[Grovenet] Another anti-science Republican screed ? ? ? ?

[Walt Wentz]

Steven:
OK, I get it. If you are selling your home only to pay off the  
mortgage, the banks get their money, even though that money is now  
worth far less due to 20% annual inflation-- that's not the  
homeowner's problem, but the bank's.
However, if the homeowner is an "empty-nester" selling for his/her  
own purposes, they will get far less value (in inflated dollars) than  
what they put into the house (in pre-2009 dollars). And that IS the  
homeowner's problem.
And, since salaries always trail inflation, working people will  
actually have less purchasing power than before.
Indeed, why not a bailout for taxpayers?
If you regard taxes as "rent" for living with certain amenities and  
advantages under a particular government, (roads, system of laws,  
fire departments, police, educational system, etc.) then this would  
indeed make sense, and people who derive less benefit from living  
under a particular government should pay less rent. However, people  
who derive MORE benefit (preferential treatment under the law,  
greatly enhanced protection of their own interests through legal,  
diplomatic and military means, influence in the government's creation  
of advantageous laws and regulations/suppression of disadvantageous  
laws and regulations, access to superior education, etc.) then it  
would seem reasonable that such people should pay MORE rent,  
proportional to the enhanced benefits they derive from the government  
they are financing.
And, since these enhanced benefits are directly proportional to  
degree of wealth,  seems plausible that  people who control 90% of  
the nation's wealth should also pay 90% of the taxes.
But even this doesn't cover all the bases... when was the last time  
you heard of a war being waged to protect the mortgages of working- 
class people? Not nearly as common as wars waged to advance the  
interests of, say, Big Oil.
Walt

On Feb 27, 2009, at 11:10 AM, Steven wrote:

> Say you got a $400k house that is now worth $200k.
> Everything will inflate. So that $200k house will sell for $400k.  
> Thus they
> sell and pay off the mortgage. Thus the banks are saved from their  
> toxic
> loans.
> Won't help us a bit. Your retirement fund will be worth more, but  
> buy less.
> Have you noticed they aren't bailing out us taxpayers?
>
>> -----Original Message-----
>> From: grovenet-bounces at rdrop.com [mailto:grovenet- 
>> bounces at rdrop.com]On
>> Behalf Of Walt Wentz
>> Sent: Friday, February 27, 2009 9:22 AM
>> To: Forest Grove local interests list
>> Subject: Re: [Grovenet] Another anti-science Republican  
>> screed ? ? ? ?
>>
>>
>> Uh... Steven, if we suffer 20% inflation for five years, how would
>> owners of homes (those who hadn't been forced out by foreclosure
>> after they lost their jobs) be able to sell at "break-even?"  If a
>> dollar five years from now will only be worth 17 cents and a Yoo-Hoo
>> bottle cap,  where's the break-even return?
>> Weimar Germany used to be the poster child of the blessings of
>> inflation, but now we have Zimbabwe...
>> Walt
>
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