UPRIGHTING THE ECONOMY
by Kermit C. Moss
Mercy me, sakes alive, and carrot coffee! There is little doubt, if any, that we have sat on our capitalistic duffs and let the economy get out of kilter! From the very start we have had some free enterprise, or capitalism, along with a considerable amount of governmental activity, or socialism, if you are not afraid to say the word. Government has run the military, provided law and order, run the school systems, provided social security, Medicare, and Medicaid, and several other things.
But before we get into it too deep let us again cover some basics. Economics is correctly described as one of the social sciences dealing with the production, distribution, and consumption of goods and services. And here, let me point out the importance of consumption! If goods and services are to be produced they must be consumed! Why would any one continue to produce a good or service that cannot be sold on the market? And therein lies the rub! It is jobs, jobs, jobs that provide the wherewithal to buy these goods and services, and capitalism, as currently practiced in the United States, and indeed the world, will not provide the jobs needed to keep everybody working. And there is not a more miserable, unhappy man in the world, than a man who has a wife and family to support and cannot find a job!
One reason that our system is not working is that we have allowed so much of the total wealth to be concentrated in the hands of a few. A late report indicates that the top 10% now owns about 90% of the wealth! How did that happen? It happened because of our tax system that for all these many years only required a capital asset to be taxed when sold; and if wealthy enough that he did not need to sell he just held on to the asset until he died, and his heirs got a stepped up basis in the assets received to the fair market value at the date of death of the decedent! Thus the value kept building up, and building up, until 90% is now owned by the top 10%! Please note here that it is not a fair and necessary amount going to the rich that I am protesting, but an unfair and excessive amount!
Now it my firm belief that this situation will never correct itself! So what should be done? Because of the importance of jobs, perhaps we should abandon unemployment insurance and have the states provide employment to people as they become unemployed, not as a replacement for free enterprise capitalism, but as a supplement to it. Thus, without the fear of unemployment, consumption would pick up, providing jobs in the private sector, perhaps so many that state employment would no longer be necessary!
But over the last several years we have seen buy-out after buy-out and consolidation after consolidation, followed by the layoff of many employees, and million dollar bonuses to administrators. This has created an economy with several organizations considered too large to fail, and not enough medium-sized and small ones to provide the jobs needed by the people.
The opinion here is that only government both could and should limit the size of these businesses and provide the regulations necessary for a more balanced economy and full employment.
What say you?
Kermit C. Moss
PO Box 1136
Monticello, AR 71657
PH 870-367-2486 -office
870-367-7034 -home
April 30th ,
2011
