Doing It Backwards

I BELIEVE IN HIGH TAXES and big government. We achieve more by cooperating in large numbers than by competing as individuals, although there is value in both modes. Surveys reveal that most Americans want a strong military, well maintained highways, bridges, and roads, social security, Medicare, Medicaid, police and fire protection, among other services, and they want to pay about ten percent of their income in taxes. Needless to say, the math doesn't add up. There is a common misconception that individuals can spend their money more intelligently, which means on what they need, than the government. People in fact are accomplished at spending their own hard earned money on cigarettes, alcohol, video games, and escape entertainment, while the government is not, and the government is more adept than people at spending public money on the military, roads and highways, police and fire protection, among other services. High taxes fund projects, such as scientific research and education, which yields future prosperity and well paid jobs. Between 1945 and 1980 taxes were high, the middle class was large, the wealthy and poor working classes smaller, much smaller than now, and America was at her historically most prosperous. The magic formula is high taxes, a large public sector, and investment in research and education, essentially the opposite of the formula now in use. Throughout American history government has subsidized big business, and failed to support the interests of the poor working class. Government investment in growth areas within the private sector, such as high tech and medicine, indeed yields results, but government support of financial services in particular has been to the detriment to most segments of the American economy. Cutting taxes on the wealthy does not produce prosperity; it produces wealthier wealthy people, or added production without increased demand. Redistribute wealth unto the working poor through tax and wage policy, and prosperity is increased through increased demand. High taxes are not a burden if net incomes are increased. The great tragedy of our modern politicians is that the policies they enact are diametrically opposed to the prosperity they claim is being enhanced.