Senator Obama is full of good intentions. By raising taxes on those who make more than a certain amount of money--and that amount has yet to be determined, according to Joe Biden and Bill Richardson, he hopes to "spread the wealth" to encourage more consumer spending and create more jobs. He also hopes to use that tax increase to fund the many social and work programs.
There is nothing in his stated plans to balance the budget. The real lie of his plan is that it is much closer to the present administration's than the "cut spending" plan of the McCain campaign, regardless of the Democratic candidate's claim that McCain's economic plan means "four more years of the Bush policies."
Barney Frank, the Democratic senator from Delaware, and Chairman of the Senate Finance Comittee, has assured us that, with Barack Obama as President, "we (Congress) will spend as much as we need to and not worry about the deficit."
That seems very close to the Busch economic program.
It is questionable as to how Obama's tax plan would help create jobs. Income tax is assessed on gross income, so a business with an annual gross income of $250,000 paying a 39% tax rate would have its available funds reduced to $152,000. That amount would be reduced by another $30000 in FICA and Medicare taxes, Having only $132,000 for payroll, payroll taxes, business expenses, and inventory, how would that allow for job growth? Obama's plan would prevent jobs from being created.
Theoretically, the extra spending power provided by tax cuts to 55% of the working population, and the tax credits to 40% of the working population would help increase the amount of capital to small businesses. But when the government takes money, that money rarely gets back into the economy. The cost of bureaucracy alone takes the majority of the funds, and the rest is spent as subsidies to pharmaceutical, insurance, oil companies, and union contracts. That money rarely translates to more consumerism.
Whether Obama or McCain is our next president, we won't see much change in politics as usual. Government can not fix the economy, it can only make matters worse. It isn't that politicians are trying to bring down the economy--their intentions are well meant. People have come to expect the government to do something, whether it turns out for better or worse. More taxes and more money in the government take away from money that could be given to charities and community programs that can better serve those who need help. We would do better to remember "The road to Hell is paved with good intentions."
Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Sunday, November 02, 2008
Thursday, September 04, 2008
Real Change
It is not surprising, but it is appalling that it seems that many Americans want the government to make them change their behavior. They complain about the high price of gasoline, and its effect on the economy, but they will cruise around on Friday night until the government tells them they can't.
They don't seem to understand that the reason gas prices are high is because, in spite of the prices, they keep buying gasoline. The best way to lower the price of gasoline, and the cost of living, would be to stop buying it. To complain about the chokehold Big Oil has on the economy, and to continue to buy excessively from Big Oil seems hypocritical.
It is understandable if a vehicle is necessary in one's work, or is necessary transportation to get to work, the grocery store, or even a bit of entertainment, that one would need to buy gasoline. But beyond that, it doesn't seem necessary to wait in line at Starbuck's or McDonalds with the engine running for twenty minutes when it would be cheaper to park the car, turn off the engine, and go inside. It doesn't seem necessary to drive up and down the main drag for half an hour while deciding where to eat or what show to watch, when plans could be made ahead of time.
As a frequent pedestrian, we see this kind of behavior constantly. The kind of behavior that tells us the economy must not be so bad after all, because people seem willing to pay the price no matter how high it gets.
The government can't change at this point. The folks on Capitol Hill know that if they give with one hand they have to take with the other. For instance, they can't outlaw buy only investments in oil futures, because that would upset the union pension plans, and most of our congresspersons depend on union support to stay in office. They know they can't suddenly press ethynol on the economy, because corn is used for many more things than fuel, and if corn were to reach $100 a bushel it would have a much more devestating effect on the economy than $100 a barrel oil.
Change needs to come from the individual. It needs to come from taking responsibility for one's actions, rather than expecting the government to fix things. The best we can expect from Washington DC, no matter who the next president is, is the same dance, different song.
They don't seem to understand that the reason gas prices are high is because, in spite of the prices, they keep buying gasoline. The best way to lower the price of gasoline, and the cost of living, would be to stop buying it. To complain about the chokehold Big Oil has on the economy, and to continue to buy excessively from Big Oil seems hypocritical.
It is understandable if a vehicle is necessary in one's work, or is necessary transportation to get to work, the grocery store, or even a bit of entertainment, that one would need to buy gasoline. But beyond that, it doesn't seem necessary to wait in line at Starbuck's or McDonalds with the engine running for twenty minutes when it would be cheaper to park the car, turn off the engine, and go inside. It doesn't seem necessary to drive up and down the main drag for half an hour while deciding where to eat or what show to watch, when plans could be made ahead of time.
As a frequent pedestrian, we see this kind of behavior constantly. The kind of behavior that tells us the economy must not be so bad after all, because people seem willing to pay the price no matter how high it gets.
The government can't change at this point. The folks on Capitol Hill know that if they give with one hand they have to take with the other. For instance, they can't outlaw buy only investments in oil futures, because that would upset the union pension plans, and most of our congresspersons depend on union support to stay in office. They know they can't suddenly press ethynol on the economy, because corn is used for many more things than fuel, and if corn were to reach $100 a bushel it would have a much more devestating effect on the economy than $100 a barrel oil.
Change needs to come from the individual. It needs to come from taking responsibility for one's actions, rather than expecting the government to fix things. The best we can expect from Washington DC, no matter who the next president is, is the same dance, different song.
