THE ECONOMY
Untitled Page
UCI's Policano on the economy, continued ...
The debtor nation
The national debt is about $12 trillion and counting. Click onto usdebtclock.org,
and you can see – in real time – just how quickly it’s ticking up. To
ebb the flow, Policano says the government needs to do three things:
• Decrease spending
• Reduce entitlements
• Raise taxes
But
he cautions against targeting only the top earners. History shows that
it can backfire, he says, driving those top earners to other areas of
the world where they can conduct business at a lower tax rate.
“There’s
been talk of taxing top earners at 50 percent,” he says. “Today, the
top 1 percent of earners pays 35 percent of our tax revenue. The last
time we increased the tax on top earners to 50 percent, the top 1
percent of those earners paid only 25 percent of our tax revenue, and
that’s because those top earners left the country to find lower taxes.”
‘The Policano Plan for Prosperity’
Policano’s answer: Increase taxes on everyone, and initiate more vice taxes. In addition, he says, the government needs to:
•
Create a stimulus plans to spur innovation in areas of industrial
growth (research and development in the bio-medical and high-tech
fields, for example, which you can find right here in Orange County)
• Create incentives to boost consumer’s saving habits
• Make Detroit our new China
Detroit’s
unemployment rate is exceeds 15 percent. The factories that once kept
the state’s economy humming are empty shells. Real estate is cheap:
“The football stadium there sold for $550,000 – less than a condo in
New York costs,” Policano says.
“Let’s outsource our work to Detroit instead of China,” he says. “Let’s have the U.S. manufacture in Detroit, not China.
That would put people to work, bring manufacturing back to the United States and spur economic growth.
Policano’s dream: full employment by mid-decade
How do we get there? By implementing what Policano calls “a coordinated fiscal policy.”
On
the government end, it means Congress must reduce the deficit by
increasing taxes and reducing spending, and initiate downward pressure
on interest rates.
In the private sector, it means companies will begin to borrow more, invest more and produce more.
The result: long term growth and a return to a strong economy.
<< PREVIOUS PAGE
Related headlines
O.C.'s unemployment rate falls to 9.1 percent
O.C. apartment rent rates drop 6.7 percent
O.C.'s median home price jumps 9.6 percent
Readers Feedback:
Steve,
Excellent presentations this a.m. and you have captured well. Jane
Comment at 1/22/2010
Perhaps Mr. Policiano doesn't know about a small hurdle in the way of turning Detroit into our "new China" - labor unions. Unions have insulated Detroit, and it's heavily unionized citizens, from the harsh reality of a truly global economy. How does he propose to deal with the AFL-CIO?
Comment at 1/22/2010
in order to create our own China, the minimum wage would need to be eliminated so that good productive employees can make a living wage and moderate employees have something to strive for. the unions will do what they can to inhibite the progress. the union lives for the union and nothing else. the government leaders need to get out in front and spearhead the charge to create an environment for businesses that will do the right thing for the employee and ownership, maybe thats a taxbreak for employee owned business, waiting for the federal government to step up and make this happen is like waiting for the NEA to fix our education problems
Comment at 1/22/2010
The decimation of the unions since Reagan took office in 1980 has resulted in less than 11% of American employees working under a union contract. This is just an excuse. We need to invest in putting robotics in our factories and return manufacturing to our shores.
Suzanne
Comment at 1/23/2010
It was a fascinating talk - I was there. Just noting that Detroit's unemployment is not 15% but an astonishing 50%. There may be more receptivity to this idea than unions can resist. http://www.huffingtonpost.com/2009/12/16/detroits-unemployment-rat_n_394559.html
Comment at 1/25/2010
Let's hope something like this can work and that we can afford decent housing at $10 an hour and get good health care.
Comment at 1/31/2010
UCI's Policano on the economy, continued ...
The debtor nation
The national debt is about $12 trillion and counting. Click onto usdebtclock.org, and you can see – in real time – just how quickly it’s ticking up. To ebb the flow, Policano says the government needs to do three things:
• Decrease spending
• Reduce entitlements
• Raise taxes
But he cautions against targeting only the top earners. History shows that it can backfire, he says, driving those top earners to other areas of the world where they can conduct business at a lower tax rate.
“There’s been talk of taxing top earners at 50 percent,” he says. “Today, the top 1 percent of earners pays 35 percent of our tax revenue. The last time we increased the tax on top earners to 50 percent, the top 1 percent of those earners paid only 25 percent of our tax revenue, and that’s because those top earners left the country to find lower taxes.”
‘The Policano Plan for Prosperity’
Policano’s answer: Increase taxes on everyone, and initiate more vice taxes. In addition, he says, the government needs to:
• Create a stimulus plans to spur innovation in areas of industrial growth (research and development in the bio-medical and high-tech fields, for example, which you can find right here in Orange County)
• Create incentives to boost consumer’s saving habits
• Make Detroit our new China
Detroit’s unemployment rate is exceeds 15 percent. The factories that once kept the state’s economy humming are empty shells. Real estate is cheap: “The football stadium there sold for $550,000 – less than a condo in New York costs,” Policano says.
“Let’s outsource our work to Detroit instead of China,” he says. “Let’s have the U.S. manufacture in Detroit, not China.
That would put people to work, bring manufacturing back to the United States and spur economic growth.
Policano’s dream: full employment by mid-decade
How do we get there? By implementing what Policano calls “a coordinated fiscal policy.”
On the government end, it means Congress must reduce the deficit by increasing taxes and reducing spending, and initiate downward pressure on interest rates.
In the private sector, it means companies will begin to borrow more, invest more and produce more.
The result: long term growth and a return to a strong economy.
<< PREVIOUS PAGE
Related headlines
O.C.'s unemployment rate falls to 9.1 percent
O.C. apartment rent rates drop 6.7 percent
O.C.'s median home price jumps 9.6 percent
Readers Feedback:
Steve,
Excellent presentations this a.m. and you have captured well. Jane
| Comment at 1/22/2010 |
Perhaps Mr. Policiano doesn't know about a small hurdle in the way of turning Detroit into our "new China" - labor unions. Unions have insulated Detroit, and it's heavily unionized citizens, from the harsh reality of a truly global economy. How does he propose to deal with the AFL-CIO?
| Comment at 1/22/2010 |
in order to create our own China, the minimum wage would need to be eliminated so that good productive employees can make a living wage and moderate employees have something to strive for. the unions will do what they can to inhibite the progress. the union lives for the union and nothing else. the government leaders need to get out in front and spearhead the charge to create an environment for businesses that will do the right thing for the employee and ownership, maybe thats a taxbreak for employee owned business, waiting for the federal government to step up and make this happen is like waiting for the NEA to fix our education problems
| Comment at 1/22/2010 |
The decimation of the unions since Reagan took office in 1980 has resulted in less than 11% of American employees working under a union contract. This is just an excuse. We need to invest in putting robotics in our factories and return manufacturing to our shores.
Suzanne
| Comment at 1/23/2010 |
It was a fascinating talk - I was there. Just noting that Detroit's unemployment is not 15% but an astonishing 50%. There may be more receptivity to this idea than unions can resist. http://www.huffingtonpost.com/2009/12/16/detroits-unemployment-rat_n_394559.html
| Comment at 1/25/2010 |
Let's hope something like this can work and that we can afford decent housing at $10 an hour and get good health care.
| Comment at 1/31/2010 |
