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A: The answer I gave was an explicit response to a specific question, and was accurate within the limits of that question-and-answer exchange. You have now posed a much larger broader question, which I can answer only partially in a short e-mail reply; but, I can point your attention to my "Economics: At the End of a Delusion" (EIR:Feb. 22, 2023), in which the general outline of my emergency recovery program and its long-term effects, is summarized. This report, which occupies 65 pages of that issue of EIR, is one of the principal components of a much larger, book-length report in editorial production at the present time. The other elements of that fuller report include Richard
Freeman's in-depth report on the crucial features of Franklin Roosevelt's pre-World War II and war-time economic policies, which are presented as indispensable clarification of and in comparison to the range of measures which I have proposed. John Hoefle adds a shorter summary of relevant features of the presently ongoing general monetary-financial and economic breakdown. I address you specific questions against the background of that report as a whole.
The kernel of my recovery measures centers on a return to the standards of structural composition of employment of the total labor-force and technological-development policies of the first half of the 1960s. That means a shift from a "consumer-oriented" to a "producer-oriented," national economy, in which rising levels of skilled "blue-collar" employment reverse the past thirty-five years increase of "white-collar" employed in unskilled or redundant forms of "services" and clerical employment.
This sharp shift in national economic policy-trends, should be seen against the background of the abrupt turnabout, from the "free trade" dogmas of the recent thirty-five years, to the "fair trade" policies and practices of the 1945-1964 interval, a change which could not be postponed any longer, and which has now become a virtually irreversible, new trend in national economic and taxation policies.
This shift requires several included sharp changes from recent trends in national economic, credit, banking, and taxation policies. It means a lower tax-rate on low-income households, for the general purposes of restoring healthy family life, and increasing the self-reliance of both households and the local communities. It means a suddenly increased, heavy rate of taxation on incomes from financial speculation, but with reduced rates of net taxation on incomes used for capital improvements in products and production. The nation is going back to work, after the ruinous frivolities of thirty-five foolish years. I specify a greatly increased emphasis on the role of the technologically progressive, closely-held entrepreneurial firm, over the unhealthy, excessive domination of the economy by often-parasitical practices among the corporate giants. I emphasize the role of the state and local communities as the location for the "base of the national economic pyramid," as used to be a rather natural and healthier economic trend.
The policies of government are use the power of the Federal government, under our Constitution, to exert a monopoly on the creation of credit, to accelerate the volume of taxable income by the methods which Franklin Roosevelt used so successfully in conjunction with the RFC. There is increased emphasis on the taxable portion of new national income generated through the combined effects of: a.) a shift back toward a producer economy, instead of the recent orientation toward a consumer society; b.) a focus of national credit on creation of expanded production of wealth, including taxable income; and, c.) the shift away from taxing the base of the economy, to putting the relatively greater burden on non-productive financial capital gains and upon taking society's share, through taxation, for the purposes of managing the nation's fiscal and monetary affairs, and recycling the government's role of creating and otherwise mustering the credit needed to roll over the credit supplied to the process of economic
growth.
In short, instead of attempting to apply a number of selected new rules to taxation and related policy, a kind of reform which would be a rather immediate, catastrophic failure, the job is to restructure the economic process and, then, adopt and apply the credit and taxation policies appropriate to that restructuring.
-- Lyndon
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