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Friday, January 28, 2011

The State of the Union

The president spoke at an annual event called the State of the Union Address. He spoke partially on the economy and jobs. To stimulate the economy and create jobs he wants to spend more. Essentially he wants to spend more money than he has already wasted in the so called stimulus package. Of course this "more money" he wants to spent will have to be borrowed which in turn will take money away from private enterprise to pay on the debt's principle and interest. Therefore the only benefit that will come to anyone will have to come through Washington and the most benefit will be to those who work in Washington. We, the taxpayer, will have less to spend and thus less will be circulated among the everyday folks who actually need it most.

When the government takes our money and spends it that is only moving money from one side of the U.S. economy bucket to the other side. It does nothing to stimulate the economy. It adds nothing to create or increase productivity. Rather than me spending my money on what I want or need the government takes it and spends it what they want. I get nothing out of it.

I have heard numerous time that there is approximately two trillion dollars sitting in banks and other accounts not doing anything because the cost and uncertainties of doing business in the United States is too great. That is two trillion dollars that if invested in the United States would triple to six trillion dollars over a few years. That is the kind of stimulus we need that
would not only pay off the debt but would give us the flexibility to fix medicare, social security

I have an idea. Rather than taking away our money and funneling it through the government cash register, lets find ways to stimulate the economy in the private sector. If we lowered the corporate income tax to eighteen percent or less (down from 35%) that would be a great incentive to invest all those dollars in the united states.

If we removed all the taxes on money that US companies make overseas then that money will return to create more jobs here in the US.

If we removed all the unnecessary regulations, excluding safety and health, that would free business to do more creative development and expand the system through innovation.

Finally we can set minimum guidelines (not laws) for wages, retirement and benefits so there would be no need for unions to promote and get above average agreements on contracts and everyone else have to pay for them when they are earning less. The public sector and union employees can get wages and benefits at the same level the rest of us do.


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