Tax the Rich

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The United States debt and defecit is a major problem in our society. One thing I would propose to the President would be to tax the rich. Time. It's useful to keep in mind how the rich are different. When you are poor, you are willing to trade your time to earn money. When you are rich, you trade your money to get more time. For example, the rich hire people to clean their homes, and they don't waste time shopping for bargains. In business school I learned that when people have different preferences, you can usually find a way to engineer a deal. Gratitude. Imagine that the government arranges to provide genuine person-to-person gratitude to the rich in exchange for higher tax rates. Suppose (bad idea alert) the government makes it a condition that anyone applying for social services has to write a personal thank-you note to a nearby rich person who, according to a central database, hasn't lately received one. Gratitude goes a long way (online.wsj.com/article/SB10001424052748703293204576106164123424314.html).

The American rich would even stand to make more money if they helped to rebuild the middle class. It has been an acknowledged rule of business since Henry Ford that companies thrive when people can afford to buy the products that the factories produce. I think If people focus on the oppurtunity cost of what there buying that could help with our nations debt. People should think about what they need to survive and not what they really want. My mom has thousands of clothes down in her basement which she doesn't even wear anywhere and if we sold all of them we could really use the money ! The oppurtunity cost of (loss or gain of what someone buys is really important with us at a nation trying to get out of a recession still)....

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...efit-cutting options for balancing the budget. Fewer than half want to cut the military, fewer than a third would cut Medicaid, barely a fifth would cut Medicare. It seems the rich are satisfied with medicare by the age of 65, the poor need medicaid, and people want to cut military spending (http://www.huffingtonpost.com/2011/04/12/hill-leaders-fire-warning-shots_n_848392.html).

Works Cited

(http://www.huffingtonpost.com/2011/04/12/hill-leaders-fire-warning-shots_n_848392.html

http://biggovernment.com/ecantor/2010/05/12/tired-of-big-government-spending-then-youcut-it/).

https://questions.medicare.gov/app/answers/detail/a_id/2038/~/what-is-the-difference-between-medicare-and-medicaid%3F).

(http://www.buzzle.com/articles/classical-economics-vs-keynesian-economics.html).

(http://www.buzzle.com/articles/classical-economics-vs-keynesian-economics.html).
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