Posted on 01/25/2016 8:33:48 PM PST by BlackFemaleArmyColonel
The work force there is or would be about average for the southern US. Problems in the Appalachia, include lack of flat land, poor transportation infrastructure, and at least in some parts the powerful unions (UMWA).
A example of the incompetence of the Government of WV. When there was the big recruitment drive for gun makers thinking of moving out of CT, Why did we not hear of WV putting together proposals?
“Lower the tax burden . . .
Priming the pump by lowering taxes no longer works due to globalization and outsourcing. Pre 1990 when the federal government lowered tax rates or gave a one time tax break, the middle class and working poor use that unexpected shot of money to buy consumer products made in US factories. The washing machines, lawn mowers, toasters, furniture, bed linens, shoes, televisions, and other products bought caused demand to rise in the US factories producing the products. As demand rose, companies increased employment to accommodate higher production. Downstream in the supply chain rising factory production increased demand for steel, electronic parts, machine tools, plastics, chemicals, and other raw materials. The higher demand for end products resulted in greater employment through the entire supply chain. This is why the Reagan tax cuts of the 1980’s worked so well.
In the 1990’s lower tariffs resulted in companies moving production abroad instead of investing capital in domestic factories and jobs. George W. Bush’s tax reductions didn’t have the economic impact of the Reagan tax cuts because the money wasn’t spent in the US. Mexican and Asian companies experienced the benefit of the tax breaks. Foreign workers got jobs, not Americans.
The answer is to raise tariffs on imports, lower corporate taxes on profits earned from US production, and a realign our education system to focus on training people to work in 21st century manufacturing. Let higher tariffs fund the lower tax rates. Why shouldn’t Chinese and Mexican factories pay for access to the US market? Why should US factories pay high taxes and regulatory burdens to the US government while foreign government subsidized foreign factories get a free ride to compete with US factories and workers?
US workers, and the US economy benefited from the trade laws in place before 1990. Since then production, jobs and capital have left the US and the standard of living for the average American family has declined.
Until we address the trade issue decent paying jobs will be increasingly hard to find.
Places like Colorado have managed to overcome much less flat land and infrastructure to become quite economically developed. And union and governance issues of course trace back to the people as well.
I think you will find if you look that CO Economic development is almost entirely in the areas where there is both water and flat land. Mostly just east of the front range.
Ryan has lost me here, and possibly Trump, let me explain.
* EITC takes you below 0 tax and essentially rebates your SSI.
* How does anyone have any skin in the game with a EITC when they vote?
* And Trump did not address EITC in his quasi-flat tax proposal.
* One Freeper had a brilliant idea, scrap EITC and give those on it a low cost health care plan ( I propose a HSA + "Direct Primary Care ) as a bridge to health care when they get a job that has it.
* That might require my HSA + Direct Primary Care model being adopted by multiple governmental platforms and the private sector, notice I am not turning blue since I am not holding my breath on that one...
My tagline supports your theory.
Becoming the Party of Work
How the GOP can help struggling Americans, and itself.
http://www.nationalreview.com/article/373230/becoming-party-work-senator-jeff-sessions
unfortunately this very smart piece by Jeff Sessions is in the National Rag GOPee hitmen publishing enterprise.
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