You are here

Home » Blogs » BOGFirst1's blog

Economic Policy for the Middle Class, Short


The way our economy is currently structured, the middle class is continually eroded, while the upper class, economically speaking, is continually enriched. In the long run the middle class needs a dramatic re-structuring of the political system so that government will reflect their needs, as opposed to the current situation where the political system reflects the needs of the upper class. The influence of money on the MSM, politicians, and political parties, has turned a one-person-one-vote democracy ideal into a one-dollar-one-vote cashocracy.

The Fed seems to be considering raising interest rates in order to tame inflation. This is an action that will hurt middle class people, particularly home owners with ARM mortgages. Instead of raising interest rates congress should

Repeal the Bush tax cuts which have predominantly benefited the upper class and worsened the federal budget deficit.

    • Increasing taxation will decrease inflation by decreasing demand
    • The burden of fighting inflation will fall more on the upper class where there is more capacity to make adjustments without significant hardship
    • Interest rate inceases, that could cause misery for the middle and working class, will be unnecessary.

Increase mileage standards on car’s and truck’s sold in the U.S.

    • Will decrease demand for pertolium in the short run and decrease the inflationary effect of rising oil prices.
    • We should plan for continued increases in oil prices as we approach and pass the point where we have consumed 1/2 of the recoverable oil on the planet. Decreasing demand is necessary now and will continue because oil is not a renewable resource and we are close to having used 1/2 of the existing supply. The earlier this is started, the more quickly the benefits will become apparent.

Cut military spending in half

    • If the U.S. were to cut it’s military budget by 1/2 it would still spend 1.6 times more than Russia, China, North Korea, and Iran. With U.S. military spending reduced by 1/2, and the combined U.S. and strong ally spending remaining stable, the differential between U.S. + strong allies spending is still 3.29 times greater than the combined military spending of potential threat countries. We clearly are spending for unnecessary offensive military capacity.
    • An additional benefit of cutting the military budget is that it will be more difficult to launch destabalizing wars of empire, like Iraq, in the future. This will save working middle class lives and dollars in the future.

Use 1/3 of the budget savings from military budget cuts to decrease the federal deficit

    • Decreasing the federal deficit will decrease U.S. reliance on foreign creditors and will help stabalize the U.S. and global economy
    • Our children will have more growth opportunities because they will not be tasked with paying off a large government debt, that has gone primarily to the wealthy through tax cuts

Another 1/3 of the savings should go toward making social security and medicare financially sound

    • These programs are important factors in providing security for the majority of American’s and help minimize the effect of increasingly less responsible corporate behavior relative to retired employee pensions and health care.

Invest 1/3 of the military budget savings in developing a sustainable energy infrastructure for making a significant transition to a renewable energy economy that is not in any significant way oil dependent

    • The smartest investment we can make through our government is to rapidly create standards and infrastructure, enabling the U.S. to make a rapid transition from a petroleum based economy to a renewable, non-polluting, energy economy. This investment will
      • Decrease global tensions (human and military costs) generated over competition for declining sources of oil
      • Create tremendous economic opportunities in a new energy industry that will drive the modern and U.S. economy for the next 100 years
      • Decrease the severity (human and economic costs) caused by global warming
Powered by Drupal