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Biden sets out a $2 trillion US infrastructure plan to be funded by corporate tax hike

A once in a generation investment. That`s what president Biden called his $2 billion program of infrastructure spending. Biden said it will create millions of jobs while giving roads, utilities and American industry a badly needed upgrade.

But somebody have to pay for it, but who? «We the people» of course. The corporations. And there is one simple way to do that: TAX. Minimum wages are rising. So are the taxes, and what is that suppose to mean? It means the inflation is coming.

«I`m proposing a plan for the nation that rewards work. Not just rewares wealth. It builds a fair economy that gives everybody a chance to succeed. And it`s going to create the strongest, most resilient innovative economy in the world,» Biden said in a speech a few days ago.

The Biden administration plans on modernizing 32,000 kim of highway, 500,000 charging points for electric autos, and bringing back key industries such as chip production back to the U.S. Chips are still mostly produced in Asia. (Bringing back chip industries sounds like a Trump strategy).

The project is expected to take eight years to complete, and some of the funding will come from a corporate tax hike from 21 to 28 percent. Biden`s supporters say the program will create millions of well.paid jobs, and stregthen America`s ability to compete with China.

2 trillion dollars is a lot of money and there is no doubt that this program will boost the semiconductor industry, but also the EV industry.

Biden said he is not worried about the U.S economy at all. At the same time, Janet Yellen makes a push for global minimum corporate tax. She doesn`t want a race to the bottom, and warns of dangers to the American economy if U.S acts alone in raising corporate tax rates.

When Obama hiked corporate taxes, businesses fled. One of the largest corporations in the world; Apple, ended up in Irland thanks to a great offshore plan, but Trump were bringing the company back to the U.S.

It speaks for itself. The more money corporations pay in tax, the less competetive they are on the world stage.

The time we are living in today, is similar to the 30`s, and Biden`s infrastructure plan is often comparead to Franklin D. Roosevelt`s «New deal».

President Franklin D. Roosevelt

The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939.

The programs focused on what historians refer to as the «3 Rs»; relief for the unemployed and poor, recovery of the economy back to normal levels, and reform of the financial system to prevent a repeat depression ( the stock market crached in 1929).

The first deal (1933 – 1934) dealt with the pressing banking crisis through the Emergency Banking Act and the 1933 Banking Act. The Federal Emergency Relief Administration provided $500 million ($9,88 billion today) for relieft operations by states and cities, while the short-lived CWA gave locals money to operate Make-work projects in 1933 – 1934.

The Securities Act of 1933 was enacted to prevent a repeated stock market crash.

The second New Deal in 1935 – 1936 included the National Labor Relations Act to protect labor organizing, the Works Progress Administration relief program (which made the federal government the largest employer in the nation), the the Social Security Act and new programs to aid tenant farmers and migrant workers.

The final major items of New Deal legislation were the creation of the United States Housing Authority and the FSA, which both occurred in 1937, and the Fair Labor Standards Act of 1938, which set maximum hours and minimum wages for most categories of workers.

Keep in mind that all this happened a few years before the World War II occurred.

The economic downturn of 1937 – 1938 and the bitter split between the American Federation of Labor and Congress of Industrial Organizations labor unions led to major Republican gains in Congress in 1938.

Conservative Republicans and Democratas in Congress joined the informal conservative coalition. By 1942 – 1943, they shut down relief programs such as the WPA and the CCC and blocked major liberal proposals.

Nonetheless, Roosevelt turned his attention to the war effort and won reelection in 1940 – 1944. Furthermore, the Supreme Court declared the NRA and the first version of the Agricultural Adjustment Act unconstitutional, but the AAA was rewritten and then upheld.

Republican president Dwight.D. Eisenhower (1953 – 1961) left the New Deal largely intact, even expanding it in some areas. In the 1960`s, Lydon B. Johnson`s Great Society used the New Deal as inpiration for a dramatic expansion of liberal programs, which Republican Richard Nixon generally retained.

However, after 1974 the call for deregulation of the economy gained bipartisan support. The New Deal regulation of banking (Glass-Steagall Act) lasted until it was suspended in the 1990`s.

From 1929 to 1933 manufacturing output decreased by one third, which economist Milton Friedman called the Great Contraction. Prices fell by 20%, causing deflation that made repaying debts much harder.

Unemployment rate from 1910 to 1960

Unemployment in the United States increased from 4% to 25%. additionally, one-third of all employed persons were downgraded to working part-time on much smaller paychecks. In the aggregate, almost 50% of the nation`s work-power was going unused.

Before the New Deal, deposits at banks were not insured. When thousands of banks closed, depositors lost their savings as at that time there was no national safety net, no public unemployment insurance and no Social Security.

