FISCAL POLICY: CHALLENGES & GOALS
As Fredrick Hayek wrote in his magisterial work The Constitution of Liberty, the challenge for our time is to shape and implement policy through the Founders Statesmanship in affirming the Republics ethos of individual liberty in equality. Applying natural right doctrine, in the ethics of individual sovereignty to the social, economic and moral problems that besiege this Republic is the solution to an enduring victory.
Inflation as Taxation: Every year prices rise. Socialism pursues its agenda chiefly through the politics of 'easy' fiat money. This leads to the deliberate use of depreciation and numerous other financial gimmicks so as to expand the role of government. This deliberately robs us of our earnings, savings, investments and property. An inflationary based economy destroys our ability for self-reliance and peace of mind. Inflation is a tool, an ideology, a form of covert taxation, a means of wealth distribution, a mode of social engineering and a means to weaken, punish and divide Americans.
Inflation violates moral, ethical principals required for the operation of a successful Republic. Its coercive, covert legislation, a new kind of governance that imposes despotic rules, rule inimical to the success that has been the heritage of our Judeo-Christian civilization.
Borrowing as Taxation: Congressional borrowing has taken 42 cents from every dollar. We borrow abroad $58,000 per second. Increasing our debt by $3.5 million every minute or $210 million every hour. For the government to meet its mandated obligations, it borrows from foreign nations $7.5 million every hour, $5 billion every day, $150 billion a month, $1.8 trillion annually. The average cost of serving the interest on this debt is $53,000 per working American.
Currency Devaluation: Since the financial crisis began in the late fall of 2008, monetary authorities devalued the purchasing power of the dollar 8% every year. After 20 years of working, the government will have confiscated 64% of EVERY DOLLAR a working American has earned. The rate would be an excruciating 90% by the time an American worker has worked 40 years. Over a lifetime, the government will have confiscated the entire earnings a person strived to achieve. It's undeniable; confiscatory taxation completely and utterly violates the ethical and moral foundations of liberty.
Inflation as Coercion: Both inflation and devaluation are ideologies foreign to the American 'experiment' as liberty in equality. It is a form of taxation that secretly extracts the earnings of working Americans. It is also a means of wealth distribution, a mode of social engineering, a way to penalize individual citizens or groups, even sectors of the economy.
The social, political impact of inflation is the dissolution of the Republic through the criminalization of political differences. This is HOW every other civilization or revolution failed. The American Revolution was the singular success that never institutionalized this error.
It is meaningless to affect tax policy without first fixing the purchasing power of the dollar. A return to sound economic, fiscal fundamentals means advancing a policy mix that observes price discovery and wage growth through: proportional taxation, low corporte tax rates, scale down regulatory regimes/administrative bodes, editing the Federal Reserve, promoting 'the Sound Dollar Act', reforming social mandates that drive deficit spending, reform health care tax expenditures, energy and education.
Fiscal Reform as Sound Money: A two tier tax code of 10% & 25% is a good start, by benchmarking all taxation (code for spending) through two tiers eliminates an archaic tax regime tat impedes growth and prevents capital, equity formation. Proportional taxation underwrites social mobility by grounding policy goals inside an ethics of individual freedom.
Maximum Corporate Tax Rates: Businesses thrive where economic climate favors innovation and growth. High corporate taxation incurs higher prices for goods and services with higher operating costs. Nations that hold corporte rates between 15%-20% thrive. The U.S. corporate tax rate is 28%.
Edit The Federal Reserve/The Sound Dollar Act: The Federal Reserve is a creative of Congress. It operatives under the aegis of Congressional authority. The introduction of legislation serving to expose the affinity between Keyneisan ideology and the politics of fiat easy money serve to highlight that policy cannot be implemented in isolation from fiscal authorities.
'The Sound Dollar Act' (H.R. 4180) was introduced by Representatives Kevin Brady (R-Texas) and Mike Lee (R-Utah) authorizing Congress to reign in the Federal Reserve that has become a near ward of Treasury. The Fed's mandate woulld be restricted to 'price stability', meaning its role in active policy mangagement would concern the growth of the monetary base alone. Currently, the Federal Reserve has four conflicting mandates (price stability, inflation, full employment and protecting an incumbent President.) This bill reforms the way the U.S. dollar is created and managed. This act will de-politicize the central bank leaving it truly independent from the fiscal wiles of Congress. The bill gives regional central bank presidents a permanent vote on implementing monetary policy, it restrains the Federal Open Market Committee to purchase treasuries ONLY, not the mass purchase of secular financial instruments. It seeks to prevent the pernicous social, political impact that credit allocation has in creating bubbles, manias and crashes.
Reforming Social Mandates: Congressional expenditures drive deficit spending, they also promotive depreciation. To address it, Congress must implement block grants, premimum support and competitive bidding to provide an interaction for price discovery. Entitlement reform programs need to take place within the confines of choice and incentive, for the main driver sustaining budget crisis' is unfunded entitlement expenditures.
