Archive for April, 2017

Hey, whoever wrote “Trump’s” tax “plan” may be on to something.

April 29, 2017

“we should cut taxes, increase spending, and cut the debt, but you figure out how.”
*****

***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha[Gautama Siddharta] (563 – 483 BC), Hindu Prince, founder of Buddhism
******* “”We cannot solve our problems with the same thinking we used when we created them”.Albert Einstein.

“It’s time to rewrite the rules―to curb the runaway flow of wealth to the top one percent, to restore security and opportunity for the middle class, and to foster stronger growth rooted in broadly shared prosperity.”( Economic Nobel Laureate Joseph Stiglitz)
Increase……. Wages, Jobs, the Standard of Living.
Decrease…… National Debt, Poverty, Inequality Gaps.
Yes, IT IS TIME TO MAKE AMERICA GREAT AGAIN.

https://bestsolutionsfl.wordpress.com/2017/03/14/rewrite-the-rules-reverse-the-money-flow-i-p-r-a-p-t-i-r-p-a/

#Monetary Sovereignty - Mitchell

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………..
It takes only two things to keep people in chains: The ignorance of the oppressedand the treachery of their leaders..
………………………………………………………………………………………………………………………………………………………………………………

O.K., so it actually isn’t a “plan.” It’s a simplistic, one page, double-spaced, little note that purports to guide a replacement for our gigantic tax code. It is a little paper that essentially says “we should cut taxes, increase spending, and cut the debt, but you figure out how.”

It reminds one of the double-spaced, “print-in-large-letters” response that we pre-computer high schoolers created, when our teacher gave us the assignment to write about some subject, and we tried to stretch our ignorance over the greatest number of pages.

But at least, we wrote several pages; Trump delivered only one page. And it isn’t actually Trump’s; he had people to write it for him.

But what else could we expect…

View original post 2,213 more words

Beware-Media Lies & Fake News.

April 24, 2017

Beware-Media Lies & Fake News.Republicans control Congress. Pres. Trump is a Republican.Once you submit to the premises, you submit to everything else-You are victimized.
Read more…’Taboos and propaganda’ by elizabethharris001
“Once you submit to the premises, you submit to everything else. Once you get your vocabulary and all your information from the corporate media outlets, you support the media lies, no matter how much you claim not to.
Therefore it is useless to begin from a stance of “Yes, but…”
“Yes,… (The combined premises being true)… but…”
Right away you lose the entire argument, since you have conceded all your opponent’s premises and buzzwords. You figured the “Yes, but…” approach would be persuasive. You thought you would score points by conceding the fundamental lies, and by spinning the lies in a different way. You were wrong.
In politics the most crucial part of any lie is its premise and its vocabulary.”

why-a-global-disaster-that-could-easily-have-been-prevented-took-place/

April 18, 2017

why-a-global-disaster-that-could-easily-have-been-prevented-took-place/
April 18, 2017
https://rwer.wordpress.com/2017/04/18/why-a-global-disaster-that-could-easily-have-been-prevented-took-place/#comment-118465

A simple new paradigm, by Frederick Soddy(1936):
“Money now is the NOTHING you get for SOMETHING
before you can get ANYTHING.”
‘SOMETHING’ must be given up to acquire the ‘NOTHING’
in order to get ‘ANYTHING’.
Money is a receipt for SOMETHING.
Money can not create SOMETHING.
This is what money is.
Money created by other means is ‘fictitious’, counterfeit.
” All smoke and mirrors.” All designed with ONE intention: ‘ To Hide The Issuers Alchemy ‘. It does not matter how the ‘money’ is coined, printed, or digitized – It is not wealth; it is a receipt
of SOMETHING given up. The value of the receipt is the transfer of the SOMETHING given up. When one understands this basic universal law, they will know of this deceit.”(Frederick Soddy)

Why a global disaster that could easily have been prevented took place.
by Edward Fullbrook
from Edward Fullbrook Steve Keen has a new book out: Can we avoid another financial crisis? Keen, as you probably know, was one of those economists – Nouriel Roubini, Dean Baker, Ann Pettifor, Michael Hudson, Wynne Godley and others – who warned well in advance that the Global Financial Crash was coming if preventive measures […]

Read more of this post https://rwer.wordpress.com/2017/04/18/why-a-global-disaster-that-could-easily-have-been-prevented-took-place/

Solution to Inequality: Federal Income Taxation- “I.R.A.P.”

