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RSS FeedOur economic prosperity is directly related to the recent decreases in taxes enacted by Congress
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| Agree | 52% | 46 votes | Total: 89 votes | |
| Disagree | 48% | 43 votes |
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Add to FavoritesSimple and mid-level economics show that when people earn money, and get to keep more of it rather than having to part with one-quarter of their paycheck, they will spend the extra money on more items, which "trickles down" to the employees of the store where the items were purchased, which adds more to the ability of the people in the economic situation within the United States to purchase more goods, leading to economic prosperity.
Nothing stunts the growth of the economy worse than government selection of your money as a citizen. True, the government first establishes value based on the amount of the money it mints for distribution among the citizens. But there's a sentence on our currency which defines the use of the money as such, "This note is legal tender for all debts, public and private."
There was an economist, Arthur Laffer, who designed a curve by which tax percentage would influence government revenue. If the percentage were too high, then revenue would begin to plummet, conversely, if the percentage were too low, then revenue would be at a shortage. What was not determined, however, was the exact percentage which encouraged maximum revenue.
From this yielded two political schools of thought, those who knew that money was the key to political power, and that it should be usurped to control the citizen's behavior, and the other those who knew that man should profit and prosper from his labors, that government interference in his affairs hinders his rights to the pursuit of happiness. They are Democrats and Republicans, respectively.
When Congress enacts legislation that reduces the tax rate at which we are taxed, we give less to government, and feel more prosperous by having more money in our pockets. This cause-and-effect is something however, that Democrats hate to wait for, because as we spend more, more tax revenue is generated. This is the lesson from the Laffer Curve that people need to know.
When taxes go down, personal money goes up. A pretty easy principle, and one that some in Congress are finally beginning to understand.
Learn more about this author, Kenneth Boser Ii.
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Disagree
In order for our 'prosperity' to be directly related to anything, we must first have prosperity. Despite what you might hear on talk radio, there is a noticeable lack of it in America today. Thus, the premise of prosperity is unsound.
'Official' unemployment figures may be low, but, remember, those numbers only count people who are presently receiving benefits - people who have 'fallen off' the list, or are too discouraged with the system to apply, are not counted. Realistic estimates (as opposed to the crap we are given by the government) put actual unemployment at nearly 35% - the highest in our nation's history.
Further, our economy is in a state of ultra-rapid inflation. There is only one case, in all of history, where an economy sank like a rock as quickly: Germany between WWI and WWII.
Jobs are disappearing at an alarming rate. What jobs still exist are being filled by illegals, not Americans. Taxes are out of control (except for the ultra-rich). Best of all, our Government is more corrupt than it has ever been, so takes no action to aid the people in their time of need.
Instead, we get a bunch of talking heads who, with calm reassurance, confidence drawn from faith instead of fact, and no evidence to support them, tell us that everything is just fine. They tell us over and over that the economy is as strong as ever - just look at the unemployment numbers!
I say, let's have a look at the foreclosure numbers. According to ABC News, US News & World Report, and a host of other sources, one in thirty families in the US are currently in foreclosure. Consider that for a minute: think of thirty people you know - at least one of them is CURRENTLY in a foreclosure!
Let's look at the Repossession industry. According to Autotech Repossessions, one of the largest repo firms in the country, automobile repossession is at an all-time high.
We all know gas prices are still artificially high, which, of course, raises the price of everything. There are a host of other fields we could examine as well, all with similar results. But the talking heads don't want to discuss those numbers, do they?
We are told that America is in a time of prosperity. We are asked to consider if the great tax cuts are a primary factor in that prosperity.
I say: What prosperity? Oh, that's right - the ranking officials who make statements like that ARE wealthy. I guess they forgot that they are the only ones prospering today. And, they intend to keep it that way.
Before we can wonder what is responsible for our turn of 'good luck', we must first HAVE a prosperity on which to base it, and there is none. If we're going to play in imagination land, however, why not go all the way: the War is responsible, because it feeds so much money into our corporations. And corporations having huge bottom lines = prosperity, right?
Learn more about this author, Bryan Belrad.
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