Charlie Rose was interviewing Larry Summers. He asked him what steps have to be taken in order to get growth to accelerate.
Mr. Summers listed five points. I thought they were all smart. Then Charlie asked Mr. Summers "What about the social compact the government has with the people?"
It never hit me so clearly as it did that moment, the government is like a corporation, it's just a piece of paper.
So who was he talking about that had this social compact with the people? He couldn't be talking about the government because the government is just a provider of services for which it taxes the people.
BUT IN TODAY'S WORLD, MOST AMERICANS DON'T PAY ANY FEDERAL INCOME TAXES OR PRACTICALLY NONE. THAT LEAVES A SELECT VERY FEW PEOPLE WHO HAVE MADE MONEY AND NOW ARE THE ONES BEING ASKED TO HAVE THIS SOCIAL COMPACT WITH THE PEOPLE.
In other words, if you are successful in American, you are a charity machine to everyone else. The democratic party argued that this approach prevents revolution and allows some people to succeed. The implications of this kind of a society are negative for the masses. A standard of living that hasn't increased for ten or twenty years won't until there is a system where everyone is taxed for those services received thru their "compact with the government". That is one of the things that has to be done to create growth.
Mr. Summers listed five points. I thought they were all smart. Then Charlie asked Mr. Summers "What about the social compact the government has with the people?"
It never hit me so clearly as it did that moment, the government is like a corporation, it's just a piece of paper.
So who was he talking about that had this social compact with the people? He couldn't be talking about the government because the government is just a provider of services for which it taxes the people.
BUT IN TODAY'S WORLD, MOST AMERICANS DON'T PAY ANY FEDERAL INCOME TAXES OR PRACTICALLY NONE. THAT LEAVES A SELECT VERY FEW PEOPLE WHO HAVE MADE MONEY AND NOW ARE THE ONES BEING ASKED TO HAVE THIS SOCIAL COMPACT WITH THE PEOPLE.
In other words, if you are successful in American, you are a charity machine to everyone else. The democratic party argued that this approach prevents revolution and allows some people to succeed. The implications of this kind of a society are negative for the masses. A standard of living that hasn't increased for ten or twenty years won't until there is a system where everyone is taxed for those services received thru their "compact with the government". That is one of the things that has to be done to create growth.
