Reducing the deficit can be achieved using several tools. First, make deep cuts in defense spending. Withdraw all troops from foreign countries including Iraq, Afghanistan, Germany, Japan, South Korea, . . . Second, stop buying unnecessary cold war weapons systems. Third, reduce the nuclear weapons and delivery systems to ten percent of what we currently have. Fourth, reduce the navy and in particular the number aircraft carrier battle groups. There are other reductions that can be made, but those are the big ones. Overall, the defense budget can be cut to one fifth of its current size.
The next tool to reduce the deficit is higher taxes on the rich. Believe it or not marginal income taxes on top earners were as high as 94% and were 91% under Eisenhower. I recommend that we consider raising top earners marginal tax rates to forty, fifty, sixty and seventy percent. Still a great deal less than 90% under Eisenhower.
The next tool to reduce the deficit is to reduce health care spending. How is actually simple, universal medicare. By having employers pay into medicare what they would normally pay into health insurance we can achieve universal medicare at less cost than the medicare/medicaid system of today. People can be encouraged through deductions and government subsidies to buy supplemental insurance. Health care costs instead of steadily rising would drop. Hundreds of billions of dollars can be save.
Yes the financial reform law was better than nothing. If the law was strengthened so that smaller local banks that were transparent and not dependent on hedge funds were the new normal, then billions of dollars again can be saved.
The money to create jobs, should first be spent on education. Second, the money should be spent of infrastructure. Third, the money should be spent on cheap green energy (lots of R&D) and energy saving tools. Fourth, the money should be spend on R&D.
This will create jobs, but not necessarily jobs that will raise our standard of living. To do this we need to negotiate better trade agreements. Such trade agreements would ensure that workers in foreign countries had minimum wages they could live on. Such agreements would enable workers in foreign countries to form unions. Such agreements would move countries towards democratically elected governments. Such agreements would not allow for currency manipulation.
Next after employment in the US is down to zero, we should work towards developing the undeveloped world. This can be done through infrastructure development. Micro loans to the poor, with special attention to women. Education, again with special attention to women. And providing birth control including abortions to those who want it. Such policies can create a world wide rising standard living.
For those who do not believe this, I say Yes we can. We only need the guts and audacity.
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