Beyond the Cusp

July 18, 2017

How Trump Economy and Entire Program is Being Undermined


Jobs are picking up, the percentage of work-age adults in the work force is rising, unemployment is steadily dropping, consumer confidence is rising steadily, stock market is climbing, wholesale purchasing is on the increase and yet the economic output figures are glued in place or dropping and the dollar remains frozen or dropping against most other currencies. To many this just does not make any sense whatsoever as with all indicators rising, why are these last two frozen or dropping? It is as if something is falsely holding them down and preventing the economy from rocketing into the stratosphere. So, we seek as to where can we look to find something which could possibly be doing this and the one glaring figure we can find is that the previous economy was far worse than was reported and had been inflated and now they are deflating the bubbles created in order to make the economy appear even marginally healthy or at least less sickly. Again, we need to look into the bowels of the government as well as at an individual group of bankers headed by Janet Yellen called the Federal Reserve, an agency which is independent from the government but not from politics and though it was set-up to be kept under watchful eye of Congress has instead become another tool of the left most fringes of the Democrat Party, though do not expect anybody to admit such. The Federal Reserve is holding $4.5 trillion of United States debt which is unsecured. This debt was taken out by the Administration of President Obama and placed in banks as stimulus. The banks could not even give the money away, let alone have it be taken out in loans. This loan is being siphoned off by the Federal Reserve from the main loaning banks, which removes loanable money on hand and will be a steady drain on the economy. Of course this is exactly what was the plan should the Republican take the White House, simply siphon off gains in the economic picture to repay the debts made by the Democrats to boost the economic picture falsely during their time in the White House. The Federal Reserve has simply become another tool used almost exclusively by the Democrat Party and will definitely be used against President Trump as to some extent both parties see him as a usurper.


There was just a little bit of fibbing going on during the campaign for reelection and continued throughout President Obama’s second term whereby the figures of unemployed were defined so as to exclude the larger part of those without work by simply claiming they had left the job market. This caused the workforce participation percentage to drop but that was barely a statistic that anybody knew existed outside economics circles and thus was far less reported than the unemployment numbers. Now large numbers of those formerly considered not part of the workforce are returning and getting employed which has resulted in an increase in the percentage of those in the workforce but had kept the unemployment figures seemingly locked in place ever so slowly dropping. That works such that the news can claim that Trump is not doing anything about unemployment while ignoring the jump in the percentage of employable adults in the workforce as that number is still ignored this time because it makes President Trump look good just like it was ignored when it was used to make President Obama’s unemployment numbers from growing and would have made Obama look bad, so squelch it with that statistic. So this is one place where the reporting by leaving out the workforce participation is again painting a false picture of the economy, which is booming far more than being let on in the media. But the people gaining decent jobs know what the reality is as do their friends and relatives and the increased economic activity has touched virtually every working-class family and this will bode well for Trump and the Republicans come elections, both 2018 and 2020.


To complete much of the vital work on charging-up the economy, Republicans in Congress need to complete the work by any means necessary on tax reform, vital and complete tax reform, which requires starting by throwing out the entire tax books and starting from scratch. Patching the system will not work as that will simply further complicate the tax law and make it easier for using the IRS as a weapon as the codes are far too complicated and includes more than necessary contradictory codes and rules. On some of the more intricate deductions or allowances, should one call the IRS help-lines, supposedly the most knowledgeable people knowing the tax codes, twice, you are likely to end up with two differing results which in many ways contradict one-another. There are complications such as these which permit businesses to be targeted by the IRS as well as individuals and also for many wealthy to cut their taxes often claiming overlapping deductions so that expenditures are listed in more than one category thus taking a double exemption on these often large investment losses or other expenditures which results in them paying far less than they actually should owe. This is why the tangled web of rules and regulations has been permitted to remain for decade after decade despite all the promises to simplify the tax code. They never simplified the tax code, they just simplified the short-form and standard deduction forms such that it appears that tax reform was conducted. Put simply, it was a deceitful flim-flam. They made a two-page form fit on one page and thus claimed they had remade the tax code when they had honestly done nothing. Then there was the President Clinton tax cut where they cut the amount of withholding which gave everybody more in their paycheck and also made it that those very same people received a far lower tax return or owed the IRS at the end of the year because what was given by one hand was taken back by the other as nothing was done to the tax law, they just adjusted the withholding end percentages to allow you your money now only to take it from your grasp later.


