Saturday, July 18, 2009

Government “Stimulus” depresses the economy…

The Obama administration is touting that their economic “stimulus” is on track to accomplish what it set out to do; spend money. The problem is and the reason unemployment remains high is because the government is not stimulating the job creation, they are giving money to people and state governments that are transferring it to individuals that are trying to stay afloat.

If you want to stimulate the business community, the engine of the economy, you have to do something for them. They don’t want money they want clear policy and a reduction of costs to hire, produce, and expand their business. How do you do that? Make it cheaper to do business. The US is the second most costly place to do business in the world. That is the problem.

All the government would have to do is cut employment taxes, capital gains taxes, and reduce the top marginal tax rate to 30% and maintain it for five years. That would be a start and that would be a stimulus. Instead they are doling out money to things that have nothing to do with job creation and are just putting us into more debt.

Taking money from the “rich” (people who risk, and create jobs; small business) does exactly the opposite than the goal of stimulating the economy. The two questions you have to ask are; is it because they don’t know what they’re doing they are leaving out the tax cut option or is it because this is exactly what they want to do to this country?

I think it is the later…

1 comment:

Anonymous said...

The "stimulus" is doing exactly what the elites want it to do. They are NOT trying to grow the economy...if they wanted to do that they would do exactly what you suggest in your blog. But they don't want to grow the economy - the liberals, Democrats, and the Obama Administration want to choose the winners and losers. These elitists want to take from the producers (the middle class) and give to the people who will continue to vote them into office. Read "The Prince" by Machiavelli. We need to remember that the United States is a unique economic and political power to the masses is not the normal state of societies. There always have been and always will be some people - the self appointed elites of society - who believe they are better than the masses of people. They believe only the elites can and should control society. This is where Obama is leading our country...we (the masses) are being promised everything (health & wealth) if we just give up a few things (our freedom). What we are seeing in the Obama administration is an incredible push to implement a society similar to the Twilight Zone show "To Serve Man".