About Me

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Los Angeles, California, United States
The blog 'Breaking Bread' is for a civil general discussion, like you might have at the dinner table with guests. The posts 'Economics Without the B.S.' are intended for a general audience that wouldn't have to know the difference between a Phillips Curve, a Laffer Curve, or a Cole Hamels Curve. Vic Volpe was formally educated at Penn State and the University of Scranton, with major studies in History, Economics and Finance, and Business; and, is self-educated since by way of books and on-line university courses. His practical education came from fifty years of work experience in the blue-collar trades as well as a white-collar professional career -- a white-collar professional career in production and R&D. In his professional career and as a long-haul trucker, he has traveled throughout the lower forty-eight. From his professional career alone he has visited many manufacturing plants in the United States, Europe and China. He has lived in major metropolitan areas and very small towns in various parts of the United States. He served three years with the U.S. Army as an enlisted man, much of that time in Germany.

Sunday, October 1, 2017

Let's have that political fight that Bannon wants: within each political party

Let's have that political fight that Bannon wants:

within each political party

Economics Without The B.S.**: 

[**  Double entendre intended.]

Steve Bannon wants Republicans to have a fight.  
https://www.usatoday.com/story/news/politics/2017/09/29/steve-bannons-breitbart-going-war-against-gop-incumbents/717724001/

Matt Schlapp, American Conservative Union, says Republicans need to have that fight over direction of Republican Party.  Yes, and Liberals and Old Style Democrats (like myself) need to have that fight: the role of Government in Society and the role of America in the World.

Role of America in the World -- We just had a Vietnam series on PBS, showing a mis-reading by Greatest Generation of conflict of ideology vs dis-establishing colonial empires after WWII. But, it is still America's role in World to set an example and help people toward self-government (a democratic process) and peaceful resolution of conflicts. That secures the blessings of liberty.

When you hear someone, of the political Left or Right, talk about America's role in the World using pejorative terms like 'nation-building' or 'policeman of the world', put these into the greater context of the previous paragraph to determine what interests are being served.  In a less than perfect world, what is the ultimate outcome trying to be achieved?  And can less than optimum solutions, while not perfect, put us in the right direction and keep us on the right side of an issue?

Role of Government in Society -- use 1960s as example, it is the best economic performing period in American history with nothing close to it (within 40% of economic growth of this 10 year period):  so, get Federal Government spending and revenues within 15% to 17% of GDP (has been over 20% since 2008) and real GDP (inflation adjusted ) sustained broad-based economic growth up to 3% to 4% (has been no better than 2% since 2001).  Get the national (public held) debt-to-GDP down to 40% (currently over 100%). With that our society can afford to have a social-welfare function of Government and support programs like Social Security and Healthcare for all.  And it can also support an activist international function (both economic and diplomatic) supplemented with strong military involvement.

Simply speaking about the nation's debt without taking into account the level of debt in relation to the overall economy or the rate of growth of the debt in relation to the rate of growth of the economy becomes a meaningless discussion unless its purpose is to stir up political pointers.  The same can be said for proposing new spending programs, however beneficial, without taking into consideration what they will do with the performance of the overall economy.  And the same can be said with cutting taxes and what effect that will have on revenues.

A nation's priorities are determined by people and their leaders as to what role they want to play in the quest for human progress.  America has always looked upon itself, since very early in our history, as a leader in that quest.


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