Growth of Economy and Employment
Although it seems difficult to imagine, there are some people who wonder why the increased economic growth resulting from replacing the present income/payroll tax system with the FAIRtax is so important. Many of these people believe that the benefits of economic growth would go only to a relatively few wealthy people who have the “right connections.”
While it is likely that as long as government money is used to fund projects the bureaucrats like, the people who donate to politicians will receive benefits. However, if you want to help everyone and not just the people who buy favors from politicians, it is important to understand that economic growth does benefit everyone.
Arthur Okun
Arthur Okun was an American economist who served as chairman of the U.S. Council of Economic Advisors from 1968-1969. He considered himself a progressive Democrat and was very interested in creating a “law” that would correlate how people in the economy were affected by a growing or shrinking economy.
Although he died in 1980, Okun was highly regarded by his fellow economists and his conclusions have largely withstood the tests of time. His definition of a recession, two consecutive quarters of negative gross national product (“GDP”), is still widely accepted.
Okun’s Law
His research into the effect of economic growth on employment has become known as Okun’s Law. Okun determined that there was a measurable relationship between the rate of employment and the rate of a nation’s economic growth. It is accepted that a country’s products depend to a large extent on the amount of labor used.
Simply explained, Okun’s Law states that if you want to reduce real unemployment by one percent, you need to increase the present growth of GDP by two percent.
Real U.S. Unemployment Rate
There is much confusion about the actual unemployment rate in the U.S. Recently the press trumpeted that the unemployment rate fell to 4.7%. This number is called “the U-3 rate.” The U-3 rate is derived by taking the total number of unemployed people as a percent of the civilian labor force.
However, many economists believe that is not the best way to define unemployment. They believe that a better measure includes not only the unemployed but also the underemployed and the people who have given up and are no longer looking. This is called the U-6 rate which is currently at 10.1%.
Conclusion
All of the economic studies show that the FAIRtax will grow the economy much more rapidly than now. The anemic growth of GDP of about one percent this last quarter is a terrible indicator. If the FAIRtax does help the GDP grow at four percent, a three percent increase, then by applying Okun’s Law we see that the U-6 rate should reduce by 1.5%.
If the D.C. Elites and the Members of Congress really care about the welfare of our citizens, they should look no further than the FAIRtax. The FAIRtax will help people by providing more jobs which will lead to more production and this will lead to more revenues for government at all levels. In short, with the FAIRtax, everyone wins.
1040 Club and Your Donations (Investments)
When you make a donation to Americans For Fair Taxation “(AFFT”), you are making an investment. You could be investing the money in something else. All of us want to see a return on our investment. We want to see the investment used wisely and that the organization provides what it promises.
AFFT has been working for a long time to educate people about the FAIRtax. We are still running into people who have not heard about the FAIRtax, but what a difference it is from even five years ago. The biggest fear of the D.C. Elites is if the American people realize that they have been “had” and demand common sense reform like the FAIRtax. The Elites know that their “friends” in Congress will desert them if threatened with being thrown out of office.
There is going to be some sort of change in the income tax code in 2017. If AFFT is not demanding, on behalf of you, that Congress not just make a few changes but make real reform, then there will be more of the same and America will continue to lose jobs and more of our children will be living with us because they cannot find jobs.
By contributing (investing) $10.40 per month, you help provide a financial base to AFFT. If you can make larger contributions (investments) these will be used not for salaries, as we are all volunteers, but for the needed updates to our economic studies which will be vital in 2017.
Please go to this link to invest in AFFT and in your and your family’s future.
New FAIRtax Book
In last week’s FAIRtax Friday, Ron Maiellaro explained how America’s Big Solution was written and why it is an essential tool to help others understand the FAIRtax. Do you know someone who would like to learn more about the FAIRtax in a format longer than 140 characters at a time? Maybe something like a booklet that presents the basics of the FAIRtax? Well, America’s Big Solution is here! America’s Big Solution is a booklet written by Ocala volunteer Terry Tibbetts and can be purchased as an e-book for the Amazon Kindle, the Barnes & Noble Nook and Apple mobile devices thru the iBook store. And if you prefer a good old fashioned print copy, that’s also available at the above Amazon site.
We all know someone who would prefer a brief introduction to the FAIRtax and are not very active on social media. These potential supporters may be interested in this booklet which is less than 30 pages long.
