Category Archives: socialism

We Know Better, Part 9: Economics 101: A Call for sanity

If we managed our family checkbook like the federal government, we would all be bankrupt. It is one thing having deficit spending in wartime or particular crises. It is quite another to simply print money, sell T-Bills and leave $30T for future generations to manage. It is immoral, unconscionable, and terrible economics. We have tried to be a warfare and welfare states since the 1960s and we must alter course.

In this essay, I am not ranting about the current administration’s out-of-control spending and highly political largesse for voters. Anyone can do that. I am not going to lambaste both parties for their refusal to trim waste and remember that all the money they spend in Washington, D.C. originates with taxpayers. I am going to offer a way forward that is at first glance naïve and simplistic, but upon further reflection, incorporates the insights of leading thinkers of the last half-century and is non-partisan and non-ideological.

I think we must argue about spending priorities, just like the family dinner table, a small business, or the corporate boardroom. I think we must argue about a fair tax system, from flat taxes, modified flat taxes, progressive tax rates, and levels of corporate taxation. Let the debates begin in the House of Representatives where they belong, and let Congress do its job.

We also forget that decentralized administration is almost always more efficient and fairer, so it should be a long-term priority to have our states, counties, and cities receive a larger portion of our tax dollars and Washington, D.C. much less.

OK, here are three simple points that will transform our economic future, without starving anyone or leaving America defenseless.

ONE: We must achieve a truly balanced budget ASAP, preferably in the next five years, beginning with significant deficit reductions and then living within our means. What does this mean? Here are some ways forward under this heading:

  • Reduce ALL federal spending by 15-20% across the board, targeting inefficiencies, encouraging retirements, rewarding departments under budget, and placing moratoriums on discretionary spending. (Oh, and place all elected and appointed officials back in the social security system and privatize their pensions.)
  • Look to eliminate unneeded agencies, restore as many functions as possible back to state and local governments, and welcome input from business leaders on more effective administration.
  • Decide ahead of time that we must live within our means. Need more money for a particular program that is working? Then find new revenues that are not hurting the productive and perhaps cut other budgets if needed. 

TWO: We must transform our overly-complex federal tax system. We have higher corporate tax rates that many “semi-socialist” nations in Europe. The top 10% pay more than 60% of the taxes and almost half of all American pay little or nothing. Here is a pathway forward:

  • Move to a modified flat tax that is revenue neutral from the baseline of a selected year, like 2019 (when the economy was good). Start at 5% and set the cap at 20%. Do the math. There is enough money.
  • Over a five-year period, eliminate all personal deductions – yes, ALL deductions, including charity, mortgage interest, etc. If I know I will never pay more than 20%, then I am still incentivized to earn more. If I know that at least 5% will be paid, I will aim to work hard and advance.
  • Corporate tax rates must be fair and reasonable and we must stop the cronyism that exempts some elites and places the burdens on the rest of corporate America. Tax only profits after accounting for expenses, R&D, etc., and do not tax dividend, stock, and other capital gains above the lower rate. I recommend 20% as a maximum rate.

THREE: This is the hardest of all: We must stop looking to the federal government to directly solve problems best tackled by more local private-public partnerships. WE DO need the universal ethics of the federal government, but not the ubiquitous administration. For example, an FDA is good, but a government-run meat company would be terrible. Here are some first steps:

  • End all loans for education. Encourage grants and scholarships from states and private sources. Continue with scholarships for veterans and particular fields that serve the common good.
  • Streamline military and welfare agencies so that the cost of services is reduced and the frontlines are actually helped instead of everything being entangled in a bureaucratic mess.
  • NO taxes on personal inheritances. It is immoral to tax again monies already taxed.

The burden for these changes is on us, the American citizens that vote. Will we see the moral problem of spending or capitulate to fatalism and hope we get our share? Our grandchildren need our courage! And if we make these changes, our economy will again be the envy of the world.

Do we Really Desire the Truth?

“The truth shall set you free.” This quote from the Gospel of John, chapter 8 verse 32 is often quoted and rarely understood in context. Jesus is speaking about the differences between his real followers and those that profess religious adherence while avoiding obedience to love and truth.

