Liberally Conservative

"Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children's children what it was once like in the United States where men were free....... ~Ronald Reagan~

Thursday, September 22, 2005

When Politicians Don't Understand Economics

We already know liberals never met a tax increase they didn't like, unless of course if it wasn't large enough. Now Republicans, not necessarily fiscally responsible conservatives, are in panic mode over the hurricane disasters. Unfortunately, politicians never think about financial planning for the country because they believe tax income is they political right and "fiscal planning" is a foreign term. xxx These people are not deep thinkers, and you would think they would have sound advice available about the merits of capitalism, free markets and how free economies work. Economic history is available and it's not that old. The Carter philosophy created gas lines and closed gas stations. Interest rates were competing with credit card rates and the Carter economy was a larger disaster than New Orleans. The effect was not only regional but also worldwide. Of course politicians don't think in terms of national implications let alone worldwide markets and the correlation of the two. xxx Currently some GOP Senators are suggesting a tax hike to pay for Katrina. Their targets are capital gains and dividends. Ohio's George Voinovich, New Hampshire's Judd Gregg and Maine's Olympia Snowe are three suspects and Bill Frist's chief budget aide, Bill Hoagland, is on record for suggesting this "option." xxx Something one cannot find in the main stream media or cable news is the fact that the budget deficit, with tax cuts, is actually being reduced at a much faster pace than expected because of the largest annual increase in federal revenues, even after inflation, in American history. Deficit spending under Ronald Reagan actually pulled the U.S. economy out of the Carter doldrums and over time created the marketplace the Clinton administration took credit for. In addition, the entrepreneurial spirit of the 1980's created businesses that flourished by the time Clinton took office. The economic seed was already planted and nourished. xxx Once again tax cuts have provided the U.S. economy with the stimulus to recover from the Clinton recession inherited in 2001. Free markets drive the economic engine via business investment and consumer spending. Jobs are created, and unemployment is reduced. Eager politicians, clueless about macro and microeconomics, feel the only way to increase revenues is through collecting taxpayers hard earned income. These intellectual midgets, elected on the false premise they are conservative, are more concerned with their political futures, not the U.S. economy. xxx Republicans have already proved they love pork as much as the liberals and don't have the political will to effectively stay the course of free market economics. We can only hope the President has the determination to stop these weasels in their tracks.

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