Naked Capitalism in NY Times: Instead of Austerity, Make US Corps Invest in America:

[amborin]

Are Profits Hurting Capitalism?


snip

...............What if a government instead embarks on an austerity program? Income growth will stall, and household wages and business profits may fall.

That result might not sound bad for the United States, since lower wages and prices would make American goods more competitive abroad. But falling incomes make it even harder for people to make payments on outstanding loans. And if defaults and bankruptcies cascade through the financial system, credit becomes tighter still. Ultimately, there is a danger that deflation — falling wages and prices — will snowball into a depression.

So instead of pursuing budget retrenchment, policymakers need to create incentives for corporations to reinvest their profits in business operations. One way to do this would be to impose an aggressive tax on retained earnings that are not reinvested within two years. Another approach would be a tax on the turnover of corporate financial investments that would raise the cost of speculating with profits, rather than putting them into the business.

At the same time, the federal government must continue to encourage investment in the economy — ideally by creating incentives for investments in national priorities, like new energy technologies.
The entrepreneurial pursuit of profitable growth has been the vital engine of prosperity since the Industrial Revolution. Yet corporate executives are being rewarded for myopia and speculation, undermining the very operation of capitalism. We need tax and regulatory policies to counter this destructive development, along with wider recognition that government deficits, when they counteract corporate savings, are necessary and salutary.

http://www.nytimes.com/2010/07/06/opinion/06smith.html?_r=1

[Oregone]

1. How about we just fuckn kill capitalism already

Either tax the fuck out of disbursed profits, or let them go tax free if used to purchase back the stock and redistribute to workers (who become owners the longer they work there)

[amborin]

2. no argument here

[blindpig]

4. Music to my ears...

http://noolmusic.com/youtube_videos/the_internationale.php

[Organic Warrior]

6. Would your killing of capitalism include advertising?

Like those that garnish this web forum? Just curious.

[blindpig]

9. I should hope so

Perhaps not overnight but surely in the by and bye.

[readmoreoften]

5. +1

[socialist_n_TN]

8. I have a feeling my agreement ............

is preaching to the choir. :)

BTW, I like your idea about stock redistributed to the workers. I'd also like to see the government give low (or no) interest loans to factories that have been closed and the jobs shipped overseas. Another way to get INDUSTRY back on it's feet AND allow worker ownership rather than capitalist ownership.

[w4rma]

3. Extremely good idea. (nt)

[Initech]

7. The question *SHOULD* be how much profit is too much?

Companies left and right are basically killing each other trying to get every last cent out of people, but they don't do anything with it!

[godspeed2048]

10. I say we finally stop talking...

And DO something about it.

Here is my plan:

http://myopsy.blogspot.com/2010/06/deep-green-democratic-socialism.html

Hopefully, I won't be the only one there.