Our Chief-Story-Teller, in his nefarious flair, is claiming the US economy has improved since his inauguration. I wonder from which fortune cookie he pulled that nonsense. He almost sounds dehydrated. Zen is not easy. It takes effort to attain nothingness.
For all of his talk about jobs and the economy, most of Obama’s economic and job ‘recovery’ speeches are not plans, but politics of the plan. Every speech is a Mickey Rooney and Judy Garland musical. Yet, all the while Obama is systematically authoring an economic collapse, which would lead to political turmoil and ultimately socialism. When things collapse… everyone starts at the bottom together. Its part of his plan.
And, Socialism isn’t just about redistributing wealth. It’s about redistributing poverty. When you promote an entitlement mindset with free market rhetoric, fools will buy-in. And, it will attract lots of buyers. Socialism, not capitalism, is greed. People who are non-producers want what the producers have without working for it. In Obama’s world, businesses exist only to pay taxes and fund unions, who then fun Democrats.
Jobs are the No. 1 issue going into the 2012 election, which makes the unemployment rate a particularly important indicator. Employment is a key economic indicator. But a return to economic growth is a PRECONDITION for growth in employment. And, the more we divert away from the real focus, the greater chance the GOP has of losing the election. But, knowledge is king. And just as they tell us when we first get on an airplane — we need to put our own oxygen mask on first before we help others.
A basic economics civil lesson…
Liberals believe power and income are derived from government, not the individual, ultimately believing justice, not law, is the means of their governance. There’s a clear cause and effect here that is a neat and predictable as a law of physics: As government expands, liberty contracts.
Every dollar Government injects into the economy must first be taxed or borrowed ‘out of the economy’. No new spending power is created. It is merely redistributed from one group of people to another. It is intuitive that government spending financed by taxes merely redistributes existing dollars. In that sense, liberals think dipping water out of the deep end of the pool and dumping it into the shallow end of the pool will fill up the pool with more water.
But, government spending does NOT “pump new money into the economy” because government must first ‘tax or borrow’ that money out of the economy. Get it? So, once it becomes clear that government spending only redistributes existing demand, the case for “stimulus“ spending collapses. All government stimulus spending requires first taxing or borrowing dollars that would have otherwise been applied elsewhere to the benefit of the economy.
The U.S. economy has soared highest when the federal government was shrinking, and it has stagnated at times of government expansion. You can’t borrow your way out of a recession. You cannot spend your way out of debt. In fact, it is a mathematical impossibility to get out of a credit recession with more debt. And, just as tax policy influences human behavior, inflation distorts economic behavior.
Tax rate cuts raise tax revenues due to increased taxable activity. It happens every time it’s tried and is easily provable. Newton’s third law of motion even states that for every action there is an equal and opposite reaction. Therefore, if one object exerts a force on a second object, the second exerts an equal and oppositely directed force on the first one. Tax cuts raise tax revenues.
Democrats never figure into their calculations; the decrease in activity of an increased tax on that activity. After the Bush’s 2003 tax cut, the U.S. had 52 months of uninterrupted job growth. Boosting revenues requires expanding the economy so revenues generally correlate with economic growth, not tax rate increases. Tax cuts are great, but not if you don’t cut government spending
Read the full story at Obama’s Great Recession « Furthermore.