Tax the Rich!

[newonecoming2]

Originally Posted by hilgi

The debt took off during the depression, partly because GDP dropped so even if the debt stayed the same debt would have doubled as a percentage of GDP.

The drop in GDP was responsible for abot ½ of the increase in debt the other was new debt.

Originally Posted by hilgi

An alternate explanation for 80's debt could have been because interest rates dropped dramatically, and the boomers were just entering their family formation age where they bought and financed houses, cars etc.

That is possible. But what did the rich do with their newly untaxed income? Did they loan it to those baby boomers? Directly or indirectly?

Originally Posted by hilgi

Again we are both trying to find the ONE answer why everything does what it does, the problem is I fell things are much more dynamic and random than simple explanations like tax rates. Trying to master plan economics is a dangerous road.

Yes it is dangerous. But who sets the prime lending rate? They are master planning the economy.

Originally Posted by hilgi

"We have a bad habit of finding 'laws' in history (by fitting stories to events and detecting false patterns); we are drivers looking through the rear view mirror while convinced we are looking ahead." Nassim Taleb





I do agree with that. I am sympathetic to a way to systematically eliminate debt, I just don't know how to do it without massive consequences.

The consequences are coming from having printed 3X the monetary base.

Originally Posted by hilgi

I do like the Monetary Reform Act idea of paying off the national debt with debt free currency. Monetary Reform Act




Hindsight bias. Lots of unintended consequences.




The carpet bomb approach of high taxes on the rich will hit a lot of people who had a onetime potential life changing sale of an asset or a big one year income. I don’t feel right taking the majority of wealth from someone who struggled for decades only to build a business to the point of selling for a million or more.

Let those people back average their income. I’m not inhumane Its is just we need to change the way we grow the economy.

Originally Posted by hilgi

Again, you are trying to add a scientific approach to a random world, it never works. The only solution is to create an even playing field where ALL government granted and protected special privilege is either taxed or eliminated.

Every action has a reaction, trying to do as you propose ignores the demographic reality and the reality of massive income fluctuations on the top earners.

Going back to what we had in the 1950’s is a bad idea? In the 1950’s it was a good idea.