This isn’t about Democrats and Republicans. This is about Conservatives and Liberals or Capitalist and Socialists or as they like to call themselves Progressives. A lot of my family was or maybe still are Democrats. My father was a Democrat but now he is a Republican. He says the Democratic Party isn’t the party he was a part of. That being said let’s look at the difference on the ideas and solutions each have for our country. From here on I’ll talk about the Capitalist versus the Socialist ideas as I see them.
The Capitalist believes that the individual is the best answer to grow the economy where the Socialist believes that the Government is the best answer.
The Socialist wants everyone to have an equal share of the pie. Share and share alike! This however does not grow an economy. Why is that? Simply put, it puts everyone at the same level. It moves the poor up but it also brings the rich down. It is the Robin Hood effect. Take from the rich and give to the poor. For the poor it’s great, it means that they are no longer poor. They in essence do nothing and advance. It is not so good for the rich. Some will think “Hey I got the money, I can share some of it” but the problem is the Socialist isn’t satisfied until that everyone is equal. So they will continue to take from the rich bringing them down and giving to the poor bringing them up until everyone is equal. Now what does this do?
When this experiment has been done, in all cases in Communist or Socialist countries it has failed. The poor figured out that they didn’t have to work and guess what, the rich figured out they didn’t have to work either. Why work when the Government is going to give you money to live on? Why work if the Government is going to take all your money?
So inherently in the Socialist model the more people unemployed the better. The problem with this is that eventually you run out of other people’s money and it’s not long until you become a third world country. No businesses, no jobs and no money. You rely on Government for everything.
We have another problem with this model. Our Socialists are also Democrats. Why is that bad? Because Democrats believe in a big Government because they believe that the Government is the best to decide your life. There is yet another problem with this model. Socialists are also Liberals. Liberals are for all those free thinking, save the Earth environmentalist ideas which cost a lot of money to implement yet have little effect. All three ideas, Socialism, Democrats and Liberals conflict with each other as far as the economy goes. But it also conflicts with what our country is all about.
Enter Capitalism! Capitalism believes that if you let the individual or business prosper it benefits all. The rich will employ the poor. As the rich get richer they spend more money, create businesses, hire employees, produce product and pay taxes. Lots of taxes! Ronald Reagan had the idea of trick down economy. The Liberals stated many times that trickle down economy doesn’t work. They lied!
Capitalism will save this economy and the country. Trickle down economy works and works well.
Barack Obama and the Democrats know what is needed they just don’t know how to implement it because they think socialistic instead of capitalistic.
Let’s face it the Democratic Congress presented President Bush a solution in the form of a socialist bailout. President Bush signed that bill which started the ball rolling. President Bush should have never signed that bill. The reason the economy was tanking was because the markets were seeing a new President coming in the form of Barack Obama, and that he wanted to tax the rich and businesses and give it to the poor and they didn’t like it. That was the absolute wrong solution. And unfortunately President Bush fell for it. That in my opinion was the biggest mistake in his Presidency.
Why were these companies failing? Well part of it was the subprime mortgages and that needed to be remedied. But the methods to fix it were all wrong. I’ll talk about that at a later date.
Two words would have stopped the bleeding. Cut Taxes! Those simple two words would have saved the economy. And guess what? Those two words will work today. You see even though companies are receiving billions in bailout money, it is a mere band aide placed over a deep wound. They still have to pay major taxes on their earnings and that is taking away money that could be used to hire employees and grow their businesses. The markets are still not happy. There is no confidence!
Now I’m not advocating cutting out all corporate taxes but cutting a great majority corporate and capital gains taxes would really turn things around, it could solve unemployment, the country’s debt and a great majority of health care which is another subject I need to talk about.
The Government would actually gain more revenue by cutting taxes. This is something that President Reagan understood. There are roughly 30 million people out of work. If all of those people were put to work even at minimum wage the Government would collect roughly $5,000 to $10,000 a year per person. That equates to, well a lot of money. If my math is correct using the $10,000 figure that equates to $300 Billion. Of course a great many of them will not be working for minimum wage. So even if each corporation or large business isn’t paying much is taxes the government gets it in the form of income taxes from all those who were out of work. Not to mention the products and services those new employees are purchasing in the form of sales taxes.
I know it doesn’t make a lot of since grow revenue by cutting taxes but hey it magically works.