The depression had devastated the nation. As Roosevelt took the oath of office at noon on March 4, 1933, all state governors had authorized bank holidays or restricted withdrawals. Many Americans had little or no access to their bank accounts.

Farm income had fallen by over 50% since 1929 (stock market crash). An estimated 844,000 non-farm mortgages had been foreclosed between 1930 – 1933, out of five million in all. Political and business leaders feared revolution and anarchy.

Real GDP from 1910 to 1960

In 1935, Roosevelt called for a tax program called the Wealth Tax Act (Revenue Act of 1935) to redistribute wealth. The bill imposed an income tax of 79% on incomes over $5 million. It raised the bitterness of the rich who called Roosevelt «a traitor to his class» and the wealthy tax act a «soak the rich tax».

The Roosevelt administration was under assault during Roosevelt`s second term,which presided over a new dip in the Great Depression in the fall of 1937 that continued through most of 1938. Production and profits declined sharply.

Unemployment jumped from 14,3% in May of 1937 to 19% in June 1938. The downturn was perhaps due to nothing more than the familiar rhythms of the business cycle, but until 1937 Roosevelt had claimed responsibility for the excellent economic performance.

That backfired in the recession and the heated political atmosphere of 1937.

Keynes did not think that the New Deal under Roosevelt ended the Great Depression: «It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on the scale necessary to make the grand experiments which would prove my case, except in war conditions.»

Worldwide, the Great Depression had the most profound impact in Germany and the United States. In both countries the pressure to reform and the perception of the economic crisis were strikingly similar.

When Hitler came to power he was faced with exactly the same task that faced Roosevelt, overcoming mass unemployment and the global Depression. The political responses to the crisis were essensially different; while American democracy remained strong, Germany replaced democracy with fascism, a Nazi dictatorship.

The initial perception of the New Deal was mixed. On the one hand, the eyes of the world were upon the United States because many American and European democrats saw in Roosevelt`s reform program a positive counterweight to the seductive powers of the two great alternative systems, communism and fascism.

As the historian Isaiah Berlin wrote in 1955: «The only light in the darkness was the administration of Mr. Roosevelt and the New Deal in the United States».

By contrast, enemies of the New Deal sometimes called it «fascist», but they meant very different things. Communists denounced the New Deal in 1933 and 1934 as fascist in the sence that it was under the control of big business. They deopped that line of thought when Stalin switched to the «Popular Front» plan of cooperation with liberals.

To contact the author: post@shinybull.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Vice President Mike Pence refused President Donald Trump`s demand

Vice President Mike Pence refused President Donald Trump`s demand that he try to block the confirmation of Joe Biden`s election as the next president of the United States by Congress. «I do not believe that a vice president has the unilateral power to reject Electoral College votes for a candidate, Pence wrote in a letter on Wednesday.

«It is my considered judgment that my oath to support and defend the Constitution constrains me from claiming unilateral authority to determine which electoral votes should be counted and which should not,» Pence wrote in his three-page letter addressed to members of Congress.

His dramatic break from Trump came minutes before the Republican vice president began presiding over a joint session of Congress, which is meeting to declare the former Democratic vice president Biden the victor.

Pence also said in the letter that he shared «the concerns of millions of Americans about the integrity of this election,» which Trump and his supporters have claimed without evidence was corrupted by widespread ballot fraud.

In the same letter, Pence wrote that «vesting the Vice President with unilateral authority to decide presidential contests would be entirely antithetical to» the system of check-and-balances between branches of the government designed by the framers of the Constitution.

«The Presidency belongs to the American people, and them alone,» Pence wrote. «When disputes concerning a presidential election arise, under Federal law, it is the people`s representatives who review the evidence and resolve disputes through a democratic process, Pence wrote.

Trump tweeted two hours later that «Mike Pence didn`t have the courage to do what should have been done to protect our country and our Constitution, giving States a chance to certify a corrected set of facts, not the fraudulent or inaccurate ones which they were asked to previously certify,» Trump tweeted.

The United States Constitution, Article II, Section I say that «Each State shall appoint, in such Manner as the Legislature thereof may direct, a Number of Electors, equal to the whole Number of Senators and Representatives to which the State may be entitled in the Congress: but no Senator or Representative, or Person holding an Office of Trust or Profit under the United States, shall be appointed an Elector.

Trump warned about the problems long before the election, and all the Republicans voted to reform the process while all the Democrats voted against it. Yes, against it. But what people want is a fair election.

It is alarming to see countries not follow their own Constitution, and the US is not the only one. This is also a wake-up call to other countries.

«When exposing a crime is treated as committing a crime, you are being ruled by criminals,» Edward Snowden once said. Snowden revealed corruption at the highest level.

«Save America protesters» are backing Trump and they stormed the Capitol. That is something I have never seen in my entire life. At the same time, Pence ushered out of the Senate as a precaution. People are fighting for Trump and said the fight has just begun.

