Powell Testimony House Financial Services

Wow!  What a day.

Powell did a good job of answering questions, unlike those who do a lot of talking to run down the clock.

Okay, The Phillips Curve doesn't mean what it did 50 years ago.  Back then, however, labor had more clout.

The one thing Robert Reich said that was halfway sensible was "If you want to stimulate the economy, give tax cuts to people who spend money."

That causes a problem with revenue.

The next solution is the old canard, the 93% tax rate that Reich propounded.  However, as his article extolled the virtues with full employment, factories humming, and everybody was happy, he omitted that when the tax rate was 93%

A Black man earned half of a White man's wage.

Women were kept "barefoot and pregnant."

Mexicans & Filipinos picked lettuce & grapes for pennies a day.

There was no EPA

We were rebuilding Europe after WWII.

This is a celebration of Racism, Sexism, Xenophobia, Pollution, and Imperialism.

Need I tell you where those revenues were spent? 

Now, this is no longer the age of JFK.  And I will address the remarks by President Kennedy to the New York Economics Club.

"In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now."

Again, this is not 1962.

However, as the Republicans and the Democrats have opposite views on solving economic problems, I am compelled to say that "because this is Congress, it is not ironic that they are both wrong."

You can neither cut your way nor tax your way to prosperity.

Slim's Paradigm.

Capital Investment + Economic Stimulus = 
Economic Development + Growth.

Merkelism and the Economic Crisis of Europe proves spending cuts don't work.

President Kennedy, quoting Nikita Khrushchev on Russia surpassing the US in production proves that tax hikes don't work.

President Obama touted 
Creative, Innovative, High-Tech Entrepreneurs.

Entrepreneurship means capital investment and Economic Stimulus. Two factors absent among the poor.

I wrote the article

Tax Policy to Increase Wages $5 an Hour. Now!

To demonstrate how the important factor is to put money into the hands of people who work for a living.  However, this burdens business as the tax write-down does not prove to be a sufficient incentive.

The American Widget Company will not hire one single additional widget maker, until it has an order for one widget more that it can produce when operating at maximum capacity and optimal efficiency.

The explanation on how to make it work

The Multiplier Effect (Don't dare call it trickle down economics)

Increased government revenues (properly) are all included in the article.

There are three ways for the Government to raise revenue.

1.  Increase taxes
2.  Increase the number of tax payers
3.  Increase the wages of the tax payers.

Number three is best.

An illustration of The Multiplier Effect

There are other factors to consider that were raised at the hearing.

Michigan.

I think of Detroit and Battle Creek.

If Americans choose to buy foreign cars and stop eating cereal, Michigan is in trouble.  This is something the Fed cannot fix.

If Americans choose to move to the coast for the surf and the sand, and leave Iowa, this is something the Fed cannot fix.  Other efforts are necessary.

Closing the Gap


Remember, "Grow the Pie" is only a slogan. And a bad one.

If Archie Bunkers gets a promotion and a raise to a management job, he gets a bigger paycheck.  A bigger piece of the pie.  But he must take his suit to George Jefferson's Dry Cleaners.  George Jefferson also gets a paycheck.  However, he also makes a profit.  Why? Because he owns a piece of the bakery that bakes the pies.  Entrepreneur.  And he creates jobs.


Warmest regards,

Slim.

If you find anything here to be helpful, please don't hesitate to send me a really tricked out Mac Book and to tuck a few dollars into the envelope along with the thank you note. Slim.

Bob Asken
Box 33
Pen Argyl, PA 18072

Copyright  ©  2019  Robert Asken
All rights reserved.

China: QE and Emerging Nations

Is it possible for the "Chinese Central Bank" to launch a bond buying programme for companies listed on the Chinese exchanges to enable them to start a stock buy-back programme to bring up their prices?

This will help small and large investors  

recoup their losses  

restore confidence in the economy, 

restore confidence in the markets and 

Restore confidence in the Government


This will refocus the Chinese Economy on:

Capital Investment

Economic Development &

Growth

And will:

Help to rebuild the infrastructure

Increase employment

Increase the consumer class

Increase the investor class &

Reposition China in the Global Market


The Next Challenge is Here


Looking at the change in the global landscape requires comment.  I have included my article The Next Challenge is Here in this article. 

At the end, I've included links to related articles.


First:  This in an Economics Lesson.  Focus on the Economics ONLY!

The haves are increasing arithmetically. The have-nots are increasing geometrically.

The real challenge is not the difference in the number of dollars between the haves and the have-nots.

The real challenge is the difference between the number of people between the haves and the have-nots.

This is not a sustainable model. Period!


What Politicians discuss is only what Western Nations can wrap their brains around.

Politicians say Mexicans take jobs Americans don't want.

Politicians say people in the Middle East are escaping war, genocide, and starvation.

Politicians say that migration in parts of Asia is the results of ethnic groups escaping ethnic based violence.

And of course, the scourge of the Earth, human traffickers.

Now, Remember when I said the real challenge is the difference in the number of people between the haves and the have-nots.

To grasp the concept, we will reference a few principles of physics to establish the metaphor.

We are witnessing an incontrovertible law of physics.

1.  People are moving from a greater concentration to a lesser concentration.  The high-density impact on emerging nations.  Populations are increasing--land mass is not.

2. Money. Money in the industrialised nations will reach  a saturation point if it has not done so already.  At this point, it will be necessary to move money from industrialised nations to emerging nations.

This was one of the proponents in my article Greek Proposal. The article is located here along with Dear. Mr. Varoufakis, and Antigone Defeats Merkel. To understand Europe, one must read Antigone Defeats Merkel and, by extension, Antigone. To understand Merkel and Germany, one must read The Anatomy of Human. Destructiveness. by Erich Fromm. 



FOUR STRATEGIES (The First Three are Wrong)


     1.  Protect your stuff from people who don’t have stuff.

     2.  Share your stuff with people who don’t have stuff.

     3.  Share other people’s stuff with people who don’t have stuff.

     4.  Help People Who Don’t Have Stuff to Get Their Own Stuff.


While history is rife with disasters that were caused by ignoring the challenge, this time may be different.

Not because I say so; but rather because 5 Billion “have nots” say so.

This time, the world cannot ignore the message.


Those who forget history are doomed to repeat it. Santayana.

“Those who never learned history are doomed—Period! Slim Fairview.


Solving the Emerging World Crisis

Forming an E 20 

Emerging Nations Economic Union

Third World First. Okay? 

Micro-Finance: $10. to the Road to Prosperity

G - 20 Summit! E - 20 Invited?

And President Obama said...

Our Middle East Muddling 


Warmest regards,

Slim

slimfairview@yahoo.com  

Copyright © 2015 Bob Asken

All rights reserved