Would Spending Cuts Work In Todays Economy?

                The issue in Americas economy today is cut spending. The problem is what spending is to be cut to have an effect on the deficit. I have really been trying hard to come up with a way to explain this issue and make it understandable. I think the best way to explain it is to relate it to ones own domestic situation. Lets say you are an average American and just trying to make ends meet. You have been going through some hard times economically and you need to make some spending cuts in your household’s budget. Your biggest item is your mortgage or your rent. You can’t cut that, it’s a fixed expense. Your next big item is your automobile, same thing , it’s a fixed expense, can’t cut that. You can’t cut your utility cost’s unless you use less of them. Anything else left to cut is very little and will not even make a dent in your budget. So, where are we? the only thing left to do is increase your earnings. The problem with that is your hours have been cut, and there is no way you can make it, unless you start working two jobs. So, again, you have to rely on the job creators.
              
Lets now move this same equation to the Federal Government; 60% of the governments budget goes to entitlements, Social Security, Medicare, Medicaid, Disability, Food stamps,etc.. This is what the liberals, progressives, socialists, (these labels are all so kind by the way),the term is Marxists, have commenced in our economy to take control. Like I mentioned in one of my other blog’s, President Franklin Roosevelt who I have called the father of socialism in America started the entitlements going with Social Security. Those were different days. Americans always helped each other, especially the family. Neighbors helped neighbors, and also the churches in the community helped. Americans did not know of any other way. Then came Social Security, and then Medicare and Medicaid our three biggest entitlements. The government had started its control on the American people whereas the American people now have a reliance on government. First of all Americans have paid into the system of Social Security, and the employers(which is unconstitional) have been forced to match the employees share of input. It is these entitlements that would have to be cut if there would be any dent made to the deficit, and that is not going to happen. What party or politician would want to take credit for taking away funds from his or hers parents, or his or hers parents cannot be treated effectively from an ailment because there was a cut in Medicare. ObamaCare will do a good job by itself from taking away funds from Medicare. So again, you have to rely on the job creators.
 
It is the small business person who provides most of the jobs, almost 70%. Lets leave this aside for the moment. Lets talk about three presidents who cut taxes and stimulated the economy by those tax cuts. President John Kennedy. Educated at Harvard,  Democrat, cut taxes to stimulate the economic, and it worked.
 
President Ronald Reagan, Republican, educated at Eureka College, and majored in economics, cut taxes and gave America one of its biggest prosperity, all within his first term as President, so much for President Obama and President Bill Clinton stressing during the 2012 Presidential campaign that a country can not be turned around economically during the first term of a President in office.
 
President George W. Bush, Republican, educated at Yale and Harvard, cut taxes and stimulated the economy and because of that America had fifty-four straight months of growth; interrupted only when America had its housing bubble burst because Rep. Barney Frank did not take President Bush’s warning that Fanny Mae, and Freddie Mac needed investigation, as a matter of fact President Bush warned seventeen different times of that possibility happening. 
 
I have mentioned the former Presidents philosophy of how to stimulate an economy, and their results were the same, and that result was that it added badly needed money into the treasury. America’s business community is needed more then any time in its young history. Instead of helping the business person with tax cuts to stimulate the economy so that business can expand and provide more jobs, President Obama wants to tax them, whereas the tax the government will collect from that business will have very little effect of helping the national deficit, maybe about six days worth. President Obama went to the same type of university’s as the other President’s I have mentioned, and the biggest difference between President Obama and the other three I have mentioned, is that the other three are capitalists, whereas President Obama is a Marxist, and he is out to take America down.
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7 comments on “Would Spending Cuts Work In Todays Economy?

  1. debbie says:

    I feel it’s only fair for everyone to pay the same rate of tax…..

