The Grand Economic Plan

The above picture says it all…. Outleys are what this nation pays out…. Receipts are what this nation takes in…. When the blue line is below the black line, things are good… When the black line is above the blue line, then we have to borrow to make up the difference.

SO WHAT WE HAVE TO DO IS CUT EXPENSES…. AND RAISE REVENUES.

That’s it…. Simple….

Let’s look at the history covered by the graph: most of your lifetimes… Notice only one time where the blue line dipped below the black line… You can see that around 1992 the blue line starts to drop and does so steadily over the course of 8 years… You can also see that around 1994, the black line slowly begins to turn upward and continues until 2001, when it again begins to plummet to its lowest point ever… …

It rises again from that lowest point until the fall of 2007, where it begins to tumble again.

This should give all hope… Even now, if we were to progress on the same policies that occurred during 1992-1994 years, our gap between the two lines is still less than it was during 1991-1992….. If we fixed it then, we should have the capacity to fix it again…

So what did they do? They raised taxes on the wealthy. They also began closing unneeded sections of the Federal Government; also the trimming of the military was a large part of that savings…

Those two programs narrowed the gap, but if one looks at the chart, like a big ship turning itself around, it takes a long time to make that turn… 2 1/2 years… But as the chart shows, as that turn begins, things will get better if we cut our costs, and raise our revenues…..

So we have to look at this like patriots intent on saving their country… We have to understand that all will be lost if we do nothing. If no one has money, we are instantly back in the Dark Ages, Craig-Listing our possessions to stay alive…. Obviously we all have to give a little to keep America afloat… It is not a tax.. it is an investment… an investment in America… and despite their risky nature, most investments usually bring with them…. a healthy rate of return…

So the first days of office, there is a pressing need to roll back the Bush tax cuts to that level held during the Clinton years.. Corporate taxes need to be raised as well, but with a substantial deduction for opening each new location IN THIS COUNTRY… (Only those companies taking jobs oversees will have to pay more… ) Substantial deductions need to be allowed for research and development… These two exceptions actually keep corporate taxes from raising for those businesses investing in the local economy…

Assume you are slated to pay $1,000,000 in taxes. But…………..you can deduct $400,000 for your new manufacturing unit, and another $400,000 for research and development…… now what would you do? Would you give $800k to the Federal Government saying, “Well, might as well…. I won’t get any of it…” or would you invest that $800k (creating new jobs in the process), in those two fields, knowing that with increased production, your margins would go down, and you sales would go up… You’re million dollar outlay is the same… but you stand to make money on the 800k you invested in your own business.

Raising taxes with no incentives or no deductions can stifle the economy… There is less money to invest.. But as we learned from 8 years of Republican leadership, cutting taxes gives corporations a huge incentive to make more money since it is tax free… and investing oversees or in unsecured derivitives or credit swaps…. is where Republican policy sends all the money… Democratic higher taxes, sends it directly back into the economy.

As that money is pumped back down into new construction, hiring is necessary. America goes back to work… As Americans get paid,… they begin to spend…

What increased revenue does… is create a punitive atmosphere for doing what actually created the financial mess we find ourselves in today….

As we begin to tackle the issue of health care… we need to be sure that our ultimate goal, is not to incur additional expense upon the Federal Government.. We can solve the health care issue by mandating preventative health care and lowering the cost of screenings, and eliminating all clauses related to pre-existing conditions. The laws can be written by Congress, they can be enforced by the Executive Branch, but the money needs to be kept out of government’s hands…

Adding additional bureaucracy is counter productive to our main goal of applying downward pressure to bringing the blue line down…

This is a proper plan…. To those who raise doubts, I will ask them to save my time in their queries, by first recognizing that despite what they might think that they believe… evidence shows this policy has worked… History proved it 1992- 2001.

Looking at the chart, its the only model that makes sense………………..