 

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