- lower rates do not necessarily mean higher revenues (at least not adjusting from these historical low levels..yes, there are limits to the elasticity of the Laffer curve)
- tax cuts do not necessarily create jobs (perhaps in Asia where a significant amount of investment capital is headed as per the axiom of free markets).
Insurmountable levels of debt--as a result of fiat money--and wealth polarization (a sure sign of an ever strengthening plutocracy) are the most pressing of the macro economic challenges and need to be dealt with immediately. (in case anyone thinks that the polarization of wealth is a healthy thing for society they should look into taking a remedial course in economic history.). Wagering on the longevity of a nation suffering from these two conditions is not considered prudent.
The challenge will have to be met in an environment where education and vocational retraining will be essential in order to keep America competitive.... a nation with a crumbling infrastructure...a nation with a gargantuan demographic about to saturate the ranks of the retired. This may seem impossible to overcome but Americans--like so many other Western nations--don't have a choice. The time for sophism, extremist ideology, and adhering to policies that are marred with contradictory empirical evidence are about to end--if not by choice, certainly by necessity.
Everyone likes to blame someone else for the problems--which only serves to exasperate the economic and social polarization. We live in a culture where accountability, trust and most other virtues are considered impediments to personal growth--virtues that deter from being able to compete in an ever shrinking quickly changing world. Blame is a waste of energy and time: it is time to find solutions before a less-than-pretty natural solution is rendered upon us.
How does one find the solution?
- Identify the problem!!!
- How to ascertain the problem?
- Follow the Money!!!
- Have the balls not to sell out once you have found the root of the problem.
- Formulate a solution in a fair and just manner.
You can only get to an intended destination in a rowboat if both oars are working complimentary to one another--not necessarily in unison--but at the very least in a congruent manner. America has to realize this soon if they expect to continue to live in a nation that embraces liberty. Both wealth polarization and excessive indebtedness lead to forms of slavery. I would hope that both sides of the America political juggernaut can at least initially agree that slavery is not a good thing...but maybe even that is asking too much!!!!!