April 11, 2017

Carmen Basilovecchio
Apr 8
An Answer for”Of Dollars And Data”
Equality and Justice For All: Do Any Solutions Exist?
Rewrite the Rules.Reverse the Money Flow. (I.P.R.A.P.)
March 14, 2017
***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis, you find to be kind, conducive to the good, the benefit, the welfare of all beings — that doctrine believe and cling to, and take it as your guide.”- Buddha[Gautama Siddharta] (563–483 BC), Hindu Prince, founder of Buddhism
******* “”We cannot solve our problems with the same thinking we used when we created them”.Albert Einstein
“It’s time to rewrite the rules―to curb the runaway flow of wealth to the top one percent, to restore security and opportunity for the middle class, and to foster stronger growth rooted in broadly shared prosperity.”( Economic Nobel Laureate Joseph Stiglitz)
Increase……. Wages, Jobs, the Standard of Living.
Decrease…… National Debt, Poverty, Inequality Gaps.
Yes, IT IS TIME TO MAKE AMERICA GREAT AGAIN.
A HISTORIC CHANGE For The Betterment of The People.
Allow everyone to achieve “The American Dream” and to retain their “Fair Share”
Yes,”It’s a very exciting time for America.
Your voices represent a bright new future for our great nation full of more opportunities for everyone, not just a select few.
Together, we have created a movement that continues to gain momentum.
Together, we are making history. Together, we are bringing back the American Dream.
The time is now, Together, we will Make America Great Again!”
The U S Constitution has structured this union
so that the Chief Executive Officer, CEO (The President)
is responsible to its Board of Directors, BOD (The Congress)
and with its Chief Compliance Office, CCO (The U.S. Supreme Court)
shall work together “…to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
WE MUST FOLLOW THE MONEY FLOW !
As Nobel Laureate Frederick Soddy stated, “Money now is a license to live.”
“Since, in all monetary civilizations, it is money that alone can effect the exchange of wealth and the continuous flow of goods and services throughout the nation, money has become the lifeblood of the community, and for each individual a veritable license to live at all…”(The Role Of Money.)
It is time to claim “Your FAIR SHARE of the American Dream.”
Make the money flow for the betterment “Of The People,” a reversal, a change “For The People.”
THIS FLOW WILL BE GENDER NEUTRAL, RACE NEUTRAL AND BASED ONLY on the fulfillment for LIFE, LIBERTY AND THE PURSUIT OF HAPPINESS.
Now is the time to create the laws that would allow this change in direction.
Help to decrease the gaps of inequality, help decrease the numbers of those
in the grip of poverty, help raise the standard of living; all at the same time…
WE MUST REVERSE THE DIRECTION OF THE PRESENT FLOW !
“Trickle Down” now doesn’t work.
Yes, OCCUPY, Yes, Pope Francis, the “Trickle Down” system doesn’t work.
It doesn’t work because the establishment impedes the flow.
REPEAT: It doesn’t work because the establishment impedes the flow.
This must change.
We must remove these impediments and create a flow of wealth directly to the “PEOPLE.”
The system is meant to “reward all”, to allow all “Their Fair Share”.
Millions now realize;… the economy is rigged, …the justice system is rigged, …the health care system is rigged, …the employment system is rigged.
All part of an economic system that is really just a rigged political system.
Fortunately, this past November the voters across America have made the choice to cast a revolutionary vote to “MAKE AMERICA GREAT AGAIN.”
SEVENTY percent of the people believe the American economy is rigged. And they’re right.
EIGHTY percent of the people desire a change, a revolution. And they’re right.
History has allowed an opportunity for “AMERICA TO MAKE ITSELF GREAT AGAIN.”
We must mandate a reversal of “… an economic recovery program that has… fueled the increase in wealth inequality…”
Reverse that program, make the money FLOW to “…help form a more perfect Union,
establish Justice, insure domestic Tranquility, provide for the common defense, promote
the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity…”
“Yes, We Can Lower Taxes, Pay Off The Debt, And At The Same Time Increase Revenue.”
IMMEDIATE STEP:

“INEQUALITY and POVERTY REDUCTION ADJUSTMENT PROGRAM”
( I.P.R.A.P. )

Capitalism demands inequality as a just proportional reward.
It is the size of the “Gaps” where the administration of inequality becomes distorted.
The size of the ‘Gaps’ is a demand of the administration of the quality and quantity of these ‘gaps’.
Taxation is a ways and means by which a government controls the quality and quantity of its currency already in circulation.
Currency that it can redistribute without changing the quality or quantity of the entire currency.
American Capitalism should allow everyone to achieve
‘The American Dream’ and to retain that “Fair Share.”
But that dream should not impede the poor and elderly from achieving their FAIR SHARE.
Nor should it impede the risk and reward which will ultimately lead to a betterment for all.
A federal taxation of personal income must recognize the sanctity of “The fruits of mankind’s labor”
A federal taxation of personal income should be used to control the distribution of income to obtain
a fair and just sharing of the American Dream, a just and fair sharing of the world’s riches while
maintaining the greatest standard of living.
“Inequality and Poverty Reduction Adjustment Program” ( I.P.R.A.P. )
“THE NEW ONE PAGE: Federal Personal Income Tax: 2017”
Brackets & Rates for Joint filers with:
GROUP ONE- income less than $100,000:
GROUP TWO- income more than $100,000 but less than $225,000:
GROUP THREE-income more than $225,000:
*Brackets for single filers are ½ of these amounts.
ALL income is taxable and must be reported.
All income is to be taxed at the same rate-30%.
NO exemptions. NO loopholes.Period.
Deductions:
This plan will increase the standard deduction for joint filers to $80,000,
and the standard deduction for single filers will be $40,000.
Taxes must be paid, any claim of injustice may be filed for a proportional refund, if approved, it shall become a tax credit in the next year.
***The Tax Group One:
A… will receive a 8% distribution to replace their losses caused by sales taxes which are a detriment to their ‘standard of living’. This 8% will also replace any Social Security loss.The rebate will help grow our economy as well as allow wage earners to keep their share of the American Dream and raise the standard of living.
Refundable Tax credits that become ‘overages’ will become an immediate cash refund.
B… will receive a ‘take home’ pay increase.There will be no FICA payment taken out of their pay.This is at ZERO cost to production (The minimum wage concept would cost jobs as well as increase production cost). This merely places what was earned into their paycheck; it is the F.I.C.A. that was withheld from them; now going directly into their take home pay.
C… VETERANS WHO SERVED; DESERVE a direct lifetime annual refundable tax credit of $3,000.
( I.P.R.A.P. ) will create a direct increase in wages, an increase in Social Security, a direct increase
in income to more than 80% “of the people.” and it will be done “along with a
reduction in National Debt.”
We must mandate that the Executive branch and the Legislative branch,
Reverse an economic privileged program that has lead to increases in wealth inequality.
Reverse that program, make the money FLOW to “…help form a more perfect Union, establish Justice,
insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure
the Blessings of Liberty to ourselves and our Posterity…”

“Inequality and Justice For All”…FULL TEXT:
(https://ofdollarsanddata.com/inequality-and-justice-for-all-the-future-of-economic-outcomes-in-the-u-s-5b60e051be4d)
The Future of Economic Outcomes in the U.S.
This week I want to discuss what I believe will be the most important economic issue in the coming decades: income and wealth inequality.
However, before I dive into this, I want to emphasize that inequality by itself is not necessarily a bad thing. In the U.S. most people support some level of inequality to reward those who work hard, take financial risks (i.e. starting a business), or get lucky. This is true as long as there is equality of opportunity (i.e. everyone starts at the same place). The problem is that everyone does not start at the same place though we would like to think they do. Putting this aside, the big question is: should we have a mechanism in place to prevent extreme levels of inequality, even if everyone does start off equally?
If you haven’t read or heard much on income/wealth inequality, I highly recommend watching this video to understand how unequal wealth has gotten within the U.S. If you don’t have time for the video, this chart will do (from this article):

As you can see that the top 1% has seen a huge increase in the share of national income while the bottom 50% have seen a decrease in their share. However, this is for total income. If we were to look at specific kinds of income and assets in the U.S. more generally, we would see a clearer picture of what is driving inequality. Using the Survey of Consumer Finances data I looked at the inequality across households for various financial metrics (i.e. Net Worth, Assets, Dividend Income, etc.). I found that though income inequality is getting worse, financial assets exhibit far more inequality:

The y-axis here is an inequality measure (a Gini coefficient calculated using the household weights from the Survey of Consumer Finances). As you can see, income from financial assets exhibits far more inequality than traditional wage income. This data aligns with a Bloomberg article that discusses some of the main drivers of recent inequality including: an increased share of capital income compared to labor income and rising concentrations of capital.
Essentially, technological changes have given the owners of capital a bigger share of the gains than the individuals using that capital. This is why business owners are getting rich while employees are not, though employees are far more productive than they used to be (see my article on productivity here). One solution is to get more individuals to have more ownership of capital (i.e. businesses, stocks, etc.), which is easier said than done.
So inequality is increasing, but what’s the big deal? Simply: large enough relative differences in income/wealth can lead to civil unrest. Yes I am talking about “grabbing the pitchforks” among other things. You might think I am crazy for suggesting this as a possibility, then what do you think about the Silicon Valley elite who have already started preparing for this scenario? I think as a nation we need to realize that even with equality of opportunity, we need to have some mechanism in place to prevent extreme levels of inequality if current trends continue. The Giving Pledge which has the support of many top billionaires is a start, but I don’t think this will be enough, especially with the current tax proposals being considered in Washington.
Equality and Justice For All: Do Any Solutions Exist?
Given where we are today, do any solutions exist to slow or reverse rising inequality? One possibility, which almost never discussed by the media/politicians, is raising the capital gains tax. One study attributed most of the changes in inequality to lowered capital gains taxes in recent decades.
The counter argument against increased capital gains taxes is that they lower incentives for investment and harm economic growth. However, there seems to be no empirical evidence of this. In a testimony by Leonard E. Burman in 2012, Burman found that there was no significant correlation between the capital gains tax and economic growth in the U.S:

Now, even if we increased the capital gains tax, this does not address how to increase the income/wealth of lower classes. Capital gains is a way to slow the rich down, but it won’t necessarily speed up the poor. For this reason I don’t like this solution that much.
A better solution that also addresses the imbalance in financial asset ownership was proposed in a book by Jerry Kaplan. The idea is to set a company’s corporate tax rate based upon the number of people that would benefit from ownership. Therefore, those companies that have wider distribution of ownership would be taxed less than companies with concentrated ownership. This would provide an advantage in the marketplace to those companies that are owned most equitably by the most number of people. I personally think it is a fantastic idea in theory, though it may be difficult in practice and can likely be gamed.
One final caveat on this discussion is that inequality is not static. The people in the top 1% percent of income in one year are not all the same people in the next year. There is some level of income mobility in the U.S. as this New York Times article discusses how “12 percent of of the population will find themselves in the top 1 percent of the income distribution for at least one year” and “56 percent will find themselves in the top 10 percent.”
I hope you enjoyed thinking about some of these issues as I am unsure myself on how we can solve them. Please comment if you have any thoughts on this, I would love to hear them. I don’t know what the future holds, but I hope it isn’t pitch forks.
Thank you for reading! If you liked this post, please consider clicking that green heart on the left or sharing on Twitter, Facebook, or LinkedIn. Follow me here for future stories.
This is post 10. Any and all code I have related to this post can be found here with the same numbering: https://github.com/nmaggiulli/of-dollars-and-data
Disclaimer
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. The postings on this site are my own and do not necessarily reflect the views of my employer.
EconomicsInequality

RE-BLOGGED ON: Basilovecchioblog.wordpress.com

Solution to Inequality…Federal Personal Income Taxes !

