‘At a time when
other day, Yale economics professor Robert Shiller
told CNBC that the globe is already in a state of "late Great Depression". The
But instead, our leaders are tapping into the politics of division in a desperate attempt to get elected in the fall.
Rather than focus on real issues and real solutions, our politicians attempt to make "the wealthy" or "welfare recipients" the focus of our debates.
Well, you know what?
Most people that are rich and most people that are poor are not purposely trying to abuse the system. Most of them are hard working people that are trying to do the best that they can in a world that is increasingly going crazy.
Yes, there are some among the "1 percent" that do some really bad things. The too big to fail banks and the big money managers on Wall Street should be held accountable for the crimes that they have committed.
But most wealthy Americans are not trying to oppress the poor. Most of them are just trying to do the best that they can for themselves and their families.
Neither are most poor people trying to abuse the system either.
Yes, without a doubt there are some that do not want to work and that want to live on government benefits indefinitely.
But that is a minority.
Most Americans that are receiving government benefits today would rather be working good jobs that would enable them to provide for their families.
Most Americans understand that government handouts can never provide dignity and hope for a better future.
But if you don't demonize the poor and you point out the decline of the middle class, many Republicans will call you a "liberal" or a "socialist".
And if you don't demonize the rich and you don't blame them for all of our economic problems, many Democrats will call you a "pig" or a "fascist".
Unfortunately, playing the blame game is not going to get us anywhere.
The number of Americans living in poverty increased dramatically under George W. Bush and it also increased dramatically under Barack Obama.
Our country is drowning in debt, millions of our jobs are being shipped overseas, the middle class is shrinking at an astounding pace, and the Federal Reserve continues to destroy our financial system.
Getting angry at the wealthy or the poor is not going to fix those problems.
But it will distract us from the reality that both major political parties have been doing a horrible job.
Americans seem to really enjoy blaming one another these days. Just check
out some of the slogans that have been seen on various signs at
"They Only Call It Class Warfare When We Fight Back"
"Eat The Rich - Feed The Poor"
"The Rich Are Wrecking The Planet"
So will destroying the lives of the rich solve our problems?
Of course not.
The truth is that we should want millions more Americans to be prosperous. We should be cheering for one another instead of tearing one another down.
But that is heresy to many on the left.
On the right, it is heresy even to mention that our tax system is fundamentally flawed and that it has thousands of loopholes that are being abused by the very wealthy.
In a previous article, I detailed how many of the
largest and most profitable corporations in
There is something very wrong with that.
Our income tax system should be abolished altogether, but if we do have to pay income taxes, then it is fundamentally unfair for some people and businesses to be able to pay little or nothing while the rest of us get absolutely obliterated by taxes.
But if you try to say that to many on the right, they will look at you in horror.
The other day, there was a New York Times article that detailed the extreme measures that Apple takes to avoid paying taxes. It turns out that Apple sets up shell offices all over the globe in order to evade taxation....
As it has in Nevada, Apple has created subsidiaries in low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands — some little more than a letterbox or an anonymous office — that help cut the taxes it pays around the world.
That same article talked about how Apple has become a model which hundreds of other companies have followed. To giant corporations such as Apple, tax evasion has become an art form....
Apple, for instance, was among the first tech companies to designate overseas salespeople in high-tax countries in a manner that allowed them to sell on behalf of low-tax subsidiaries on other continents, sidestepping income taxes, according to former executives. Apple was a pioneer of an accounting technique known as the “Double Irish With a Dutch Sandwich,” which reduces taxes by routing profits through Irish subsidiaries and the Netherlands and then to the Caribbean. Today, that tactic is used by hundreds of other corporations — some of which directly imitated Apple’s methods, say accountants at those companies.
So what is the solution to all of this?
Raising income taxes won't work too well because the tax lawyers are always several steps ahead of our politicians.
The truth is that when taxes get raised it is always the middle class that gets absolutely clobbered and the wealthy always find more ways to reduce their exposure.
Just take a look at Mitt Romney. He made more than 42 million dollars in 2010 and yet Romney had an effective tax rate of only 14 percent.
If I could find a way to have an effective tax rate of only 14 percent I would be jumping up and down for joy, and so would millions of other Americans.
Our tax system is deeply, deeply broken and needs to be thrown into the trash can.
Abandoning the current tax system would not solve all of our problems, but it would be a start.
Unfortunately, neither political party is willing to even consider this.
Instead, the Democrats want to raise taxes a little bit and the Republicans want to lower taxes a little bit.
But neither alternative will do much of anything to solve any of the real problems we are facing.
economy is dying and it is not producing nearly enough jobs for all of
us. When Barack Obama took office, the number of "long-term
unemployed workers" in
At this point, an astounding 53 percent of all college graduates under the age of 25 are either unemployed or underemployed.
So where is all of the "change" that Obama promised?
Things just keep getting worse.
Since Obama has been in the White House, 14 million more Americans have gone on food stamps, and more than 25 percent of all American children are enrolled in the program today.
How will class warfare help those people?
Will blaming the wealthy make things better for them?
They are already receiving government handouts.
Will increasing those handouts a little bit more fundamentally change their lives for the better?
Of course not.
What those people need are good jobs.
But instead, both the Democrats and the Republicans continue to pursue the same job killing policies that have been destroying American jobs for decades.
Without good jobs, the number of Americans dependent on the government is going to continue to grow.
In a previous article, I detailed the explosive growth of social welfare benefits that we have seen under both Republicans and Democrats....
Back in 1960, social welfare benefits made up approximately 10 percent of all salaries and wages. In the year 2000, social welfare benefits made up approximately 21 percent of all salaries and wages. Today, social welfare benefits make up approximately 35 percent of all salaries and wages.
The goal should not be to rape the rich and give out even more social welfare benefits.
Instead, the goal should be to develop an economy that creates good jobs.
We need have an economy that empowers individuals and small businesses.
Instead, we have an economy dominated by big government and big corporations.
We have an economy that funnels the vast majority of the economic rewards to a tinywhile most of the rest of us struggle.
But instead of focusing on real solutions like shutting down the Federal Reserve, converting to debt-free currency, eliminating the income tax, shutting down the IRS, massively reducing the size of government and getting rid of thousands upon thousands of unneeded regulations, the mainstream media and our politicians are going to continue to try to get Americans to blame one another for our problems.