Just before this verse, Jesus shares that his true followers obey his commands…and THEN, the fullness of liberating truth comes into view. In other words, knowledge alone does not liberate; a relationship with God is what matters most.  And, consistent with all of St. John’s writings, proof of life with God is that God’s people love one another and all around them, willingly serving those that cannot return the favor.

When God-infused, unselfish love is the foundation of our lives, we can face the truth of any matter head-on, because we know we are loved by God and care more for his glory and the good of others that our selfish wants. We can face the truth about ourselves and our need for continual transformation. We can face facts about the economic, moral and social issues of our day, knowing that our neighbors are both divine image-bearers and in need of redemption.

Knowing the truth is liberating and here are some applications to everyday issues:

  • Abortion kills a human being. In an extremely small number of cases, preserving a mother’s life may require a tragic moral choice; however, technology allows us to see a real human developing inside the womb!
  • Our southern border needs regulation with hospitality, security with compassion. Ignoring it only exacerbates human suffering and political and economic agendas of elites that have no contact with the people involved.
  • Our soaring deficits are inexcusable, with tax revenues the highest in history. Smart people can balance our federal budget in a few hours, while cowardly congressional leaders kick the can down the road of future oppression.
  • Affordable housing is a local and national crisis. Neither socialism or hyper-libertarianism can lead us to the private-public partnerships and common good solutions we need. 

If we love God and our neighbor, we will seek solutions for these and other apparently intractable problems. We can face both human misery and divine opportunity with hopeful realism. It is time for thoughtful folks to say, “Enough!” to posturing politicians and pundits and work for justice neighborhood by neighborhood.

True Toleration

Moral convictions do not mean the absence of compassion. True toleration helps neighbors of vastly different universes live peaceably together with love and respect. If I disagree with someone’s beliefs or behaviors, it is not narrow-mindedness or disrespect.

Can we all grow up a bit and stop labeling and libeling?

I believe unborn and newly-born children are human persons. That is a love for life, not a war on women.

I am a Christian; therefore, I disagree on some matters with my Buddhist, Hindu, Jewish, Muslim, or secular neighbors…who I will gladly work with to make our world a better place.
We have miles to go on gender equality and racial injustice. I do not need to hate myself or “shut up”, however. 

I think ethical free enterprise is better than centralized socialism. This does not mean I reject a safety net or concern for the environment. I want America to lead the world in hospitality for immigrants…and secure the borders and reform her policies.

As a minister, I will only consecrate heterosexual, monogamous marriages. That does not mean I will not be a good neighbor to adults that organize life differently. As an academic, I enjoy presenting all sides of important issues. Truth can stand the test of opposing arguments.

The moment we label and libel, we end the search for wisdom and reveal fear of “the other.”
We must want for all others the liberties that we enjoy. 

December 3: Some Economic Proverbs

We have more tax revenues than ever…and ballooning deficits in Washington, D.C. Neither party has the courage to balance a budget and repay obligations. Here are some insights for changing the conversation:

  • Create a budget based on the real revenue of the previous year. If there is more money, decide ahead of time where it goes; if less, have the cuts ready.
  • Unregulated capitalism and bureaucratic socialism achieve the same end: a few are enriched at the expense of most.
  • Begin a process of removing the thousands of agricultural subsidies that benefit huge agribusinesses and are no longer needed.
  • Transform HUD and other agencies into efficient, decentralized catalysts for help and transformation instead of career paths for bureaucrats.
  • Cut defense spending and increase support for veterans. One less bomber means help for thousands of vets and less pork for Congress to give away.
  • Privatize all public pensions, with excellent regulations through the SEC and other agencies. Eliminate the special retirement benefits for elected federal officials and have them held to the same economic standards as all citizens.
  • Public employee unions should be able to bargain, but not hold taxpayers hostage to benefits they cannot afford. Bring all teachers and workers into Social Security and offer excellent private plans – just like the rest of the country.
  • Hold all government agencies accountable for best practices and have private-sector leaders offer insights on efficient methods and ethics.
  • Transform the IRS with simplification of the tax code and consider alternative ways of raising revenue.
  • Invigorate private/public partnerships for all kinds of infrastructure, with high standards, but honest bidding processes and a cap on “change orders” and lawsuits.
  • Stop sending tax dollars to colleges and universities for frivolous programs and lower the cost of education by demanding that teachers teach, and students work.

With courage, love and wisdom, we can change a 50-year trajectory.