5.21.2009

When belief in the system fades

The profound disincentives in our economy are leading productive middle class entrepreneurs to drop out. The government's response is to raise taxes, speeding up the loss of faith of those still struggling to survive.

The entire Survival+ analysis focuses on the multilayered ways the middle class is being squeezed to exhaustion / insolvency. I began addressing the first step of this process last year-- a process which begins When Belief in the System Fades (March 12, 2008).

I then added further analysis as part of the Survival+ project (eBook to be released for free July 4, 2009): Survival+ 10: When Belief in the System Fades (April 9, 2009)

The fundamental theses:

1. taxes are crushingly high in the U.S. for small business, and the supposed "low tax rates" are propaganda/disinformation

2. systemic disincentives include overregulation, a tort/legal system run amok and insanely overpriced healthcare costs

3. an overlapping series of parasitic fees, levies, licensing, etc. burden the productive class while evading the label of "tax"

4. The Plutocracy and State (two sides of the same coin) have overreached in grabbing ever-larger shares of the national income, and they need the middle class to believe in the system and keep paying the taxes needed to support the State's overreach.

Read more @ Charles Hugh Smith


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