We are watching the Pandemic Panic which could turn into a long, deep, Depression. Here's how to end it. There are many examples of countries emerging from much worse conditions into prosperity with astonishing speed. You just have to know how.
Fortunately, we do know exactly how. It's called "Capitalism."
Unfortunately, Congress doesn't understand how capitalism works. The Republicans pay lip service to the capitalist brand but think that it means borrow trillions and mail checks to their donors. Democrats attack the brand and demand that Uncle Sam borrow trillions and mail checks to their voters.
Neither plan will end the panic. They're simple souls. Congress really should change its name to "Clueless" for the duration. Luckily, I am here to educate them, through you.
Don't thank me. Instead, please do your duty as a citizen and email them with how to make America prosper again. That's how America was designed to work. So … go do your part!
What do they have to do to get the economy sizzling again? Just follow the Ten Commandments of Capitalism. The First Commandment caps the top income tax rate at 28%. The Second Commandment prohibits taking away deductions and credits except for the purpose of cutting tax rates.
Now let's look at the Third Commandment: "All assets will be indexed to inflation for the purpose of calculating capital gains." Why is this important enough to be a Commandment?
One of the core doctrines of Communism, right there in The Communist Manifesto, is that the middle class ("the bourgeoisie") is evil, oppressing workers ("the proletariat.") The Communist prescription? "Class struggle." The workers must confiscate the life savings ("capital") of the middle class.
No really! You could look it up!
The Communists want to take our life savings. They're not shy about their goals. Some leading Democrats are openly proposing a wealth tax. Supposedly only on the super-rich. Ha! The original income tax was a tiny percentage on the top income of the super-rich. See what happens when we let the camel stick his nose into our tent? Don't fall for it.
And there's already a wealth tax on everyone who owns property. The government taxes the nominal "profit" on the sale of an investment even if sold at real cost or a loss.
Suppose you invested $1,000 20 years ago and the investment was just breaking even, just keeping up with inflation. For you to just break even you would have to sell it for $1,500 which, due to inflation, would buy the same amount as the $1,000 you invested.
When you sell it, Uncle Sam now makes you pay taxes on that phony $500 "gain." That's not a real gain. It's just breaking even. Uncle Sam is confiscating your savings. Sneaky!
If you're a Communist that's great. Sam's doing exactly what the Communist Manifesto calls for: "despotic inroads on the rights of property." Congress confiscating capital — looting our savings — and giving it to their donors or voters? Hey! The rhetoric about doing right by working people is the sugar coating on the Satan-sandwich of communism.
Communists gloat on their plan to loot the middle class' life savings. The rest of us should be shocked. Capitalists have a more noble goal. Per Adam Smith, our mission is to create "universal opulence which extends itself to the lowest ranks of the people."
Meaning, capitalists are out to make even poor people rich.
The Communists? Make rich people poor.
It is easy to understand why many Democratic presidential contenders, pandering to their socialist (and, let it be said, otnay-ootay-ightbray) base, would oppose indexing capital gains for inflation. Confiscating people's life savings is what communists are supposed to do! What's mystifying is why Republicans aren't righteously demanding this index.
Maybe they just need some help from us. The Way Washington Works is that constituents — we voters who can vote for (or against) the Representative who represents us — have a superpower. If enough of us — known on Capitol Hill as "the folks back home" — communicate our will most Representatives will bend over backwards to please us.
If they don't obey us we will pick someone who will listen to us and elect a new Representative. But they can't read our minds. We have to tell them what to do!
So if you would like to see America rescued from the Pandemic Panic and see the economy roaring again you have to take action. Let your own pet Representative know that you want them to embrace the Ten Commandments of Capitalism, including The Third Commandment: "All assets will be indexed to inflation for the purpose of calculating capital gains."
They can find them all here.
All ten commandments.
Capitalism alone makes us prosperous.
Accept no substitutes!
Ralph Benko, co-author of "The Capitalist Manifesto" and chairman and co-founder of "The Capitalist League," is the founder of The Prosperity Caucus and is an original Kemp-era member of the Supply Side revolution that propelled the Dow from 814 to its current heights and world GDP from $11T to $88T. He served as a deputy general counsel in the Reagan White House, has worked closely with the Congress and two cabinet agencies, and has published over a million words on politics and policy in the mainstream media, as a distinguished professional blogger, and as the author of the internationally award-winning cult classic book "The Websters' Dictionary: How to Use the Web to Transform the World." He has served as senior adviser, economics, to APIA as an advocate of the gold standard, senior counselor to the Chamber of Digital Commerce and serves as general counsel to Frax.finance, a stablecoin venture. Read Ralph Benko's Reports — More Here.
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