Communique 10-30-2020 "The Economy It's In There"
By Philip Drucker
Why is it such a mystery that if you want to have a robust economy you begin by taxing the rich among us? The ones who have the money? As a practical matter, an economy is dependent on circulating currency through as many hands as possible. As unused money accumulates in various on and offshore bank accounts it become stagnant and of little to no use to society, unless you believe the United States is wealthy when a handful of billionaires at the very top are well taken care of while the rest of the nation suffers from a lower standard of living if not outright poverty.
There is no doubt about the states and federal government’s right to levy and collect taxes. Even in Colonial times, Americans expected to pay taxes. They were not the radical “give me a tax break or give me death” tax dodging rebels the Tea Party and similarly situated and thoroughly deluded ilk who believe wearing silly Uncle Sam hats while cheating on your taxes passes for an act of patriotism.
When it came to taxes, the Colonists were not complaining about the amount they were asked to pay. In fact, history tells us the average Englishman in the UK paid more in taxes than did your average Colonist. What the Colonists were concerned with was taxation without representation. With no one to advocate for their position and with an increasingly erratic and out of touch King George making decisions from across the sea, the growing rebellion did turn to more extreme measures, the Boston Tea Party coming to mind.
Eventually the Colonists did gain their freedom from England that included the rights to taxation by representation by our own local and elected officials. Problem was we were a very poor nation with a handful of rich, white landowners who were calling the shots and did not seem terribly intent to support the populace through their patronage, and as a practical matter for several years the Colonists now Americans saw their standards of living go down.
The early lesson learned? If you are going to collect taxes, you are going to have to find someone who has money to pay them. Very much as recognized today by Elizabeth Warren’s tax the highest two percent of earners in the USA, refill our coffers and go forward spending those funds to stimulate the economy by circulating excess and unneeded funds back into the hands of those who will spend their funds on goods further resulting in the demand for more goods, buying materials and hiring additional workers to meet growing demand.
You know, economy stuff. The stuff that works not giving corporations extra-ordinary tax benefits and breaks and where importantly, the windfalls are not passed onto the workforce with any new hires or rising wages in sight. I call it trickle down poverty because that’s what it is. As we speak we are in the middle of an economic imbalance resulting in a wealth gap that no amount of trickle anything will fix.
I have no doubt that once kicked out of the White House and without control of Congress, the Republicans, or what is left of them, will start calling for austerity measures to fix the economy they broke along with fake cries of “deficits count” and “personal responsibility for one’s own debts” while we un-rig the rigged Trump economy that started this whole and unnecessary downward economic spiral in the first place.
Don’t be horribly shocked if for a good while after the election very little in the economy changes. It will take time and patience. But, what we will not stand for or tolerate is the “blame game” racist mentality our current administration would have us believe is the root cause of all our economic woes. Immigrants are not coming here to take our jobs. They are not receiving state sponsored welfare, pay quite a bit in taxes other than state or federal income taxes, and in fact also create a “lower tier” level of pay that while it does depress wages, also helps keep inflation down.
But first, we must deal with the Covid-19 crisis, for there can be no true economic rebound until the pandemic is placed in check and then eliminated as an ongoing health hazard. Do you want a job or a better job? Wear your mask. Do you want to see small business flourish? Practice social distancing while wearing your mask. Do you want to see the economy come roaring back? Wear you mask, practice social distancing and for the love of God, do not go to any more of Trump’s super spreaders, sometimes too hot, sometimes too cold political suicide trap he so casually calls campaign rallies.
Our progress on any improvement in our economy is directly tied to neutralizing and then eliminating the Covid-19 virus. Herd Immunity is not an option. A safe, effective vaccine is still realistically a year away. What we don’t do today is merely another day wasted by not taking all the precautions we need to take, now.
Not wearing a mask is not a political statement. It is at best a misplaced showing of individuality that we can’t continue to allow or support. We are in the middle of a health crisis and everyone needs to get their responsibility to society in proper order so we can end this threat to our health and safety and move forward with our Covid-19 free lives, fix the economy, institute a program for government sponsored universal healthcare, tackle climate change head on, support BLM and the defeat of institutionalized racism.
Enact comprehensive legislation guaranteeing women the right to a clean and safe abortion for a start. Then, there’s gun control and comprehensive immigration reform. You know, all the things we should have been doing for the past four years? At least we know where to start. Vote as if all the above and so much more is on the ballot as my brothers and sisters, it most certainly is.
Like My Blog? Buy My Book?
https://www.amazon.com/Books-Philip-Drucker/s?rh=n%3A283155%2Cp_27%3APhilip+Drucker