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Some Historical Perspective on the Economy

This article from Walter Williams provides a good historical perspective on the economy.
 
 
 
Included in this article is a quote from James Madison:
 
"The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the state governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace, negotiation and foreign commerce."
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presidential address

In Obama's news conference tonight, he made reference to FDR and Japan's economic troubles in the 1990's. Here are the facts:
 
FDR's own treasury secretary, Henry Morgenthau, recognized that FDR’s own "stimulus spending" plans did not work. Morgenthau talked about the New Deal in a 1939 interview. He was quoted as saying, ‘We are spending more money than we have ever spent before, and it does not work”....”We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started and an enormous debt, to boot..”
In regards to Japan, between 1992 and 2000, Japan implemented 10 separate spending stimulus packages in which public infra¬structure investment was a major compo¬nent. Excluding the 2000 program, for which final costs are not yet available, addi¬tional spending on the infrastructure com¬ponent alone amounted to 30.4 trillion yen, or $254 billion at the current exchange rate." Because of this government intervention, Japan went through a 10 year recession.
 
Here is a basic fundamental of economics: Recessions are a necessary component of any free market society. Markets naturally go up and down. A recession is a normal and necessary correction that must take place from time to time. If recognized as such, the economy will rebound and enter a "phase" of growth.
 
However, when we have a liberal majority in our legislature and a radical, incompetent president accompanied by a wealth-bating, crisis chasing media, we get government intrusion which will prolong the the inevitable "phase" known as a recession.
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Stimulus Plan or Entitlement Plan

 

Last week, "this president" (taking a page out of the Democrat playbook when referring to George Bush) criticized corporate executives who benefited from the TARP plan for giving out bonuses. While I too am angry about this, the majority of my anger is with the politicians. THEY SHOULD HAVE NEVER GIVEN THE MONEY AWAY TO START WITH!

But, what really irritates me is when "this president" talked about it being the "height of irresponsibility". No, the "height of irresponsibility"is"this president" and his parasite friends in Washington who are trying to force a trillion dollar so-called stimulus package down our throats that does nothing but grow the size of government.

Two thirds of this plan does nothing to stimulate the economy. Instead, it plants the seed for more entitlements which creates even more people dependent on the government. Of the many ridiculous items in this bill is a tax credit of $500 for an individual or $1000 for a family in which illegal aliens will be entitled to. Yet, "this president" wants to talk about irresponsibility.

 In 1981, Ronald Reagan was dealing with an economy far worst than we are dealing with today. Thanks to Jimmy Carter, interest rates were above 20% and unemployment was twice what it is today. This is what Reagan had to say:

"In this present crisis, government is not the solution to our problem; government is the problem. From time to time we've been tempted to believe that society has become too complex to be managed by self-rule, that government by an elite group is superior to government for, by, and of the people. Well, if no one among us is capable of governing himself, then who among us has the capacity to govern someone else? All of us together, in and out of government, must bear the burden. The solutions we seek must be equitable, with no one group singled out to pay a higher price."

The result of this common sense approach was the longest period of economic growth in history.

Thomas Jefferson once said,

"were it left to me to decide whether we should have a government without  newspapers or newspapers without a government, I should not hesitate a moment to prefer the latter."This is because the press was considered to be an important aspect of a Republic because it held the government in check and informed the people when government tried to overextend itself to the point where it endangered our basic liberties.

Today, we must deal with a press that is more like the public relations wing  of the Democratic party. Instead of reporting objectively about what our government is doing to infringe on our rights and well-being, the media is more caught up in the celebrity of "this president". The media would rather show pictures of "this president" hangin' with celebs or working out than tell us about illegal aliens getting a tax credit. Worse, they saturate us with propaganda, fabrications and half truths in order to promote the agenda of the Democratic party and "this president".

The agenda? Create more dependency on the government where as to establish a permanent source of votes and complete power over the American people. Strong words you say? Well, think about it. If I am completely dependant on you, you essentially have total influence over my life.

Currently, the bottom 50% of income earners pay only 3% of the taxes.

http://www.atr.org/content/pdf/2008/August/081408ot-federalincometaxandwhattheypay.pdf

This is truly frightening when you think about it because when we get to the point (and we are not far away) where the majority of Americans pay no tax at all, we will reach the point of no return.

A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years.    Alexander Tyler

I realize we are not a democracy, but it is obvious that we are dangerously close to the scenario described by Alexander Tyler. We know the solution to our problems. We have seen it work before. Unlike this past election,we need to refrain from making decisions based on emotion and make decisions based on common sense.

Why? Because I want my kids and grandkids to have the same freedoms and opportunities that I have been blessed with, not the burden of paying the dept created by elite, out of touch politicians who have been enabled by unimformed Americans motivated by wealth-envy and influenced by charisma and star power. That, Mr. President would be "irresponsible" to say the least.

