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.