Top Of My Head

Thoughts on everything from Politics to Video Games

Tag: financial

A few thoughts…

  • Fact: Lower taxes do not cause more jobs.
  • Fact: Only twice did lowering the tax rate cause revenues to go up – 1964 and 1981.
  • As long as they’re peaceful, the Occupy protesters have the right to protest.  It is part of the First Amendment of the Constitution. “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”
  • Herman Cain’s tax plan will be bad for the economy.  It will encourage saving, but our economy is based on consumption.  If too many people save or just buy use, our economy will sink further.
  • President Bush didn’t cause the economic and financial crisis and neither did President Obama.
  • Despite what Alan Greenspan might think, liquidity isn’t the same as capital and just because a company has access to money doesn’t mean that they’re on good footing.
  • Easy credit (with the lowering of interest rates) contributed to the financial crisis.
  • Too little regulation and, in some cases, no regulation was one of the causes of the financial crisis.
  • The Republicans running for President do not understand that last statement.
  • Shortsightedness in reaching for short term profits is one of the factors that caused the financial crisis.

373 – 1

373 – 1 => that’s the difference between your salary and the salary of the guy on top.  For every dollar you earn, a CEO is earning 373 dollars.  And, what do you get for that huge difference?

You get a boss who thinks you’re paid too much.

You get a boss who wants to raise profit margins and he does this by laying off your co-workers or even you.

You get a boss who is more than willing to move a factory overseas to save money, so he can make even more.

You get bad health insurance – if you have any health insurance at all.

You get to save for your own retirement out of the little bit of money that you have – and you get politicians that want to take away your safety net.

You get the feeling that you are expendable.

We could blame the government for our nation’s economic woes.  However; it isn’t entirely the government’s fault.  Greed is good, so the saying goes.  Except, greed is only good for those on top and it harms those of us on the bottom rung (and, even those of us a couple of rungs higher).

Perhaps, the government should take some, but not all, the blame.  It was the government that removed the financial regulations that had prevented a financial collapse for sixty years.  The free market system would work if only greed and the ever desire for higher and higher profit margins wasn’t part of the deal.  When men (and women) only concern themselves with profit and not sound business decisions, economic collapse ensues.

I’m not entirely sure what can completely fix our economy, but I can tell you what won’t and what hasn’t.  Lowering taxes even farther and ending financial (and other business) regulations are not going to put this great nation back on solid financial footing.  We need to put the Glass-Seagull act back into place to protect our financial markets.  And, we need to raise taxes on the upper classes.  The top limit needs to be moved back to 39%.

Ronald Reagan was correct to lower taxes in the eighties.  It was a good thing and it started economy recovery.  However; too much of a good thing can do us harm.  Our current economic status is proving just that.

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