Posted by
Steve on Monday, March 16, 2009 9:23:44 AM
Barack Hussein Obama has decided to take a page out of John McCain’s campaign playbook and say that the basics of the economy are sound. The difference is that when John McCain said that the economy was sound, the news media and Barack Obama savaged him for the comment. When Obama himself says the same thing, in a worse economy, every news outlet is silent.
Do we have news bias today? Of course we do. Anyone who says that we do not have an obvious bias to the left does not know what they are talking about. They either do not read or listen to the news or they believe from the left and cannot make a distinction. Anyone from the middle to the right should see the bias from a mile away. But, now back to the main idea.
When John McCain said that comment in September or October, he was correct. The basics of the economy are sound. What crumbled was the part of the economy that was the most highly regulated by Democrat controlled politics. The rest of the economy is basically sound. The problem with the highly regulated part of the economy is that it was so large that it is bringing down some of the more fragile poorly managed companies. When Barack Obama comes out and says the economy is sound, it is not as true as when John McCain said it in the fall. That is because we have pumped in trillions of dollars into the economy with no result, or a poor result. That means that the economy is headed for either high inflation or a long depression or both.
One company that had to be bailed out because it was too large to fail was, AIG. Democrats and Republicans fell over themselves on how important it was to make sure that this company remained alive through bailout funds. This weekend, AIG announced that it is giving $165 million in bonuses to top executives. That is not a company that feels that it is one step away from bankruptcy. They also were giving a large portion of their bailout funds to banks. News flash to the Obama administration, this company is thumbing its nose at you.
So far, we have pumped trillions into the economy with bailout and stimulus funds and still have a slow economy. With that much money you would think that something would happen. The problem is that they were doing exactly the wrong thing. They were trying to solve a problem of borrowing and spending by borrowing and spending. That cannot work. It is like being maxed on your credit cards and saying that you need to max another card to get you out of your problem. It will not happen.
The way to solve the problem is to reduce taxes on those that create jobs. Obama is increasing taxes on those that create jobs. Democrats have a horrible case of wealth envy and their voters have caught the fever. Wealth envy means you tax those that create jobs and give to those that create nothing. You call that a sound economic plan if you are a Democrat. The way to solve it is to lower taxes on those that create jobs. Also lower the cost of creating a job, which means lower corporate taxes. This will stimulate companies to add people to the workforce. That will increase the number of people making money and paying taxes. That will increase the amount of tax money coming in, even though you cut taxes. It has worked every time it has been tried. Unfortunately for us, the Democrats have not learned that lesson.
A faster way to fix our economic problem would be to enact the Fair Tax. That would eliminate corporate taxes and all income taxes. It would create a consumption tax in their place. The estimated $12 trillion that is held overseas would largely come home to the United States as investment. That would be a larger stimulus than the stimulus package and it would cost the government nothing. It would require no borrowing and would not have to be paid back in taxes. The problem is that Democrats would not be able to keep their thumb on you and claim that the Republicans are going to take that thumb away from you.
We have a solution to our economic problem staring us in the face. It costs the government nothing. It will not be enacted because Democrats could never bring themselves to actually vote for something so sensible. Republicans would even have a hard time giving up the power that most of them crave. If it passed, the country would have a boom that would last for decades or longer. Because of short sighted politicians, it will have a hard time even being heard, let alone passed.