Health Care: Having the Federal Government control 1/10th of the U.S. 13 trillion dollar economy is not consisent with the ideals that underwrite our Republic, namely limited, enumerated government. Obamacare is not about health care, its about government power and the fundamental relation between government and its citizens.
Obamacare asks a direct moral question: can an individual be free is government can coerce?
The Constitutional and moral questions residing at the heart of the 'Affordable Care Act' are great, novel and grave. Future health care policy should aim to affirm the moral foundations of liberty, seeking resolution through free markets and free individuals.
Energy: Currently, the U.S. has twice the estimated recoverable reserves of Saudi Arabia. This amount of energy is enough to reverse the major geopolitical faultline currently reeling the Near East. The west's dependency on reactionary Islamic socieities that seek our destruction will come to an end when the U.S. implements an energy policy consistent with our domestic and foreign policy needs.
Do we wish to remain hostage to environmental lobbies and global warming alarmists that bind themselves to the political and ecological rhetoric of third world political economics? Our solution is domestic energy production.
Currently, the U.S. has the world's largest refining sector. Being a net energy exporter is indicative of an ideological, political problem. The U.S. exports 3 million barrels of oil every day. Our nation is capable of refining both expensive light sweet crudes which yield high value products like gasoline and sour crudes used in heavy manufacturing. The economic consequences of domestic energy production are extraordinary. The potential net revenue for states who develop hydrocarbon production is increased when you consider the multiplier of economic derivatives associated with production, extraction and refining. The re-industrialization of the American economy will impact labor markets, wage growth, price stability and infation is we demonstrate leadership.
It is possible to meet the goal of energy independence for the United States.
The most consequential impact of renewed domestic energy production is a significantly lower vulnerability that North America is to the ideological, geopolitical consequences raging the Middle East.
Education: The American eduation crisis remains inseperable from the crisis of the American family. Any coherent, synoptic approach to education reform will acknowledge that the child is not an agent of the state. The family is the child's first teacher. The American family is burdened from currency deprciation, confiscatory taxation and weak growth in job creation. All of this remains inseperable from the consquences of progressive policy that prevents equity, capital formation.
The monetary, fiscial crisis that is contemporary liberalism is not limted to public policy alone. Stronger families mean smaller government. Any education policy that ignores serious reform is capricious. The factors that catalyze success in other sectors of the U.S. economy should be utilized in education reform: competition, choice, and vouchers are a good place to start. The dogma that fixing broken schools requires more money is no longer acceptable, for the misallocation of resources and productivity enhancing innovations is key to lasting education reform. The dangers of legislating education policy from the Executive branch are well documented; a reinvigorted approach to applying the 10th Amendment to mandates from the Federal government is required.
Inflation as Taxation: Every year prices rise. Socialism pursues its agenda chiefly through the politics of 'easy' fiat money. This leads to the deliberate use of depreciation and numerous other financial gimmicks so as to expand the role of government. This deliberately robs us of our earnings, savings, investments and property. An inflationary based economy destroys our ability for self-reliance and peace of mind. Inflation is a tool, an ideology, a form of covert taxation, a means of wealth distribution, a mode of social engineering and a means to weaken, punish and divide Americans.
Inflation violates moral, ethical principals required for the operation of a successful Republic. Its coercive, covert legislation, a new kind of governance that imposes despotic rules, rule inimical to the success that has been the heritage of our Judeo-Christian civilization.
Borrowing as Taxation: Congressional borrowing has taken 42 cents from every dollar. We borrow abroad $58,000 per second. Increasing our debt by $3.5 million every minute or $210 million every hour. For the government to meet its mandated obligations, it borrows from foreign nations $7.5 million every hour, $5 billion every day, $150 billion a month, $1.8 trillion annually. The average cost of serving the interest on this debt is $53,000 per working American.
Currency Devaluation: Since the financial crisis began in the late fall of 2008, monetary authorities devalued the purchasing power of the dollar 8% every year. After 20 years of working, the government will have confiscated 64% of EVERY DOLLAR a working American has earned. The rate would be an excruciating 90% by the time an American worker has worked 40 years. Over a lifetime, the government will have confiscated the entire earnings a person strived to achieve. It's undeniable; confiscatory taxation completely and utterly violates the ethical and moral foundations of liberty.
Inflation as Coercion: Both inflation and devaluation are ideologies foreign to the American 'experiment' as liberty in equality. It is a form of taxation that secretly extracts the earnings of working Americans. It is also a means of wealth distribution, a mode of social engineering, a way to penalize individual citizens or groups, even sectors of the economy.
The social, political impact of inflation is the dissolution of the Republic through the criminalization of political differences. This is HOW every other civilization or revolution failed. The American Revolution was the singular success that never institutionalized this error.
It is meaningless to affect tax policy without first fixing the purchasing power of the dollar. A return to sound economic, fiscal fundamentals means advancing a policy mix that observes price discovery and wage growth through: proportional taxation, low corporte tax rates, scale down regulatory regimes/administrative bodes, editing the Federal Reserve, promoting 'the Sound Dollar Act', reforming social mandates that drive deficit spending, reform health care tax expenditures, energy and education.
