Government Healthcare and Keynsian Economics

I believe the government subsidizes healthcare because they REFUSE to encourage Americans to consume less.  They say, "This could only hurt the economy."  However, by encouraging lethargy and excess over the years, the government has, in essence, subsidized wasteful spending by the citizenry. 

It is always one subsidy to take care of the short-falling of another subsidy!  They argue:  "Last time, we just didn't spend enough.  This is the reason for this RECURRING situation."  This is a very circular argument to say the least!  It is a dogma that continually adds to the inevitable downside of these type policies; the consequences become more serious the longer we continue.

So, what happens if the government were to take a different approach?  What if, instead, they decided to form a committee to gather scientific evidence about all the health risks directly tied to our eating habits.  In addition, the committee would build a strong case and start initiatives to better educate the public about the consequences which exist from such behavior.  However, they avoid any subsidies, which can only create false demand and create hostility among market competitors due to fairness.

Likely, as with cigarettes, sound education would finally begin to overcome many of our vices (except for those that continue to CHOOSE to take part in risky behavior).  This would entail a likely decline in the market for unhealthy foods and behaviors.  The government would have you believe this is horrendous!  We have lost jobs! 

However, what happens in reality is a reallocation of employment to sectors such as the health food industry, gyms, etc.  This is a natural process.  Retrospectively, what occurred was that by subsidizing special interests, the government spurred a sort of false demand in economic sectors which otherwise would not have existed.  WITH THE USE OF SUBSIDIZING POLICIES, THE GOVERNMENT REALLOCATES EMPLOYMENT TO AREAS OF THE ECONOMY WHERE IT OTHERWISE WOULD NOT HAVE BEEN!

This is an unavoidable fallacy of Keynesian economics. Follow @DerrelWalters

A Practical Tax Plan: A Plan for Efficiency and Transparency

The income tax we pay to government is part of a system that produces the least accountability for politicians in Washington D.C.  The generic label "income tax" is a disguise  that hides from American citizens where there money is being spent.  So, what should be done?  Below, I outline a plan which returns more power to the citizenry and increases the accountability of elected officials.

Plan to Increase Transparency in the Tax System (PITT)

I will suggest to you that this is not a very difficult proposition.  Of course, it is up to me to convince you of this.

Suppose you receive your paycheck and on the check stub there is a list of taxes in decreasing order of the top ten expenditures of where that tax money will ultimately been spent, what would be the consequences on the American tax payer and on the federal government?

Scenario:

John Smith, after being in such a tax system for some time, picks up his paycheck.  He has noticed that on the news, the U.S. government has invaded a small country in Africa and realizes that, as a result, defense spending must increase. 

Well, in the PITT system, there exists a mandate that the tax appropriations represented on the check stub must necessarily fluctuate with government spending. 

Returning to John Smith, he notices all of the sudden that the category "Defense Spending" has increased by a large portion (although his actual tax burden may be similar as before).  A light bulb appears above Mr. Smith's head.

Hmm... Mr. Smith thinks as the rolls of news flash through his head of the new invasion. 

I leave you to imagine any particular outcome.  However, a large number of "John Smith's" would become concerned and take this information into account the next time he enters a voting booth.

The PITT system returns power back to American citizens.  We must hold our politicians accountable!

In addition, I will add that very few taxes should be levied as an income tax.  Taxes should be generated by user taxes as much as possible, such as tolls on turnpikes.  People that actually use the service pay for its convenience.  However, national defense is a tax that must be levied on the entire population because we all benefit (or suffer) similarly.

Do not allow the U.S. government to continue to disguise the taxes under the alias "income tax."

Please leave comments.  Your constructive criticism and suggestions are welcomed.



