Armstrong Economics Blog/Politics Re-Posted Sep 22, 2021 by Martin Armstrong
The Democrats simply hate the way society and the economy function. Like Karl Marx, they think they can play God because they cannot believe that there is even a God. Marx saw the world in anger. Anyone who has read his work can feel the hatred between the words. Under this Marxist agenda, what they call “equality” is that we are all to be stripped of individual rights because their measurement is only material wealth. They cannot grasp that a centralized government is incapable of anticipating anything, no less managing the economy.
Back in the ’90s, I was trying to help society by donating my time on Capitol Hill. I testified even before the House Ways & Means Committee on global taxation. I was asked to lay out a plan to convert Social Security to a wealth fund. At the time, the Dow was just under 4,000. The proposal was to allow Social Security to invest rather than be a slush fund for government debt. I worked on the criteria of how to select the fund managers. The Democrats vowed to defeat it because they wanted to change the fund managers when they regained power. I argued this had nothing to do with who a fund manager voted for. It was to be based SOLELY on their track record.
I debated at Princeton University Steve Forbes, who was for the flat tax, and Democratic Governor Jim Florio, who never saw anything that shouldn’t be taxed. I blew Florio out of the water, leaving him speechless. I pointed out that the Democrats were borrowing from the poor and refused even to pay them interest, pretending to hand back refund checks to be magnanimous. It was like I rob you of $100 and then pretend to be such a great guy because I am giving you a $100. To Florio’s credit, after the debate, he called me wanted to listen more.
We even published a Tax Proposal back then and found myself moving back and forth between Dick Army, head of the Republicans, and Bill Archer, Republican Chairman of the Ways & Means Committee. Both were from Texas, but Dick was for the flat tax, and Bill was for the retail sales tax. I could not even get the two to sit down for dinner because they did not want to be seen in a public meeting that would start rumors of a compromise.
I was sitting in Dick Army’s office. He had his feet on the desk with his cowboy Texan boots, smoking his cigar. He said to me that he could not support such a tax reform because they would have to amend the Constitution. He said I knew cycles and when the Democrats got back in, we would then have a retail sales tax and an income tax. It was that meeting when I said to myself, not only was Dick correct, but I was wasting my time. I saw at that moment that the model would be correct and it would have to play out.
The Democrats actually have nothing to offer society whatsoever. Their entire agenda is always Marxism. It is always the same pitch — class warfare. They always demonize the rich who they define NOT as Bill Gates, but the small businesses earning $250,000 or more. Those businesses are the very core of the labor force and provide 70% of all employment. They do not offer skills in management or even a vision of expanding the economy. It is always about hatred, “Vote for me and I will rob those other disgusting people who cause all the problems.”
Now the latest move is to tax all UNREALIZED gains a person has upon death. That will wipe out small businesses, for they cannot continue if the heir suddenly has to pay normal income tax of the claimed “value” of the company. It leaves one with the feeling that you should just burn down what you have, and throw it all on the funeral pyre just to prevent these thieves from getting their hands on it to destroy the future. All the major companies begin small, but they develop and expand. New inventions like the automobile and devising assembly lines did make Henry Ford rich, but those innovations also made cars affordable for the average person. Once that took place, the country expanded. People could start to commute and the land values began to rise outside the urban centers.
What is wrong with politics is that this should be about building society and the vision of the future. FREEDOM is not one side that demands others live the way they tell them. LIBERTY is fundamental — I leave you alone and you leave me alone. The words Thomas Jefferson wrote in the Declaration of Independence have been lost in politics. Politics has divided the country, turned one group against the other, and in the end, this will ONLY be resolved once more by bloodshed. As always, it will divide families and friends, but everyone will choose a side and be compelled to kill the other to restore the basic fundamental right to be left alone.
My family has fought in every war for America since the Revolution. They did not fight for this. What the nation has devolved into has disrespected every soldier and what they were told they were laying down their lives to preserve. There is no God that is respected, no less believed in, on Capitol Hill.
hen in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.
We have collapsed now into class warfare abandoning everything so many have died to defend. This is the ultimate treason of generations. Can we possibly resolve this peacefully? Or will this once more require spilled blood?