Fiscal Reform as Sound Money: A two tier tax code of 10% & 25% is a good start, by benchmarking all taxation (code for spending) through two tiers eliminates an archaic tax regime tat impedes growth and prevents capital, equity formation. Proportional taxation underwrites social mobility by grounding policy goals inside an ethics of individual freedom.
Maximum Corporate Tax Rates: Businesses thrive where economic climate favors innovation and growth. High corporate taxation incurs higher prices for goods and services with higher operating costs. Nations that hold corporte rates between 15%-20% thrive. The U.S. corporate tax rate is 28%.
Edit The Federal Reserve/The Sound Dollar Act: The Federal Reserve is a creative of Congress. It operatives under the aegis of Congressional authority. The introduction of legislation serving to expose the affinity between Keyneisan ideology and the politics of fiat easy money serve to highlight that policy cannot be implemented in isolation from fiscal authorities.
'The Sound Dollar Act' (H.R. 4180) was introduced by Representatives Kevin Brady (R-Texas) and Mike Lee (R-Utah) authorizing Congress to reign in the Federal Reserve that has become a near ward of Treasury. The Fed's mandate woulld be restricted to 'price stability', meaning its role in active policy mangagement would concern the growth of the monetary base alone. Currently, the Federal Reserve has four conflicting mandates (price stability, inflation, full employment and protecting an incumbent President.) This bill reforms the way the U.S. dollar is created and managed. This act will de-politicize the central bank leaving it truly independent from the fiscal wiles of Congress. The bill gives regional central bank presidents a permanent vote on implementing monetary policy, it restrains the Federal Open Market Committee to purchase treasuries ONLY, not the mass purchase of secular financial instruments. It seeks to prevent the pernicous social, political impact that credit allocation has in creating bubbles, manias and crashes.
Reforming Social Mandates: Congressional expenditures drive deficit spending, they also promotive depreciation. To address it, Congress must implement block grants, premimum support and competitive bidding to provide an interaction for price discovery. Entitlement reform programs need to take place within the confines of choice and incentive, for the main driver sustaining budget crisis' is unfunded entitlement expenditures.
Health Care: Having the Federal Government control 1/10th of the U.S. 13 trillion dollar economy is not consisent with the ideals that underwrite our Republic, namely limited, enumerated government. Obamacare is not about health care, its about government power and the fundamental relation between government and its citizens.
Obamacare asks a direct moral question: can an individual be free is government can coerce?
The Constitutional and moral questions residing at the heart of the 'Affordable Care Act' are great, novel and grave. Future health care policy should aim to affirm the moral foundations of liberty, seeking resolution through free markets and free individuals.
Energy: Currently, the U.S. has twice the estimated recoverable reserves of Saudi Arabia. This amount of energy is enough to reverse the major geopolitical faultline currently reeling the Near East. The west's dependency on reactionary Islamic socieities that seek our destruction will come to an end when the U.S. implements an energy policy consistent with our domestic and foreign policy needs.
Do we wish to remain hostage to environmental lobbies and global warming alarmists that bind themselves to the political and ecological rhetoric of third world political economics? Our solution is domestic energy production.
Currently, the U.S. has the world's largest refining sector. Being a net energy exporter is indicative of an ideological, political problem. The U.S. exports 3 million barrels of oil every day. Our nation is capable of refining both expensive light sweet crudes which yield high value products like gasoline and sour crudes used in heavy manufacturing. The economic consequences of domestic energy production are extraordinary. The potential net revenue for states who develop hydrocarbon production is increased when you consider the multiplier of economic derivatives associated with production, extraction and refining. The re-industrialization of the American economy will impact labor markets, wage growth, price stability and infation is we demonstrate leadership.
It is possible to meet the goal of energy independence for the United States.
The most consequential impact of renewed domestic energy production is a significantly lower vulnerability that North America is to the ideological, geopolitical consequences raging the Middle East.
Education: The American eduation crisis remains inseperable from the crisis of the American family. Any coherent, synoptic approach to education reform will acknowledge that the child is not an agent of the state. The family is the child's first teacher. The American family is burdened from currency deprciation, confiscatory taxation and weak growth in job creation. All of this remains inseperable from the consquences of progressive policy that prevents equity, capital formation.
The monetary, fiscial crisis that is contemporary liberalism is not limted to public policy alone. Stronger families mean smaller government. Any education policy that ignores serious reform is capricious. The factors that catalyze success in other sectors of the U.S. economy should be utilized in education reform: competition, choice, and vouchers are a good place to start. The dogma that fixing broken schools requires more money is no longer acceptable, for the misallocation of resources and productivity enhancing innovations is key to lasting education reform. The dangers of legislating education policy from the Executive branch are well documented; a reinvigorted approach to applying the 10th Amendment to mandates from the Federal government is required.