Wednesday, December 1, 2010

According to an article in USA today only 51 percent of the people surveyed felt that today’s youth have a chance at a better life than their parents. This is based on factors like education, housing and the overall standard of living. Young (people under 30) college educated women have the best outlook. Older individuals (those of us over 50) are the least optimistic. Democrats are more optimistic that Republicans or independents. Tea Party supporters are the least optimistic.

Economists predict that future generations will have to pay for the real or perceived missteps of the current generations. While we hear great debates over tax breaks and who should get them we really don’t look at the practicality of the situation. We have heard and will hear more from both sides on the deficit reform committee suggestions. As always the first thing on the list is to “fix” the tax code. The first reform, get rid of the home mortgage interest deduction because it is the most widely used deduction. Will getting rid of this generate the most revenue? Probably not, envision if you will a city, state or country where all the properties are owned either by large corporations or the government (local, state or federal) and you must get your housing from one or the other, no individual home ownership just renters, or dwellers.

Corporation by definition must either make a profit or if non-profit or charitable at least not loose money(assuming no government bailouts). The government can run it whichever way it wants to. Would you be happy? Think of George Orwell’s book 1984 or the poor living conditions of the third world countries. Is this where the reforms will take us? Will every one who is “given” a place to live take care of the property that they don’t own?

I don’t think we will take this route. A “fairer” tax code would probably be the best idea. Flat tax no deductions at a low rate may generate new revenues. We need to put the best minds to work on this problem not on hair loss or other cosmetic issues. Many of the “wealthy” democrats who say they don’t mind higher taxes on the rich because they could afford it are really not truthful. There is no rule against sending extra money to the government for their use. Let’s be clear, rich people, democrats or republicans don’t send their excess income to the government to help, they want us the middle class to pay while they tell us how good it will be for us.

The USA Today article goes on to say that educated young people have a solid future and unskilled workers should fear competition from other countries. We need to have a solid labor force. Education needs to be the focus for all, young, old, rich, poor, or somewhere in the middle. In one of my favorite old movies, the lead actor at one point says “The only difference between a bum and a man is a job.” In these difficult times the best plan for all is not bailouts or stimulus but jobs. For the educated, uneducated, skilled and unskilled. Think about an alternative to two successful recent programs. Cash for clunkers and the GM “turnaround”. if the government had just purchased thousands of cars from the US auto manufacturers, by this I mean cars that are made by American workers and then distributed them to US citizens all the needed goals would be accomplished. Workers with jobs, auto companies making money and the environment, that’s right the cash for clunkers was an environmental program would be helped. No arguments over who benefited the most, where did the money go or when would we get it back. The government needs to stay focused. We need jobs.



No comments:

Post a Comment