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Tuesday, September 14, 2010

More Economic Understanding

If I ever need any historical justification for my economic beliefs here it is. In this Wall Street Journal article it shows the history of my common sense economics as it applied to Germany after WWII.

The article shows how that after WWII Germany became prosperous and the economy grew by removing regulations, lowering taxes and using other free market principles. Current day, when push came to shove they realized they needed to cut spending, cut taxes and start the economy growing again. Today their economy is growing at a rate of 9%. The American economy is growing at a rate of 1.6%. They are doing things the right way and we are doing the opposite and it should not be that way.

With ever increasing debt we need to be doing the same as Germany. I've shown in the past that for every dollar put into a productive persons hands and he spent that the dollar it multiplies (3.4 time's). If America will cut spending, eliminate Orwellian regulations and decrease taxes then our economy can also grow. With over 13 trillion dollars in national debt the only way to eliminate it is for the economy to grow and grow strong. A strong expanding economy will increase tax revenues to offset any cuts in taxes. More people will be working and therefore more incomes will be subject to paying taxes and more people will receive pay increases which will increase tax revenues. Fewer people will be in need because every capable working person will be needed. The economic buzzword for today should be grow, grow, grow.

The current failed philosophy being used in the administration is doing the opposite, spending and spending while increasing taxes and regulations (which cost us all money). This makes matters worst for all of us. For them what they do is shrink, shrink, shrink. The poor man does not benefit when the wealthy man has no more money.

A well know liberal said on the radio yesterday that the wealthy man can afford it. He (the liberal and a politician) said he didn't mind paying a little extra tax so no one else should either. But he is not a businessman. He doesn't had a staff. He doesn't have to meet a payroll every week. He doesn't stay up at night trying to figure out how to pay benefits in a shrinking economy. The liberals want to increase taxes on everyone who makes more than $250,000. But what if that was the money a small businessman needs to expand his business. What if he owes money because he was required to increase his inventory. What if that was the money he needs to buy a piece of equipment that is necessary just to stay in business. The government wants to take his money and then wonders why unemployment is so high.

All of this really comes back to who we were when this nation was founded, a Christian nation where individual people were aware of their responsibility to God, their nation and their fellowman. We are all responsible for ourselves, to provide for and take care of our families. A responsible people willing to share what we had with others and when we are down we we are responsible enough to get up again and do what was right. We worked because it was right. We share because it is right. We recognized our God because it is right. We wanted a small government because we wanted the freedom to do the right thing because we chose to.

We as an American people need to do the right things and do them right now. DO the responsible thing and recognize that we answer to God for all we have in this great nation and we are to be responsible to make good and right decisions to keep our nation strong, morally, economically, militarily, in every area of our lives. A commitment (especially by politicians) to do so will go a long way to restoring America to being great again but it is the individuals that hold the politicians accountable. If we don't we will have rulers instead of representatives for a government.

We will soon have to make a choice on who will represent us in government. It will do good to make the right choice. More importantly is the choice of what kind of country you want. If you want a free nation then you need to recognize God first in your personal life, then publicly in the way you live. God will restore a nation who puts Him first.


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