In order to help the FAIRtax become the law of the land, we need to reach out to everyone possible. This booklet will hopefully reach another important segment of our society. Please do what you can to promote it.
AFFT National LOGO Store
SUPPLYING EDUCATIONAL/PROMOTIONAL ITEMS
Introducing the Full Color FAIRtax ABS Banner
25% off New ABS Items plus other Supplies -- August 2nd thru August 8th
NEW FULL COLOR 6' America's Big Solution Event Banner
Replenish your FAIRtax Promotional supplies with 25% off on the following Store items:
1) ABS Business Cards – these are great for handouts!
2) FAIRtax Stick Event Pens
3) NEW: ABS Stick Event Pens
4) Scrolling Banners as long as inventory lasts
5) NEW: You have to check this OUT! FULL COLOR ABS Six Foot
Event/Parade Banner
6) Also, 25% off on all other available FAIRtax Banners. We now offer FOUR
banner designs.
7) FAIRtax Palm Cards
Your FAIRtax Store is ready to meet your promotional demands as we move out of the Conventions and into the final phases of electing a new U.S. President.
WWW.FAIRTAXLOGOSTORE.ORG
When visiting the Store, don’t forget to order a supply of FAIRtax Palm Cards. Besides handing out palm cards at meetings and events, whenever you send mail through the post office, consider include at least one FAIRtax informational palm card in the envelope - keep spreading the word.
Please take a moment and visit our store by clicking here.
FAIRtax Power Radio
America’s Big Solution: An Introduction to the FAIRtax is now available in print and in electronic form for the Amazon Kindle, Barnes & Noble Nook, Apple iPad in the iBook store as well as on the following services: Scribd, Inktera (formerly Page Foundry) and Kobo
There are many ways in which people can help us educate more Americans about the FAIRtax. In Programs 29 & 30, the FAIRtax Guys describe how listeners can support and promote our efforts. Program 29 concentrates on simple but effective things for people with busy schedules, whereas Program 30 suggests some activities that might take a little more time. The programs are free to the listeners. Please share these links with your friends and relatives.
FAIRtax Power Radio is now available on iTunes and Spreaker. A new episode will be posted every Friday morning but you can listen at any time by going to one of these sites. There is no cost to listen.
In Episode 3, Thomas Jefferson paid us a visit and gave his opinion of our federal income tax. As you might guess, he wasn’t very happy with what he saw. Then we searched for “the perfect tax system”.
In future episodes, we will hear from Bob “Paxworthy” famous for his “You Might Be A FAIRtax Fan!” routine. We are always open to your thoughts and opinions. You can contact me at this email address or at theFAIRtaxguys@gmail.com.
The episodes are still available on SoundCloud and YouTube but Spreaker is the site that lets up branch out to other, more popular sites that cater to podcasting.
Bob and Ron will continue with FAIRtax Power Radio until HR 25 becomes the law of the land in 2017. After that, I’m sure our episodes will go into the Radio Hall of Fame! Please share this information with your constituents and anyone else you care to. The more people we educate about the FAIRtax, the better the chances are that it will become a reality next year.
To listen to FTPR on SoundCloud (free and audio only) go to these links:
FTPR Program 29 on SoundCloud
FTPR Program 30 on SoundCloud
FTPR Program 29 on YouTube
FTPR Program 30 on YouTube
To listen to FTPR on SoundCloud (free and audio only) go to these links:
FTPR Program 29 on SoundCloud
FTPR Program 30 on SoundCloud
FTPR Program 29 on YouTube
FTPR Program 30 on YouTube
Thank You For Opening The FAIRtax Chronicles, Our Sponsored Mailings
We plan to do several of these mailings each month. If you take a minute to open the sponsored emails and click through to the website, you are making an in kind contribution to AFFT. It is not required to actually make a purchase, but your minute of time will ensure that AFFT is paid ever larger amounts from people paying for us to send their offers to our supporters.
Again, we are making every effort to ensure that we work with only reputable companies. If you feel that any FAIRtax-sponsored email is objectionable, please email us at info@fairtax.org and tell us why. You can also opt to not receive these sponsored email messages but still receive FAIRtax emails.
Thank you for staying FAIRtax strong!
