Comments on: Knight Kiplinger’s Solution to the Economic Crisis (and America in General) http://www.consumerismcommentary.com/knight-kiplingers-solution-to-the-economic-crisis-and-america-in-general/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Wed, 30 May 2012 18:56:20 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Paul http://www.consumerismcommentary.com/knight-kiplingers-solution-to-the-economic-crisis-and-america-in-general/comment-page-1/#comment-188524 Paul Fri, 20 Feb 2009 03:45:19 +0000 http://www.consumerismcommentary.com/?p=4154#comment-188524 Solution to the economic crisis 1) Suspend all Federal taxes for one year. Phase them back in over the succeeding years. Use an inflation trigger of 5% or more to start reinstatement earlier if needed. Advantages - a) No new bureaucracy needed. The mechanism is already in place. b) the impact will be immediate because people will see a signicant increase in their paychecks immediately. This will lead to increased spending which will jumpstart the economy. This will create jobs and decrease unemployment. The additional money will also help people pay their mortgages. 2) Issue "Hope Bonds (they would be like war bonds). People who buy the bonds will receive a guaranteed return on the bonds, say 4%. The proceeds of the bonds would be used to buy up bad bank debt at the rate of a penny on the dollar. Advantages - people will have a safe and secure investment, and banks will be able to unload bad loans. Why a penny on the dollar? Since no one wants them, I gave a them a value of just over zero. How will we pay for this? The US government has already demonstrated a desire to go in debt to solve this problem. The loss of approx 2.3 trillion in revenue will match the amounts mentioned in programs now, but the results of this program will be immediate Solution to the economic crisis
1) Suspend all Federal taxes for one year. Phase them back in over the succeeding years. Use an inflation trigger of 5% or more to start reinstatement earlier if needed. Advantages – a) No new bureaucracy needed. The mechanism is already in place. b) the impact will be immediate because people will see a signicant increase in their paychecks immediately. This will lead to increased spending which will jumpstart the economy. This will create jobs and decrease unemployment. The additional money will also help people pay their mortgages.
2) Issue “Hope Bonds (they would be like war bonds). People who buy the bonds will receive a guaranteed return on the bonds, say 4%. The proceeds of the bonds would be used to buy up bad bank debt at the rate of a penny on the dollar. Advantages – people will have a safe and secure investment, and banks will be able to unload bad loans. Why a penny on the dollar? Since no one wants them, I gave a them a value of just over zero.

How will we pay for this? The US government has already demonstrated a desire to go in debt to solve this problem. The loss of approx 2.3 trillion in revenue will match the amounts mentioned in programs now, but the results of this program will be immediate

]]> By: bradford http://www.consumerismcommentary.com/knight-kiplingers-solution-to-the-economic-crisis-and-america-in-general/comment-page-1/#comment-186238 bradford Fri, 21 Nov 2008 00:38:44 +0000 http://www.consumerismcommentary.com/?p=4154#comment-186238 Mr Kiplinger's comments might have been made by any dull-normal person on the street. Monday morning quarterbacking is pretty easy stuff. What some readers may not know is that Knight Kiplinger authored a book published in 1998 entitled "World Boom Ahead- why business and consumers will prosper". All of these problems listed were in plain view 10 years ago, ( with the possible exception of no. 5, and the seeds of that were sown with the Carter Doctrine, and maybe earlier) and long before that in many cases...why was he not able to forsee anything of our present situation? Mr Kiplinger’s comments might have been made by any dull-normal person on the street. Monday morning quarterbacking is pretty easy stuff. What some readers may not know is that Knight Kiplinger authored a book published in 1998 entitled “World Boom Ahead- why business and consumers will prosper”.
All of these problems listed were in plain view 10 years ago, ( with the possible exception of no. 5, and the seeds of that were sown with the Carter Doctrine, and maybe earlier) and long before that in many cases…why was he not able to forsee anything of our present situation?

]]> By: UH2L http://www.consumerismcommentary.com/knight-kiplingers-solution-to-the-economic-crisis-and-america-in-general/comment-page-1/#comment-184623 UH2L Thu, 09 Oct 2008 15:33:42 +0000 http://www.consumerismcommentary.com/?p=4154#comment-184623 I would add growing wealth inequality to that list. It leads to a lot of social and economic problems and helps explain #6 (schools) and #7 (health care) above. The idea of trickle-down economics doesn't work and we often find that some of the wealthiest become the greediest. Those are the people that are not about to create jobs that provide decent salaries and benefits. Instead, they like to accumulate more wealth. That's why some of the executives give themselves huge salary increases and golden parachutes while laying people off. There's no reason why capital gains for a wealthy person should be taxed at a lower rate than income for a lower middle class person. And wealthier people can utilize more tax loopholes anyway. I would add growing wealth inequality to that list. It leads to a lot of social and economic problems and helps explain #6 (schools) and #7 (health care) above. The idea of trickle-down economics doesn’t work and we often find that some of the wealthiest become the greediest. Those are the people that are not about to create jobs that provide decent salaries and benefits. Instead, they like to accumulate more wealth. That’s why some of the executives give themselves huge salary increases and golden parachutes while laying people off. There’s no reason why capital gains for a wealthy person should be taxed at a lower rate than income for a lower middle class person. And wealthier people can utilize more tax loopholes anyway.

]]> By: Jared http://www.consumerismcommentary.com/knight-kiplingers-solution-to-the-economic-crisis-and-america-in-general/comment-page-1/#comment-184608 Jared Wed, 08 Oct 2008 22:59:23 +0000 http://www.consumerismcommentary.com/?p=4154#comment-184608 Great editorial. Couldn't agree more with Kiplinger. Great editorial. Couldn’t agree more with Kiplinger.

]]> By: Anonymous http://www.consumerismcommentary.com/knight-kiplingers-solution-to-the-economic-crisis-and-america-in-general/comment-page-1/#comment-184607 Anonymous Wed, 08 Oct 2008 22:41:58 +0000 http://www.consumerismcommentary.com/?p=4154#comment-184607 I do not think he left anything off the list. However, what about trying to get the government to stop taxing our savings. This is a joke. I think is we worked towards that end, we would see some real savings in the U.S. again. Thank you very much for taking the time to post this. I do not think he left anything off the list. However, what about trying to get the government to stop taxing our savings. This is a joke. I think is we worked towards that end, we would see some real savings in the U.S. again. Thank you very much for taking the time to post this.

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