ON THE FERGUSON RIOT(S): The Ferguson event is unique, of course, but still rather similar to others from our past. There are many underlying causes for these recurrent riots. One of the background problems is our countrys monstrous inequality problem. And the existence of our giant inequality problem is made inevitable by our unfair economic system (it is called “Laissez Faire Capitalism”). Under this “owners take all” system, the ultra-wealthy owners (a very small percentage of our total population) automatically and continuously get ultra-wealthier while the non-owners (the workers, most of the rest of us) just as automatically get relatively poorer (ever increasing inequality). Which in turn results in a chronic high unemployment and under employment problem, a spiral which makes the workers even less competitive with the owners and each other, causing ever lower real wages and a continuing spiral into a worse inequality (and a weaker economy). And we have recurrent recessions or depressions, because the system is unstable as well as unfair. A number of economists (and others) have figured out the causes of the problem, and pointed out the required solutions (e.g., see Thomas Pikettys book “Capitalism in the 21st century”). Basically, the traditional “solution” of ever lower federal taxes and consequent low (or non-existent) federal government services is actually a prescription for making the problems worse. Just the opposite is required: VERY HIGH PROGRESSIVE taxes on very large personal incomes, which must include all business profits, dividends, and capital gains (from businesses, corporations, etc.) at full tax rates. No tax free or low rate categories of favored income allowed. Realizing fair taxation on corporate and business income requires other rules such as a requirement that ALL businesses must distribute ALL profits to their stockholders every year. This must be coupled with massive federal government “stimulus” programs (at least universal health care, social security adequate for a comfortable retirement, and guaranteed employment for all who wish to work). In the absence of a fair economic system, pockets of very high unemployment will always exist and will always produce a large number of poverty stricken people with literally nothing to lose. And such folks will invariably resort to unacceptable behavior (such as stealing) in an attempt to improve their lot in life. The disadvantaged folks will even use incidents like Ferguson to justify (to themselves) unacceptable behavior such as stealing, looting, and vandalism on a large scale. You may not have the time to read Pikettys rather large book (available at Amazon; it analyzes and explains the nature of the problem over a period of about four centuries). But the problem is pretty well explained in the small booklet “Analysis of the Flaw in Laissez Faire Capitalism”, available for free download at smashwords - - - and it can be read and understood in a few hours. Note that the Republican party line is to shrink federal government and reduce federal income taxes to near zero: this policy is the direct cause of our economic instability and unfairness, and is guaranteed to make the problems and the economy worse. At this point, the Democrats dont really propose a real cure, but their party line is much closer to rationality, morality, and general economic fairness than the Republican alternative. Note that the policies required (and enacted) to fight WWII almost (but not quite) cured the problem. But the war was barely over when, instead of making further improvements, we started drifting back to basic Republican economic policy (which dates at least back to the disastrous 1920s). This is an election year. For Petes sake, do your homework, study the economic history, and then go to the polls! We DESPERATELY need many, many millions of VERY PROGRESSIVE Republocrats. Our recent insistence on low federal taxation for the ultra wealthy is leading our country to ruin, in more ways than one. Duard L Pruitt
Posted on: Thu, 28 Aug 2014 16:40:13 +0000
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