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Trivia: Who Said The Following

"I believe that most Americans would agree on the problems that this country faces .... They include the need once again for an economy that works. The economy today is in very, very bad shape ..... It is not getting better. It is getting worse. All the leading indicators now point downward, and stock investors are now losing confidence.... We need a government that works, and we need a government that cares, and once again we have to get back to work on education, on health, on housing, on the environment, on energy; and we need a foreign policy that once again reflects the values and the beliefs of the American people. This will take leadership, and we need leadership, too. The Republican administration, the Republican party has had eight years to solve these problems. All of them have gotten worse. The Republican ticket does not offer new plans for their solution but is engaged in a frantic effort to defend the past. This nation desperately needs new leadership."

Was it Barak Obama? Joe Biden? How about Nancy Pelosi or Harry Reed?

No. It was Walter Mondale in the 1976 Vice-Presidential Debate.

So much for Obama and the Democrats being an agent of change. "The Chosen One" has been repeating the very same Democratic mantra that we have been hearing since the Great Depression.

Need I remind anyone what happened after the 1976 debate? We elected Jimmy Carter. Do we really want to swallow that pill again? Let's learn from the mistakes of the past.

We do need change in Washington. We need reform that only John McCain and Sarah Palin can deliver. After all, they are the only ones who actually have a record of standing up to the status quo.

Don't be fooled by the media. The financial problems we are facing are a result of government intrusion. We can not afford the policies of Barak Obama because he only wants to increase the burden that government places on the tax payers. Free market solutions are the answer.
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Economy: Obama and McCain

There are many reasons why one should cast their vote for John McCain this fall and not Barak Obama. But there is one reason, based on recent economic developments, that perhaps stands out more than any other. Forget the fact that McCain understands the threat of terrorism and will continue to build our national security, unlike Obama, who wants to dismantle our military by getting rid of our nuclear arsenal. Does he really trust the Russians, North Koreans and Iranians to do the same? THIS INDICATES VERY BAD JUDGMENT.

Forget the fact that the only accomplishment Obama can claim as an elected official is his FOUR votes against a bill that would protect infants that were born alive as a result of a botched abortion. THIS INDICATES A TOTAL LACK OF MORALES.

Forget about Obama's associations with: Jeremiah Wright, a hate spewing, anti-American pastor who has completely distorted the Word of God and the life of Jesus; Tony Resco, a convicted felon; ACORN, a corrupt political organization known for illegally registering people to vote (community organizers); and most troubling, William Ayers, a confessed terrorist whose group bombed the Pentagon and Capitol. Obama claims that he is merely a victim of guilt by association. Well, associations with one or two of these MIGHT be considered a coincidence, but the numbers seem (at least to any reasonable person) to indicate a pattern of an extremist world view. THIS INDICATES BAD CHARACTER.

The issue that is probably on most Americans minds today is the economy. The Democrats are trying to blame Republicans for the recent troubles in the financial markets. The truth is that Fannie Mae and Freddie Mac were quasi-governmental entities (run by Democrats) and were not held to the same standards as private owned companies. Fannie May and Freddie Mac, with the urging of the President and the Congress, gave more and more mortgages to poorer and poorer people, who essentially could not pay the bill. As a result, home prices were driven beyond what is realistic. What we are now having is a correction in the market because the free market has been tampered with. Capitalism is not the cause of our current economic trouble, but rather the interference of government.

Now I am not advocating complete deregulation. There should be basic regulations in all industries to make sure people are not being taken advantage of. My issue is the fact that government has reached the point were it gets in the way of the free market in order to maintain it's power over the American people.

When it comes to the two candidates, it is obvious that McCain's proposals are much better for our economy based on three factors. First of all, McCain wants to make the Bush tax cuts permanent, which will continue to encourage people to achieve rather than blame the "mean rich guy" (who in most cases they owe their job and their livelihood to). Obama says he will cut the taxes of 90% of Americans. This is obviously a distortion if not a complete lie. Obama is playing on the ignorance of the American people who, for the most part, do not realize that the bottom 40% of income earners do not pay ANY income tax. Obama's plan will basically PAY people who do not make a certain amount of money by taking it away from the rich. This is income redistribution and it takes away the incentive of the American Dream. Trust me, if you are middle class, your tax dollars will increase under Obama and, most importantly, your income will decline.

Next, McCain will lower the corporate tax rate, which will encourage businesses to operate here in the US rather than abroad. We currently have the second largest corporate tax rate in the world, and as a result, we are losing more and more businesses and jobs overseas. Obama's plan is to punish businesses who make a profit by adopting a "windfall profit" tax. With this plan, we will be lucky to have any businesses operate within our borders.

Finally, McCain will allow expending for our small businesses. Currently, small businesses are only allowed to deduct the depreciation costs of the equipment they use for their business. McCain's plan will allow business owners to deduct 100% of any equipment they purchase for their business the year they buy it. This will allow small business to have more cash flow to run and grow their businesses. It will also make it easier for people to start a business and turn a profit in their first couple of years in business. This is very important because small businesses employ about 2/3 of all Americans and is the backbone of our economy.

I have basically outlined a host of reason to NOT vote for Barak Obama. To date, I have not heard one reason to vote for him except he is not George Bush and if I don't vote for him I must be a racist. Oh, and of course, he is oing to take care of me and my family. Well, my message to Mr. Obama is that I have more faith in my abilities, judgement, character and morales than I do in his.
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