The following is my modest proposal to jump-start the economy.
The problem is that large business sits on trillions of cash instead of investing it and large banks similarly sit on trillions of cash instead of making loans.
The solution is to establish a system that would threaten to impose a tax on excess, uninvested, unloaned cash. Experts would compute the tipping point at which it would make economic sense for businesses and banks to invest or loan out the cash instead of handing it over the Uncle Sam, and set the tax rates accordingly. Hence, the incentive for big business and banks to do the patriotic thing by investing their excess cash in the American economy.
As President Nixon”s aide, John Ehrlichman, remarked 40 years ago, “Grab them by the balls, and their hearts and minds will follow.”
I see no harm in trying this approach. Nothing else seems to be working.
Tibor Major
Lakeport
