The President released the long form of his birth certificate, proving once and for all that he is a natural born citizen. This puts to rest all of the speculation and concern of the paranoid conservatives who ever questioned our President. To put it better, in the President's words, it put's to rest all of the "silliness"! The President released the long form because the issue had become a distraction. He said it had been a fringe issue and only recently moved into the mainstream.
Really Mr. President? Do you really feel that American's are silly because we want to be certain that our President is a natural born citizen as the Constitution requires? If so, you obviously do not put much credibility in the American people nor are you very loyal to the Constitution, the most sacred of our national documents; which you vowed, with your hand on the Bible; the most sacred of documents, to support and uphold.
Fringe issue? Have they removed news channels from the oval office? Do you not listen to anything except your IPod? I have been hearing about the birth certificate issue since the campaign - in the mainstream media! Yeah, they downplayed the issue, just as they do with all of your issues, but they talked about it none-the-less. However, now after almost three years of running our nation into the gutter and driving us from a level of world leader to a level on par with Great Britain or (gag) France, you are now hearing the calls for accountability regarding your citizenship?
When you ran for the office in 2008, the election was virtually handed to you on a silver platter. Throughout the campaign and during the first two years of your administration, you did as you wished and answered to no one. Your arrogance (or ignorance) was overwhelming and disturbing and threatening to all who love this nation. It is assumed that you felt you were invincible. Why the change now? Are you finally hearing the calls from the people for accountability Mr. President, or can it be that your advisers are reading the polls and finally telling you Mr. Emperor, that you are not wearing any clothes?
Wednesday, April 27, 2011
Wednesday, April 13, 2011
Economics 101
You only need to scroll down to earlier posts to read what I said in February would happen and it is happening right now! The President has essentially shut out the Republicans recommended cuts (which were a joke to begin with) and proposed smaller, less painful cuts. You see, he does not want to hurt the American people. What a great guy.
Instead, he wants to raise taxes on those evil rich people - you know, the people that own businesses and make millions, well hundreds of thousands, well maybe $90,000 or $60,000 per year. We'll let him give us the number later - after the budget is passed and no doubt, before it is seen by anyone. It appears those evil rich people like your neighbor who has been working 90 hour, 7 day weeks and keeping people in his community working; well he has not paid his fare share. Why? Because he still has some left to buy a $35,000 car or invest some of his money in his retirement account or send his kids to college. Bad, bad, rich business person! So now he has to pay more! And pay he will. But so will the rest of us.
What this genius in Washington D.C. fails to understand is that when gasoline is $5/gallon, milk is $3.50/gallon and eggs are $2.00/dozen; the economy will suffer because people will have less to spend on other things - cars, homes, luxuries, restaurants and so forth. When people spend less money on those items, the owners of those businesses have to reduce their costs. The first place they start is? Right, labor. They cannot cut rent or electricity and the cost of goods runs is relative to sales so those items are only cut to the extent that sales have fallen, but you cannot purchase 500 hamburgers and sell 600. You can however, have 3 people making those 500 hamburgers instead of the 6 you had making 600. They will work hard, but because they need to pay their IPhone bill, they will be happy to do it.
Now, take the formula to the next level, food is up, gas is up and unemployment increases. Now, let's throw in a stiff tax on the business person, heck he can afford it because our President said so. Remember, the business person already cut labor because of the earlier problems, but he still must pay rent, utilities and other "fixed" costs, many of which are provided courtesy of our local, state and federal governments. So his only option is to cut labor more. Now 2 people are making those 500 hamburgers and one more person is out of work. Of course, it would not work this way. What would actually happen at this point, I know because I've been here, is that the business person will realized that even without any labor, he still will not be able to pay for those 500 hamburgers and he will close his doors.
With this business closed, everyone is out of work. The suppliers lose all of the business and the uncollected money from the closed business. The rental agency loses any overdue and future rent and each of these businesses lose revenue and have to make adjustments accordingly. Keep in mind, they are also hit with the tax increase. I might mention, while the rental agency and the suppliers will lose their money, the government will stop at nothing to collect what they are owed from the business person that they helped to put out of business using their own internal mob. They're called the IRS and they will take the last crumb out of the business owner's babies mouth to collect what they feel is theirs - with penalties and interest.