Another threat to the economy and to many medium to small sized companies which employ over fifty-some employees and are unable to reduce staff to under fifty, say like a gardening company; which offers yearly packages which includes spring and fall preparation of the lawn and garden, mowing service in the spring-summer-fall with prompt snow removal including vehicle clearing in the winter and other such seasonal services such as twice yearly gutter cleaning and heat-pumps’ and airconditioners’ filter cleaning twice yearly with a customer base which requires a minimum of sixty full-time year round employees and the addition of twenty to thirty spring-summer-fall employees; such faces the ObamaCare enforcement coming this January which will place a burden on the company forcing them to reduce staff and form a secondary company to handle certain functions which hires another group of the original company’s employees thus everyone retains their job and salary with one or the other company. Such restructuring requires getting licenses and qualifying for certain government mandates to perform the company’s work plus insurance for the new company and all the government hoops , bars and other government requirements, bonding everybody and countless other details just to remain in business. This does not even cover the cost of new uniforms, convincing customers that this new company was required because of ObamaCare regulations thus they were forced to split the company and who coveres what and this second company was subordinate to the original company and will act with the same professionalism and if you liked your pool boy or lawn mowers, then you can keep your pool boy and lawn mowers and the two companies will work to guarantee continuation of all services. We are sure that we have left much out required and necessary to circumvent the onus of ObamaCare. Others might simply meet the somewhat ridiculous insurance demands required by ObamaCare, which presents its own set of challenges and costly requirements. The Congress could take huge strides simply by passing legislation which pushes the applications of ObamaCare back yet one more or two more years giving themselves and the public the needed time to forge a new and workable system and present it correctly and with succinct and accurate information on exactly what is required and making sure not to sell the new program with a basket full of lies as was ObamaCare and this time have the rallying cries be honest and sound more like, “we kept the best and removed the rest,” or “This time around, you will like how it sounds,” or finally, “This time you’ve seen it before we pass what’s in it.” And what would be the plan, you ask? We can give a suggestion and a place from which to find a model next.


Congress could develop a minimal coverage system for any insurance company desiring to be within the system. The coverage should include twice-yearly visit to dentists, four times visits to your contact physician, wellness care, vaccinations, certain drugs which would be the most used for injuries and recovery from surgery and other wellness drugs. The system would also cover emergency room care with a requirement that the patient actually need be admitted even if just for a procedure such as setting a broken bone. The system would also cover eighty percent of the cost of necessary surgeries. Finally, the systems can also offer basic-plus, bronze, silver, gold, platinum level care programs for additional costs and have them include what each system decides is best for them and their patients. Insurance companies would be permitted to open their own wellness healthcare systems of clinics with physicians, nurses, specialists and be attached with hospitals in any area and require their patients to use these facilities. The platinum plan might simply include that you choose who cares for you at every level even to who removes any organs to who removes hangnails. For details, we can advise something likely unexpected, look to Israel and their system where everybody pays a fee to cover the basic services no matter whose plan you are on and this allows the government to reimburse each plan dependent upon the number of people they cover. There is no mention of preexisting conditions because there is no need for mentioning it, the plans cover such at the basic level for some conditions such as chronic dandruff to heart conditions that might require silver level additional coverage. Prescriptions are covered at varying levels according to plan. There is no Cadillac plan unless you see platinum as such. Everybody is required to join one of the systems at the basic level which is covered by the payment to the government yearly or monthly (the yearly payment saves you a small amount) from which the individual systems are reimbursed. Each system must cover the basic requirements but if they wish to attract patients, they can offer more under the basic plan despite the government not increasing the payment, this they are covering on their own. This is also the attraction of the other above regular plans, which can be tailored to the expertise, and specialties of the physicians they have in their cadre and thus making such an offer readily less costly. People will be required to mostly remain within their system and not all systems will be available everywhere, but there will be at least two systems operating in every location so as to offer some variety of coverages to the people. As stated, see the Israeli system where there are four companies which offer healthcare and further insurance through additional coverage offers. The system incorporates the basic coverage for all plus competition for people to take their plan and thus competition that keeps the price of the additional coverages lower. So, the Republicans could work to offer such a healthcare solution that even the Democrats would have to support not having anything superior to offer, especially not ObamaCare. Further, companies could offer to pay for people’s healthcare by offering some level of additional care with the healthcare insurer of their choice in order to attract employees. Everyone would have the opportunity to gain an angle in order to maximize the level of care for the entire population. How about giving this a look-see, huh guys?