Multiple courts have rejected Trump`s claims of fraud and election irregularities, and GOP lawmakers are expected to object to the election results of several other states, and that will delay the confirmation that Joe Biden won the presidency.

This election is historic, and the fight continues…….

To contact the author: post@shinybull.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Socialism vs Capitalism

Bernie Sanders announced earlier today that he is running for presidency 2020. He is a democratic socialist on the left side who is fighting against president Donald Trump who is a Republican, businessman and a capitalist on the right side. Left vs Right. Socialism vs Capitalism.

President Donald Trump had a very strong and powerful state of the union speech a few days ago. In the speech, he made it clear that the U.S will never be a socialist state. The contrast between Donald Trump and Bernie Sanders could not be clearer.

We all know that the «hate Trump media» are working close with people on the left side, and we all know that the «hate Trump media» are attacking him every day. We also know that FBI and the Deep State are on the same team. They try to destroy him.

Bernie Sanders said in his speech on Tuesday that people are living in a pivotal and dangerous moment in American history. Furthermore, he said «We are running against a president who is a pathological liar. A fraud. A racist. A Sexist. A Xenophobe, and someone who is undermining American democracy as he leads us in an authoritarian direction.

This is exactly what the «hate Trump media» have told us in years now and Mr Sanders obviously share this ideas.

He said «I am running for president because now more than ever we need leadership that brings us together. Not divides us up. Women and men, black, white, latino, Native American, Asian American, gay and straight, young and old, native-born and immigrant; Now is the time for us to stand together.»

«I`m running for president because we need leadership that will fight for working families and the shrinking middle class. Not just the 1%»

«We need a president who understand that we can create millions of good-paying jobs. Rebuilding our crumbling infrastructure and constructing the affordable housing we desperately need.»

«I`m running for president because we need trade policies that reflect the interest of workers and not multinational corporations. We need to raise the minimum wage to a living wage.”

«I`m running for president because we need to understand that artificial intelligence and robotics must benefit the needs of workers. Not just corporate America and those who own that technology.»

At the end of the speech, Mr Sanders said; «together we can create a nation that leads the world in the struggle for peace and for economic, racial, social and environmental justice. And together, we can defeat Donald Trump and repair the damage he has done to our country.»

President Donald Trump are working hard to make America great, but according to Bernie Sanders, he have destroyed the country. Whaaaaat?

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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The U.S tax revenue will continue to go straight up

Mainstream Media (MSM) and some of their «smart» journalists were laughing at president Trump when he said he will cut taxes and bring back jobs and money. How in the world is he gonna do that with so much debt, they argued.

Now, we know that president Trump was right. The U.S government receipts increased 7% YoY to 253 billion in October of 2018. Government revenues in the U.S reached an all-time high of 510447 USD Million in April of 2018, and the economy are growing faster and create more jobs than expected. It`s an economic boom.

The U.S income tax revenue climbed from about 1 trillion in 2000 to 1,59 trillion US dollars in 2017, but we can already now see a major shift in the market. The forecast predicts an increase in income tax revenues up to about 2,92 trillion U.S dollars in 2028. Up nearly 100%.

It seems like the booming economy will continue and the forecast predicts an increase in total receipts to reach about 4,39 trillion in 2023.

Obama is often trying to take Trump`s cred for the economic boom, but the difference between Obama and Trump is the deficit. It climbed to $148 billion under Obama while it climbed to «only» $113 in fiscal 2018 under president Trump.

So, the government did better on revenues and deficits under Trump than under Obama`s last year in office. The economy was sluggish under Obama were the federal revenues was barely increasing and the deficit increased.

The real boom in the economy came with Trump`s tax cuts and all his business reforms. The Congress (on both sides) must be held responsible for the increase in deficit as they refuse to bring federal spending under control.

The Republicans like to push down the taxes while the Dems like to keep them high. If the Dems were in charge, the taxes would have remained high on the cost of jobs and wage gains America now is enjoying. Would that be a better solution?

Obama and Bernanke «printed» money after the financial crisis, but the economy was sluggish and the growth was never 2% under Obama. The recovery was very slow but it takes some time to turn the ship around. Obama and Trump should look upon themselves as one team; Team America and that`s red, white and blue.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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Republican voters show strong turnout in early voting but don`t take anything for granted

It`s only a few days left to the midterm election in America. If the Democrats wins the house, it means Chuch Schumer and the Democrats will make it difficult for President Trump to do what he belive in.

But so far it looks good for Republicans. Midterm election show Republican voters show strong turnout in early voting. Trump`s tax cut are boosting the economy which is very strong with more than 4 percent growth. Oprah Winfrey said she voted independent which is good news for Trump.

«Don`t take anything for granted,» Trump said. Will the Trump Revolution continue?

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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