The Economy! Wow that’s a very touchy subject these days. Possibly a brief background in basic economics would be very helpful at this point. What is meant by "The Economy"? It is the mere movement of money. When the economy is good money moves not just through the retail level of our markets and businesses but through growth areas as well (stocks, bonds, futures, etc.). One satisfies the current short term needs of our daily lives while the other addresses the long term growth that will keep us all on track for the future. Conversely when things begin to go in the negative direction less money is moving through their respective markets thusly restricting the flow of capital. This is where things can get complicated. How is it that so many of our politicians can’t seem to come to an agreement on what was the cause or causes of this near depression state of economic collapse. Perhaps that discourse, in itself, is the key. For no one seems to be moving in the right direction to overcome this, sometimes tragic, effect on the American way of life. If those that caused the chain reaction of events that began this downward slide won’t admit fault or simply take responsibility what else can be done. Perhaps more than meets the eye at first glance.
One thing about politicians, if you listen to them carefully, they will always tell you what happened and the group or person(s) to blame. What generally occurs, by those at fault, is they identify the cause and then blame it on the other side so they don’t get in disfavor with their base of voters or the public at large. However the monster this time has two heads to deal with.
It’s not enough that our good intention politicians get in way over their heads while trying to please the base of voters that put them in office. Too often they don’t think past the "law of unintended consequences” either or perhaps they actually do. This is one of the heads mentioned above. The other is that we now have a President of the United States that hates this country as it was founded and fully intends to reform it to more resemble the socialist style governments and economies of some of the Western European societies. These types of two headed monsters are very difficult to get close enough too, to feed. They keep trying to devour all that is near them so they may have strength to survey the country for more of their special type of food.
Yes! You guessed it; the food in this case is the inevitable tax dollar. Some of the new taxes proposed are: the value added tax; the cap and trade tax; an end to one of the most successful tax cuts in our history, the "Bush” tax cuts; and rumor has it a "Go Green" tax. There are also hearings being held (the last one on Oct. 7, 2010) exploring the possibility of seizing control of all 401k’s and place them in a to be newly formed retirement agency (reportedly talks have also earmarked private pension plans to be included in this program as well). A combination of out of control spending and new taxes gave birth to the recession of the 1920’s which lead to the 1930’s Great Depression. What can we expect from a like set of circumstances less than 100 years later? It’s been said that if we don’t learn from our mistakes in history we are bound to repeat them.
Everything thus far that has been tried by the current administration to "help” has only succeeded to exacerbate the difficulties associated with a recovery even further. I’m not so sure that isn’t by design. It appears that an attempt to activate ”The Cloward-Piven Strategy”, a scheme contrived to bring about the collapse of the American economy, is being instituted.
Hopefully this won’t be the case following the mid term elections in November 2010. Expectations remain high the voters will replace enough liberal Democrats with conservative Republicans so as to reverse some of the worst legislation ever to come out of congress. Stay tuned, for the magic of a true capitalistic economy hopefully will bring us back one more time.
Some of the proposed steps to help bring about a recovery include suspending the capital gains taxes for a period of 24 months with an option of an additional 24 months if the desired effects are achieved. Make the Bush tax cut permanent (without change). Cut back the corporate tax rate from 35% (the highest in the world) to 10%. Also stop collecting Social Security taxes (both halves) for 6 months with an option for another 6 months if the disired effects are achieved. Added to these proposals should be to allow an up or down vote of "The Fair Tax Plan" on the floor of both houses of congress as well as begin the process to repeal the Sixteenth Amendment to the Constitution if that bill passes. The results these proposals should yield will be just the beginning. The private sector always responds in a very positive way each time roadblocks are removed from allowing normal growth to find it's natural path, as was intended by the Founding Fathers.
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