Dec 26

A new approach to the economy

So I was out the other day doing some shopping and something suddenly occurred to me that made me rush home and immediately start adding things up to check. We can very easily turn around the American economy (and the whole world economy) with what appears to be a too good to be true plan I’ve come up with. So I decided I have to share. I’ll write it here first and send it to people who might be able to do something with it, doubt it will ever get any attention but maybe internet archaeologists one day will discover some of the things I’ve posted here and say “wow, we could have done this then”.

So first, what problems does the new plan tackle. Well, that is simple. Poverty. Homelessness, poverty, hunger, all solved completely with this. Not one single homeless person, not one single destitute person.

I added up the total amount of money spent by the federal government on aid. Food and nutrition services, social security, medicaid and medicare, student financial aid, etc. When added together, I divided it by the US adult population and was amazed that in the year 2015 enough money went from the government to the poor to give every single adult in the country a check for almost $10k. But at the same time as someone who has been extremely poor and relied on government benefits for survival, I’ll be the first one to say I sure as shit never received $10k worth of ANYTHING from the government over a year. With a wife and two kids I’d be lucky to get $450 a month in food stamps and a yearly check up at the Dr.

So this got me thinking, it’s got to be the administration of these funds eating up so much of them. So maybe there is a legitimate reason conservatives don’t like these government programs. But at the same time, if we can’t provide for the poorest in our country then how the fuck can we call ourselves a great nation?! Then I got to thinking about minimum wage, wages based on the bare minimum necessary to survive. Conservatives don’t want it to go up, say it will hurt small businesses and offer less encouragement for people to get better job skills. I keep hearing the same concept from the right, market driven prices and pay and whatnot.

So I came up with a way to give both sides what they want. The right can have everything market driven, no minimum wage, no wasteful government programs. The left can have everyone’s needs met, people no longer having to worry about whether or not they can survive off their wages, no more homelessness or poverty at all. So how does this happen? Well, we’re currently giving the poor enough for every adult citizen to get $10k per year. So, do away with all of the government programs for the poor (healthcare, social security, food stamps, etc.) and just send $20k per year to every adult citizen in the country. Now yes, this doubles what we’re already spending on the poor, so how do we address this? A flat tax on non government income (any income over the $20k per year the government is sending) of somewhere around 30-35%. We’ll get rid of minimum wage, since the needs for survival are already met. Someone can easily survive off $20k per year, and it’s more than what disabled or retired people get from social security. It’s more than a person can get from unemployment and food stamps. It’s more than the current minimum wage to a 40 hour a week employee.

Everyone will have enough to survive, but people are going to want extras. They’ll want nice shoes or nice cars or electronics and whatnot. They’ll still have to work to get these things. The wages paid will be driven by market demand, and no one’s going to complain about not getting a living wage when they by default of citizenship have enough money yearly to live on. The economy will explode, every single citizen will suddenly have the money to spend on products and services. Every homeless person will suddenly be buying groceries, driving a car, paying to live in a home, paying for electricity, etc. So as people go out and spend their money on their extras and work to buy those extras there will be a more active economy than ever and that flat tax going to cover the costs is going to be bringing enough extra tax revenue to cover the cost, balance the budget and start paying down the national debt. Not one single person is going to bitch about paying 30% or 35% in taxes when they’re just by being citizens making enough to live on every year. So you work a part time job for $10k per year plus you’re $20k per year from the government you pay $3000-3500 in taxes and you’ve made $26500-27000 in one year with just a part time job. You’re disabled and can’t work, you’re still making more than you would off social security (including enough to pay for insurance) and since it’s not more than the $20k from the government you aren’t paying any tax.

This will also make it so when a person turns 18, they will automatically have enough money to travel, pursue their artistic or educational interests, pursue higher education, all without fear of being in debt or being destitute.

Plus, there is a growing fear among working class people in this country and that is automation. As technology advances it is becoming easier and easier to automate just about everything. Look at Amazon Go, a grocery store with no checkouts! Seriously there’s probably a person behind the shelves stocking items and maybe a couple people to keep things clean on the inside and everything else is done through a mobile app. With our system the way it is automation is terrifying and will destroy the middle class. With this new system automation is something to look forward to. Eventually we’re going to be at a place technologically where “work” is no longer necessary for any of the products we want, and with our current system that will mean that the owners of the corporations have all money and the rest have no money. With this new system, it’s something to look forward to. Not a big deal if you can’t find a job, you’re needs of survival are met. Not a big deal if you’re only getting a few hours a week.

This system is so simple I’m astonished we haven’t already started doing it. If you think it’s a good concept spread the word, if you don’t please let me know why in the comments. I’ve just recently come up with the idea, you aren’t going to hurt my feelings if there’s flaws I haven’t thought of. I think that if both sides forget about the bullshit and politics for just a little while and we all work to iron this thing out and put it into action, there’ll be no need for the bickering again.