Dr. John Psarouthakis, Executive Editor.www.BusinessThinker.com.
Founder and Managing Director, www.jpmcenter.com
We all know that if we confiscate the entire 2017 earnings of the highest earners and sent it to Washington, you would solve almost nothing in Washington. Most of us, I hope, understand furthermore that pulling the One Percent’s wealth away from the capitalist funnel that feeds our economy would be worse than solving nothing; it would be a serious problem. This plan would, on the other hand, goad the very top layer of American wealth to do everything in its power to grow the economic pie.
I first thought of the plan applying to any person or entity with taxable income of $1 million a year or more. That was partly because a million dollars is certainly a nice income—but also because it’s an easy figure with which to work in sorting out numerical concepts. A $1-million cutoff would apply to an army of CEOs and business owners, but also to several battalions of quarterbacks, pitchers, power forwards, rock guitar players, actors, and media performers or executives. Applying the plan to the entire One Percent would cover any household making roughly $506,000 and up. Maybe the plan could be modified and applied effectively to affluent but somewhat lower pay grades. I don’t know. Economists and tax experts and actuaries and mathematicians who are whizzes with algorithms—lots of people need to have a go at fine-tuning and improving what I will call here “Economic Growth Corporations.”
These Economic Growth Corporations (EGCs) would not be think tanks, or advisory panels, or bureaucracies whose public benefit can be measured only via the most imaginative statistics. EGCs would be chartered to grow the economy in fact, not in theory and not as mere demonstration projects. EGCs would jumpstart our economic engine in ways numerous schemes, from “enterprise zones” to your town’s tax-abated industrial park, have never done.
Continue reading Instead of soaking the rich, create some new riches: an update
Clinton, Trump, the Obama Administration, and the media—all are guilty of obfuscation, deceit, and dishonesty.
Professor Allan H. Meltzer: He is an American Economist and the Allan H. Meltzer professor of Political Economy at Carnegie Mellon University’s Tepper School of Business. He is the author of a large number of academic papers and books on monetary policy and the Federal Resrve Bank. Dr. Meltzer’s two volume books, “A History of the Federal Reserve”, are considered the most comprehensive history of the central bank. He is considered one of the world’s foremost experts on the development and application of monetary policy. Currently he is also President of the Mont Pelerin Society. Dr. Meltzer originated the aphorism “Capitalism without failure is like religion without sin. It doesn’t work.”
Prof. Meltzer is a Distinguished Visiting Fellow at the Hoover Institution. This article is from his monthly column on Defining Ideas at the Hoover Institution.
It is posted in http://www.hoover.org/research/
Most of us learn at some point that politicians tell lies. We expect them to stop once they hold office or to face the consequences. In the past, politicians that violated the public trust resigned, most notably President Richard Nixon. Other lesser officials have also been punished for abusing public trust. No longer. In campaigns, and in office, politicians and their aides or supporters deliberately lie about matters of importance.
Ben Rhodes, a National Security Adviser in the Obama administration, bragged recently about the lies officials told to support a major foreign policy decision—the nuclear agreement with Iran. That agreement permits Iran to possess nuclear weapons in about ten years. Rhodes publicly admitted that the Obama administration claimed that the new Iranian government was a moderating influence despite the fact that experts at the Central Intelligence Agency warned that the new government in Iran was not moderate. According to Rhodes, that false claim was critical for getting the deal approved by Congress. He and his colleagues suffered no consequence for having lied.
Continue reading Lies Politicians Tell Us