You are not going to reverse that trend with Obama's policies or, for that matter, McCain's policies. The tax structure did not cause the problem and altering it won't solve the problem.
The problem is a fiat currency and a policy of growth based on borrowing. History is replete with this phenomenon. Thackery wrote a book called "Extraordinary Popular Delusions and the Madness of Crowds" which documents this phenomena. Bastiat in his writings regarding the monetary problems in France, did likewise and there are others.
We have two kinds of wealth, the wealth created by true capitalists. Those who create companies such as Microsoft, Dell, Fed X, UPS, etc. which produce useful goods and services and those who derive obscene wealth not by producing things and serivices of value, but by taking advantages of misallocations in the economy. These are usually politically connected people who know how to game the system. In American history Alexander Hamilton was alleged to have bought up all the continental dollars(which were fiat money) and then prevailed upon the government to make them good. In today's world you get your congressman to change the rules to allow you to cheat people (just a small contribution) and they game the system with Yen Carry Trade, Hedge funds, Liars loans, etc. You can suck obscene amounts of money out of the economy without providing anything of value.
To mislead people into thinking taking money from the productive and giving it to the less productive will solve this problem is to avoid ever solving the problem.
Little joe |
