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  • Why the One Percent Deserves More, Not Less [Edit or Delete]0 comments
    Dec 9, 2011 12:36 PM
    Not only are the libs declaring war on Christmas, but they are stepping up their assault on the 1%, just in time for election season. Candidates like John Huntsman, Ron Paul, and Rick Perry are evoking class warfare in a desperate bid to win support before Iowa and Obama is channeling Occupy Wall St. to win supporters. Newt Gingrich, to his credit, hasn't caved into the temptation of populism, and that's probably why he's doing so well in the polls.  Newt Gingrich has big ideas that are not only viable, but pro-growth as opposed to Ron Paul's ideas which are far-fetched, impractical and recession inducing. 

    Why do the 1% deserve more? Because they contribute disproportionably to the economy in terms of innovation, job creation, taxes, and consumer spending. That's why economic policy should (and currently is) be engineered to benefit them the most. As a compromise for the debt committee perhaps we need more austerity for mainstreet and pro-growth policy for the 1%.  That includes ending all unemployment benefits after 52 weeks, lowering taxes for high income earners, increasing defense & homeland security spending, a minimum $1/day income tax for the 47% of Americans that don't pay income tax, raising the sales tax, and keeping interest rates at 0% for an extended period. A lot of these policies aren't popular with mainstreet, but a lot of times mainstreet is clueless about what's best for the economy. Mainstreet largely opposed TARP, yet that program was not only necessary, but huge success. The vast majority of the European population opposes bailouts, and yet again there's no alternatives. Sometimes the only solution to a problem is to throw money at it, not to evoke class warfare, not to soak the rich. 

    When you give the 1% more, they use the liquidity to create businesses like facebook or new financial instruments that while sometimes failing at tax payer expense, help the free market run more smoothly. When you give lower income earners handouts, on the other hand, they use the money for subsistence or save it, neither of which helps the economy very much. A successful society needs to embrace the smart, talented and successful people and not penalize them with higher taxes etc. The truth is that their achievements sometimes increase the absolute living standards of the rest of the society. Looking at things always in relative terms, such as income gap, is not a good way of building society. 

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