What can we do as individuals to help the economy?
How to fix the economy.
To understand what we must do, we must first understand what is happening!
This country was built on free enterprise and we are currently facing an administration that is trying to take that away. They think the answer to the economy is for the government to run everything. It has not work in any nation in the world. Why do they think it will be different here?
In 2000, the congress passed a bill to force businesses to pay a larger percentage of health care. The idea was to stick it to businesses (sound familiar) and help the people. What happened was that we had a major move to out-sourcing and thousands of thousands of people lost their jobs.
Here is what you need to know. Businesses MUST maintain a 23-28% profit margin to stay in business over a 3-5 year cycle. Anything thats interferes with that margin causes loss of jobs and/or increased cost of goods. The business has to make compensations or the business goes under.
That is why every time the government makes a move to "make businesses pay" for trying to make a profit, they end up hurting us. Right now the government is planning to increase taxes on businesses. Most businesses can't absorb the loss of money and stay in business, so they pass the tax on to us by raising the cost of their goods or laying off employees. Those that don't or can't are doomed.
WE PAY THE TAXES! When our politicians say they are not going to raise taxes on us, they know full well that when they increase the burden on businesses that the money is coming from us on the back end.
The best thing the government could do would be to lower the corporate tax rates. We have the highest tax rates in the world right now at 38%. Our companies are moving off-shore in droves and no business from other countries want to bring their business here. But this administration does not want businesses to prosper and they sure do not want new businesses that they can't control to move here.. Every time businesses fail or move out of the country, the government has the opportunity to step in and take more control.
With our current administration striving to take over all businesses (automotive, banking, real estate, and soon medical if they get their way), raising taxes is the right move for them). Many companies will not be able to pass on the expenses and will go under or move out of the country. The companies that do pass on the costs will look like the bad guys by raising their prices in a time of financial hardship. Either way the administration wins.
The financial strategies being implemented now did not work under Roosevelt, they did not work under Carter, they did not work under Clinton and they cannot work now. What is the term for doing the same thing over and over and over and expecting to get different results? DUH!!!
What WE can do!
First is get on top of our politicians and stop the INSANITY. The recession at the end of Carter's administration had over 18% inflation, 15% unemployment, 23% interest rates, etc. Our current situation is nowhere near as bad as it was then. (Don't listen to the media - look it up for yourself.) The recession caused by the implementation of the same strategies being used now was much, much worse.
All we have to do to fix this economy is repeat what was done to get us out of the Carter recession. Do the research, see for yourself how we got out of the worst recession of our lifetime. Reagan lowered capital gains tax, lowered corporate taxes, gave businesses tax write-offs for money they spent for people-oriented expansion, etc. He made it where businesses could thrive and they in turn put people to work. More people working meant more people paying taxes and more people having money to spend. The economy turned around from the worst in our lifetime to normalcy in less than a year.
The current "recovery" plan that destroys and shuts down business is doomed to failure. Businesses are continuing to fail and it is increasing the unemployment. Obama said that passing his stimulous plan would stop unemployment at 8.7%. We are now approaching 10%. This administration has created several hundred government jobs, but over 75% of those are in work projects. Those people will be back on the unemployed lines as soon as the projects are finished.
Add to that that this administration is paying the salaries with moneys borrowed from our future, and we have added insult to injury. That is what Roosevelt did and it has been proven that the Great Depression was extended about 10 years because of it. That is what Carter did and it created the worst economy since the Depression. Doing more of the same now is driving us down to the same points, we are not there yet, but it is inevitable if we keep doing what we are doing.
To fix the economy, we must do what Reagan did. What Roosevelt did, what Carter did and what this administration is doing, has not worked and cannot work.
We must get after our congressmen to do the things that will help, not continue this spiral of deterioration they have us in.