You Can’t Have Healthy Businesses Without Strong Government

Taxes are the payback We, the People receive from our investment in creating the public structures that protect and empower us and enable our business to thrive. Taxes pay for the protections, courts, infrastructure, education and all the rest of the system that creates the prosperity and redistributes that prosperity to all of us, thereby balancing the system.

These diagrams are from Tax Cuts Are Theft, (please click through for more.)

The American Social Contract is supposed to work like this:

virtual_cycle

A beneficial cycle: We invest in infrastructure and public structures that create the conditions for enterprise to form and prosper. We prepare the ground for business to thrive. When enterprise prospers we share the bounty, with good wages and benefits for the people who work in the businesses and taxes that provide for the general welfare and for reinvestment in the infrastructure and public structures that keep the system going.

We fought hard to develop this system and it worked for us. We, the People fought and built our government to empower and protect us providing social services for the general welfare. We, through our government built up infrastructure and public structures like courts, laws, schools, roads, bridges. That investment creates the conditions that enable commerce to prosper – the bounty of democracy. In return we ask those who benefit most from the enterprise we enabled to share the return on our investment with all of us – through good wages, benefits and taxes.

But the “Reagan Revolution” broke the contract. Since Reagan the system is working like this:

virtual_cycle_diverted

Since the Reagan Revolution with its tax cuts for the rich, its anti-government policies, and its deregulation of the big corporations our democracy is increasingly defunded (and that was the plan), infrastructure is crumbling, our schools are falling behind, factories and supply chains are being dismantled, those still at work are working longer hours for fewer benefits and falling wages, our pensions are gone, wealth and income are increasing concentrating at the very top, our country is declining.

All Of Us Or Just A Few Of Us?

“We, the People” are the first three words of our Constitution. The writers of the Constitution were making a point, and to drive that point home they also made those three words the only words you can see from any distance:

“We, the People” was the point. This country exists for We, the People not for just a few people. We had fought a war to free ourselves from a system that was of, by and for a few wealthy and powerful people who controlled the levers of power, and we said, “Never again!” We designed a new system that was supposed to ensure that all of us prosper instead of a few people at the expense of the rest of us.

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

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