Taxes and the idea of "invention as a social process"
I am normally indifferent in the Democrats vs. Republicans fake elections, which make us feel like we're making a choice even though both favor plutocratic economic systems. But Obama's anti-business comments are especially appalling and frankly Anti-American. It is one thing to acknowledge that invention has an element of social process to it, but it is entirely another to use it as an argument to dis-incentivize creation & innovation, which is exactly what higher taxes do. If we believe that economic surplus is a social product, then we must incentivize it to the maximum with low taxes.
Invention and innovation DO have social elements to them, however it would best be reflected by nationalizing the banking system (yes I am free market but only for things that belong in private hands!). The private banks do nothing to back the money in our economy, yet their leveraged loans out of thin air comprise most of the money supply of US Dollars! The primary cause of inflation is not Congress, it's private banks overheating the economy with too many loans (incentivized by the Federal Reserve artificially fixing rates too low because the Fed's stock and regional banks are owned by the private banks)
The only thing that keeps the money good is a government guarantee. Thus, the nation's currency is backed ONLY by the combined productive power of it's citizens (this productive power gives the government its credit.) This is certainly a "social" element. The banks currently skim the profit from creating the National money but they do nothing to earn that right, especially make good on their promises and withstand the test of the marketplace without a backstop, which many can't.
Currency is a socially constructed tool. Thus, the creation of the national money supply (US Dollars, not other forms of money) should be a function of government, not the private banking system. The Constitution even says "Congress shall have the power to coin money and regulate the value thereof." Let us get back to the Constitution.
If we did this, the government would be in debt to its own citizens instead of foreign Authoritarian regimes like China. It would "securitize" the productive power of the nation by using it to back the currency, along with a Constitutional amendment to target 0% inflation at all times. This would eliminate the need for leverage to stimulate the economy, as every dollar in circulation would actually exist, and we would actually have healthy economic growth for once. Private banks would only be able to do secured lending without a backstop. This way if a bank fails, there is no contagion. The "too big to fail" problem would be gone.
Profits from the function of creation the nation's currency should go to all citizens in the form of a "national dividend" to each citizen (calculated by revenues divided by number of taxpayers.) Doing this would lower the need for welfare expenditures, as proven when the colony of Pennsylvania tried this from 1723-1775 with excellent results. Taxes would also be lower, as would interest rates. Business activity would boom from more confidence in the system and lower corporate taxes.
This whole idea of constituting the money supply almost entirely with private bank loans was sold to Congress by private bankers over a century ago when few others understood monetary economics. Now we know the right way forward.
For this to happen we would need a change of consciousness so incredibly far from the status quo that it's tough to see it happening, however it must to end the constant stratifying of our world. It starts with rejecting the 2 party system.