Author: An American Physicist.

Liberal and Conservative folks have been tied in knots by half truths. We must end the era of Political NonScience, and enact a plan to make work pay again. We begin by examining some Myths.

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Myth 1: Winner Take All

MYTH: Republicans believe in Winner take all. Democrats believe in taking from the Winner.

FALSE: Republicans break Monopolies by voting for Anti-Monopoly Laws, Time Limited Patent Laws, etc. to establish Aristocracy. Democrats break Monopolies by voting for the above plus a Progressive Income Tax to establish a Middle Class. All Parties take from the Winner via the voting booth.

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Myth 2: Monopolies of Many

MYTH: Monopolies occur whenever one company takes the lead.

FALSE: Monopolies occur whenever the number of companies involved is small enough for implicit collusion to occur. Such companies simply look over each others shoulders to see what similar companies are charging, and providing as wages, and do in kind. Many companies are no longer competing. ---If they did, they would do like small businesses do, and scramble to cut the fat. Instead, for example, historic CEO salaries remain: up to ~$100,000/hour. In the past, when men kept them honest, the CEO made approximately 50 times the average worker. Now it’s 500 times.

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Myth 3: Trickle Down Economics

MYTH: The rich need more in order to stimulate the economy.

FALSE: Look at the chart:

Does the man in blue need more in order to stimulate the economy?

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“…state and local taxes are so strongly regressive that they cancel out much of the progressivity of the federal tax.” - (Scientific American)

“Since 1975, practically all the gains in household income have gone to the top 20% …” And “Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups.” - (C.I.A. factbook)

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MYTH 4: Ethics of the Progressive Income Tax

MYTH: Progressive Income Taxes always TAKE from the Winner.

FALSE: Winners are asked to pay for services rendered. Wars are fought to defend a Nation. Citizens should pay that portion of the defense budget in PROPORTION to that portion of the Nation which they OWN, and therefore need defending. Military Welfare should end.

FALSE: A Nation that needs defending requires a child to be raised for 18 years. Some portion of that economic burden needs to be paid by those who require that same 18 year old. The infinite spiritual burden of a soldier’s death can never be repaid but the economic burden before enlistment, and after a death with lose of lifetime wages to their family, should. To a lesser extent this is also true elsewhere. Employers need ADULTS in order to make money.

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MYTH 5: Everyone has the Same Chance

MYTH: Everyone has the same chance in proportion to their abilities and willingness to work.

FALSE: If we were to all start over, then we would all have the same chance. It is fact that once someone starts with money, acquiring more is trivial. Unfortunately, money made by some great economic engine of our past, passed on within a family tree, often finds itself in the hands of a dullard.

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MYTH 6: Stimulating Effects of the Progressive Income Tax

MYTH: It does not matter who holds the money.

FALSE: Invention changes everything! The same cash in the hands of the creative yields far more than the zero sum manipulations of an economic dullard. If the Progressive Income Tax is used to pay for something that the Free Market would be proud to own then it is stimulus. On the other hand, idle Wealth is not. Freeing up capitol to be used by the vast majority –including, therefore, the majority of potential economic powerhouses is greatly stimulus.

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MYTH 7: How to get Rich

MYTH: You get rich on your own power.

FALSE: Here is HOW TO GET RICH:

1) Get people to work for a low enough wage or charge a lot.
2) Invent a product which increases your AND other people’s wealth.

Aristocrats view number 1 as holy writ. Communists view it as evil. Americans need simply note its truth. Employers need employees in order to make money. Free Enterprise slices both ways.

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MYTH 8: Who Gets Rich

MYTH: Non wealthy people are not smart or industrious enough to get rich.

FALSE: Some are, some are not. Many simply focus their energies on their passions and their families rather than vying for increased compensation. I have met policeman, fireman, soldiers, scientists, and laborers who were easily as sharp and industrious as those who vie for increased perks. Presently, those at the top are living off the welfare of those who are capable, but do not bother to pursue increased compensation. Just ask your neighborhood cop. The able bodied offer Welfare to those above and it is enjoyed without a bit of thanks. Able Bodied Welfare should end.

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MYTH 9: Work Hard or Work Smart

MYTH: If everyone just worked hard and/or got an education then everyone would move up the ladder and they could stop complaining.

