True Reconstruction
Re-Imagined by Socrakeys
www.thisomnivore.wordpress.com
The USA nation faces a few hard years of serious reconstruction, very much like the reconstruction that took place after the Civil War. We are not yet out of the long economic civil wars that have riddled the USA in this last decade, with dot-corn collapse, corporate scandals, housing speculation, and failed bailouts. The Deep-Recession-Depression (DRD 2011) will peak in 2011 (the first year of the decade, as all previous recessions: 2001, 1991, 1981, 1971, 1961, 1951, 1941, 1931, and so on): however, unemployment figures will remain high even after that, probably until year 2014. The worst dramatic and destructive recessions occur every forty years (1931 with the Great Depression; 1971 with the Total Collapse of the Bretton-Woods-Gold-Parity $35/ounce; 2011 with the Final End of the USA Economic Empire). The year 2011 will be ten years after the dot-corn pump-and-dump depression of 2001, which in turn was ten years after the 1991 debacle of thrifts-and-loans (which followed by 4 years the Wall Street crash of 1987, and the subsequent puncture of the Japanese balloon), which was ten years after the 1981 recession (with interest rates at 17%) that brought in the horrifying Reaganomics-trickle-down period, respectively ten years after the 1971 Vietnam fiasco and the petro-dolla r-hyper-inflation following the Bretton-Woods dollar-gold parity implosion, which occurred just in 1971. Even 1961 was a recession period, when the bottom was touched after the 1957-58 contraction and before the expansion of the sixties, and ten years earlier, in 1951, the dramatic recession was partially halted by the effects of the Korean war In 1941, that dramatic recession was halted by the effects of Pearl Harbor and World War Two, and the Great Depression of ten years earlier, in 1931, is still today sending its dark shadows onto the whole planet. 1921 was also a recession year, with the global economy falling very sharply. At present, the rate of private domestic investments as a percentage of the national gross domestic product is still falling (it was 11% in 1991, and 15% in 2001): it is currently at 16%, and it might even be down close to zero by year 2011, with nobody willing to invest in the productive sector of the USA. The bailouts of banks and car manufacturers failed, primarily because top-heavy trickle-down measures cannot work, as those faulty financial models were themselves among the causes of the current deep-recession-depression. To begin a build-uji commencing with infrastructure and energy would be equivalent to repeating the error of a top-down approach. The national reconstruction effort will have to start with the housing industry, and then continue with the healthcare industry, the education industry, and finally the public safety industry. Guaranteeing adequate housing to each citizen would require an annual output for the government of $3 trillion ($10,000 per person per year for 300 million people). It would, for instance, give a housing value of $40,000 to a family of four. It would be a gradual but constant effort consisting in taking over the housing industry, and guara nteeing jobs in housing development, construction, maintenance, rentals, furniture industries, appliance industries, utilities, etc., all centralized and regulated. A total of 11.5 million people would be employed altogether in the housing industry, at a salary of $130,000 per person, at a cost for the Treasury of $1.5 trillion per year (which is actually a much smaller figure than the bailouts). This scenario sets the output-input ratio at two to one: $260,000 value of annual output from each employed person, for $130,000 of annual wages paid to each employee. The next step of the reconstruction process would be to guarantee adequate healthcare to each citizen, which would require an annual output for the government of $3 trillion ($10,000 on average per person per year for 300 million people). It would be a gradual and constant effort, consisting in taking over the healthcare industry, and guaranteeing jobs in hospitals, clinics, HMOs, laboratories, pharmacies, pharmaceutical companies, research institutes, health insurance providers, etc., all centralized and regulated. Also the function of guaranteed elderqare would be included in the healthcare industry. So 11.5 million people would be in all employed in the healthcare industry, at an annual salary of $130,000 per person, at a cost for the Treasury of $1.5 trillion per year (again, a much smaller figure than the bailouts, which together totaled some $8 trillion). This scenario too sets the output-input ratio at two to one: $260,000 value of annual output per employee for $130,000 of annual salary. As part of the healthcare industry, the regulated eldercare industry will serve 15 million people (ages over 85) for an average service value of $30,000 per person per year, and will employ 1.7 million people at a salary of $130,000 per person, with a production output value of $260,000 per person, at a total cost for the Treasury of $220 billion. The reconstruction would then continue with the education industry, guaranteeing free education (including college, university, graduate