Monday, January 22, 2007
The Job Nazis Strike Again
The people who are against Wal-Mart are not for the working class. They are elitists who don't care if you have or need a job. All you have to do is ask any organizer of an anti-Wal-Mart movement in any municipality, and he or she would tell you that "it is better not to have a job at all than to work at Wal-Mart." Part of what they are saying is on behalf of the labor unions, but much of what they are saying is that if you don't have a six-figure income, you're not welcome in, for example, Chalene, Washington.
"Chalene is a beautiful city...you don't want to mess it up by putting a Wal-Mart there," a spokesman for stopwalmart.org recently said on Fox News' Your World With Neil Cavuto.
Note that this spokesperson isn't from Chalene--the people of Chalene want the Wal-Mart. The building has been built, the shelves have been stocked, and the employees, two-hundred of them, have been hired. The argument that Wal-Mart takes away other jobs is moot in Chalene, because the apple industry there is failing, and not as many people are being hired to work for the apple growers. The people who were hired by Wal-Mart needed those jobs.
But the Stop Wal-Mart people, whether they represent the unions, the International Communist Party, Target, Kreske, or their own agenda, succeeded in halting the opening of the store through a court order, claiming that the building permit was never legally issued. They don't want those people to have jobs. They use catch phrases such as "globalization," "worker abuse," and "unfair wages," in their argument against Wal-Mart.
But the people who work for Wal-Mart don't feel abused, or poorly paid. They want the job, and they work at the job. In order to be oppressed, you have to feel oppressed. The average wage for the Wal-Mart employee is eleven dollars an hour, about the same as the starting wage for a union retailer such as Safeway or City Market, which, after union dues comes out to about nine dollars an hour--the same as the starting wage for the Wal-Mart employee. Union workers somehow don't feel oppressed either.
Wal-Mart doesn't sell automobiles, which come from the type of manufacturing jobs the anti-Wal-Mart people claim Wal-Mart is putting out of business, or sending oversees. Workers in the United States do not get the twenty five dollars an hour making toys, clothing, or electronic equipment. However, the workers who are "victims of globalization" in other countries find themselves making far above the average wages in their respective countries in jobs which manufacture merchandise for Wal-Mart. Even without Wal-Mart, manufacturing plant employees in the United States would still average about ten dollars an hour. Nobody is taking away their jobs.
If it wasn't Wal-Mart, it would be Target, Circuit City, or Best Buy. The anti-Wal-Mart folks don't care who they attack, as long as it is Capitalist. They are largely people who don't really care about the worker, rather they are people seeking power, who feel as though they are doing something important for themselves, to get their name in the news, and to receive large sums of money from competitors, unions, and politicians.
These people could be compared to the dictators of the world--Qadafi, Saddam, Mubarak, Chavez, Jong Il,and the like. If you don't do things their way you don't get to do it at all. The dictator wants the people to meet the approval of the dictator, as opposed to a free society in which the government has to meet the approval of the people. Likewise, according to the unions, if you don't contribute part of your pay to the six and seven figure incomes of the national level union leaders and representatives, you don't deserve to work.
"Chalene is a beautiful city...you don't want to mess it up by putting a Wal-Mart there," a spokesman for stopwalmart.org recently said on Fox News' Your World With Neil Cavuto.
Note that this spokesperson isn't from Chalene--the people of Chalene want the Wal-Mart. The building has been built, the shelves have been stocked, and the employees, two-hundred of them, have been hired. The argument that Wal-Mart takes away other jobs is moot in Chalene, because the apple industry there is failing, and not as many people are being hired to work for the apple growers. The people who were hired by Wal-Mart needed those jobs.
But the Stop Wal-Mart people, whether they represent the unions, the International Communist Party, Target, Kreske, or their own agenda, succeeded in halting the opening of the store through a court order, claiming that the building permit was never legally issued. They don't want those people to have jobs. They use catch phrases such as "globalization," "worker abuse," and "unfair wages," in their argument against Wal-Mart.
But the people who work for Wal-Mart don't feel abused, or poorly paid. They want the job, and they work at the job. In order to be oppressed, you have to feel oppressed. The average wage for the Wal-Mart employee is eleven dollars an hour, about the same as the starting wage for a union retailer such as Safeway or City Market, which, after union dues comes out to about nine dollars an hour--the same as the starting wage for the Wal-Mart employee. Union workers somehow don't feel oppressed either.
Wal-Mart doesn't sell automobiles, which come from the type of manufacturing jobs the anti-Wal-Mart people claim Wal-Mart is putting out of business, or sending oversees. Workers in the United States do not get the twenty five dollars an hour making toys, clothing, or electronic equipment. However, the workers who are "victims of globalization" in other countries find themselves making far above the average wages in their respective countries in jobs which manufacture merchandise for Wal-Mart. Even without Wal-Mart, manufacturing plant employees in the United States would still average about ten dollars an hour. Nobody is taking away their jobs.
If it wasn't Wal-Mart, it would be Target, Circuit City, or Best Buy. The anti-Wal-Mart folks don't care who they attack, as long as it is Capitalist. They are largely people who don't really care about the worker, rather they are people seeking power, who feel as though they are doing something important for themselves, to get their name in the news, and to receive large sums of money from competitors, unions, and politicians.
These people could be compared to the dictators of the world--Qadafi, Saddam, Mubarak, Chavez, Jong Il,and the like. If you don't do things their way you don't get to do it at all. The dictator wants the people to meet the approval of the dictator, as opposed to a free society in which the government has to meet the approval of the people. Likewise, according to the unions, if you don't contribute part of your pay to the six and seven figure incomes of the national level union leaders and representatives, you don't deserve to work.
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