Our money supply is endless, how’s yours?

A reader sent me this article. It’s well worth a close read.

Progressive’s came out in the 2022 mid-terms ONE MORE TIME to demagogue over R’s supposed proposals to eliminate Social Security and Medicare. I’m surprised they didn’t reprise the political ad of a Republican shoving granny in a wheel chair over the cliff. (https://www.youtube.com/watch?v=OGnE83A1Z4U) In hindsight, that looks like part of a successful election strategy.

But can they live with what they asked for? Some Progressives have started to wonder whether commitments to fund ever-increasing entitlements (9% COLA anyone?) using the old saw of “corporations and rich should pay their fair share of taxes” might crowd out opportunities to “tax the rich” for other Progressive priorities (Climate Change, etc.)

Keep in mind that, as a group, seniors (age 65+) are America’s most wealthy cohort of the population, and the segment least likely to truly live in poverty. Remember that official government “poverty” statistics are a function of “income”, and generally avoid incorporating wealth (home equity, investments, etc.)

From a recent Daily Beast article:

“Thus, the key question for progressives is whether closing the Social Security gap is the best use of the limited remaining tax-the-rich revenues. Remember that Medicare still faces a massive $80 trillion funding gap. And progressives have wanted to tax the rich to fund new spending on family leave, child credits, Medicare-For-All, free college, more student loan forgiveness, climate, child care, K-12 education, infrastructure, and more anti-poverty benefits.”

Perhaps we have reached the limits of “don’t tax you, don’t tax me, tax the guy behind the tree.” However, maybe not. Perhaps the D’s and Progressives favor increasing marginal tax rates even if, dynamically, they lead to changes in employment and productivity which end up REDUCING TAX REVENUES.

We can all remember when President Obama told Charlie Gibson of ABC news (in a 2008 debate) that he would raise the capital gains tax rate even if it lowered tax revenues. See: https://taxfoundation.org/obama-and-gibson-capital-gains-tax-exchange/

D’s and Progressives should watch out, they may get what they have been asking for – ever increasing commitments to the elderly to effectively be shouldered by other generations as a means to buy votes – stupid, stupid, stupid as were the stupid promises of President Trump to get elected (https://www.politifact.com/truth-o-meter/promises/trumpometer/promise/1349/make-no-cuts-social-security/) and the decision by Bush II to add $10+ Trillion of unfunded liability via Medicare Part D in his re-election bid.

Jack