If the compression underway due to trickle-down economic policy is not at this point stopped and reversed with simple, direct and decisive measures, the trend will be a hardship of highly unacceptable depth and breadth.
Capital becoming evermore consolidated and churned through commodities exchanges has to stop now!
Taxing the benefit, instead of giving it favorable treatment, will stop the speculative churn and consolidation of disposable income. The reduction in the price of oil will begin the reversal of the deflationary trend. Retributing the value back to the consumer will magnify the reversal and strengthen the dollar.
Everybody, even the speculators, will benefit. Speculators will be in a stop-and-reversal investment mode that generates a capital gain, it just won't be at the expense of economic growth, but to promote it.
This is what we need to do NOW!
If we don't, the consequences will be exceptionally bad, and if that detriment has not trickled-down to you, it's headed your way, soon to be very close up and verifiably personal.
The solution is simple, pragmatic, easily executable, and Strong Pareto Optimal. There is no excuse for not doing it unless we are to be impractical slaves to ideology. Pro-growth is not a matter of ideology, it is a matter of pragmatically doing the right thing...just like Obama has to say about his approach to politics and policy, and that's worth voting for!
Very best wishes.
Showing posts with label technical correction. Show all posts
Showing posts with label technical correction. Show all posts
Wednesday, July 2, 2008
Thursday, June 12, 2008
Technical Correction
Correcting for the Whipsaw
There needs to be a technical correction on income.
The whipsaw is your income going down while costs go up. The result is a redistribution of income that, by a free market legitimacy, is supposed to add supply to control inflation at full employment which is created by the investment to add the supply (liquidity of capital).
The technical measure for correction is a progressive income tax code with no exceptions. The measure will not cause a budget deficit. It will cause a budget surplus. A regressive income tax code causes a budget deficit in every case across all jurisdictional boundaries.
While the detriment of the tax rate progresses, that progression also has the benefit of the highest incomes being assured payment of the public debt held in the highest proportion. Figuring in a risk-free payment of the debt on a declining rate of infaltion is a substantial benefit that more than offsets the loss of the tax increase. The argued inequity and detriment of the progressive tax increase is entirely false.
The Pareto Optimality of the progressive income tax measure is Strong Positive.
The technical correction to income will not interrupt or materially change the productive incentive of a free market mechanics. Rather it will both restore the mechanism and correct for its absence where the distribution of capital was allowed to consolidate into a liquidity crisis of massive proportion. The corrective measure will technically add the liquidity necessary for economic recovery and sustainable economic growth.
The role of the Federal Reserve will be reduced to ensuring the free market mechanics of the financial sector. Adding liquidity will be in large part rendered progressively obsolete being provided for in priority. Violators of the free market mechanism will be strictly prosecuted and convicted by the Department of Justice with the burden of proof on the defendant to show no violation, like it is now with any alleged tax code violation strictly enforced through Treasury and Justice.
Build the coaltion for Obama, and let the technical correction begin!
Very best wishes.
tags:
technical correction,progressive income taxation,free market economics,adjusting for externalities,public finance,election 2008
There needs to be a technical correction on income.
The whipsaw is your income going down while costs go up. The result is a redistribution of income that, by a free market legitimacy, is supposed to add supply to control inflation at full employment which is created by the investment to add the supply (liquidity of capital).
The technical measure for correction is a progressive income tax code with no exceptions. The measure will not cause a budget deficit. It will cause a budget surplus. A regressive income tax code causes a budget deficit in every case across all jurisdictional boundaries.
While the detriment of the tax rate progresses, that progression also has the benefit of the highest incomes being assured payment of the public debt held in the highest proportion. Figuring in a risk-free payment of the debt on a declining rate of infaltion is a substantial benefit that more than offsets the loss of the tax increase. The argued inequity and detriment of the progressive tax increase is entirely false.
The Pareto Optimality of the progressive income tax measure is Strong Positive.
The technical correction to income will not interrupt or materially change the productive incentive of a free market mechanics. Rather it will both restore the mechanism and correct for its absence where the distribution of capital was allowed to consolidate into a liquidity crisis of massive proportion. The corrective measure will technically add the liquidity necessary for economic recovery and sustainable economic growth.
The role of the Federal Reserve will be reduced to ensuring the free market mechanics of the financial sector. Adding liquidity will be in large part rendered progressively obsolete being provided for in priority. Violators of the free market mechanism will be strictly prosecuted and convicted by the Department of Justice with the burden of proof on the defendant to show no violation, like it is now with any alleged tax code violation strictly enforced through Treasury and Justice.
Build the coaltion for Obama, and let the technical correction begin!
Very best wishes.
tags:
technical correction,progressive income taxation,free market economics,adjusting for externalities,public finance,election 2008
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