Regardless of the monitary unit we use, if it be bitcoin, metals or fiat cash, the economy runs on spending it. Just like any fluid system the infrastucture needs to be designed and the flow and pressures must be monitored and tweaked as needed to maintain a healthy and consistent velocity. We will always need to measure labor and talent and compensate it in an open and fair market; As population levels grow the need for accountable government grows with it.

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.

This is NOT an advocacy for statism or socialism but an historic common sense / statist approach to maintain a healthy velocity of money.

Currently the wealthy lords 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.

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.

Examples:

The whole point of this piece is to show that high taxes with targeted deductions (to avoid paying taxes) is how to maintain a suitable velocity of money. If a business has a choice 1. Give bonuses to its employees to put itself into a lower overall tax bracket or pay the money to the govt in taxes, which will it choose? Or 2. Retool its equipment being incentivized by a targeted deduction for reinvestment in a business which will also lower its tax burden, which will it choose? or 3. Expand and Hire more employees to operate the retooled business because spending the money is tax deductible and lowers its overall tax burden. These examples are Eisenhower Economics. Expand and Grow or pay a high income tax to the government to spend it for you.

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. The key word though is trickle down. That slows the velocity of money to a trickle and we need it moving pretty quick to get the regular Joe into paying taxes rather than collecting earned income credits.

Remember when Bush Jr. had the treasury give everyone an advance on their tax return? He was causing velocity to stimulate the Economy.

What has happened since Reagan is that the privileged children of existing wealthy people start businesses and become wealthy themselves and then increase their liquid wealth by saving and playing the market paying low taxes on relatively safe capital gains rather than being encouraged by a tax code to spend on deductible expenses to gain equity in a growing business thus creating jobs.

Reaganomics places control of expanding the economy 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.

The current system encourages taking on debt to expand a company because currently spending on growth isn't deductible like it was under Eisenhower and I'm not sure Trump is a fan of Eisenhower but he's not a fan of collecting a high regressive income tax either.....So it looks likes tax cuts are on the horizon which is kinda stupid when we all owe 60k each to the national debt.

Eisenhower Economics VS Voodoo Economics. We have seen the results of both. High income tax rates and targeted deductions that stimulate growth using psychology rather than Wishful Voodoo ending in stagflation. Leaving us between a rock and a hard place.