To: President Donald Trump, The United States House of Representatives, and The United States Senate
Why Raising IEOSD Will Create Millions of Jobs.
1)-RAISE INTEREST RATES ON SAVINGS EARNED TO 5% BRINGING $385 BILLION DIRECTLY INTO THE ECONOMY.
2)-that Either by an Executive Order or a new Bill ad huge excise taxes on all currently outsourced jobs which bring outsourced goods to meet or exceed prices of similar goods made in one of the 50 states of the USA.
2)-that Either by an Executive Order or a new Bill ad huge excise taxes on all currently outsourced jobs which bring outsourced goods to meet or exceed prices of similar goods made in one of the 50 states of the USA.
Why is this important?
Low interest rates are helping only one group, the richest people in America, and the greedy, 1%.
If the Austerity mongers gets all that it wishes; ending Collective Bargaining, cuts in pensions, Medicare, Social Security, laying-off millions of people, what will happen? The discretionary income of approximately 80 – 90 million people will be all but annihilated. The companies whom they support by buying goods and services will be diminished and those companies they were patronizing by buying goods and services will go bankrupt and added to the present 31 million out of work and underemployed will more than double making the depression of 1929 look like a lark in the park.
Austerity is exactly the worst approach. See the success of Argentina, Brazil, and the Northern European nations like Sweden, Norway and Denmark, who used FDR’s processes. One does not pull back on marketing when business is dragging it increases and improves marketing.
There is right now $7.77 trillions in savings in US banks at a near zero rate of IEOSD-(Interest Earned On Savings Deposits) yielding to depositors next to nothing. Instead of the depositors gaining the banks are keeping it and doing nothing with it.
At a rate of 5% on IEOSD the $7.77 trillions would yield $385 billion dollars, which, if given at least that rate of 5% (IEOSD) as was the case before the attack on Iraq) estimates say the depositors would pump into the market place about 75% - 90% of that money. The 99% own about 50% ($192 Billions) of that cash. They would spend or invest it quickly and thus will create sales and jobs. The present rate of near zero IEOSD pumps NOTHING into the economy and Mr. Bernanke wants to keep it that way for almost three more years, while the banks are keeping the interest which depositors, should be receiving.
I further suggest that Either by an Executive Order or a new Bill ad huge excise taxes on all currently outsourced jobs which bring outsourced goods to meet or exceed prices of similar goods made in one of the 50 states of the USA.
The United States has had a public debt since it’s founding in 1791. Debt relative to GDP rose rapidly during the 1980s under president Ronald Reagan, whose economics policies increased military spending and lowered tax rates. Gross debt in nominal dollars quadrupled during the Reagan era as well as during the era the senior Bush presidencies between 1980 -1992. The net public debt quintupled in nominal terms. Debt held by the public had declined from 28% to 26% of GDP in the 1970s; by contrast, it rose to 41% of GDP by the end of the 1980s. But all of that money went to corporations who grew NO new jobs. You cannot spend money and lower taxes at the same time that is like quitting your job and buying a new house.
“Economist Mike Kimel notes that the last five Democratic Presidents (Bill Clinton, Jimmy Carter, Lyndon B. Johnson, John F. Kennedy, and Harry S. Truman) all reduced public debt as a share of GDP, while the last four Republican Presidents (George W. Bush, George H. W. Bush, Ronald Reagan, and Gerald Ford) all oversaw an increase in the country’s indebtedness.
Economic historian J. Bradford DeLong, former Clinton Treasury Department official, noted that the contrast was not so much between Republicans and Democrats, but between Democrats and "old-style Republicans (Eisenhower and Nixon)" who on one hand (decreasing debt), and "new-style Republicans" on the other (increasing debt). D.Stockman, director of the
OMB under President Reagan, in an op-ed in the New York Times, blamed the "ideological tax-cutters" of the Reagan administration for the increase of national debt during the 1980s."
