Trump wants to spend a trillion dollars building infrastructure.
Let me note that I think congress should approve this, even though it is the wrong thing to do and will hurt us greatly. Why? Because this is not the fight worth fighting with Trump. And this will bring a lot of democrat expats into the republican tent, where they belong.
I’m not going to explain why it is the wrong thing to do here. If you’re truly interested why it is wrong, go study Austrian markets and the writings of Bastiat, Hazlit, and Milton Friedman. If you don’t, then let me explain with a simple sentence that requires some thought. If having the government buy things is really better for us, then maybe you can just send all your money to your local congresscritter and have him buy all your groceries and such.
OK, with that out of the way, let me explain where the real fight is. The real fight is on 3 fronts.
- Taxes. We need to lower taxes, a lot. By lowering taxes, we will increase tax revenue. It sounds counter-intuitive, I know, but right now, the USA is one of the most heavily taxed countries in the world, and it is driving business out. We have the highest corporate tax rate. We have death taxes AKA inheritance taxes that are way too high. And our personal income tax rate is also insane. Unless you are very rich, you don’t understand how bad things are on the tax front and how easy it is to just move your company and your assets somewhere far more tax friendly. The best part about lowering taxes is it will instantly bring jobs back to America, increase the average income, and lower the cost of living. It’s a win-win-win for everyone, even though the rich win a lot more than the middle class and lower classes will.
- Regulations. We need to reign in regulations. Simply put, there are way too many regulations and they are retarded. We need a small set of reasonable laws that rarely change and have all been argued about in the halls of congress. That’s it. By changing regulations, it will save us countless billions in enforcement and prosecution, and at the same time, become a major incentive for businesses to form, stay, and move back to America.
- The Federal Reserve. It’s time to get rid of it, fractional reserve banking, and let congress print all the money.
At the risk of sounding like a broken record, let me explain why ending the Fed and fractional reserve banking will bring in untold vast sums of wealth into the coffers of congress, money that they must spend or else everyone will be hurt. And it almost doesn’t matter what they spend it on, whether it is Trump’s trillion dollar infrastructure plan or building shelters for the homeless.
Idea 1: Money is not real. Money is an idea. Money has value because we (individually) say it has value. We talk about gold-backed or silver-backed currency, but really, all we’re doing is saying those elements have some kind of value but only because we say so.
Idea 2: We need to keep the money supply increasing with economic growth. If we print too much money, we get inflation, and the prices of goods increase while savings and investment decrease. This is bad. But if we print too little, then we get deflation, where the prices of goods go down, savings and investment increase, but all the cash flows into the hands of the rich, leaving the lower classes literally penniless.
Idea 3: Who gets to print new money and who gets to spend it? As of today, the Federal Reserve prints the money and the banks get to spend it. That’s right, thanks to fractional reserve banking, the banks are the true “printers” of today’s money, which they loan out and collect interest on. It is the people of the United States who grow the economy so that more money needs to be printed, but the bankers who get to pocket the increase, not us. What if, instead of the banks, we did what the constitution said and let congress print and spend the money? Why, then the people of the United States would get to pocket the growth in the economy.
When you do the math, it is quite clear that if we simply ended the Fed and ended the practice of fractional reserve banking, the banks would practically disappear but congress would have a whole lot of money they need to spend else we would have deflation. Congress could spend that money by lowering taxes or by buying things like trillion dollar infrastructure plans. I prefer lowering taxes first, as that will drive greater growth and mean congress has to print and spend even more money. Once we get the tax rate all the way down to zero, then we will have to spend it on other things since there will no longer be a better investment for that money.
By the way, what should we do with the national debt? I have several ideas:
- Sell all the federal land in the West.
- Suck it up and just print enough money to pay it all off. We’d have massive inflation for a short period of time, but it would be worth it.
- Just go bankrupt. What can our creditors do to us to make us pay?
- But above all else, we should NOT pay it down gradually before lowering taxes to 0. We need to increase our economy first before trying to pay off the debt.
OK, here’s plan B. I told you that conservatives always win, no matter what people choose to do, so let’s suppose Trump ignores all of my advice and does the exact opposite. In that case, I would support him. By spending the US into a blackhole, by raising taxes and regulations even higher and worse, it will cause people to move into the black market, where government cannot influence or tax or control. I’m all for that. It will be strange as we get used to the black market, because everyone will be happily employed but the IRS won’t be able to see where all the money is coming from or going to. (HINT: We’re already doing this as a country.) So go ahead and try to ruin the economy. All that will happen is the white market will disappear and the black market will consume everything.