April 8, 2017

Carmen Basilovecchio
Apr 8
An Answer for”Of Dollars And Data”
Equality and Justice For All: Do Any Solutions Exist?
Rewrite the Rules.Reverse the Money Flow. (I.P.R.A.P.)
March 14, 2017
***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings — that doctrine believe and cling to,and take it as your guide.”- Buddha[Gautama Siddharta] (563–483 BC), Hindu Prince, founder of Buddhism
******* “”We cannot solve our problems with the same thinking we used when we created them”.Albert Einstein
“It’s time to rewrite the rules―to curb the runaway flow of wealth to the top one percent, to restore security and opportunity for the middle class, and to foster stronger growth rooted in broadly shared prosperity.”( Economic Nobel Laureate Joseph Stiglitz)
Increase……. Wages, Jobs, the Standard of Living.
Decrease…… National Debt, Poverty, Inequality Gaps.
Yes, IT IS TIME TO MAKE AMERICA GREAT AGAIN.
A HISTORIC CHANGE For The Betterment of The People.
Allow everyone to achieve “The American Dream” and to retain their “Fair Share”
Yes,”It’s a very exciting time for America.
Your voices represent a bright new future for our great nation full of more opportunities for everyone, not just a select few.
Together, we have created a movement that continues to gain momentum.
Together, we are making history. Together, we are bringing back the American Dream.
The time is now, Together, we will Make America Great Again!”
The U S Constitution has structured this union
so that the Chief Executive Officer, CEO (The President)
is responsible to its Board of Directors, BOD (The Congress)
and with its Chief Compliance Office, CCO (The U.S. Supreme Court)
shall work together “…to form a more perfect Union , establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
WE MUST FOLLOW THE MONEY FLOW !
As Nobel Laureate Frederick Soddy stated, “Money now is a license to live.”
“Since, in all monetary civilizations, it is money that alone can effect the exchange of wealth and the continuous flow of goods and services throughout the nation, money has become the life-blood of the community,and for each individual a veritable license to live at all…”(The Role Of Money.)
It is time to claim “Your FAIR SHARE of the American Dream.”
Make the money flow for the betterment “Of The People”, a reversal, a change “For The People”.
THIS FLOW WILL BE GENDER NEUTRAL, RACE NEUTRAL AND BASED ONLY on the fulfillment for LIFE, LIBERTY AND THE PURSUIT OF HAPPINESS.
Now is the time to create the laws that would allow this change in direction.
Help to decrease the gaps of inequality, help decrease the numbers of those
in the grip of poverty,help raise the standard of living; all at the same time..
WE MUST REVERSE THE DIRECTION OF THE PRESENT FLOW !
“Trickle Down” now doesn’t work.
Yes, OCCUPY, Yes, Pope Francis, the “Trickle Down” system doesn’t work.
It doesn’t work because the establishment impedes the flow.
REPEAT: It doesn’t work because the establishment impedes the flow.
This must change.
We must remove these impediments and create a flow of wealth directly to the “PEOPLE”.
The system is meant to “reward all”, to allow all “Their Fair Share”.
Millions now realize;… the economy is rigged, …the justice system is rigged, …the health care system is rigged, …the employment system is rigged.
All part of an economic system that is really just a rigged political system.
Fortunately, this past November voters across America have made the choice to cast a revolutionary vote to “MAKE AMERICA GREAT AGAIN”
SEVENTY percent of the people believe the American economy is rigged. And they’re right.
EIGHTY percent of the people desire a change, a revolution. And they’re right.
History has allowed an opportunity for “AMERICA TO MAKE ITSELF GREAT AGAIN.”
We must mandate a reversal of “… an economic recovery program that has… fueled the increase in wealth inequality…”
Reverse that program, make the money FLOW to “…help form a more perfect Union,
establish Justice, insure domestic Tranquility, provide for the common defense, promote
the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
“Yes, We Can Lower Taxes, Pay Off The Debt, And At The Same Time Increase Revenue.”
IMMEDIATE STEP:

“INEQUALITY and POVERTY REDUCTION ADJUSTMENT PROGRAM”
( I.P.R.A.P. )

Capitalism demands inequality as a just proportional reward.
It is the size of the “Gaps” where the administration of inequality becomes distorted.
The size of the ‘Gaps’ are a demand of the administration of the quality and quantity of these ‘gaps’.
Taxation is a ways and means by which a government controls the quality and quantity of its currency already in circulation.
Currency that it can redistribute without changing the quality or quantity of the entire currency.
American Capitalism should allow everyone to achieve
‘The American Dream’ and to retain that “Fair Share”.
But that dream should not impede the poor and elderly from achieving their FAIR SHARE.
Nor should it impede the risk and reward which will ultimately lead to a betterment for all.
A federal taxation of personal income must recognize the sanctity of “The fruits of mankind’s labor”
A federal taxation of personal income should be used to control the distribution of income to obtain
a fair and just sharing of the American Dream, a just and fair sharing of the worlds riches while
maintaining the greatest standard of living.
“Inequality and Poverty Reduction Adjustment Program” ( I.P.R.A.P. )
“THE NEW ONE PAGE:Federal Personal Income Tax: 2017”
Brackets & Rates for Joint filers with:
GROUP ONE- income less than $100,000:
GROUP TWO- income more than $100,000 but less than $225,000:
GROUP THREE-income more than $225,000:
*Brackets for single filers are ½ of these amounts.
ALL income is taxable and must be reported.
All income is to be taxed at the same rate-30%.
NO exemptions. NO loopholes.Period.
Deductions:
This plan will increase the standard deduction for joint filers to $80,000,
and the standard deduction for single filers will be $40,000.
Tax must be paid, any claim of injustice may be filed for a proportional refund, if approved, it shall become a tax credit in the next year.
***The Tax Group One:
A… will receive a 8% distribution to replace their losses caused by sales taxes which are a detriment to their ‘standard of living’. This 8% will also replace any Social Security loss.The rebate will help grow our economy as well as allow wage earners to keep their share of the American Dream and raise the standard of living.
Refundable Tax credits that become ‘overages’ will become an immediate cash refund.
B… will receive a ‘take home’ pay increase.There will be no FICA payment taken out of their pay.This is at ZERO cost to production (The minimum wage concept would cost jobs as well as increase production cost). This merely places what was earned into their paycheck; it is the F.I.C.A. that was withheld from them; now going directly into their take home pay.
C… VETERANS WHO SERVED; DESERVE a direct lifetime annual refundable tax credit of $3000.
( I.P.R.A.P. ) will create a direct increase in wages, an increase in Social Security, a direct increase
in income to more than 80% “of the people.” and it will be done “along with a
reduction in National Debt”.
We must mandate that the Executive branch and the Legislative branch,
Reverse an economic privileged program that has lead to increases in wealth inequality.
Reverse that program, make the money FLOW to “…help form a more perfect Union, establish Justice,
insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure
the Blessings of Liberty to ourselves and our Posterity,…”

