On Sun, Oct 28, 2012 at 1:04 PM, kirby urner <email@example.com> wrote: ... > It's very convenient to have big losses when it comes time to calculate > taxes. Lots of big companies are going broke when Uncle Sam knocks at the > door, himself in rags, holding that begging bowl, debtor to the world. > > Kirby >
First, the US became the biggest debtor in the world under Reagan, after he conned so many with the conservative lie that lower tax rates cause government revenues to increase over and above what they would have been with the higher rates. (Adjusted for inflation revenues went up around 17% under Reagan, but were projected to go up roughly twice that had the tax rates stayed the same.)
But also, all is not lost: Here is a lesson for the gold standard junkies showing not only the awesome power of fiat money, but that government debt is not necessarily bad thing - it can actually be a good thing if done right:
Yet again, I say it: The US is not the only country, and we would be smart to look at the countries in the world who are getting better results than us, to learn from them. Like in terms of per capita nominal GDP http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita (follow the right links at the above) the fact that for decades now, each and every year there have been other countries whose total economic output is larger adjusted for population, like Norway with its twice as large economy adjusted for population.
Norway engages in public banking, with its government ownership of its big banks, this form of socialism able to cause more "Main Street" capitalism than private banks ever could, and here is a state here in the US that practices this form of socialism to the benefit of its capitalist economy - and has done so since 1919 when it was created because the capitalist farmers could not get the business loans they needed from the private banks: