Leftist Got The Economy Backwards…
The real solution is… whatever is the least amount of taxes that is possible to collect (which is taking capital out of the economy and putting into the black hole of the federal government), but still enough to keep the federal government running and functioning, is better for the economy long-term. Remember, taking taxes out of the private sector, is in essence taking money out of the economy and burdening the economy. It’s still necessary to do that, because we need government for certain functions, but the least amount of taxes we can collect, and still keep the government running, is ultimately the best for the economy.
The trick is to cut back as much bureaucracy and government that is not necessary, and to stop creating ridiculous entitlements that are not sustainable and counterproductive. So as to keep as much money in the economy, and out of the government as possible. When we have a strong thriving vibrant economy, much of those entitlement programs that people think we need, are actually unnecessary, because the people themselves are able to provide those necessities on their own at higher and more sustainable rates, through their own ingenuity in the workforce.
It’s good to have a safety net for difficult times, such as in between jobs. But what we really need to start doing, is educating people on how to balance their own budgets and spend their own money properly, so as to not be dependent on government. And we also need intelligent fiscal conservatives in government that understand how to balance budgets without overtaxing the American people. We don’t have a tax revenue problem, we have a spending problem and an over taxation/regulation problem. As well as a whole spectrum of corruption, but that’s a whole other story.
The question is not just what our ridiculous burden of taxation is doing to the “rich”, but what effect it will have in the long run on our entire economy, on productivity, wages, and employment. Obviously, a continuation of the over taxation rates and unnecessary forms of taxation, would definitely undermine incentives, discourage new business ventures, and prevent the formation of new capital for current and new ventures.
Congress should not be surprised if it wakes up one day to discover that this division of the profits does not house the highest incentives for private investment in new enterprises. And that new venture capital has been dying, with negative effects on wages, employment, and production, and even on government revenues themselves. If we want to prevent an economic collapse, we need to figure out ways to keep currency in the economy instead of stripping it out of the economy and feeding it to the black hole of the general fund of the government. But at the same time, we still need to fund the crucial and necessary functions of government. However, we need to scale back on the unnecessary departments of the government. We need people that know how to manage finances and understand economics and understand we need to shrink not grow the government.
Because of high taxes and over regulations in this country, as well as these anti-sovereignty trade deals, American corporations are taking their factories and production out of this country to places with lower taxes and lower regulations and then bringing their products back into our country free of charge with no tariffs (taxes) on these products, raking in huge profits for their CEOs and top corporate leaders. Some Americans are brainwashed into thinking this is good because we get cheap Goods. But the truth is, Americans suffer tremendously through job, business and wage losses, all while growing our trade deficit exponentially. I believe that we as a nation can lower our taxes drastically across the board and still balance on budgets. I believe that by lowering taxes we stimulate the economy creating more jobs and spending, therefore collecting more taxes in the long run.
Also, the Democrats are not being intellectually honest to you about the real problems with the economy and the value of the dollar in regards to the minimum wage debate. As inflation goes up and wages go up so do taxes. So, inflation and simply continuously raising minimum wage really is just a hidden tax. Raising the minimum wage won’t solve the underlying problems that are leading to the lower standards of living as a result of the lowered value of the dollar. We need to address the real issues instead of just thinking that raising the minimum wage is going to fix the problem. Only raising the minimum wage as opposed to addressing the real underlying issues will cause the cost of living to go up, employment cutbacks and will ultimately mean the dollar will continue to be devalued and more tax revenue will be collected by the federal government at the expense of capital remaining in the private sector. This is much more complex than simply raising the minimum wage, and the Democrats are fully aware of this and are not being honest with you about it. Or their just stupid with backwards thinking.
A more effective means of increasing poor individual’s income is not a legislative increase in their wages, but rather to stimulate the need for labor to the point that firms are incentivized to pay more by need and choice. Make employers want and need to pay more than the federal minimum wage because they cannot otherwise find as much employees as they need to meet their customers’ demands. We need to reduce the pool of cheap labor flooding our market from both legal and illegal immigration. And there’s more we can do as well to address the real problems and solutions, but simply raising the minimum wage won’t solve the underlining problems with lower standards of living.
Despite the rhetoric from the Democrats and specifically with Bernie Sanders, Sanders has never come near to diagnosing the core of our economic issues. Instead, Bernie Sanders interpretation of current economic issues and past financial crises is deeply and dangerously flawed. For example, the 08 crash…
Sanders and Leftist alike, ignore the corruption and moral hazard of government housing giants Fannie Mae and Freddie Mac. He overlooks the consequences of the Community Reinvestment Act. He has no interest in acknowledging that it was government regulators and their chosen rating agencies that downplayed the risk of bad mortgages. And very importantly, he fails to acknowledge that it was the actions of the Greenspan Fed that directly inflated the devastating housing bubble.
– Michael Vincent –
Ron Paul On Free-Market Economy…