I am thinking about running for president of the United States. This is my platform:
No. 1. Unlike Ben Bernanke I would let interest rates rise.
Result: Interest rates on Treasury notes would rise probably to the 6 percent level. Government could not afford to borrow to take on any more debt. Bank CD rates would go to 4 percent or better. Money would flow into banks out of stocks and bonds. Banks would be more free to loan more money at longer maturities. Jobs would be more plentiful as capital was available.
No. 2. Tax reform. Unlike modern day politicians I would increase tax rates as follows: Taxpayers earning over $125,000 would pay 40 percent of this amount up to $250,000. Anything over $250,000 would be taxed at 70 percent.
Result: Money would roll into the Treasury and the national debt would drop drastically. Veterans coming home from wars that the government can no longer afford would receive large bonuses, which the government can now afford. These veterans would be anxious to buy cars and houses and apply to the work job skills they learned in the military. Very wealthy people who have taken money out of the country would be brought to justice and have half of that wealth taxed as a penalty.
Would you endorse this platform?
Gerald L. Wood