Progressives talk about fairness and ability to pay as they relate to taxes, but not interest. Why? Progressives want to run the government. They want to spend freely, and they want to pay as little as possible for their borrowing.
Progressives are capitalists. Who knew?
At least, they’re capitalistic about their access to funds. Don’t believe them if they tell you that they don’t want a free lunch with mandatory dessert, too.
Government, big business, and banks have squeezed the poor and middle class out of the financial marketplace. The federal government is the biggest financial entity in the country; it has the ability to pay. Multi-billion dollar corporations have the ability to pay, yet they pay the lowest interest mortgage interest on the biggest assets Americans have – their homes – and pay, on average, around one-half of 1 percent on savings accounts, one of the smallest assets Americans own.
Store cards are allowed to charge over 20 per cent annual percentage rate interest. Who allowed them to charge that rate? The government!
So, the answer is to flip the interest rate structure in America. The government should have to pay a minimum of 20 per cent interest on the treasury bonds they sell. Multi-billion dollar companies should pay a minimum of 20 percent on anything they borrow. If they borrow $1,000, they’ll only pay $200 interest a year. Fair is fair.
The middle class and the poor would love to borrow monstrous amounts of money, at one-half of 1 percent interest, which they would spend freely and stimulate the economy. They want a free lunch with mandatory dessert, too. If they borrow $1,000, they’ll pay $5 interest a year, and they won’t even gripe about it.
So, come on Progressives, back this plan to flip interest rates. Don’t you want to help the middle class and the poor?
Conservatives believe that if you want less of something you add cost or you add a tax. This wouldn’t be a bad plan to rein in government borrowing, except the government has the power to tax and the power to print money. But, even those powers will have a limit someday.