Thursday, January 18, 2018


Democrats Need to Come Back to their First Love, the Middle and Lower Class!

January 11, 2018 by  
Filed under Business, Money, News, Opinion, Politics, Weekly Columns

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(ThyBlackMan.com) (Excerpts from the book titled, “The Fix This Time” @ amazon.com/dp/B00MI3PD2M).
As a life long Democrat, you hate to see your party going down the wrong path. In borrowing a passage from the Holy Bible which is over 2,000 years old; Democrats need to come back to their “first love.” These words could not be more fitting for where the Democratic party finds itself today. God wrote the following words to the church of Ephesus in Revelations 2:4;

Nevertheless I have somewhat against thee, because thou hast left thy first love.

Of course, in that scripture God was referencing Himself and the true Word of God. However, what separates the Democratic from the Republican party, and what the Democratic party represents, and epitomizes are the feelings of the members of the party; and that is our love for the wellbeing of middle and lower class Americans. These are people who work and struggle for a living every day and night in this nation, trying to raise their kids right. These are parents, who sacrifice to send their children off to colleges, universities and trades schools, in hope of seeing them get a better education and make a better living.

It is inconceivable to me, that the Democratic party is considering shutting down the federal government over DACA (Deferred Action for Child Arrivals). If you are going to shut down the federal government, you should shut it down over issues affecting your first love. Democratic leadership in considering shutting down the federal government for DACA, are putting the winning of the 2018 elections in peril. There is nothing wrong with championing DACA, as a secondary issue. But, Democrats should be championing the restoration of the COLA (cost of living allowance), when it comes to Social Security as their primary issue.

That issue affects their first love. The COLA issue connects them to their base, their core constituency; Baby Boomers and American workers and everybody who pays the mandatory Social Security payroll tax. It further demonstrates Republicans are not supportive of this constituency, mainly working class Americans. They took money from seniors’ checks, reducing their Social Security income over the next 10 years by 5 percent to give it to the wealthy, businesses and corporations as part of the 2017 tax cut (http://thyblackman.com/2017/12/11/tell-nanna-merry-xmas-trump-has-just-cut-her-social-security-check-5/).

Some Democrats see Social Security as an albatross, when in reality FDR left us a gift, that keeps on giving, if we use and take advantage of it. The Social Security program embodies every objective the Democrats want to accomplish. It personifies the spirit of what Minority leader Senator Schumer says the party needs; “Democrats need a strong, bold, sharp-edged, and common-sense economic agenda.” Social Security can be the foundation for that agenda. It can provide a job creation plan that will spur consumer demand!

Here is what can be, and how the plan would work; raising the level of income on which Social Security taxes can be charged will fix the Social Security system. The Social Security tax of 6.2 percent as of 2017 is charged on the first $127,200.00 of income. Raising that income level to $250,000.00 will easily buttress the trust fund. That is what should be done on the front end. On the back end, Congress should allow retiring seniors to have the option of taking 10 percent of their principal, if they desire, unencumbered by taxes. This of course, makes Social Security not just an entitlement program, but a useful contributor to growing the economy. Boomers are retiring at an average rate of 10,000 per day over the next 14 years.

For a retiring couple, who retires within 2 years of each other, this could mean a windfall on average of $80,000.00, coming into their household. This would be the largest tax cut for the middle class, in the history of this country. The other 90 percent of their Social Security income is, then received in annuity payments the rest of their lives. Of course, that will easily drop $100 billion to $140 billion into the U. S. economy each year, triggering economic growth.

Tax collections from the spending of this money by retiring seniors at both the state and federal level will increase, offsetting the cost of Social Security and also boost job creation. It is a known economic fact when you hand money directly to the consumer, that money turns over a minimal of 2 times. So, its really like dropping $150 billion to over $200 billion of stimulus into the economy each year. This of course, will force the Federal Reserve to raise interest rates to control the inflationary side affects of this spending.

Thus, we go back to what has been missing in this economy and that is normal interest rates. You then, create jobs and lift the economy to 3.0 to 4.0 percent GDP, consistently. This is a deficit neutral job creation plan, because the Social Security program is paying retiring seniors money it already owes to them, but in a different way. Compare this, to the $1.5 trillion budget busting Republican plan for creating jobs. Keep in mind also, consumers make up 70% of the United States economic activity. They are the primary engine of this consumer driven economy.

The Fix This Time,” goes on to explain that we have to not allow corporations, the wealthy and businesses, to export this new demand without some form of reciprocity. In other words, no country should be allowed to do what China is doing and that is consistently run TRADE DEFICITS YEAR AFTER YEAR OF OVER $300 BILLION. When countries are allowed to do this, you are essentially exporting jobs created by American spending and getting nothing in return.

(A note to those who are purchasing “The Fix This Time.” You can download the book to your iPhone, personal computer or Kindle reader. You do not have to actually read the book.” There is a function from Kindle on the tool menu that allows the book to be read ALOUD to you. It is a stop and go feature which allows you to listen to the text of the book without having to set at a computer screen or look at your phone. Enjoy!)

Staff Writer; James Davis

Mr. Davis is a leading expert and consultant in Financial Analysis and Social Dynamics. He is a graduate of Florida A. and M. University(FAMU), a former stockbroker, and a human rights activist who resides in Sanford, Florida. He was awarded the prestigious Governor Haydon Burns Scholarship to attend FAMU and while at FAMU was awarded the first Martin Luther King Scholarship. He is the author of three books, among them is “The Fix This Time,” Boost Your Retirement Income! Simultaneously Create Jobs and Spur Consumer Demand (https://www.amazon.com/dp/B00MI3PD2M).

He can be reached through his blog @, (http://www.thefixthistime.com).

Also one can Follow him on Twitter; Jamesabides1.

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