Economic Solutions, Part 1 – economy – fix the debt – job creation – national debt – solutions – economy

Politicians often say they’re going to “create jobs” and “fix the economy” but they offer very little in the way of real solutions. Politicians often don’t want to admit that we need to raise taxes in order to balance the budget because it’s an unpopular idea. Nobody wants to pay MORE taxes to a government that is poorly run and spending money in objectionable ways.

All the more reason for us as citizens to become involved in changing the face of politics. If you know the government is not working in your best interests, then contact your representative (or the challenger candidate that you like best) and pressure them to change their course.

On the website, the only position that candidates will affirm or deny is whether or not they will take money and favors from lobbyists, PACs, or individuals in excess of $100 through the Pledge for Honest Candidates. This is the beginning of keeping our republic viable, but it is by no means the answer to our economic problems.

This past year, I have been searching for answers. I wanted to know if there was a way to mobilize the positive forces in our better natures, to coordinate our needs and desires into an effort to change the status quo, centered around the general election. In that quest, I found two economists who offer the following suggestions to stimulate the economy and foster an environment where jobs are created. I offer this information here, and credit the two economists below, along with their titles.

1. Reform the tax code to…

a. Include a steeply rising marginal tax on the highest earners, and
b. Levy taxes and fees to internalize the social costs of private enterprise; e.g., effluent fees on carbon emissions.
c. Revise taxation of corporations to discourage growth by acquisition and encourage repatriation of foreign earnings.

2. Provide tax incentives and reduce regulations to enable people to invest in new and early-stage enterprises in their communities.

3. Incentivize innovation in clean energy businesses by levying a carbon tax.

4. Break up the big banks.

5. Re-enact a modified version of the Glass-Steagal Act to require the separation of investment banking from depository banking.

6. Decentralize government: Move power and money out of Washington down to the local level via General Revenue Sharing.

7. Discourage hoarding by businesses and banks.

8. Revise and strengthen anti-trust laws.

9. Focus on the long-term; e.g., Rates of taxation of capital gains should rise steeply the shorter term the investment.

10. Audit the Federal Reserve. Also, require the Fed to close its discount window to large banks and businesses and open it to entrepreneurs and small businesses.

11. Campaign finance reforms:

a. Set limits on outlays for political “pro’s” and campaign advertising; no limits for expenditures to equip political volunteers.
b. Recognize the value of volunteer participation by giving a tax credit for the time people spend on campaigns.
c. Allow campaign contributions only from natural persons, not from corporations, unions or other organizations.
d. Do not allow PACs, “bundling” or other organizational contributions.
e. Reduce, and do not index, limits for individual monetary contributions.
f. Enable time to be provided at no cost by major media to enable candidates to conduct debates.
g. Do not allow public financing of campaigns. The only public financing should be provided on a matching grant basis to parties to help them cover the cost of voter registration, education and training for voters and activists, and outreach and informational activities to encourage people’s participation in the political process.

Peter Bearse, International Consulting Economist
Carmine Gorga
, PhD Political Scientist, President of Somist Institute

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