and post-graduate studies) to each citizen between ages 5 to 25, and free childcare, kindergarten, and preschool before that. This industry would require an annual output for the government of $3 trillion ($30,000 on average per student per year for 100 million youth). It would be a consistent effort gradually taking over all schools, colleges, universities, textbook publishing companies, etc., all centralized and regulated. Also the function of guaranteed childcare, kindergarten, and preschool (for ages 0 to 5) would be included in the education industry. Some 11.5 million people would be employed in the education industry, at a salary of $130,000 per person per year, at a total cost for the Treasury of $1.5 trillion per year (a much smaller figure than the total bank/car bailouts). Also this scenario sets the output-input ratio at two to one: $260,000 value of annual measured output per person for $130,000 of annual salary input. The reconstruction would then encompass also the public safety industry, which will require a high degree of social maturity. The public safety industry would include all public safety and public administration services, including Treasury, police, courts, defense, military installations, diplomatic corps, security, surveillance, intelligence, postal service, delivery services, fire protection, insurance services, etc., all centralized and regulated. Much of the workforce for the public safety industry will come from the citizens’ public service in the public forces, a program that would require each citizen to serve 5 years, not necessarily consecutively, between the ages 25 to 75, in the public forces, at a full pay of $130,000 per year The regulated public safety industry will serve 300 million people for an estimated average service value of $13,000 per person per year The public service of all citizens in the public forces for 5 years between ages 25 and 75, totaling 15 Million people in service at any given time, will lead to an annual cost for the Treasury of some $2 trillion (the cost of $130,000 in annual salary for each enrolled citizen) obtaining a value of service output measured at $3.9 trillion ($260,000 of measured value of output generated by each enrolled individual). So the reconstruction phase would be completed, with guaranteed services in the fundamental areas of basic human rights (housing, healthcare, education, and public safety) and guaranteed employment in the industries of housing, healthcare, education, and public safety. The Treasury will have annual costs of $1.5 trillion for housing, $1.5 trillion for healthcare, $220 billion for eldercare, $1.5 trillion for childcare and education, and $2 trillion for public service, totaling thus a budget of some $6.7 trillion per year There will be a fiat national income tax of 40%, with no other forms of taxes levied. This rate is a lower tax than the current total tax rate, which is currently 25% federal tax, 5% state tax, 7.5% sales tax, and 7.5% payroll tax (the portion paid by the employee), totaling now some 45% in taxes, plus property taxes and other current taxation. So, the proposed 40% fiat tax rate would be visibly lower. At a tax rate of 40%, the Treasury will have yearly revenues of $7.8 trillion (40% of $130,000 of annual income each for 150 million persons), revenues which well exceed the annual budgeted total expenditures of $6.7 trillion. A total of 50 million people will be employed in the public regulated industries (housing, healthcare, education, and public safety). Another 100 million people will be employed in the monitored industries. Monitored industries will comprise all industries that provide goods and services not related to the healthcare industry, the education industry, the housing industry, or the public safety industry: the monitored industries would include, e. g., food, clothing, distribution, information, entertainment, energy, communication, transportation, infrastructure, export, import, etc. The monitored industries are not financed by the Treasury, but all the employees of the monitored industries are entitled to receive full pay and are protected from exploitative practices (the output-input ratio of two to one would apply also to the monitored industries). All the monitored industries will be continuously audited by the Treasury for compliance with plans, productivity, and compensation. It will be a four-year bottom-up build-up process of hard work and rewarding achievements, culminating in an efficient social system that provides work to all, and that guarantees the basic human rights of housing, healthcare, education, and public safety for all. The annual national gross domestic product (which includes both regulated industries and monitored industries) will have moved from the current $16 trillion to $20 trillion, and the government’s annual budget will have risen from $4 trillion to $8 trillion, ensuring stability and progress for the whole nation. The USA nation is indeed facing tough times ahead, but by adopting a wise plan of reconstruction the whole nation can reach an extremely high social level, ensuring social dignity to all its citizens, and setting a leading example of wisdom and progress to all nations.
