Solving America’s Economic Woes at a Stroke

There is little doubt that, looking at America from the outside, the country faces a number of significant problems. There is not much point trying to determine which of these is the most important because it will just lead to irresoluble arguments but the problems include the following: American manufacturing has declined to such an extent that the country now has a massive balance of trade problem; unemployment continues at a very high rate because of lack of a large enough stimulus placed into the economy by the government; political discourse has been completely debased by a group of fanatics who have brought Third World politics (e.g. lies, refusal to accept facts, ad hominem attacks and subversion of the media) into the mainstream.

Of these problems, one stands out as being amenable to a quick and very effective solution. More accurately, it is one set of problems that can be solved with a simple solution. The government is unable to fund the services that are needed by the people and to plan for the future – which is why the increasingly obvious threat caused by global climate change is leading to deaths that are sparking local, philanthropic responses wholly overwhelmed by the scale of disasters. It is unable to fund its military adventures overseas in Afghanistan and, in particular, in the occupation of Iraq, not to mention its somewhat inchoate involvement in Libya. It finds it difficult to reduce the income inequalities that are causing so much crime and misery, particularly among poor urban environments. All of these problems (and I could mention many more) are caused by one phenomenon: in historical, international and logical terms, the American rich are enormously under-taxed.

Being under-taxed, the rich are busy using their excess wealth to buy the influence to make sure that social mobility in America is brought to an end forever. In the past, low taxes were workable in the country because of charitable largely faith-based philanthropy and because it was possible for talented people to move up from poverty into success by hard work, intelligence and an enormous slice of sustained luck. These days, such routes out of poverty are being rapidly closed off as the wealthy find ways to make sure that only their own children will be privileged to receive the education, personal introductions, resources and refinement to be accepted into the top jobs – just like the rich have done in so many other countries.

The obverse side of the coin of low taxes is not the possibility that anyone can one day strike it lucky but that no poor person can ever again be successful in work – why do you think there are so many ‘American idol’ type shows these days? People know full well it is the only way they can now change their circumstances.