“Inequality and Justice For All”…FULL TEXT:
(https://ofdollarsanddata.com/inequality-and-justice-for-all-the-future-of-economic-outcomes-in-the-u-s-5b60e051be4d )
The Future of Economic Outcomes in the U.S.
This week I want to discuss what I believe will be the most important economic issue in the coming decades: income and wealth inequality.
However, before I dive into this, I want to emphasize that inequality by itself is not necessarily a bad thing. In the U.S. most people support some level of inequality to reward those who work hard, take financial risks (i.e. starting a business), or get lucky. This is true as long as there is equality of opportunity (i.e. everyone starts at the same place). The problem is that everyone does not start at the same place though we would like to think they do. Putting this aside, the big question is: should we have a mechanism in place to prevent extreme levels of inequality, even if everyone does start off equally?
If you haven’t read or heard much on income/wealth inequality, I highly recommend watching this video to understand how unequal wealth has gotten within the U.S. If you don’t have time for the video, this chart will do (from this article):

As you can see that the top 1% has seen a huge increase in the share of national income while the bottom 50% have seen a decrease in their share. However, this is for total income. If we were to look at specific kinds of income and assets in the U.S. more generally, we would see a clearer picture of what is driving inequality. Using the Survey of Consumer Finances data I looked at the inequality across households for various financial metrics (i.e. Net Worth, Assets, Dividend Income, etc.). I found that though income inequality is getting worse, financial assets exhibit far more inequality:

The y-axis here is an inequality measure (a Gini coefficient calculated using the household weights from the Survey of Consumer Finances). As you can see income from financial assets exhibits far more inequality than traditional wage income. This data aligns with a Bloomberg article that discusses some of the main drivers of recent inequality including: an increased share of capital income compared to labor income and rising concentrations of capital.
Essentially, technological changes have given the owners of capital a bigger share of the gains than the individuals using that capital. This is why business owners are getting rich while employees are not, though employees are far more productive than they used to be (see my article on productivity here). One solution is to get more individuals to have more ownership of capital (i.e. businesses, stocks, etc.), which is easier said than done.
So inequality is increasing, but what’s the big deal? Simply: large enough relative differences in income/wealth can lead to civil unrest. Yes I am talking about “grabbing the pitchforks” among other things. You might think I am crazy for suggesting this as a possibility, then what do you think about the Silicon Valley elite who have already started preparing for this scenario? I think as a nation we need to realize that even with equality of opportunity, we need to have some mechanism in place to prevent extreme levels of inequality if current trends continue. The Giving Pledge which has the support of many top billionaires is a start, but I don’t think this will be enough, especially with the current tax proposals being considered in Washington.
Equality and Justice For All: Do Any Solutions Exist?
Given where we are today, do any solutions exist to slow or reverse rising inequality? One possibility, which almost never discussed by the media/politicians, is raising the capital gains tax. One study attributed most of the changes in inequality to lowered capital gains taxes in recent decades.
The counter argument against increased capital gains taxes is that they lower incentives for investment and harm economic growth. However, there seems to be no empirical evidence of this. In a testimony by Leonard E. Burman in 2012, Burman found that there was no significant correlation between the capital gains tax and economic growth in the U.S:

Now, even if we increased the capital gains tax, this does not address how to increase the income/wealth of lower classes. Capital gains is a way to slow the rich down, but it won’t necessarily speed up the poor. For this reason I don’t like this solution that much.
A better solution that also addresses the imbalance in financial asset ownership was proposed in a book by Jerry Kaplan. The idea is to set a company’s corporate tax rate based upon the number of people that would benefit from ownership. Therefore, those companies that have wider distribution of ownership would be taxed less than companies with concentrated ownership. This would provide an advantage in the marketplace to those companies that are owned most equitably by the most number of people. I personally think it is a fantastic idea in theory, though it may be difficult in practice and can likely be gamed.
One final caveat on this discussion is that inequality is not static. The people in the top 1% percent of income in one year are not all the same people in the next year. There is some level of income mobility in the U.S. as this New York Times article discusses how “12 percent of of the population will find themselves in the top 1 percent of the income distribution for at least one year” and “56 percent will find themselves in the top 10 percent.”
I hope you enjoyed thinking about some of these issues as I am unsure myself on how we can solve them. Please comment if you have any thoughts on this, I would love to hear them. I don’t know what the future holds, but I hope it isn’t pitch forks.
Thank you for reading! If you liked this post, please consider clicking that green heart on the left or sharing on Twitter, Facebook, or LinkedIn. Follow me here for future stories.
This is post 10. Any and all code I have related to this post can be found here with the same numbering: https://github.com/nmaggiulli/of-dollars-and-data
Disclaimer
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. The postings on this site are my own and do not necessarily reflect the views of my employer.
EconomicsInequality

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Bernie voters, Occupy voters, Trump voters “UNITED” “…’ to form a more perfect union…The 2nd American Revolution.

