Monday, June 4, 2012

Five Easy Pieces: 
1. Increase taxes from 15% of GDP to 20% of GDP.
 Why won't this happen? The GOP is kissing Grover Norquists ass on refusing to raise taxes!
2. Cut spending from 24% of GDP to 20% GDP, these two measures will balance the budget. 
Why won't this happen? No party is willing to cut the 700,000 Billion dollar defense budget!3. Sell 1 Trillion Dollars worth of US Treasury Bonds (at 0-1%) and plough that money into 
infrastructure, increasing demand for materials and labor. This should be a no-brainer so we have no logical reason for our leaders to be opposing this action. It is a testament to their collective political stupidity. 
 4. Reduce to 0% the tax rates on the 1st $20,000 of income, increasing consumer demand. Again a easy toss, these folks cannot afford to pay taxes anyway, and all their money gets spent in the economy. 
 
5. Start WPA, YCC and CETA work programs to get American youth working, further increasing demand! Why won't this happen, the GOP will call Government take over. They would insist private contracts be given for any of his type of work. Further, they do not give a damn about America's struggling youth. They are too busy mining them for future enslavement and profits. 

Our Economy does not suffer from a lack of supply, it lacks Demand. The private sector is sitting on over 2 trillion in cash, record profits and continued low taxes. The supply side has plenty. So where are these "job creators" with the jobs? We have been hearing of them for over 10 years now but, they seem as illusory as the Unicorn! Why with all these resources is the supply side sitting pat? There is no DEMAND in the Economy to buy their product and services! No same business person builds inventory, and stacks supply hoping for demand! The steps listed above would light a fire under that DEMAND side, creating Demand from everything from steel to work Boots.

Any Economy has three legs to its Economic Milking Stool; 
1. consumer spending, currently non existent, and formerly 70% of the Economy! So they are not increasing Demand. 
2. Private sector spending, industry, commerce etc. They currently posses huge windfalls in cash, totaling over 2 Trillion Dollars. They borrow money at very low interest rates but refuse to invest one dime. They are not increasing DEMAND as they refuse to spend!
3. Government Spending; the goods and services government provides. Food Stamps, WIC, VA Benefits Public health care worker, teachers, firemen, policemen have all been cut, and will be cut some more. Over 600,000 government jobs lost in the last 2 years. Government employment is at an all time low. Across the board all sectors of the Economy are spending less. How does this create demand. How does this lead to anything but further economic contraction. You cannot suspend all three legs of Economic growth and expect good outcomes. 
Do we have a deficit? Sure, but it is not our biggest problem! Getting Americans back to work is the problem of most dire concern. The deficit is a long term issue and can be solved with simple fixes. Some state in the 5 Easy Pieces. For instance a simple 2% increase to the payroll tax solves SSI for generations to come, so does means testing or raging the age requirement. But SSI is not our most pressing issue. Jobs and increasing DEMAND are!   
The solutions are right there, waiting to be picked up! Our leaders are just too corrupt, bought and paid for to do the right thing. Since 2009 the Banking Industry has spend 319 million buying your government! The Medical Insurance Industry; 145 million. Big Oil 90 million! Do you think this money is working for "we the People"? Do we want more fairness in the system? Do we want to improve the economy? Increase Demand, not supply! Can we comprehend these simple Economic concepts in time to save ourselves? Can we stop the corruption before it eats like cancer? Are we starting to get the picture? DEMAND is the problem, not supply! Wake up America, the GOP and the Wealthy are blowing sunshine up our ass! We need to implement this 5 point plan and restore the DEMAND side of the once vital, fair and growing US Economy. 

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