How the Economy Doesn't Work and More Fabrications

A collection of thoughts about the last couple of weeks:

The "stimulus" bill now being considered in the Senate which passed in the House is being talked about non-stop by all the talking heads on television. As it continues to languish, someone described it as a rotting corpse. The longer is is exposed to the sunshine, the more it begins to stink.

Rep. Nancy Pelosi was just on television yesterday saying that "every month that the stimulus package is not passed, 500 million Americans will lose their jobs". I find that statistic interesting in that the population of the United States is just over 300 million people. How she can say something like that with a straight face means that she must have had a stroke or slow virus brain disease. It is not possible for what she said to be true and any middle schooler could tell you that it was not possible.

Spending by the government is a revolving door and does not stimulate the economy. You take taxes in, pay them out, and take them in again. It doesn't produce anything. It is money that is just being printed by the government and being covered by borrowing from foreign countries. In order for the economy to function, private industry must generate wealth and pay taxes into the government. The workers who are employed by those private industries must earn wages and pay taxes into the government. It is private industry that generates revenue, not the government. To think that the economic crisis will be resolved by just printing more money is idiotic and not very reassuring about the competence of those advocating that course. It has never worked in the past and is silly.

Another big lie is that this current wish list of a bill is a stimulus package at all. It is a laundry list of liberal wishes. Some of the ideas may have merit but they are not stimulative to the economy. As the people have seen more and more of this bill, public opinion has turned against it and rightly so. Fred Smith, CEO of Fedex was on television the other day and pointed out that the United States Tax Code is weighted substantially toward helping financial institutions and inhibiting the manufacturing sector. The Democrats constantly rail against manufacturers relocating facilities overseas yet never admit that their own tax policies are causing the movement. The obligation of any CEO of a corporation is to make a profit for the stockholders. If that CEO can find a more favorable environment to manufacture the companies products, he has an obligation to do so. Since the United States has the highest business taxes in the world, should it surprise anyone that businesses are going elsewhere? We have seen the same phenomenon within the United States with businesses relocating from the industrial north (Michigan, Pennsylvania, Ohio, Illinois, etc.) to the Southeast where the weather is better and the local and state governments are more friendly to business and the tax structure is better for business. That very thing is what has happened to the automobile industry in Michigan where dumb business decisions and liberal policies have whacked the industry. Automobile manufacturers in South Carolina, Tennessee, and Texas are doing fine.

If the Democrats wanted to stimulate the economy, they could have money in the people's pockets in two weeks: reduce payroll taxes. It would only require the stroke of a pen. There are things in the stimulus bill which cost tens of millions of dollars and produce only a dozen jobs. If you are you going to do that, just give me ten million dollars and say it is a job. I won't even tell on you. In every single instance in United States history, reducing the capital gains tax has resulted in increased revenue for the government. Additionally, every single time capital gains taxes are raised, government revenue decreases. Can anyone see what the right thing is to do? Duh.

The Obama people say giving a rebate check to the people is stimulative. Consider this when comparing the rebate check to tax relief: Would you be more likely to make a big purchase (car, washer, refrigerator, computer, etc.) with a single rebate check, or with more money every paycheck for the forseeable future? Anyone can see that tax relief makes more sense and will be more stimulative to the economy. To say otherwise is to show your partisanship and no knowledge of the economy.

The left, in order to pay back the big labor unions for their support in the elections, is trying to pass the goofy "card check" legislation which will take the right to secret ballots away from union elections. Perhaps we can establish a KGB and a Ministry of Propaganda as well. The secret ballot vote is a fundamental right of all Americans in all elections. How anyone can claim it is progress is demeaning to anyone that can think.

If only these guys would start looking out for the people and less about their own butts.