April 4, 2017

Bernie voters, Occupy voters, Trump voters
“UNITED” “…’ to form a more perfect union…

The Second American Revolution, 2016.
The U S Constitution has structured this union
so that the Chief Executive Officer, CEO (The President)
is responsible to its Board of Directors, BOD (The Congress)
and with its Chief Compliance Office, CCO (The U.S. Supreme Court)
shall work together “…to form a more perfect Union , establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”

A HISTORIC CHANGE; GIVE THE POWER BACK TO THE PEOPLE.
Allow everyone to achieve “The American Dream” and to retain their “Fair Share”
It’s a very exciting time for America.
Our peoples voices represent a bright new future for our great nation full of more opportunities for everyone, not just a select few.
Together, we have created a movement that continues to gain momentum.
Together, we are making history. Together, we are bringing back the American Dream.
The system is meant to “reward all”, to allow all “Their Fair Share”.
Millions now realize;… the economy is rigged, …the justice system is rigged, …the health care system is rigged, …the employment system is rigged.
All part of an economic system that is really just a rigged political system.
Fortunately, this past November voters across America have made the choice to cast a revolutionary vote to “MAKE AMERICA GREAT AGAIN”
SEVENTY percent of the people believe the American economy is rigged. And they’re right.
EIGHTY percent of the people desire a change, a revolution. And they’re right.
History has allowed an opportunity for “AMERICA TO MAKE ITSELF GREAT AGAIN.”

History has allowed (maybe perhaps for the last time) only one candidate to remain to accomplish this goal.
2016,The Second American Revolution can…” Reverse, .. an economic recovery program that has privileged the recovery of financial markets and corporate profits has fueled the increase in wealth inequality, in the United States and across the world.”(Mehrsa Baradaran).
Reverse that program, make the money FLOW to “…help form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
..”THE MOVEMENT OF 2016”
Make the money flow for the betterment “Of The People”, a reversal, a change “For The People”.
THIS FLOW WILL BE GENDER NEUTRAL, RACE NEUTRAL AND BASED ONLY on the fulfillment for LIFE, LIBERTY AND THE PURSUIT OF HAPPINESS.
Now is the time to create the laws that would allow this change in direction.
Help to decrease the gaps of inequality, help decrease the numbers of those
in the grip of poverty,help raise the standard of living; all at the same time..

WE MUST REVERSE THE DIRECTION OF THE PRESENT FLOW !
Increase……. Wages, Jobs, the Standard of Living
Decrease…… National Debt, Poverty, Inequality Gaps,
“It’s time to rewrite the rules―to curb the runaway flow of wealth to the top one percent, to restore security and opportunity for the middle class, and to foster stronger growth rooted in broadly shared prosperity.”( Economic Nobel Laureate Joseph Stiglitz)

SPEAK TO THE MESSENGER-PLEDGE YOUR VOTE- FOR THE MESSAGE. .
When you enter that election booth, that time is sacred.
No matter what has been said or done you and you alone shall record history.
Tell yourself, “This is the moment of truth. I have been pounded and battered by this rigged system;‘enough is enough’. Now at this moment I have the power to change this system.”

When Clinton and Obama spoke about “an attack on our basic democracy” did you ever think they could be talking about you and your challenge ‘of acceptance of our sacred vote’ ?

Where’s your voice, your sacrifice for OUR CONSTITUTION.
“UNITE NOT FIGHT”
President Trump has a 36% loyal solid base of supporters; Senator Sanders has a 35% loyal
solid base of supporters: United , An unbeatable 71%.
Quote Gandhi, “First they ignore you, then they ridicule you, then they fight you, and then you win.”

*** “Unite not fight”
Put them to work, give them guidance. It is the People’s will to govern; not to be governed by political power.

The greatest challenge to over come will be slung at you in a million ways by the
“rigged” mass media, with millions of cries,
It can’t be done.”,“You will put us in unbearable debt.” “We will no longer be able to sustain our sovereignty.”
Hundreds of millions will be spent to keep the system rigged and to keep the status quo.
Now the pressure will be placed on you.
YOU MUST STAND FIRM AND STAND UNITED.

“The COUNTRY is controlled by LAWS>
LAWS are controlled by POLITICIANS>
POLITICIANS are controlled by VOTERS>
VOTERS are controlled by PUBLIC OPINION>
PUBLIC OPINION is controlled by the MEDIA
(News, Hollywood, Internet…) & EDUCATION
so. whoever controls MEDIA & EDUCATION, controls the COUNTRY.”
( William J. Federer, Change to Chains,)

There is time for redemption.
Set aside all this misdirection, its not about the messengers past.
Its about the future, your children’s, and your children’s children’s future.
When you entered that election booth, that time was sacred.
No matter what has been said or done you and you alone recorded history.
Telling yourself, “This is the moment of truth. I have been pounded and battered by this rigged system;‘enough is enough’. Now at this moment I have the power to change this system.”

Trillions have been spent to help banks and business,isn’t it time to help the people?
Help legislate Healthcare for All; Help to lower the gaps of inequality, help the more than 130 million in the grip of poverty, help raise the standard of living; all at the same time, while creating 25 million new jobs and reducing the national debt.
UNITED, this can be accomplished.
It is time to claim “Your FAIR SHARE of the American Dream.”
Maybe, perhaps as AMERICANS, “IN GOD WE TRUST”
Maybe, perhaps as AMERICANS, “WE THE PEOPLE WILL WIN”.

