Favoring Wealth Over Work

By PAUL KRUGMAN

Consider, as Exhibit A, the Bush tax cuts. Bush did cut the top tax rate on earned income from 39.6 to 35 percent, a 12 percent reduction. But he cut the rate on capital gains from 21 to 15, a 28 percent reduction; he cut the rate on dividends from 39.6 (because dividends were previously taxed as ordinary income) to 15, a reduction of more than 60 percent. And he put the estate tax on a path toward zero — a 100 percent reduction.

DYI Comments:  Paul Krugman the shill for the tax and spend crowd in Washington D.C. as opposed to the wealthy who give away millions of dollars to charities every year (or everyday [Bill & Melinda Gates]).  As these wealthy folks age and pass away the money is inheirited among their children and relatives dividing up the fortune.  Within three or more generations the concentration of wealth is diluted. Within five to seven generations the wealth is so diluted their impact upon society is now completely muted. What happened to the money?  It went right back into the economy.  Paul is sucking up to the tax and spend politician who is buying votes through spending bills.  Simple as that.

The False Alarm Over U.S. Fertility

By DEREK S. HOFF

Unlike many wealthy nations that will see their populations stabilize or decrease in coming decades, the United States, the world’s third most populous country, is expected to grow — to to 420.3 million by 2060 from 315.7 million people today. Our fertility rate (1.9 births per woman, slightly below the “replacement rate” of 2.1) has dipped since the Great Recession but is still among the highest of rich countries’ and ties or exceeds fertility rates in middle-income countries like Brazil, Iran, Thailand and Vietnam.

Conservatives and liberals alike generally assume that population growth drives economic growth. But until the triumph of the new laissez-faire economics in the 1970s and 1980s, most economists agreed that what mattered was not the size of a population but its human capital and its savings, investment and consumption practices. Indeed, many mainstream economists argued that a smaller but more productive population would enhance growth and lead to a more just society. It is strange that we talk on one hand about an innovation- and knowledge-based economy while still thinking about economic growth in terms of sheer body count. Moderate levels of immigration can help us maintain a highly skilled work force, but so, too, can investing more in educating our young.

DYI Comments:  The reason Europe's social programs are no longer sustainable their fertility rate has been below replacement and in many cases significantly.  Paying for the aged is easier when you have far more younger taxpayers to draw from reducing the tax load.  European nations who reformed their social programs such as Germany are doing fine.  Greece which refused is now being forced either by the political process and/or the market.

The worlds population growth will continue to slow, between 2070 and 2100 will decline.  As technology spreads improving the standard of living for the masses large families are no longer needed for the parents survival in old age.

The U.S. will embark upon policies to promote larger families by the 2030's and will openly recruit immigrates (their best and brightest).  This will be done to further the enhance our economic power by having a highly skilled work force with a larger population base.  This will be needed to maintain our unquestioned military might.  This State Sponsored initiative most likely be labeled as a strong dollar and strong defense program.

DYI  

*********************** 

No One Will Ring The Bell At The Top

    

DYI Comments:  Excellent article with additional charts making the bear case.

Ten Warning Signs We Could Be Headed For A Crash

DYI