FALSE: If everyone did that nobody, on average, would move up the ladder. Other than invention, wages are a zero sum game. Presently, the “advice” in this myth is given to encourage lower wage earners not to seek greater compensation for the work they do, so that those above them can gain greater compensation for the work that they do. Previously this advice was given simply to encourage real increased efficiencies in the work force.

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MYTH 10: Free Enterprise, the Phrase

This Myth simply involves using a phrase and forgetting its heart. Free Enterprise does 2 things:

1) Arrive at prices and wages commensurate with each group’s willingness/ability to battle over them so as to arrive at low prices and wages via relatively peaceful means.

2) Reflect our shared value of “Life, Liberty, and the Pursuit of Happiness.”

I would encourage all Americans to strive for these lofty goals!

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-----------------THE ACT---------------------

The American Middle Class Restoration Act

GOAL: THE LARGEST EXPANSION OF THE MIDDLE CLASS IN HISTORY.

PREAMBLE

Communism---Socialism---AMERICA---Aristocracy---Monarchy

• The goals of Free Enterprise have been thwarted by Aristocracy.
• Americans do not believe in Winner Take All. The American Experiment has two corrective measures against Aristocracies (old money/swindling) and Monopolies (explicit/implicit):
• Refusing lesser salaries until those wishing to make money via the labor of others, decide to offer greater salaries.
• The voting booth. Soldiers, Fireman, Police, etc., for love of country, family, or passion, forgo seeking greater compensation as above and rely instead on the voting booth via Anti Monopoly Laws, Time Limited Patents, the Progressive Income Tax, etc.
• We are sold on the goals of Free Enterprise. While Americans eschew idle wealth, and privilege over merit (Aristocracy), we also eschew forcing wages which would cause individuals to reject the work they would gravitate towards otherwise (Socialism).
• Americans use the voting booth ONLY if they have decided that withholding labor would achieve the very same result. It is posited that presently, those at the top, would do their jobs for lower compensation (as their predecessors did), thereby ensuring greater compensation for the vast majority.
• It is not enough to know that there is dead weight at the top, but worry about exceptions. A real danger exists now. The bottom 90% have been cut off from good wages for so long that America is suffering from a lack of booming economics, academic advances, and the maximum level of military preparedness.

The American Middle Class Restoration Act

Restoring America to a Time When Courage and Work Paid.
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PROVISION 1: 50% INCREASE IN PAY FOR ALL ACTIVE DUTY AND RESERVE MILITARY PERSONEL.

REVENUE NEUTRAL MEANS:

• Soldiers risk and often sacrifice their lives. Citizens can pay proper respect upon demise by locking up only half of their estate within family lines. The remaining half being plowed back into America by paying the increase above.
• Partial Closed Loop Economics defends America from Aristocracy by providing a partially level playing field against “old” money. Privilege over merit should be limited. Ensuring that one’s children never have to work is one thing. Ensuring that family lines never have to work, whilst Soldiers sacrifice, is quite another.

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PROVISION 2: ZERO INCOME TAX ON NECESSARY INCOME: THE FIRST $60,000 MADE EACH YEAR BY EVERY AMERICAN.

REVENUE NEUTRAL MEANS:

• The first $60,000 made each year by every American shall be exempt from income tax. Each additional dollar taxed at ~38%. (Presently, revenue neutrality would require ~48% on additional dollars, but once economic activity from the bottom 90% kicks in, the rate is greatly reduced.)
• The first dollars made are needed for living, bootstrapping businesses, and raising children for the workforce or military service. Further, dollars in the hands of the Middle Class find their way more easily to the poor, in the finest traditions of American charity.

The ACT’S provisions are the same for all Americans. We must decide if, from birth, we are willing to abide by them.

The contributions that the vast majority are called to make, at present, are three fold:

• To continue to work, and live with, semi-monopoly restricted low wages and high prices.
• To raise children for 18 years (an economic challenge) and offer them up, if the need arises, to defend this Nation with their lives (an infinite spiritual challenge).
• To continue to pay regressive State and Local Taxes.

The ACT marks a return to the notion that the American Dream of a strong Middle Class Life is part and parcel to America herself. It recognizes the Economic stimulus possible when Dad and Mom, Aunt and Uncle, friend and neighbor ALL have extra cash in their pockets, and dreams to pursue.