Entries Tagged 'Economics and Investing' ↓

Karl Marx’s Gift to the IRS

While our new President was speaking to Congress for the first time this year, seven speakers put on a Zoom webinar labeled “In Plain Sight: The Racism Hiding in Our Tax Code” — hosted by the m4bl.org.

Moderators Makani Themba, Chief Strategist at Higher Ground Strategies, and Andrea Ritchie, Writer, Lawyer & Activist, joined five other speakers who were experts on law, race, women’s issues and taxation from activist non-profit organizations in the U.S.

Issues they discussed covered far more than IRS’ taxes!

Their focus included state property taxes that fund education; sales taxes that harm the poor; state taxes that are not shared with cities and counties; unequal revenue spending; tax credits that favor those with money; income inequality; wealth divergence; regressive, progressive and flat taxes; revenue sharing for cities who are broke; the balance between military and domestic tax spending; cannabis taxes based on money made by harming the environment; taxes for reparations to African Americans; public health taxes; and taxes on the poor.

Key issues closely related to the title of this zoom group talk, were:

(1) disparities in choice of groups that the IRS doesn’t go after for tax cheating, a subject that our current President has also been recently discussing.

(2) The figure of 380 billion dollars of lost tax revenue from unpaid taxes by richer people was tossed out. (See this article from the Center of American Progress supporting that figure),

(3) the confusing amount of jargon and verbiage used by the IRS in numerous booklets filled with too many pages, and

(4) last but not least, disparate treatment of taxation on two types of income; one for the rich vs. the other for the middle class and the poor, i.e., “unearned income” vs. “earned income”. Continue reading →

How Micro Economists Could Crush Covid-19

For over a century macroeconomists have dominated the field of Economics in the Western World. I predict this is going to change in this century and that microeconomics will make a come-back.

The sub-field of microconomics itself was actually founded decades earlier than the sub-field of macroeconomics by a Cambridge College professor in England named Alfred Marshall.

In the late 19th century, Alfred Marshall wrote his famous book, Principles of Economics, and in his classrooom Marshall taught microeconomics to his students.

Marshall invented the field of microeconomics in reaction to the popularity of Karl Marx’s book, Das Kapital, a book that was critical of the capitalism that Adam Smith had advocated in Smith’s earlier book, the Wealth of Nations, published in 1776, the year of the American Revolution.

Marshall’s microeconomics teachings shunned the simple arithmetic examples that Karl Marx relied on to support Marx’s theories that rich people were cheating the factory workers who had made them rich. Fast forward to the next century!

In the early 1930’s, the United States fell into a GREAT DEPRESSION, far worse than any we have seen since.

That’s when Lord John Maynard Keynes, a student of Alfred Marshall’s at Cambridge, created and taught the sub-field of macroeconomics.

Keynes overcame Marshall’s reluctance to use arithmetic by using a form of mathematics called ‘calculus’ to support Keynes’ theories. Keynes’ theories became the mainstream thinking of the economists during the Great Depression and afterwards.

Meanwhile in the mid-twentieth century, conservative followers of Adam Smith’s economics at the University of Chicago economics department were still using simple arithmetic just like Karl Marx had done.

For almost a hundred years now Lord Keynes’ flashy macroeconomics and ‘econometrics’, along with President Franklin Roosevelts’ “New Deal”, were considered successes that saved the U.S. Economy in the mid-twentieth century.

Nevertheless a minority of conservative economists on both the West and East Coasts of this country at Stanford University, University of Virginia and other Southern colleges, and George Mason University near Washington, D.C. published books which challenged the ideas of the Keynesian economists.

Some of these minority economists’ arguments were quite credible, others weren’t.

I know because I created numerous back-of-the-book indexes for all kinds of economics professors for over twenty-five years in the late 20th century: Keynesian liberals, Chicago conservatives, and ultra-conservative libertarians.

Macroeconomics and Microeconomics – The Differences

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Book Review – Deutsche Bank & Trump Family Debts

Dark Towers: Deutsche Bank, Donald Trump and an Epic Trail of Destruction by David Enrich (2020)

This Wall Street Journal Bestseller and New York Times Bestseller deserves being a bestseller. Its author, David Enrich, has been a reporter for both papers.

This book does not start out to be about the Trump Family. It covers the entire history of the bank from March 10, 1870 in Berlin. That’s why the book is over 400 pages long, (the last 100 pages being endnotes).

The lens David Enrich uses to tell a really compelling story from the 19th century to the present year is shown through the stories of several top executives of Deutsche Bank.

In this book it is clear that the type of banker portrayed in the the American classic movie “A Wonderful LIfe” has been buried deep in their graves for centuries.

For those conspiracy lovers who have decided banks, and Deutsche Bank in particular are a run by Jewish cabal, this book will be a disappointment.

Dark Towers skims over the Nazi period and follows the all-German Board that runs the Bank its branches with secret meetings in the top of one of its Berlin buildings’ towers.

According to Wikipedia, Deutsche Bank dumped three of its Board members in 1993 and confiscated Jew’s belongings, provided funds for the Gestapo, and loaned the funds for building  Auschwitz.

From the start Deutsche Bank was run by a group of all German Bankers who met in secret in the top of one of the banks’ two towers and plotted to open branches all over the globe.

Throughout its long lifetime, outsiders were not let into this cabal until very recently when an Indian fellow was named CEO and an American added to the Board.

Incidently, these German bankers had a sense of whimsey. the two towers, that rose above the main bank Frankfurt were named “Credit” and Debit”.

And These Bankers are Not Boring

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