Divided, the system was rigged against Bernie Sanders.
Quote Michael Hudson, “The Democratic Party has lost its ability to pose as the party of labor and the middle class. Firmly controlled by Wall Street and California billionaires, the Democratic National Committee (DNC) strategy of identity politics encourages any identity except that of wage earners. The candidates backed by the Donor Class have been Blue Dogs pledged to promote Wall Street and neocons urging a New Cold War with Russia.
They preferred to lose with Hillary than to win behind Bernie Sanders. So Trump’s electoral victory is their legacy as well as Obama’s. Instead of Trump’s victory dispelling that strategy, the Democrats are doubling down. It is as if identity politics is all they have.”
“… As soon as the primaries were over (duly
stacked against Sanders), his followers were made to feel unwelcome. Hillary sought
Republican support by denouncing Sanders as being radical and utopian in advocating a
public option for health care and in seeking to rein in Wall Street – the Democratic Donor
Class. Her aim was to counter Sanders’ attempt to convince diverse groups that they had a
common denominator in needing jobs with decent pay – and, to achieve that, in opposing
Wall Street’s replacing the government as central planner – the Democrats depict every
identity constituency as being victimized by every other, setting themselves at each other’s
heels.”
“…Bernie did not choose to run on a third-party ticket. Evidently he feared being accused of
throwing the election to Trump. The question is now whether he can remake the Democratic
Party as a democratic socialist party, or create a new party if the Donor Class retains its
neoliberal control.” ( http://www.paecon.net/PAEReview/issue78/Hudson78.pdf )

“During Trump’s rise to the 2016 Republican nomination it seemed that he was more likely to
break up the Republican Party. Its leading candidates and gurus warned that his populist
victory in the primaries would tear the party apart. The polls in May and June showed him
defeating Hillary Clinton easily (but losing to Bernie Sanders). But Republican leaders worried
that he would not support what they believed in: namely, whatever corporate lobbyists put in
their hands to enact and privatize.
The May/June polls showed Trump and Clinton were the country’s two most unpopular
presidential candidates. But whereas the Democrats maneuvered Bernie out of the way, the Republican Clown Car was unable to do the same to Trump. In the end they chose to win
behind him, expecting to control him…”
As for the Democratic National Committee, its Wall
Street donors preferred to lose with Hillary than to win with Bernie. They wanted to keep
control of their party and continue the bargain they had made with the Republicans: The latter
would move further and further to the right, leaving room for Democratic neoliberals and
neocons to follow them closely, yet still pose as the “lesser evil”. That “centrism” is the
essence of the Clintons’ “triangulation” strategy. It actually has been going on for a halfcentury.
“As Tanzanian President Julius Nyerere quipped in the 1960s, when he was accused
by the US of running a one-party state, ‘The United States is also a one-party state but, with
typical American extravagance, they have two of them’.”
“… U.S. presidential elections no longer are much about policy. Like Obama before him, Trump
campaigned as a rasa tabla, a vehicle for everyone to project their hopes and fancies. What
has all but disappeared is the past century’s idea of politics as a struggle between labor and
capital, democracy vs. oligarchy.
Who would have expected even half a century ago that American politics would become so
post-modern that the idea of class conflict has all but disappeared. Classical economic
discourse has been drowned out by modern economist’s neoliberal junk economics.”
( http://www.paecon.net/PAEReview/issue78/Hudson78.pdf )

Divided, the system is rigged against Donald Trump.
“However, having successfully, and strategically, appealed to enough of the electorate in key districts to win the Electoral College vote, Trump has run eagerly into the establishment’s embrace, which was likely his goal all along. The necessary result was a wider gap between his politics of support and his new establishmentarian politics of power.”(http://www.counterpunch.org/2017/02/10/decoding-trump/)
“Since the 2016 election demonstrated the bankruptcy of the professional political classes and led to the election of an upstart outsider, friction between him and the establishment will continue to rock the US polity. Depending on how this relationship fares, and thus on how important it remains for him to secure his working class base for 2020, the distance between Trump’s politics of power and support will widen or narrow.”(http://www.counterpunch.org/2017/02/10/decoding-trump/)

There are but two choices.
1.Continue in this legislated Servitude, or
2. Legislate Prosperity “For the People”.
Divided, We the People shall fail.
United, We the People shall prevail.

“MAKE THE DEAL FROM THE MOST POWERFUL POSITION EVER.”
Yes, BERNIE, yes, OCCUPY , Why have you abandoned your people?
Your audit of the Fed proved beyond a reasonable doubt The Fed gave $16 trillion to the banks WHILE LAMENTING “WE WISH WE COULD DO SOMETHING FOR THE PEOPLE” . REDEMPTION IS STILL POSSIBLE !!! PROVE THE POWER OF YOUR VOTES !!
What if Bernie voters, Occupy voters
“MAKE THE DEAL WITH TRUMP VOTERS”
and support the REVOLUTION!
UNITED in one common cause, “.We must mandate that the Executive branch and the Legislative branch, Reverse..“… an economic recovery program that has privileged the recovery of financial markets and corporate profits has fueled the increase in wealth inequality, in the United States and across the world.”(Mehrsa Baradaran)
Reverse that program, make the money FLOW to “…help form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”

Make TRUMP accountable. His words, his Inauguration.
Donald Trump is the 45th president of the United States.

“We, the citizens of America, are now joined in a great national effort to rebuild our country and restore its promise for all of our people.
Together, we will determine the course of America and the world for many, many years to come. We will face challenges. We will confront hardships. But we will get the job done.