President Donald John Trump

President Donald John Trump


Then there is the problem of the “Deep State” and the bureaucracy thus generated. Part of the problem is in simply numbers that can be brought to a screaming halt with one simply action. The majority of government workers work for the Administrative Branch, they work directly for President Trump. Where he may not be permitted to fire anybody without due cause, there are other ways he can reduce staff. First and most effective is to cease all hiring outside of the military and only allow military hiring under the people at arms and nothing for the civilian corps attached to the military including the Pentagon. With the hiring freeze in place the federal government employee numbers will drop slowly at first and then generally gaining speed until it becomes an epidemic. That point will permit the transference of the remaining employees to where they are truly needed and taking from the departments, which had become the place where people were given jobs as payment for contributions from daddy to some Congress critter. When a particularly undesired department has been depopulated of its employees nation-wide, then the Secretary of that department can close the door, hand in their resignation with a declaration that their department no longer exists. Imagine a depopulated EPA, Department of Education, Department of Housing and Urban Development, and numerous other departments closed because they no longer were viable due to depopulation of their workforce. This would take two terms but really only six years before some departments could be closed, but Donald Trump needs to start now and make sure that not even relatives are squirreled into positions, which is one of the most lethal means of getting incompetents jobs in the federal government. Trust that we have first hand positive proof of this actual system at work.


Another step that can be taken is to allow for open bidding on the “shovel ready jobs” for the repair of infrastructure on the Interstate Highway Systems, which is a Federal Government responsibility to maintain. Doing it on citywide and interconnection bidding systems such that all of the highway and bridge reconstruction in a metropolitan area can be performed by one contractor while the open road repair work and reconstruction where required can be bid upon by other companies better suited for such work. The work order should enforce the bid with stipulations that there will be no cost overruns, and such overruns will be the responsibility of the contractor, work will be completed on time as scheduled with the costs for any breach of the scheduled repairs stated plainly in every contract. Every bid should be required to stipulate the amount of materials, their kind, weights or numbers, number of people, types and numbers of equipment and exact dates for completion of each stage, the closure dates and methods and rerouting traffic plus scheduled methods of having maximum operability during all three day weekends and other high traffic dates such as Memorial Day, Labor Day, Fourth of July and other such important high volume traffic days. These construction contracts should be easily made iron-clad and specifying every detail with strict and binding penalties should the contractors be in noncompliance. This should be one of Trump and his compatriots’ main special abilities, contracts.


As a summation, the Trump administration should concentrate on two basic ideas. The first in relative importance and ability to accomplish would be comprehensive tax reform, which includes a complete rewriting of the entire tax code from scratch. The negating of the entirety of the existing tax code and regulations would be easier by far than attempting to alter the existing maze. That would provide a clean slate upon which a very basic and easy tax code could be enacted. The next is the replacement of ObamaCare with a workable system with easily understood requirements based upon competition in order to keep prices affordable and to maximize competition. The system must provide common wellness care to all for a base price and everyone required to pay for this basic level of care making the healthcare universal. Israel has such a system upon which the United States could model their system, though the United States system would, by necessity, will be considerably larger, but larger does not necessitate more complicated. Then the remainder of the promises that Trump made can be addressed one after the other. But there has been a distinct problem, which we cannot say was not anticipated. The Republicans, like the Democrats have been reticent, in the Republican’s case by disorganization and some who simply hate Donald Trump, the Democrats because they refuse to permit any other party or people to craft laws because they are the sole people, in their opinions, who can be trusted to enact laws and craft the future. President Trump need call a meeting with the Republicans of the Senate where he reads them the riot act. He needs to place the fear that they will lose their positions and that should they continue their opposition to the President’s plans that Donald Trump will campaign for and finance an opponent in the primaries and assure them that they will lose unless they get on board now, immediately. Then the President need to choose some particular reasonable Democrats, those who are not so far to the left that the make Bernie Sanders appear reasonable and level headed. He need have them to the White House; give them a nice luncheon similar to the one given the Republicans. Then the President can explain his programs and plans to make things better for all Americans and try to persuade at least a small number of them to come on board for whatever programs and ideas they feel comfortable supporting. With the minimal numbers of Democrats who are willing to put the American people ahead of Senate Democrat Leader Charles E. Schumer, Assistant Democrat Leader Dick Durbin, Assistant Democratic Leader Patty Murray, Chairwoman of Policy and Communications Committee Debbie Stabenow, Vice Chair of Conference Elizabeth Warren and Vice Chair of Conference Mark Warner, not to mention Chairman of Outreach Bernard Sanders (and he actually is not even a Democrat, he lists himself as an Independent). There have to be at least a half dozen Democrat Senators who place the people ahead of politics or has the greatness of the United States Senate degraded to the point where they are simply a high school level group of nerds and jocks where nobody dares assist the other side because to do so would be treason against your fellow nerds or jocks. Once considered the greatest debating floor of the world and now it is no more than a gym locker room where the jocks flick their towels at the nerds and everybody is locked into their position of the pecking order. That would be truly one of the saddest assessments in the Western World and could be the end of the last hope for Western Civilization.


Beyond the Cusp



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