    • johnapappas says:

      That’s a good statement. As far as everybody paying the same rate, keep in mind that half of the people in our country do not pay any tax now. Than you also have a C.O. of a big corporation, General Electric Company, who was appointed by President Obama, his name is Immelt Jeffrey, to head a new panel on job creation. The only problem with General Electric is that they have not paid any taxes.
      So, you have half the population that don’t pay taxes, you have some large corporations that don’t pay taxes, now whom do you have left? the small business person, and the word small means just what it says, small. This will be the subject of a future blog. Over 70% of businesses are small businesses, you choke them, and you destroy the economy of the United States.

      • debbie says:

        It’s not only GE ,how about people like Mitt Romney. He and all his different types of companies that hide their money overseas and know how too use all the loopholes to avoid paying taxes. I understand what you are saying about small businesses. These large corporations need to be looked into and things have too change. Everyone must pay. I don’t mind paying a little more tax if I get something out of it.

        • johnapappas says:

          If you remember in my reply I mentioned the fact that there are some corporations that do not pay any taxes; I totally agree with you that is definitely not right. As far as some companies going overseas you have GE whom Obama has appointed its CO with a position in his administration and yet GE is going to branch out to China if they have not done so already. Obama is talking out of both sides of his mouth on this one. Preaching cutting the wings of big corporations yet appointing a CO from a company that doesn’t pay any taxes and is about to branch out into China.

          • debbie says:

            Don’t forget GE sells wind turbines,which is green energy. So you have green energy tax credits.

            • johnapappas says:

              Lets talk green. We have oil reserves in our country that can rid ourselves of Arab dependency forever. Obama will not pursue that avenue. He is dreaming if he thinks that Green energy will take over oil. I say this: use oil to its fullest capacity and then you can piece all the green energy outlets together, such as solar, wind, and what have you.
              What good is GE receiving tax credits to America as a whole, which is only on an individual usage only, if they are going to outsource to China. China is going to use their oil capacity to its fullest. They are not going to worry about green energy; there attitude is that it is oil that is going to serve their new found industrial might, which they have plenty of, so they are not going to worry about windmills, or solar. Sure they might do it just enough to be able to say they are doing it. America better be careful not to become second fiddle to China and let up on our oil exploration. China will make our wind turbines while they continue to use their oil.

            • Frank Boone says:

              Debbie with little due respect, you named specifically Romney and “his companies” as the ones that hide money away on foreign soil while you ignore all the democrats, namely one Obama, that does that very same thing.

              You understandably try to make am moral equivalence argument when you have little if any knowledge on the subject on which you can derive enough facts from to refute John’s assertions.

              First let’s shoot down your assertion that somehow “green energy” should be sacrosanct. Not only do “wind turbines” do immeasurable damage to the environment by way of killing millions of birds, but they also operate on subsides and not allowed to compete in a free market. If the energy from them were indeed cheaper we’d be seeing more of them. That’s the prob, they are not cheaper.

              GE’s “green energy” happens to come from China where coincidentally Immelt Jeffrey sent over 20,000 jobs there so his company could rake in a record $1 Billion in profits and not pay one cent in taxes on. And how does Obama repay such loyalty to America and American jobs?? why of course Obama makes him his “jobs czar” which is quite fitting since anyone that has looked into Obama’s jobs creation record understands that is a fitting place for him.

              I’m not certain of the exact amount now but a year ago for every job created by Obama cost the American tax payer on average of just over $34.1 million each. That’ Debbie is not job creation but redistribution of wealth.

              Obama seems to be following Cloward Piven political strategy in order to overwhelm our system,

              When it finally collapses the masses,(people like you and me) will clamor for something to fix it land in will step the very ones that created the mess with their version of what it will take to fix it which will likely be as close to a Marxist state as we can get here.

              It’s the same thing they did with the housing crisis, they created the means that made it happen then as la way to allegedly “fix it” they stepped in with their redistribution of over $1 Trillion of the US economy..

              So Debbie you keep finding a way to justify your distrust of republicans, not to say they are without sin, while ignoring the reasons we have to totally distrust then party of slavery the democrats, and with uneducated and ill-informed voters like yourself and we will forever be in this mess or worse.

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