FOOD FOR THOUGHT...

October 9, 2008

FOOD FOR THOUGHT... A theory for reversing the recessionThink about it. Instead of raising taxes on the wealthy, the government could give anyone who can afford to do so a substantial tax break for DESTROYING their major assets (houses, cars, computers, yachts, anything really...) as long as they immediately replaced them with newly-made equivalents of equal or greater value.

Let's use an analogy. Over the first three decades of the last century, wheat production grew faster than the population. Wheat farmers could earn a small fortune by growing more and more of it. City dwellers fled to the country to cash in on the riches. By the 1920's, a glut of wheat existed, prices dropped and farmers grew even more just to stay afloat. By the 1930's, grain elevators were stuffed full and crops were rotting, yet the American public was going hungry. Ultimately, the oversupply was corrected when the government paid (subsidized) farmers to plow their crops under.

Could that work on a similar scale today with homes, cars, or anything else where making it again would create jobs and opportunities?