 

Follow @DerrelWalters

Made in America: A Logical Solution to the Economy and Unemployment

Are you sick of the high unemployment and the sluggish economy here in the U.S.A.?  Then, hear me out.  I too have become tired of politicians dancing around real issues.  Here, I outline a common sense plan to address unemployment and the economy.  It is my perspective this approach is the most logical and easiest to implement of any plan I have heard.  As well, it allows the free market and the correlated action of consumers, a synergistic coalition, to curb the current decay of the American economy.  It will increase domestic manufacturing and increase the spending power of the middle and  lower classes of American consumers.

Please consider the elements of the following plan:

1. Place the flag of the country of origin on the UPC code of all manufactured goods sold in the U.S.A.

This policy forces consumers to make a conscious decision about which countries in the world they wish to support by purchasing the goods manufactured there.  I strongly believe this puts very influential political power in the hands of the general population, which is at the roots of the morals on which this great nation was founded.  For example, say some sovereign nation began to commit atrocities towards some targeted group of people.  In addition, let us assume that there is a manufacturing infrastructure in that nation that economically depends on its ability to export consumer goods to the U.S.A.  If this policy were in effect, consumers could immediately implement boycotting strategies based on those peoples' own opinions, essentially giving the public the power to place swift justice to those countries without the necessity for government intervention.  If such public power is not at the heart of democracy, then democracy does not exist.  If citizens wish to buy a product, they will see the flag of the country of origin during that purchase.  Wouldn't that make you think twice?

2. Educate the public about the domestic economic impacts of such a policy

This is a very important part of the policy.  It is my opinion the citizens deserve and should demand an explanation about the logical consequences of any policy endorsed or created by the government through transparent public disclosure.  Here is the economic axioms on which this idea is founded:

• Any capitalistic economy is driven by the spending of the citizens of that nation on the products and services provided by the businesses based in that home country

• A very large part of the revenue of a majority of companies comes from the pockets of consumers in the middle class and below (where the largest part of the population financially reside)

• Persons employed in higher paid positions have a higher probability of saving money than those in lower income positions (a consequence of a larger disposable income)

The respective consequences of these axioms are: 1.  Economies benefit more greatly from domestically based companies; 2.  Many companies must implement strategies to attract the business of the middle and lower classes to maximize revenue potential; and 3.  It is important for the economic success of a country for the lower levels of companies to be based in that country.

It is the third consequence that is the most important.  Please pause to read the last bulletted point once more.  Ultimately, this entails that a larger proportion of lower income money gets re-injected into the economy to drive the creation of new industry.

Thus, manufacturing performed overseas gives money to the working classes of those nations, which in turn, gives the largest economic benefit to foreign counterparts while the upper management in the home based country tend to save and use additional profit to generate capital gains (which contributes to the expansion of growing, successful businesses).

However, capital investments do little to drive the creation of new industries. To be more exact, capital investments are the result of the creation of new industries.  Consumer spending drives the creation of new industry (in the absence of very prophetic venture capitalists)!

Because of this, we must increase the number of goods manufactured in America.  We must find a way to allow those jobs to be created.  This policy provides that.

Create public awareness through advertisements informing the public that the impact of buying products made in the U.S.A. will be most greatly felt by the unavoidable creation of jobs in the manufacturing sector here in the states.  Those patriotic Americans that can afford it, should buy products with the American flag on the UPC.  On the other hand, they can look at the flag of some other nation they wish to support when they shop.  

In conclusion, for the sake of economic recovery, the logical approach is to encourage job creation here in the U.S.A. by placing the national flag of the country of origin on all products sold here in the states.  This puts the power of both financial sanction and support in the hands of the American citizens, thereby reducing the need of the federal government to get involved.

For a moment, close your eyes and imagine yourself in your local store where you shop.  Picture yourself picking up a product and immediately seeing the Chinese flag on the label.  On the shelf beside that item, for a few cents more, is another product which proudly displays the American flag.  Which would you buy?

In the 1980's would you have bought a product with the Soviet flag on the front of the package?

It's time to create jobs in America!  Please share this with your friends.  And please, give me the pleasure of your constructive comments.  I will be happy to consider your views! Follow @DerrelWalters