SOLUTIONS & REFERENCES

SOLUTIONS AND REFERENCES

The solution is smaller government, lower taxes, less regulations, less social programs, and more freedom. Rush Limbaugh once said, “It's hard to sell freedom to people that think they are free.”

The solution to Anti-American Globalization was being addressed by President Trump. He realized that the existing trade deals were not fair. In 2018 he lowered corporate tax rates and raised tariffs. He is the only president in over 60 years to see the obvious problem and take action.

In 2016 he also lowered personal income taxes and the success was dramatic. In the two years before the pandemic, the average household income increased $5805 per year. (43) With 128.58 million households, that totals over $1.5 trillion less profit for the three years before the pandemic that would normally go to the well connected establishment rich. That is a huge loss for a very small number of people.

It is evident that there are super-rich master manipulators and money tree shakers that did every thing that they could to get rid of Trump. Super-rich master manipulators have always owned and controlled the mass media and media bias is not a new concept. But the lies and bias against Trump has been intense and relentless because he has reduced their profits from inflation, anti-American globalization, foreign aid, nation-building, and war. (40, 41) I wonder if they had anything to do with developing and releasing a deadly virus.

Trump is not prejudiced against Mexicans or Muslims. He took the steps that he was able to take to prevent terrorists, criminals, and drugs from freely entering the country. He is not anti gay. A federal judge ruled that the Trump administration could not stop funding sex-reassignment surgeries for military members.(14) But he could ban gays from serving in the military. He just did not want taxpayers to be required to pay for hormone therapy, counseling, and sex reassignment surgery just as an owner of a private company should not be required to bake a cake for a gay wedding. Hormone therapy is $1500 per year, sex reassignment surgery is $30,000 minimum, and counseling, who knows? Give me a break.

That being said, if trade is to be accomplished fairly, for each competitive imported product domestic corporate taxes should be no more than taxes on foreign corporations making those similar products. Import tariffs should be no less than foreign tariffs on our exports.

However, realize that corporations get the money to pay the taxes from their customers and tariffs add to the price of the products we buy. They are hidden taxes on all of us. The ideal would be for both to be zero worldwide.

Insurance companies, if deregulated, could offer free market services that government now provides. If they provide product liability insurance for a drug company, they could establish an organization that would set reasonable testing standards and oversee and approve the results. The emphasis would be on he best solution not the most expensive. If insurance companies provide fire insurance, they could efficiently establish and run fire departments. The business liability insurance mechanism could provide reasonable environmental protection. Requirements would replace regulations and would not be excessive, arbitrary, or predatory. They would not try to put their customers out of business. Insurance companies are a free market alternative to government.

The solution to the inflation problem is implementing a policy of zero inflation. Achieving zero inflation with a paper currency cannot easily be done. I have thought about this for a long time. How does one challenge the Federal Reserve, the most powerful corporation in the world with all of the power of the Federal Reserve Act protecting it from Federal, State, and Local taxes and protecting it from AUDIT!! Only the insiders can find out exactly how much money is created, how much profit as a result and where all of that money goes.

However something incredible happened recently that started in Switzerland. It was called the “Sovereign Money Movement” and was the first attempt at reducing inflation. An article on this movement stated that “Contrary to popular opinion, most of the increase in money in circulation occurs with the local bank and not the central bank.” and “The greater part of the banks' deposits consists, not of cash paid in, but of credits borrowed. For every loan makes a deposit.” Money borrowed is spent and ends up back in the banking system and that money is used as reserves that allow for more loans.

The Sovereign Money Movement was not successful because they wanted to change the 10% reserve requirement to 100% in one jump. But increasing the reserve requirement slowly, over 5 years or so from the present 10% to 100% would reduce the inflation rate by at least 50%. The goal of course is zero but that would be a huge first step. (30) The second step would be a law requiring the Federal Reserve (or preferably the United States Treasury Department) to implement a policy of zero inflation. The currency in circulation should be expanded with increased domestic demand, mainly population growth, plus foreign demand. This increase would add to government income and be spent into circulation.

In order to accomplish this, government borrowing would have to end and the budget would have to be balanced. With cheap and easy money corrupting the government budgeting attitude for so long, this would not be easy in spite of the fact that there is no national emergency like a declared war that requires high government spending.

Foreign Aid should be entirely voluntary, typically run by private charities. Instead of a bribe to foreign leaders, the money would get to the people who really need it. Foreign Aid is a method to take money away from the poor people in the rich country and give it to the rich people in the poor country. (16)

(14)

Congress along with the entire government bureaucracy is addicted to cheap and easy money that finances spending without limit and obligates younger generations to ever increasing interest payments. A major intervention will be required to prevent inevitable disaster. Like any drug addict, there will be withdrawal pains by being required to operate within a rational budget.

Until then the Federal Reserve could negate the effect of the 100% reserve requirement and zero inflation mandate by lending banks money, that they create out of nothing, that banks could use to lend at a higher interest rate. But hopefully media attention would be generated and maybe enough people would figure out the scam. “AUDIT THE FED” might be a new protest chant. That would be great but “ELIMINATE THE FED” would be incredible!

With free market capitalism, if someone has money and values the product more than the money and someone who has the product values the money more than the product, when the exchange is made the result is a win-win situation.

Go to theethicaleconomy.com and join the movement.

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