Sept. Seminar: Let's not ignore the problem

["John Gelles" <johng@xxxxxxxxxx>]

    1. The attack on the WTC and Pentagon have accelerated
        a contraction in private spending begun as dot-coms
        fizzled and corporate capital values fell to less inflated
        amounts.

    2. Middle class private consumption is asked for by gov't
        as a patriotic response to the anxiety over job security
        and national security felt by ordinary people.

    3. Such asking of people who should save, that they
        spend instead, is criminal. It is stupid. Yet who
        speaks out against it.

    4. Upper class private investment is also asked for by
        gov't for similar reasons. Nothing criminal about that.
        But investors will be wary of keeping share prices
        high for firms whose profits look shaky.

    5. Rohatyn and others have asked for vastly higher gov't
        spending on essentials. Some will be for war. Some
        for infrastructure, education, health care, etc. All will
        have the effect of ensuring income and work for
        ordinary people.

    6. So what is the problem?
            a. Conservatives see Rohatyn's solution as a signal
                to raise taxes on their incomes.
            b. Leftists see Rohatyn's solution as a signal for
                society to again save capitalism from itself.
            c. Pkt just ignores the problem.

    7. Is there a way to win over the conservatives by
        promising more tax relief instead of higher taxes?

    8. Can Pkt be won over if tax relief is targeted to the
        poor?  If, as part of the deal, the goal of limiting
        progressive income tax to 33% is kept?

    9. Assuming a Rohatyn plan will spend us into a high
        deficit, how should the money involved be created:
                a. By borrowing?
                b. By spending fiat money limited only by its
                    effect on the maintenance of affordable
                    prices?

   10. Is it time for massive information programs to
         reduce waste and otherwise maintain affordable
         prices for essentials, as government spends great
         sums on national and global security and peace
         and similar programs to safeguard the planet?

        John Gelles