PART ONE: I suggest a petition to raise Interest Earned on Savings of Deposit to bring to Americans with savings in banks $385 billion dollars which would be pumped into the economy raising jobs.
PART TWO: I further suggest that Either by an Executive Order or a new Bill ad huge excise taxes on all currently outsourced jobs which bring outsourced goods to meet or exceed prices of similar goods made in one of the 50 states of the USA.
If the Austerity mongers gets all that it wishes; ending Collective Bargaining, cuts in pensions, Medicare, Social Security, laying-off millions of people, what will happen? The discretionary income of approximately 80 – 90 million people will be all but annihilated. The companies whom they support by buying goods and services will be diminished and those companies they were patronizing by buying goods and services will go bankrupt and added to the present 31 million out of work and underemployed will more than double making the depression of 1929 look like a lark in the park.
Austerity is exactly the worst approach. See the success of Argentina, Brazil, and the Northern European nations like Sweden, Norway and Denmark, who used FDR’s processes. One does not pull back on marketing when business is dragging it increases and improves marketing.
There is right now $7.77 trillions in savings in US banks at a near zero rate of IEOSD-(Interest Earned On Savings Deposits) yielding to depositors next to nothing. Instead of the depositors gaining the banks are keeping it and doing nothing with it.
At a rate of 5% on IEOSD the $7.77 trillions would yield $385 billion dollars, which, if given at least that rate of 5% (IEOSD) as was the case before the attack on Iraq) estimates say the depositors would pump into the market place about 75% - 90% of that money. The 99% own about 50% ($192 Billions) of that cash. They would spend or invest it quickly and thus will create sales and jobs. The present rate of near zero IEOSD pumps NOTHING into the economy and Mr. Bernanke wants to keep it that way for almost three more years, while the banks are keeping the interest which depositors, should be receiving.
I further suggest that Either by an Executive Order or a new Bill ad huge excise taxes on all currently outsourced jobs which bring outsourced goods to meet or exceed prices of similar goods made in one of the 50 states of the USA.
The United States has had a public debt since it’s founding in 1791. Debt relative to GDP rose rapidly during the 1980s under president Ronald Reagan, whose economics policies increased military spending and lowered tax rates. Gross debt in nominal dollars quadrupled during the Reagan era as well as during the era the senior Bush presidencies between 1980 -1992. The net public debt quintupled in nominal terms. Debt held by the public had declined from 28% to 26% of GDP in the 1970s; by contrast, it rose to 41% of GDP by the end of the 1980s. But all of that money went to corporations who grew NO new jobs. You cannot spend money and lower taxes at the same time that is like quitting your job and buying a new house.
“Economist Mike Kimel notes that the last five Democratic Presidents (Bill Clinton, Jimmy Carter, Lyndon B. Johnson, John F. Kennedy, and Harry S. Truman) all reduced public debt as a share of GDP, while the last four Republican Presidents (George W. Bush, George H. W. Bush, Ronald Reagan, and Gerald Ford) all oversaw an increase in the country’s indebtedness.
Economic historian J. Bradford DeLong, former Clinton Treasury Department official, noted that the contrast was not so much between Republicans and Democrats, but between Democrats and "old-style Republicans (Eisenhower and Nixon)" who on one hand (decreasing debt), and "new-style Republicans" on the other (increasing debt). D.Stockman, director of the
OMB under President Reagan, in an op-ed in the New York Times, blamed the "ideological tax-cutters" of the Reagan administration for the increase of national debt during the 1980s."
PART ONE: I suggest a petition to raise Interest Earned on Savings of Deposit to bring to Americans with savings in banks $385 billion dollars which would be pumped into the economy raising jobs.
PART TWO: I further suggest that Either by an Executive Order or a new Bill ad huge excise taxes on all currently outsourced jobs which bring outsourced goods to meet or exceed prices of similar goods made in one of the 50 states of the USA.