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Bonnie said:Your assuming that bigger and better only helps those with money, I just don't believe that to be true, it's very likely that bigger better means the poor will be elevated to middleclass and some even rich, assuming they wish to work for it. Some poor will always be there, that's life, but the poor could be significantly diminished by having some ownership stake in their lives. Common sense says build a higher wall if your going to rebuild in a flood area, and businesses that want to stay and rebuild in NO will have to put up the money for that.
archangel said:as major corporations outsource jobs to third world nations...and now you are saying that they will pass on the higher wages to the poor in New Orleans so they can afford higher priced housing...nice dream but does not compute...sorry!
Bonnie said:Okay then what's your solution???
the aftermath of the death and destruction wrought by Hurricane Katrina, the New York Times editorial page opined that if President Bush and his Republican congressional leaders want to deal responsibly with a historic disaster of this scale, they must finally try the path of honestly shared national sacrifice. Sacrifice in the Timess parlance is a delay of upper-bracket tax cuts for the least needy. About the planned congressional vote on estate-tax repeal, the same Times editorial noted that Sen. Mary Landrieu (D., La.), a potential swing vote, now has higher priorities. According to Senate Minority Leader Harry Reid (D., Nev.), a vote to repeal the tax doesnt look right at present.
Majority Leader Bill Frist (R., Tenn.) has promised to hold a vote on the estate tax as soon as possible. Those presently suffering in Louisiana and Mississippi should hope he does, and that the Republicans also have the courage to make permanent the 2003 Bush tax cuts. Despite warnings from the left, economic growth is the single best cure for what ails Mississippi and Louisiana.
A common misconception about the rebirth of Germany and Japan post-WWII is that aid under the U.S. Marshall Plan led the recoveries in each nation. In truth, according to a study by George Mason professor Tyler Cowen, the German Miracle actually began with tax cuts, before money from the United States arrived.
In 1948, German citizens making above $600 were in the 50 percent tax bracket, and those making above $15,000 were in the 95 percent bracket. By 1954, the threshold to reach the 50 percent bracket was an income of $42,000, and the 63 percent top tax bracket was reached at $250,000. Economic growth and government revenues took off amidst Germanys feverish tax cutting. In Japan, tax cuts (while not always marginal rate cuts) occurred every year from 1950 into the 1970s on personal and/or business income. Up from the rubble, Japans GDP rose from $16 billion in 1952 to $300 billion in 1972. By 1974, Japanese government revenues were $63 billion, four times Japans total GDP in 1952.
Returning to the U.S. and Hurricane Katrina, as history has shown repeatedly around the world, no amount of federal aid or charity will fix Louisiana and Mississippi. The fix in both states will result from the arrival of audacious, and yes, self-interested entrepreneurs eager to make money in return for rebuilding the blighted areas in both states.
Federal income taxes should be kept down so that the cost of entrepreneurship is kept to a minimum. The estate tax should be repealed so that capital presently used to enrich lawyers, accountants, and insurance brokers can be freed up in the form of investment to fund the massive rebuilding efforts.
Importantly, Louisiana and Mississippi also need to look inward. West of Louisiana is the state of Texas and its zero percent income-tax rate; north of Mississippi is Tennessee and its zero percent income-tax rate. Louisiana and Mississippi, meanwhile, charge their most productive citizens 6 percent and 5 percent respectively for the privilege to work within their borders. This wont do if either plans to recover quickly. Workers, in the end, are capital, and the most productive workers are truly valuable capital.
Rather than heed the call of the New York Times for austerity and sacrifice, Louisiana and Mississippi more than ever need to turn away from elite opinion and do that which is necessary to attract the most and best workers to rebuild their states. They should make it clear that effective effort will not be punished and cut taxes as much as possible.
archangel said:Only rebuild a small portion of the historic district...for tourism...rebuild and protect the flood and storm surge areas for this district as well as the port for import/export and the fuel processing refineries to include the fishing industry...the rest of this swamp should be allowed to return to the flood plain nature intended it to be...Jobs at the refineries,port and tourist areas should give preference to the locals qualified or trainable...most of the destruction occurred in the welfare district so they could be reloacted up-state Louisianna!
