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View Diary: America Turning into Japan (89 comments)

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  •  A possible way out (13+ / 0-)

    is to raise corporate and capital gains taxes, and use the revenue to support public infrastructure and social safety net spending.

    This has a two-fold effect. It removes excess lazy capital making long-term investment by companies more attractive, and inhibiting bubbles.

    It also puts money in the pockets of the most likely spenders, having the highest stimulative return.

    This is well understood by Republicans, but they won't let it work because it means their masters will be less rich.

    Critical Thinking: The Other National Deficit.

    by cultjake on Wed Sep 21, 2011 at 09:36:24 AM PDT

    [ Parent ]

    •  Sadly (2+ / 0-)
      Recommended by:
      NoMoreLies, skidrow

      corporations are now largely multinational, so what we do here can only serve as a partial effect on their influence.  

      The best thing would be to put a tax on gasoline and natural gas so that effort would be directed toward developing alternative economies that in the long term won't kill us.  The inconvenient truth is that use of fossil fuels will soon make the planet uninhabitable, probably within the next 150-200 years, if not sooner.  The sad truth is that all efforts to spur consumption only speed up environmental degradation, unless they are coupled with efforts to reduce their environmental effects.

      Increasing capital gains taxes would do little to curb speculation in commodities or other real assets, although I would agree there is no good reason to tax them at rates less than other form of income.

      It would be better to have a multi-tiered real estate tax, that would tax larger homes progressively more and multiple vacation homes even more, except when they are legitimately used as rental units.  We need to redefine the directions any expansion of consumption takes to provide for an orderly consideration of environmental consequences or we are, simply and frankly speaking, doomed as a species.

      If one doesn't believe this, consider that all projected climate models predict that mean temperatures for Kansas City will likely be over 100 degrees F in 100 years for more than 150 days out of the year.  If folks think its bad in Texas now, imagine what it would be like when it stays that hot in Kansas City for that long ever year.  To make matters worse, a number of leading climate scientists, those at MIT in particular, are arguing that most climate models have failed to account for the actual rise of observed temperatures by a factor of about 4 times.  

      Considering that temperatures are rising at rates higher than at any time in the history of the planet, you would think it might wake a few folks out of their slumber as they ponder what is going to happen to our economy and how we will get out of the predicament we are in.  

      If I were Obama's science advisor, I would direct him to implement emergency plans immediately to create green sector jobs and a new green economy, with the scant hope that we might actually have enough time to save ourselves, much less the economy, while there is still time to do so.

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