| | | Thanks!
The Tech Billionaire wrote one of the best argued, most thoughtful and considered political economy prescriptions that I have read in a long while.
GROWING the middle class is the way forward for our nation.
I completely agree with his observation that plutocracies (down throughout all of recorded history) under-perform, and then fail... often suddenly and dramatically.
So... he has described the problem accurately and succinctly... and the one prescription he puts forward (minimum wage increase) I also agree with, believe would be very helpful, but disagree that it would be enough to drag us out of our morass all by itself.
It's good, it's useful (and he argues for it effectively I think) but no ONE policy prescription is a 'silver bullet', capable alone of solving all our economic and social problems or restoring our economy to robust growth again and opportunity for more.
A couple of other policy prescriptions I think (with his suggested wage increase) could combine synergisticly to make our economy the rival of the world again, and revitalize our entire society with new growth and opportunity. An American Renaissance:
1) Tax reform.
Toss out the entire corrupted individual and corporate tax codes and replace with simpler versions with lower rates, still progressive, but fewer-to-no 'loopholes' or special preference items, (tax expenditures that always seem to favor big vested interests and promote debt and risk-shifting to the public from private interests).
Tax *all* income, regardless of source, on the same schedules. No break for 'inherited wealth' nor for 'unearned income'. No preference for debt over other forms of capital accumulation (equity issuance or retained earnings).
The entire economic playing field that we all compete on has been shifted, tilted by government policy so many times that many economic actors spend more time and effort seeking after narrow tax advantages rather than natural economic profits. This greatly depresses the rate of growth in our economy... as does shifting tax burdens away from inherited wealth and onto the backs of those working for ordinary income. Restore growth by ending the special interest favors.
2) Political reforms.
Constitutionally ban Gerrymandering (which only strengthens the political extremes) and remove the most ridiculous of established barriers to entry that keep new political parties and new ideas from ever having a fair chance to penetrate our national consciousness and effect change. In the nineteenth century we had constant ferment and growth and fall of new political groupings... so why was the next century nothing but an unassailable duopoly of political power? |
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