With the republicans in charge on Capitol hill, it seems we might just get some tax reform. Many republicans seem to think that if we can just cut taxes we can get the economy booming and the debt problem we have right now will be no more. This view sounds all well and good but if republicans are really thinking cutting taxes and at the same time growing the size of government will make things better, they are delusional! All government spending is taxation so therefore we need to cut the size of government in a meaningful way! That’s the only way out of this mess!
69% of Americans admit to have less than a $1000 in the bank! Why is this? Even the retirees out there die broke. 46% of retirees die with less than $10,000 in the bank. That’s not much money when you’re not bringing in income and are relying on savings! There’s no question there’s a lot of factors that have led to the average American being broke and the payment mentality is certainly one of the many contributing factors. In the last 17 years we have seen a 4% rise in median wages and an 89% increase in home prices. So the purchasing power of our wages has gone down so the average American is poorer today! This is the result of government spending hitting record levels! The governments spends money at the detriment to the average American.
Jared Bernstein, from his new piece at the New York Times discusses what the lefts agenda should be. He makes the case that progressives must remain in waiting and be ready when it’s time to act but always be fighting. All of the agenda items he wants to see calls for more government programs, more regulations, more subsidies for the poor and he thinks this will make life better for the averages American! Has he learned nothing from LBJ’s great society in the 1960’s. This is why we free market types need to continue to learn more as much as we can and become more effective communicators because the fight will continue to go on.
Half of the cost of an electric car is from the battery packs and cost of these battery packs are projected to fall 77% by 2025! Just back in 2010 it cost $1000 per kWh and today Tesla is doing it at a cost of $190 per kWh. So prices have already fallen significantly and will continue this trend. This is encouraging to see and this is why we don’t need to subsidize and encourage people to go “green.” When the price is right because of production prices have drastically fallen then the consumer will step up to the plate and make the transition from a conventional gasoline engine to an electric car. Isn’t the free market a beautiful thing?
Many conservatives and supply siders seem to think we can grow out of massive debt problems but that is not the case. Even if we achieved economic growth of 3% instead of our current average since 2010 at 2% that will cut the deficit by $3 Trillion over the next decade. That sounds all nice but we will still be adding another $9 Trillion to the debt over that same decade! Entitlements need to be addressed if we want to get serious about our debt issues. Unfortunately for us, the politicians out there will take the easy way out by destroying the value of the currency via inflation.