My survey created a fascinating anomaly— several respondents felt that excessive consumer spending was the responsible for the economical problems we face today, which expenses are to not be encouraged.
However the root problem these were properly talking with may be the supply of the spending cash, and not the spending itself. Expenses are required for demand creation, and growing demand is exactly what produces jobs.
Why we ask, does government take away the dollars in the economy before they accomplish the demand stimulus “thingie” (highly technical financial aspects jargon)? Up to 50 % laptop computer responses observed that consumption taxes (The Fair Tax) are much more productive/creative than earnings taxes.
Another half really wants to switch the IRC (Internal Revenue Code) having a Flat Tax on all types of earnings. Both suggestions are pretty straight forward, and quantum leaps much better than anything being seriously considered by congress— “seriously” to be the operative word.
A mix of the 2— priceless, but later!
The only, easiest, fastest, greatest, consumer-spending instant champion bonanza isn’t a twinkle within an old politician’s eye— there are way too couple of new politicians. Switch the Social Security Retirement Program having a plain vanilla type of pension, pre-funded by smaller sized, mandated worker contributions.
The present methodology is straightforward: it requires money from our pockets (and our employers) puts it though governmental blenders, and spits out IOUs for any meager benefit at retirement. Why don’t you allow the private sector provide pension advantages to all employees underneath the direction of the trimmed lower Social Security paperwork?
How? By buying Social Security Retirement Earnings Annuities (SSRIAs). Google “A Capitalist’s Social Security Reform” for that nitty-gritty details, but this is what we accomplish:
We stimulate spending immediately by only withdrawing 3% of earnings from 300 million pockets and pocketbooks, and absolutely nothing from employer treasuries. We offer demand-push spending cash and lower interest in credit.
And, searching forward articles or more, we collect a tax on every dollar spent throughout the economy— except individuals for food, healthcare, and greater education even from your buddies and neighbors within the Subterranean and Internet economies.
Some SSRIA details include: (1) No sales commission, a maximum of 10% within an approved listing of equities, no multilevel derivatives or open finish Mutual Funds, with no speculations (2) Limited voluntary contributions and unemployed dependent eligibility (3) Implemented change in existing Social Security and government worker pensions (including congress).
Using existence annuities + a 50% of money value, pre-retirement, term-existence insurance benefit could prepay retiree Medicare benefits too!
There are many other tips on the greater-spending-money-in-consumer-pockets agenda, and a few ideas about consumer confidence. It’s difficult to become confident, for instance, whenever you click on the links between congress and business lobbyists.
It’s difficult to become confident whenever we see Wall Street control its regulators, constantly make the same speculative garbage, and reward its senior employees and purchasers persons in the carcasses of mutilated shareholder-proprietors and “hostaged” taxpayers.
These confidence destroyers could be worked with, however all of those other story, on growing consumer spending without credit abuse:
One: Lessen the rate of interest on all mortgages a minimum of twenty-five basis points, and adjust monthly obligations accordingly. Banks owe us, and can make-in the difference from elevated business activity.
Two: Bring the charge card mafia to the knees by enforcing reasonable usury laws and regulations (a 15% APR cap, for instance) and can include all charges, late charges along with other debris within the calculation. Make minimum payments incorporate a number of principal, and treat credit abuse like substance abuse.
Three: Eliminate all nuisance charges, taxes, surcharges, etc, forced on companies and undergone to consumer statements. A $65 motel room ought to be a $65 motel room.
Four: Reduce condition and native property taxes 10% each year for those persons over age 65, and devise a method to prorate this into rents compensated by seniors— i.e., require landlords to feed their savings.
Five: Eliminate all toll collections on highways, bridges, tunnels, subways etc.— everybody advantages of our transportation sources, the eco-friendly impact is apparent, and interest in gasoline could be reduced considerably.
Six: Set up a combined federal/condition/local $1,000 monthly tax-free program for those workers. (The very first $12,000 of every person’s earnings is untaxed). Workers earning under $12K yearly get the improvement in banking account an atm card. Usage might be limited to essentials (no alcohol, gambling, tobacco, guns, jetskis, etc.)
Seven: Set up a $750 monthly workfare program for that unemployed really seeking work, but requiring no under twenty hrs of community service each week. Offset could be reduced figures of presidency workers, shorter unemployment lines, minimizing employer overhead expenses.
Thanks again for participating. I think you’ll all recognize how important it’s that you should help get simple ideas such as these in to the legislative arena. Spare the time to deal with a number of them strongly in blogs, systems, and communications with elected officials.
Wall Street’s “Emperors New ClothingInch strategy has infiltrated the us government. The financial community has little interest in protecting investors from speculation and the legislature appear interested only in expanding their ability by serving probably the most generous special interests.
Will I hear congressional term limits like a “write-in” candidate for number eight?
sanserve (at) america online.com
http://world wide web.kiawahgolfinvestmentseminars.com
Author of: “The Brainwashing from the American Investor: It that Wall Street Doesn’t Would Like You to seeInch, and “A Millionaire’s Secret Investment Strategy”