Why do we have inflation? Congress and the President, Republicans and Democrats spend money they do not have, for radical causes that harm the country. Recently, the Congressional GOP accepted a massive increase in the national debt. They could have said NO—and cut the budget so there would be no need to increase the debt.
By the end of September, a new budget needs to be approved. There is nothing wrong with saying NO to increased spending and saying YES to cutting the budgets. End DIE, money for killing babies, stealing gas tax money for failed government transportation or failed and corrupt education.
It should also be noted that in California we continue approving bonds and tax increases. Until we say NO, politicians will continue to spend us into bankruptcy. Until we stop electing Republicans and Democrats willing to increase the national debt, we can not be saved.
THE TAX MAN
By Richard Colman, Exclusive to the California Political News and Views, 9/1/23
www.capoliticalreview.com
The Beatles, in 1966, released a song called “Tax Man.”
Here are some of the lyrics:
(If you drive a car, car) I’ll tax the street
(If you try to sit, sit) I’ll tax your seat
(If you get too cold, cold,) I’ll tax the heat
If you take a walk, walk,) I’ll tax your feet
TAX MAN
Now, some 57 years later, Americans (and others) are worried about taxes.
In 1966, a family of four could live on $15,000 a year. With a family income of $15,000, only one spouse was needed to work. A family could take a short vacation. Tuition for higher education at a state-run university was about $200 per year.
Today, that same family would need about $400,000 annually to have a similar standard of living.
What went wrong?
The main problem, from 1966 to the present time, has been inflation. Holding onto cash meant holding onto something that, over time, decreased sharply in value.
America, for most people, was a prosperous country in the 1960’s. For $35, a person could, in 1966, buy an ounce of gold. Today, that same one ounce would cost about $1,920.
Expressed another way, $10,000 in 1966 would, in terms of gold, now be worth $548,571.
Economic specialists differ on what caused prices to surge after 1966. Some say the government spent too much money on a welfare state and on wars, such as Vietnam war (1961-1973), the Persian Gulf war (1991), and Afghanistan war (2001 to 2021). Others say the Federal Reserve printed too much money. Printing money excessively allows people to buy houses, cars, and other items. With all that printed money circulating, prices increase.
The American standard of living appears to be declining. Other pressures on American society are crime and illegal immigration.
But in recent decades, there has been an enormous growth of government. And government costs money. And where does the government get its money? Answer: from taxes (and fees).
Since the mid-1960’s, the federal government has added many new departments: the Department of Housing and Urban Development; the Department of Transportation; the Department of Energy; and the Department of Education. These departments are stuffed with bureaucrats.
In California, a person in 1966 could buy a house for $25,000 in a decent neighborhood. Today, that same house might be worth $3 million.
In 1981, the national debt was $1 trillion. Today, that debt is $32 trillion.
In 2016, along came Donald Trump, who, as a presidential candidate, criticized government bureaucracy, calling it the Deep State. As president from 2017 to 2011, Trump cut taxes. But he also increased the national debt by $8 trillion. That debt now stands at $32 trillion, much higher than the $1 trillion of 1981.
Trump lost the 2020 election, but he now wants a second term.
Not well known is Trump’s plan for a tax increase. Trump skipped the Aug. 23, 2023, debate among eight other Republican presidential candidates. Thus, there was no one to confront Trump about his plan for a tax increase.
What is Trump’s plan? The plan is to impose a 10 percent tariff on imports.
Something similar was tried in 1930. Congress passed, and President Herbert Hoover signed, the Smoot-Hawley tariff.
This 1930 tariff caused consumer prices to rise. Also, foreign nations retaliated by imposing tariffs on American exports. By 1932, America was mired in the Great Depression, in which 25 percent to 50 percent of workers were unemployed or underemployed.
Does America want another Great Depression? Trump’s proposed tariffs could easily trigger such a depression.
Free-trade allows economies to expand. Tariffs are, at home and abroad, an obstacle to economic growth. Free-trade should not mean doing business with hostile nations.
Trump is behaving dangerously. If, in 2024, he is re-elected and Congress supports his agenda, bad economic times are likely to occur.
In short, Trump is, as the Beatles once said, the tax man.
Politicians are politicians. When it comes to spending money, Republicans are no different from the Democrats. The only thing that distinguishes them is the programs they want to spend the money on.