American Capitalism Isn’t Working.

Individual said:

I create spreadsheets on most everything government makes historic data available.
Cost of living doesn't apply equally to everyone.

I have no idea what your solution might be, express it.

If you have a solution fixing that, why not share it?

Click to expand...

Are we agreed now that there is a problem? I'm not moving on if we have to go back and continue to argue about this point.

Sent from my HTC phone. Instaurare omnia in Christo.

phattonez said:

Are we agreed now that there is a problem? I'm not moving on if we have to go back and continue to argue about this point.

Sent from my HTC phone. Instaurare omnia in Christo.

Click to expand...

A problem, yes.

Your FIRE economy graph is what I agree to be a problem, which I don't see a solution to. Expound on that, perhaps we might find something to build on.

Individual said:

A problem, yes.

Your FIRE economy graph is what I agree to be a problem, which I don't see a solution to. Expound on that, perhaps we might find something to build on.

Click to expand...

Tax unearned income and pay for it by giving tax breaks to producers. Also erect trade barriers to promote growth of industry.

Sent from my HTC phone. Instaurare omnia in Christo.

phattonez said:

Tax unearned income and pay for it by giving tax breaks to producers. Also erect trade barriers to promote growth of industry.

Sent from my HTC phone. Instaurare omnia in Christo.

Click to expand...

You need to explain how what you suggest would have a desired effect on the chart above. But aren't those being taxed the ones paying?

What industries might experience growth as a result of trade barriers, without imposing negatively upon consumers?
And would we not expect trade barriers to have an effect on our exports?
We, IMO, are becoming less and less competitive in our ability to trade with other countries as a result of government attempts to create outcome equality.

Personally, I would like to eliminate the Federal government from having any monetary action directly with the people, allowing it only to deal monetarily directly with the State governments.
Having 50 bubbles, representatives of the people and the States would be made/held more responsible by their constituents as a result of the expansion/contraction imposed upon their State/local economic bubble.

Individual said:

You need to explain how what you suggest would have a desired effect on the chart above. But aren't those being taxed the ones paying?

Click to expand...

Basically if you increase interest on, say, interest income, then banks see less profit and their share of GDP falls as they're going to be doing much less business. Relatively, manufacturing will become more profitable and we'll see growth there.

What industries might experience growth as a result of trade barriers, without imposing negatively upon consumers?
And would we not expect trade barriers to have an effect on our exports?

Click to expand...

These are good counter arguments, so I'll answer them one by one.

1. Manufacturing especially will see growth as a result of trade barriers. We're currently importing consumer goods, industrial goods, and raw materials from outside nations, so naturally our industries will grow to compensate.
2. Yes, we will have higher prices for consumers as a result. However, what you're forgetting is that real wages will also rise. We have more than 10% of the working age male population currently not working. Giving them all jobs would more than offset any rise in prices.
3. Yes, it will have an effect on our exports. However, the US is in control of vast territory with many natural resources. We're not as intrinsically dependent on foreign trade as a small country like the Dominican Republic would be.

Personally, I would like to eliminate the Federal government from having any monetary action directly with the people, allowing it only to deal monetarily directly with the State governments.
Having 50 bubbles, representatives of the people and the States would be made/held more responsible by their constituents as a result of the expansion/contraction imposed upon their State/local economic bubble.

Click to expand...

This is a good idea for other reasons, but I don't think that it does anything to fix the specific economic problems that we're discussing.

phattonez said:

Basically if you increase interest on, say, interest income, then banks see less profit and their share of GDP falls as they're going to be doing much less business. Relatively, manufacturing will become more profitable and we'll see growth there.

Click to expand...

I'm trying to figure out what you mean by "increase interest on, say, interest income". Do you mean specifically "interest income" or are using it only as an example? And does that mean to just pay a higher interest rate to savers?
But I am unable to see a connection of the above making manufacturing more profitable, or having an effect on growth.

Individual said:

I'm trying to figure out what you mean by "increase interest on, say, interest income". Do you mean specifically "interest income" or are using it only as an example? And does that mean to just pay a higher interest rate to savers?
But I am unable to see a connection of the above making manufacturing more profitable, or having an effect on growth.

Click to expand...

I was typing too quickly on my phone. I meant increase taxes on interest income.

Sent from my HTC phone. Instaurare omnia in Christo.

phattonez said:

I was typing too quickly on my phone. I meant increase taxes on interest income.

Sent from my HTC phone. Instaurare omnia in Christo.

Click to expand...

Banks pay interest on deposits and increasing taxes on interest earnings would only reduce the earnings of the depositors, many if not most of whom are everyday middle class working people and have no effect on the banks profits. While it might result in a small increase of revenue sent to government, I don't see how it would have much, if any, effect on business profits or growth.
What interest rates are currently being paid by banks in the U.S. anyway?