This did not happen during the 19th and first half of the 20th centuries because America was an industrialized nation then. An industrial economy creates a very strong middle class and is equal opportunity - you work based on what you can do and your value as a skilled worker and craftsman.
You can't do that in a 'services' economy, as your worth depends on education, and not all education is equal - from the university down to the grade school level.Read more
The only viable tax change would be the institution of the National Sales and Consumption Tax plan with absolutely NOT ONE exception from paying the taxes. That means no poor person, no ethnic group, no illegal alien person, no refugee person, no Church or Religious group or Muslim group can skirt around paying taxes.
They pay at the time of consumption or the time of service rendered for them when they pay their bills. NO MORE progressive income tax, no more capital gains taxes, no more tax exemptions for Big Corporations by anyone anywhere. NO MORE of that.Read more
The US banks, with over $100 trillion in derivatives and without the funds to meet demands for cash from their depositors, will ask to be bailed out if they fail. While Dodd-Frank prohibits taxpayer bank bailouts, a clause in Dodd- Frank, largely unreported by the media, allows US banks facing default to turn to their own depositors for what is called a "bail-in."
This involves confiscating all or part of the depositors' life savings to pay off debts (such as derivative obligations) Forget FDIC saving you--FDIC actually has co-written papers with the Bank of England justifying the bail-in practice.Read more
Greece cannot pay, therefore the debt must be restructured...end of story.
Let the banks eat their own losses this time. No more bailouts.
America has an excellent opportunity to walk its talk about Greece in Puerto Rico, by the way. The circumstances are remarkably similar, yet somehow I doubt that mainstream economists will be calling for Puerto Rico to leave the dollar zone and fire up its own currency.Read more