Very well done
Clearly, the combination of huge public debt and having the highest corporate taxes in the world has worked well for Japan. We should follow that model.
Exactly! Japan is a perfect example of the failure of Keynsian economics.
I trust in myself - peace the fuck out if none of this shit works in the end.
and printing more money is a hidden tax due to inlfation. your money is less becasue the government spent more.
This couldn't be more true. At this point, we have two choices:
1. Inflate our way out of our hole or...
2. Technical default around 2014
IMO Obamanomics vs. Reganomics is more like liberal/keynsian economics vs. conservative/friedman/austrian economics (though there are tremendous variations among that last group).
What it boils down to is efficient market participants. Simply put, the government is not an efficient market participant. The government allocates itself wealth by decree not by market participation. They (the government) do not earn their share of buying power by demonstrating superior business acumen. Those who are wealthy are efficient market participants. If they inherited the wealth and are inefficient, the market will eventually strip them of it. If the wealthy don't spend, the lower velocity and increased savings helps out the rest of the economy by keeping prices and interest rates low. Simple shit.
IMO, the role of the government is two fold: standardize and enforce. By standardize I mean create a legal framework within which commerce is conducted (property rights, etc, think ATX for the economy) and by enforce... well that's pretty obvious.
Sadly, we're in such a clusterfuck now I fear that a return to such simple and pure market is nigh impossible. Here are some of my own suggestions:
1. eliminate the payroll tax and then raise taxes on gasoline to offset the elimination of the payroll tax. Explanation in #2.
2. further raise taxes on gasoline to subsidize the conversion of Class 8 trucks to run on CNG. Here in the U.S. we consumed 19.4mbpd in 2009 even though we only produced about 8.5mbpd. That ~11mbpd leak costs us... ready... about $240billion/year at $60/bbl. Now even though the amount of income available to purchase distillate products hasn't changed due to suggestions #1, the sticker shock will force people to drive less and buy more fuel efficient cars. #2 would further this cause.
3. offer both individuals and corporations an "elective tax." This one is a little strange but here's how it goes: say you're sitting on ~$1million in cash. If you fork it over to the government for this "elective tax" the government will invest this money in retrofitting government buildings to be energy efficient and, in return, will give you a lifetime annual tax deduction of say $100,000 that is exempt from the alternative minimum tax and transferrable upon death. If one were to fork over enough cash, they could theoretically be tax free for the rest of their lives. This makes sense as many energy efficiency modifications have annualized ROIs in excess of 10% (some are as high as 100%). Though revenues to the government would fall in the future it would be commensurate with reductions in the budget that the government needs to function with the added bonus of lower expected tax rates which should increase investment and ultimately productive capacity.
4. If you need to get radical, raise gas taxes even further and use the proceeds to subsidize local agriculture. This just further reduces the oil drain on the economy and it would put a fair number of people back to work. Basically, instead of paying Canada and Mexico to run our tractors/combines, you'd be paying Americans to work in vacant commercial buildings converted to greenhouses.