Every four years we gather on these steps to carry out the orderly and peaceful transfer of power.

…Today’s ceremony, however, has a very special meaning because today we are not merely transferring power from one administration to another or from one party to another, but we are transferring power from Washington, D.C., and giving it back to you, the people.
For too long, a small group in our nation’s capital has reaped the rewards of government while the people have borne the cost. Washington flourished, but the people did not share in its wealth. Politicians prospered but the jobs left and the factories closed.
The establishment protected itself, but not the citizens of our country. Their victories have not been your victories. Their triumphs have not been your triumphs. And while they celebrated in our nation’s capital, there was little to celebrate for struggling families all across our land.
That all changes starting right here and right now, because this moment is your moment.
It belongs to you.
It belongs to everyone gathered here today and everyone watching all across America.
This is your day.
This is your celebration.
And this, the United States of America, is your country.
What truly matters is not which party controls our government, but whether our government is controlled by the people.
January 20th, 2017, will be remembered as the day the people became the rulers of this nation again.
The forgotten men and women of our country will be forgotten no longer. Everyone is listening to you now. You came by the tens of millions to become part of a historic movement, the likes of which the world has never seen before.
At the center of this movement is a crucial conviction that a nation exists to serve its citizens. Americans want great schools for their children, safe neighborhoods for their families, and good jobs for themselves.”(Jan 2017)

UNITED PLEDGE TO …..”transferring power from Washington, D.C., and giving it back to you, the people.
Fix Healthcare….make it affordable with better care for all.
Increase……. Wages, Jobs, the Standard of Living
Decrease…… Federal Debt, Poverty, Inequality Gaps.

President Trump’s victory was good but not enough to push the 70% of those concerned about
“INEQUALITY AND POVERTY (STANDARD OF LIVING)”
Good but not enough to push the 80% of those concerned about
“CHANGE( NEW DEALS)”
Good but not enough to overcome the massive power of the rigged system….
$23 to $1 against any change.

Unless we want to be CRUSHED, we must have the 70% to 80% push back.
This victory will be “the fruit of their labor”.
”THE MOVEMENT OF 2016”
Withhold individual requests to Congress.
United present to the people.
Have the 71% demand Congress “DO YOUR JOB”.
Justaluckyfool@aol.com

“SEIZE THE MOMENT ! ”
Give the power back to its rightful owners – ‘The People’. It is time to deal.”

The best way to attack a problem- A Solution that fixes it.
We can not negotiate with any one that will not negotiate in ‘good faith; nor should we!
Mick Mulvaney, the director of the White House Office of Management and Budget,Paraphrased Washington as being ‘broken’ and questioned the GOP’s capability to lead. ‘Is the Republican Party capable of governing?’ he asked. ‘I know the man in the White House is capable of governing. I saw it this week.'(Meet The Press-3/26).
Trump, the businessman who touted his ability to get things done and promised to transcend Washington politics, said he’s learned from the experience “This was an interesting period of time. We all learned a lot,” he said in the Oval Office. “We learned a lot about loyalty and we learned a lot about the vote getting process. And we learned about very arcane rules in both the Senate and the House. “Certainly for me it was a very interesting experience, but for me, it’ll be an experience that leads to an even better health care plan.”

President Donald Trump,
Requests your attendance and participation:
A special invitation to Senator Bernie Sanders,
Rep. John Conyers,
Speaker of the House Paul Ryan, and
Republican Majority Leader Mitch McConnell,
to come together at the White House for a special meeting to put together an acceptable Congressional Bill that will amend and repeal the ACA known as Obamacare, while creating ” Affordable coverage for everyone; lower deductibles and health care costs”.

Agenda:
“It’s time to rewrite the rules―to curb the runaway flow of wealth to the top one percent, to restore security and opportunity for the middle class, and to foster stronger growth rooted in broadly shared prosperity.”( Economic Nobel Laureate Joseph Stiglitz)

Fix……………….. The American Health Care System.
Increase……. Wages, Jobs, the Standard of Living.
Decrease…… National Debt, Poverty, Inequality Gaps.

Time for American innovation to solve our problems, focus on investments-smart investments which will improve growth and pay for itself.

1. Negotiate:
Senator Bernie Sanders’ bill, S. 469 – the Affordable and Safe Prescription Drug Importation Act – which would help curb the skyrocketing cost of medicine for not just seniors, but all consumers, by allowing us to import cheaper prescription drugs from Canada.

2. Negotiate:
Rep. John Conyers’ bill, H.R. 676, the Expanded and Improved Medicare for All Act – a single payer universal healthcare plan.

3. Negotiate:
The American Health Care Act of 2017.
” We need to try a thrifty version of Medicare for all, with negotiated prices for drugs, hospitals and diagnostic equipment.” (Ellen Brown,Web of Debt)

4.Negotiate:
The Budget.

5. Negotiate:
An Infrastructure Plan that will create Multi-millions of jobs.

United, We shall PLEDGE to
…..establish Justice…
FOR ALL.
…..insure domestic Tranquility…
FOR ALL,
…..provide for the common defense…
Foreign, or Domestic,
…..promote the general Welfare…
Health and Education,
FOR ALL,
….secure the Blessings of Liberty to ourselves and our Posterity,…”
Wealth as an entitlement for the rich as well as an entitlement as a
standard of living,
FOR ALL.

A simple change in direction of doing something
for the common bettering of all the people.

United, “… after due examination and analysis,… find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha

https://bestsolutionsfl.wordpress.com/2017/03/28/seize-the-moment-for-over-ninty-percent-of-we-the-people/