by Bruce Gourley » Mon Sep 08, 2014 4:12 pm
ET Says: My premise is that as government grows and its powers expand beyond a limited role, a system is created whereby those with money and access can use that system to benefit themselves at the expense of the rest of the citizenry.
I would argue that government growing beyond control is the result of big business (private wealth) taking over government. Economic historians generally point to about 1970 as to when big business effectively gained control of government, meaning that big business attained the ability to steer and write legislation. Since that time, big business-controlled government has steered and written legislation to benefit the wealthy, and -- surprise! -- the government has steadily redistributed a greater share of tax dollars into the pockets of the wealthy, at the expense of the poor, middle class and small businesses.
Tax rates correspond to the conquering of the government by big business. As late as the early 1960s the top tax rate in America was 91% (the richest were taxed at this rate; America's economy rocked during this time), and now it is the 30s (and the economy has struggled ever since Reagan began massive redistribution of wealth from the poor and middle class to the rich). The reason America is suffering financially is quite simple: the richest are not paying their share of taxes, content instead to force the tax burden upon the poor and middle class, of whom want to pay less and less in order to paid their own pockets even more (or, more realistically, to hide their greedy profits in off shore tax havens to avoid paying taxes).
As Adam Smith warned us long ago, such plutocracy is an enemy of capitalism, and destroys nations.
Bruce Gourley
BaptistLife.Com owner