The All American Prosperity Pyramid

There a lots of things for our nation, and our government to address.  One of the dangers to effective problem solving is the tendency to try to do everything.  That is impossible, and it prevents us from making serious headway on the issues that impact us the most.

From the perspective of ending poverty and bringing prosperity, we believe there are four fundamentals that impact America's socioeconomics more than anything else. In the spirit of coach John Wooden, and his Pyramid of Success, we think of these fundamentals as The All American ​Prosperity Pyramid. 

The Bedrock: Freedom, Equality, Justice

 The "Great Experiment" we call The United States of America, like no other nation, cannot exist as intended, without the bedrocks of Freedom, Equality and Justice.  We have certain unalienable rights.  In addition, our Constitution and The Bill of Rights, formalizes basic civil and property rights so that All Americans can work as they choose, earn what they can, and build a better future for themselves and their families. We talk about this a length in The All American Jobs Plan (Pimping The Poor).

The Foundation: Education 

Contrary to popular opinion these days, the truth is, the free enterprise system (AKA Capitalism) is not the root to our nation's biggest socioeconomic issues.  Poverty, inequalities, and the shrinking middle class are not the result of unbridled greed.  No, my research and analytics clearly show that the real roots trace back to America's outdated K12 education system.  If we truly want to bring better futures, we need to assure all children achieve more academically.  

 
If you do not believe this, just look at the data.  Eighty percent of the poor attended no college.  Fifty-five percent dropped out of high school. Our prisons are filled with dropouts (82%) not college graduates.  A supermajority of inmates (60%) have no better than sixth grade subject mastery.  Inequality data shows similar results.  Addressing our nation's biggest domestic issues begins and ends with dramatically improving K12 results and doubling the number of teens who are prepared to attend college, and later contribute disproportionately to All American prosperity.  

The good news is, it is possible for nearly every able student to achieve great academic results, which better prepares them for the changing world.  There are replicable reforms that prepare nearly every child for college, regardless of circumstance.  The bad news is, very few American schools are even trying to use the vital few reforms that produce these kind of results.  Until we change THIS, the socioeconomic symptoms of poor academic aptitude will pervasively linger across our country.

Pimping The Poor and A Nation At Even Greater Risk explore these issues, and then what to do about them, at length.  

The House: Sizing Government To Win

What would happen to our economy, jobs and issues like poverty if our government added a 50% tax to every U.S. product and service, but not to things made by foreign companies?  It would of course make our goods more expensive, and put our businesses at a serious disadvantage.  It would make it harder to employ people and pay them more money.  Ultimately, it would put these organizations at risk.  Sadly, this is exactly what our politicians have already done.  
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By contrast, what would happen if the average family had an extra $16,000 per year, or if every American-made product and service cost 20% less, or some if we saw some mix of the two? It would cause a sustainable economic boom, and greater prosperity for All Americans!   We believe it would help create The All American Super Economy.

Most economists never talk about this, but the size of government, and bureaucratic spending, not only increases debts and deficits; more importantly, it drives up the cost of every American product and service. 

We do not prosper unless American businesses do first.  They must be able to compete here and abroad.  If American-made products are too expensive for us, what do you think that means when we try to sell them in poorer nations? There are 19 potential customers for every American.  To compete globally we can no longer add such enormous costs to the products U.S. companies produce.  If you truly want the U.S. to manufacture more, you need to understand this concept, and tell others.

Our people prosper when government spending/size is modest.  Ironically, it is also good for government.  Why?  Because more tax is collected when businesses thrive.  If you are struggling with this concept, we talk about it at length in Pimping The Poor.

The Summit: The SmartTax

Have you noticed our politicians like to talk more about WHO to tax, instead of WHAT to tax?  That is because it helps them divide us.  Unfortunately, it does nothing to help All Americans prosper.  Like a good dessert recipe, the process of taxation matters.  It impacts the long term prosperity and security of All Americans.

The SmartTax is new tax.  To maximize its impact it needs to REPLACE other dumb taxes (taxes that hurt All American prosperity).  It can not be an additional tax, it must be a substitute.

Basically, the SmartTax is a progress consumption, or sales tax.  Normally, consumption taxes are regressive in nature, meaning they hurt the poor more than the rich, but the SmartTax is progressive applied so that it does not hurt the poor unless they blow their money on "bling" before essentials.  This means that different types and classes of products are taxed at different rates when we buy them.  For instance, fruits and vegetables may not be taxed at all, while an dinner at fine restaurant would be.  A basic car might be taxed, but the luxury addition would be taxed more.

If you think about it, the SmartTax does a number of other things that are hugely important to All American prosperity: 

• You might call it the Pay Yourself First Tax.  As it substitutes for income taxes, workers take home all their earnings before paying taxes.  This means they can pay off debt, mortgages, cars and student loans much faster. People will be more likely to invest and create generational wealth.
• You might also call it, The Bling Tax, meaning the more luxurious the item, the more tax you pay.  The SmartTax rewards people for being good stewards of their earnings.
• The SmartTax eliminates much of the 50% extra burden on American made products and services.  It levels the playing field for U.S. manufactures both here and abroad.

There are many other benefits to the SmartTax.  You can learn more by reading Pimping The Poor, or coming to one of our events.
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