Financial, Economic and Social Mood Update (March 1, 2019)
In February’s blog we discussed the fact that electric vehicle sales are set to increase at a very rapid pace due to worldwide governmental legislation and the related commitment from the motor vehicle (automotive) industry to reach this goal. Even if people from multiple sides of the political spectrum do not agree on the issue of “climate change” or “global warming,” everyone can agree that environmental pollution is serious enough to warrant a switch from the burning of fossil fuels (crude oil, natural gas and coal) to something much cleaner, safer, healthier, more environmentally responsible and ultimately more affordable – “green” energy sources and ultimately nuclear fusion energy (note – this is NOT nuclear fission energy). The US State of California has long led not just the USA but the entire world in legislation related to the environment and related to motor vehicle safety. In other words, what California has enacted into environmental and automotive industry law has eventually found its way to the rest of the USA and ultimately to the rest of the world. In spite of this progressive environmental and automotive safety trend, California will not (by its own admission) meet its environmental goals of reducing tailpipe emissions. Why is this so?
Much of it has to do with the fact that California is home to very large metropolitan regions (Los Angeles – San Diego in the south and the San Francisco – San Jose / Silicon Valley in the north) where millions of people make long daily commutes to and from their homes and places of employment. In other words, far too many vehicles on road getting far too much daily use. Another issue (more in the rest of the USA compared to California) is the type of new vehicles consumers now purchase – i.e. large trucks and so-called SUVs (sport utility vehicles). These vehicles (necessary for many businesses but not necessary for most consumers) tend to be very large, very powerful (large displacement internal combustion engines with massive horsepower, rapid acceleration, high top speeds and massive tailpipe emissions harmful to global environmental health). Perhaps the next step which global lawmakers need to consider is a progressive tax on vehicle size, weight, engine displacement, horsepower, acceleration and top speed) – for initial purchase, for secondary (used) purchase and based upon actual usage (miles or kilometers per annum on an odometer) – for consumer purchase but not for legitimate commercial business need. This would be a far more reasonable, fair and constructive way to raise public sector revenue compared to existing socialist proposals to raise income and even asset (net financial worth) taxes.
Socialism has never worked, does not work and will never work!
Income and wealth taxes are nothing but counterproductive to human achievement – they literally reward failure and punish success with the end result that NOBODY will continue work for a living and contribute to the common good. Socialist concepts are already a part of the American economy, and the result is 100 percent bad. In the USA today, fully 51 percent of the population receives more in public sector “benefit” payments than they actually contribute into the common system. In other words, their net effect (contribution) to the GDP of the USA is negative. Among immigrants (both legal and illegal) the figure is even worse – 63 percent receive more in public sector “benefit” payments than they pay into the common system in the form of taxes and “mandatory” insurance (i.e. health insurance). In California, both of these percentages are much higher, although the relationship between US citizens and immigrants (both legal and illegal) is actually reversed. 78 percent of Californians receive more in public sector “benefit” payments than they pay into the common system, and among US citizens in California the figure is a whopping 83 percent. The lion’s share of public sector “benefits” are part of the health care system in the form of programs such as Medicare, Medicaid and MediCal. What does all of this mean and why is it so bad? It means that the once great American middle class is shrinking (it is virtually gone in states such as California) and that relatively very few Americans are doing their fair share to “row the oars in the boat” so to speak. The unfair burden of rowing the oars in the boat falls upon a paltry 17 percent of American citizens in a rich state such as California, which means that these numbers cannot and will not last – the eventual result will be the bankruptcy of our society. With respect to the inefficient, overhead-heavy and expensive American health care system, it likely means that we need to de-regulate health care much like commercial banking, commercial aviation and telecommunications were deregulated in the 1970s and beyond. Doctors, nurses, and alternative health care providers must be freed to pursue their career talents independently (as they did before Medicare became law in 1966). And just as medical professionals (doctors, nurses as well as alternative healers) need to be freed, consumers must be freed to purchase as little or as much as they so choose in the field of health care.
