A View of our Economic Situation - by Bernie Valentine
Unfortunately millions of workers have simply not kept their skills and knowledge - their competencies - sufficient to be competitive in securing the jobs that do exist. The workforce that is needed now requires more and more intellectual competence and less and less physical competence. Now throw in our failing education system; along with the factories which are becoming more and more robotic and technically oriented, and the results are predictable. The physical skills that humans have had are less and less in demand. When robots becomes cheaper than employing people, and whatever human labor is necessary becomes cheaper in foreign places, the results are clear.
It’s also clear that America needs innovation & new industries (the bedrock of capitalism & the free enterprise system), rather than relying on the ones that supported the rise of the middle class in the 1950s and 1960s. Biotechs and Renewable energies are certainly two that offer promise. But why do we not see the rise of these new industries from our private sector? When business incentives (particularly from the Fed Government) are lacking or uncertain as they have become, it can be easily understood why expansion and innovation have suffered.
Over the years unions have elevated the pay scale of workers to unsustainable levels. The most mundane job now carries a high wage price tag to prospective employers, especially when pension and other such benefits are included. Non union employers traditionally pay less than their union counter parts but are forced to raise wages as well, in an effort to retain their employees. All aspects of our lives have become affected as companies raise prices to maintain an acceptable profit margin. Throw in the fact that our society has become more and more "materialistic" and less of the faith-based, family-oriented unit that it once was........ producing a need for both spouses to join the work force "just to keep up"!!
With "stay-at-home" moms now as much in the job market hunt for a "career" as the old male "bread-winner" used to be, we now have an overwhleming amount of Americans who have become "too busy to pay attention" ...to the direction that the country has been heading economically, politically, and morally. Unfortunately, that has led the "silent majority" to become more and more "disconnected" with a feeling that their vote is relatively insignificant and that "government" does not listen anyway.
The real trouble began when the general populous discovered banks would lend absurd amounts of money against inflated, panic purchased residential real estate to anyone who said they could pay it back without proof of income. We quickly found ourselves in a situation where even union wages could not keep pace with rising home prices. It had to end somewhere.
The private sector will begin expanding, investing and hiring when it becomes confident that it can predict, with some level of accuracy, what economic conditions will be for the next year or so. What they are seeing, instead, is the threat of higher taxation, greater government interference through regulation, the unknown costs of Obamacare, Cap and Trade, and immigration reform that will turn millions of formerly illegal aliens into Democrat voters, plus the threat of pro-labor union legislation. The jobs aren't coming back any time soon.
Instead, State and Federal Governments are finding themselves coming up short in their budgets but instead of introducing or enacting legislation to stimulate the private sector, there is a constant attempt to figure out ways to extract more revenue from the dwindling few who still have the ability to pay and the ideas are bordering on insanity. There is no real effort to "tighten belts" or cut inefficient or wasteful spending....especially when it comes to eliminating "pork barrel" legislation and passage of "entitlement reforms".
People in my age and wage bracket are concerned about our golden years, our children's future and where this Country is heading. Most of us do not like what we see and feel betrayed by our elected officials. Many feel there is little we can do to stop it and are taking steps to protect what we have left. Perhaps we are awakening through such movements as shown by the grassroots Tea Party organizations......perhaps in time, I'm not sure.
Adoption of the Fair Tax can and will correct much of this injustice through a visible transformation of our tax system which is not only "FAIR" but will rightfully distribute our "PAYING" tax base to include all proper parties.....including former tax dodgers, illegals, criminals, visitors, etc. while re-vitalizing our economy through the elimination of most business taxation thus enabling new job creation and a reduction of prices/inflation. This, along with a sensible plan of spending cuts, elimination of pork barrel legislation, and common sense REFORMS (not elimination of) of government entitlement programs such as "unemployment insurance", "social security", welfare including health care such as medicare/medicaid, and outrageous pension plans. We certainly need some of these programs, but they need to become sensible, affordable and coupled with a re-newed sense of individual responsibility.
That is about as cheerfully optimistic as I can get.
A Quick View of the FAIR TAX ...8 Reasons to Support it Now !!
by Bernie Valentine on Friday, October 22, 2010 at 6:21am
1. EVERYONE participates !!....even tax dodgers, illegals, criminals, visitors, etc. .....EVERYONE !!
2. YOU take home your full paycheck...NO TAXES !!!
3. The FAIR tax is a VOLUNTARY CONSUMPTION Tax, you decide when & where.... & only on NEW retail purchases !!
4. BUSINESS Taxes are eliminated, costs reduced; encouraging them to return to U.S. and bring JOBS back!!
5. Since business costs are reduced, competition & free markets will allow prices to come down.
6. Tax compliance costs are gone, by eliminating IRS as well as costs of filing returns.
7. The PREBATE sent to everyone ensures that no taxes are paid on goods up to the poverty level.
8. The tax is VISIBLE....collected by the States by vendors at point of consumption.