Greenspan Opposes Investing Social Security In Stocks

Tom Lehman uswa12 at lorainccc.edu
Thu Jan 21 07:49:19 PST 1999


Dear Henry,

Hank, your tax policy ideas need some work. Although flat taxes have popular appeal, at first blush, they are regressive and skewed toward the wealthy and do nothing for the health of society. Doug had a good story on this in In These Times last spring that didn't get a lot of attention, also, Dean Baker has written some good stuff on tax policy.

Also, I tend to agree with the olde Texas school you can have good solid economic and low inflation! Was Lauchlin Currie from Texas?

Henry, what labor really needs in this country is some real labor law that has a real bite to it. If you don't belong to a union your condition of employment is strictly at will. You have no rights, unless you can prove disparity of treatment and that is getting harder to do.

Then there are all of the barriers to union organizing that need to be removed! Including stopping the use of replacement workers aka scabs in labor disputes.

Your email pal,

Tom L. Max Sawicky wrote:


> > . . .
> > My advice to American Labor is to push for the following legislative
> > programs:
> >
> > 1) 3% prime rate
>
> this is being persued, albeit in not quite
> as radical a form or extent;
>
> > 2) moderate inflation 4-6%
>
> ditto
>
> > 3) 20% flat income tax with no deductions, with a high no tax threshold,
> say $40,000 annual income
>
> see below
>
> > 4) Mandatory triple pay for overtime
>
> right issue, not necessarily best remedy;
>
> > 5) Constant job levels by location; jobs can be relocated only if equal
> > number of jobs are re-created in the original site, coupled with a
> > "portable" minimum wage regime. This permits upgrading without shut
> > downs.
>
> states can already raise their minimum wages
> and are being pressed to do so; states and
> localities have been pressed to legislate
> against plant closings; in a federal system,
> it's hard to imagine the latter such measures
> being set at the national level.
>
> > 6) Negotiate capital/labor ratio by industry. When market
> > capitalization increases through rise in share prices, wages and
> > compensation will increase to keep c/l ratio constant.
>
> hard or impossible to measure capital
>
> > 7) Equal depreciation allowance for labor as for capital investment.
> > Depreciation deductible for income tax purposes.
>
> This plus your previous tax suggestion add up to
> a flat rate consumption tax, not quite as
> progressive as Dick Armey's.
>
> cheers,
>
> mbs
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