Rx for widening wealth gap and disappearing middle class

 

I’ve thought of a few solutions which can be rolled into a REFORM package which the swamp creatures have no intention to pass.

Let us start off by identifying the swamp creatures.   Not all live in Washington DC.  Many live in New York.

The swamp creatures are….

#1 Corporate CEO’s who have surrounded themselves with compliant Boards which enable them to hijack corporations from shareholders.  The multiple of CEO pay to hourly worker pay has increased from a multiple of 24 x  in 1964 to a multiple of 262 x today.

#2 Board Members who do the bidding of CEOs focused on short term profit rather than long term growth and reward CEO’s with huge bonus and separation plans irrespective of results they achieve

#3 Wall Street and money center Banks whose managements bear no risk because they are too big to fail, yet who invest the bank’s assets in proprietary risk instruments knowing that outsize risk begets outsize reward. They get the reward via a huge bonus, while shareholders get the risk.

#4 Lobbyists who have corrupted the staffs of congressmen to the point where the lobbyist actually writes the legislation it wants to be passed. Money provided by ultra rich and special interests.

#5  Congressional staffs with their hands out for lobbyist freebies and promises of future employment etc..

#6 Congressmen who consider their seat a career and use it to feather their own nests.  There are 268 members of Congress ( more than half of the 534 ) who have a net worth exceeding $1 million.  Their interests conflict with those of the middle class.

#7 The ultra rich.  There are 540 billionaires in the USA with a combined net worth of  $2.4 trillion. They can’t find new ways to spend money so they invest it in ways that ensure Congress will help enrich them further and protect them from the middle and working classes.

#8 The professional class of attorneys and accountants that make certain the irrespective of the tax rates, their clients will pay the absolute minimum, and hopefully no taxes.

WHAT IS THE Rx TO DECREASE THE SIZE OF THE EVER WIDENING  WEALTH GAP

1- Focus on developing robots to compete with the low wage scales in developing countries.

2- US Companies are holding  $2.5 trillion in offshore profits which are not being put to productive use. The hope is that the Congress will pass legislation that creates a tax holiday on such earnings. Now you tell me if this happens, will the repatriated profits be used productively,  or will they be used to create huge bonus packages for corporate managements?

3- Creation of apprenticeship re-training programs such as have been created in Germany to recycle displaced workers into higher paying technical jobs in corporations, giving USA  manufacturing sustainable technical advantages against competition from third world – low wage countries.

4- Abandon the notion of trickle down and use fair increases in taxes on ultra rich to fund reductions in the need for student loans and crippling loan interest which forecloses on any possibility for young Americans to accumulate sufficient capital to finance the American dream… home ownership.

5- Remove penalty on IRA funds being used for investment in a home or home improvements.  Wall Street lobbyists not only want you to have all your money invested in Wall Street, but they want to make it easier for you to lose it there.

6- Establish a reasonable ratio between CEO pay and hourly worker pay, after which an escalating surtax is applied.

7- Allow common shareholders a  greater proxy voice in approving CEO team bonus compensation.

8- Strengthen protection for whistle blowers and increase incentive pay for SEC and GAO auditing agents.

9- Eliminate the possibility for congressmen to ” front run “, investing in business developments learned before in closed hearings before being made public

10- Eliminate the use of “earmarks ” attached to legislative bills by congressmen.

11- Term Limits for Representatives ( 3 x 2-year terms )…Senators ( 2 x 6-year terms )

 

Richard Maurice Gore

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