Eisenhower Economics to Government Subsidies

in #anarchy7 years ago (edited)

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Once upon a time the economy of the world was based on agricultural production And Money was based on whatever was important to society at that time.

Fast forward to the beginnings of the United States of America. As our nation transformed from agrarian to industrial, technology and machinery increased output and destroyed crop values. Hence the need for subsidies to keep it profitable otherwise there would be drastic periods of feast or famine, due to natural and artificial causes and market swings.

Government intrusion and subsidies keeps food readily available when it's cheap because of overproduction or expensive due to shortages; and simply because everyone can't be their own farmer for everything they eat.

The same problem is happening with advances in industrial and manufacturing productivity. And it's only going to get worse as Free trade agreements allow companies to move to where the cheap labor is.

Eisenhower Economics VS Voodoo Economics.

We have seen the results of both and we are still living in the era of voodoo with low income tax rates and limited deductions.

High income tax rates and targeted deductions stimulate growth using psychology rather than Wishful Voodoo but today we are Left between a rock and a hard place because communist liberals want high taxes and no deductions.

Reaganomics Or Voodoo Economics penned by Bush Sr. Or trickle down economics assumes people with great personal wealth automatically expand and grow to hire people but as we can see that hasn't happened because of the Chinese Most Favored Nation Status and NAFTA, and technology itself.

The key word though is trickle down. That slows the velocity of money to a trickle and we need it moving pretty quick to keep the people happy. And we have a lot of unhappy people who elected Trump; and they don't even know why they're unhappy.

Reaganomics places control of expanding the economy with the banks and in the stock market rather than where it should be; on a system that encourages direct business expansion and growth that Creates Jobs; But doing so requires a high income tax rate that exempts specifically this type of spending... growth and expansión creating jobs like it was in the 1950's

If the Velocity of Money was where it should be no one would care about the size of the government. If the economy was running like a train engine everything would be wonderful. But it takes a government with the power and will to tax the 1% heavily to make that happen otherwise the 1% would hoard all the wealth; as they do now; encouraging the jealous to find ways and means to take it all away Vis-a-vis Venezuela and its Bolavarian Revolution or worse - Castro's Red Dawn.

Currently the wealthy lords and Rothbardian think tanks have convinced the "Poor Conservatives", by propagandizing the hope, that anyone can build their own empire through their own labor as long as taxes are low. But that is unsound logic based on a fantasy that you can get rich in a vacuum.

The Tax Choice

Eisenhower Economics 101: Higher Taxes and liberal deductions encourage tax free reinvestment and cause growth. Taxes on Investments in the Market and Capital Gains should be high; but Placing Higher taxes on business owners while allowing deductions for self retooling and personal expansion and re-investments in your own business which create jobs or higher salaries for the current people will encourage owners to spend on expansion and grow; so as to grow equity rather than liquid wealth. (This tax structure encourages tax deductible spending and increases the velocity of money, which is good for the economy.). Thus creating tax deductions for growth based spending and investments on oneself and his employees to avoid paying the government is a good thing for America.

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