It does not take a genius to figure this out. It is simple economics with a little common sense mixed in. People cannot spend what they do not have and when people stop supporting the economy, the economy collapses. Mix high prices on basic items - fuel and food, add taxes on people that contribute most to economic growth - businesses and wealthy (people that have money to spend) and it equals less money to fuel the economy. Now, if you were able to reach this site, you probably can understand this equation. If you know anyone that cannot reach this site or does not understand the equation, please educate them. There will be a test on this subject and it will be taken at the next election. Start studying now about the Modern Whig Party and what they will do to save America.
Instead, he wants to raise taxes on those evil rich people - you know, the people that own businesses and make millions, well hundreds of thousands, well maybe $90,000 or $60,000 per year. We'll let him give us the number later - after the budget is passed and no doubt, before it is seen by anyone. It appears those evil rich people like your neighbor who has been working 90 hour, 7 day weeks and keeping people in his community working; well he has not paid his fare share. Why? Because he still has some left to buy a $35,000 car or invest some of his money in his retirement account or send his kids to college. Bad, bad, rich business person! So now he has to pay more! And pay he will. But so will the rest of us.
What this genius in Washington D.C. fails to understand is that when gasoline is $5/gallon, milk is $3.50/gallon and eggs are $2.00/dozen; the economy will suffer because people will have less to spend on other things - cars, homes, luxuries, restaurants and so forth. When people spend less money on those items, the owners of those businesses have to reduce their costs. The first place they start is? Right, labor. They cannot cut rent or electricity and the cost of goods runs is relative to sales so those items are only cut to the extent that sales have fallen, but you cannot purchase 500 hamburgers and sell 600. You can however, have 3 people making those 500 hamburgers instead of the 6 you had making 600. They will work hard, but because they need to pay their IPhone bill, they will be happy to do it.
Now, take the formula to the next level, food is up, gas is up and unemployment increases. Now, let's throw in a stiff tax on the business person, heck he can afford it because our President said so. Remember, the business person already cut labor because of the earlier problems, but he still must pay rent, utilities and other "fixed" costs, many of which are provided courtesy of our local, state and federal governments. So his only option is to cut labor more. Now 2 people are making those 500 hamburgers and one more person is out of work. Of course, it would not work this way. What would actually happen at this point, I know because I've been here, is that the business person will realized that even without any labor, he still will not be able to pay for those 500 hamburgers and he will close his doors.
With this business closed, everyone is out of work. The suppliers lose all of the business and the uncollected money from the closed business. The rental agency loses any overdue and future rent and each of these businesses lose revenue and have to make adjustments accordingly. Keep in mind, they are also hit with the tax increase. I might mention, while the rental agency and the suppliers will lose their money, the government will stop at nothing to collect what they are owed from the business person that they helped to put out of business using their own internal mob. They're called the IRS and they will take the last crumb out of the business owner's babies mouth to collect what they feel is theirs - with penalties and interest.
It does not take a genius to figure this out. It is simple economics with a little common sense mixed in. People cannot spend what they do not have and when people stop supporting the economy, the economy collapses. Mix high prices on basic items - fuel and food, add taxes on people that contribute most to economic growth - businesses and wealthy (people that have money to spend) and it equals less money to fuel the economy. Now, if you were able to reach this site, you probably can understand this equation. If you know anyone that cannot reach this site or does not understand the equation, please educate them. There will be a test on this subject and it will be taken at the next election. Start studying now about the Modern Whig Party and what they will do to save America.
Tuesday, March 22, 2011
Where Is The Outrage?
Late last week the U.S. began launching missles into Libya from our battleships. This is part of a NATO effort to bring down Ghadaffi and his kin who have been ruling this one-horse country since, well a very long time. Ghadaffi, you will recall, is a crazy man who had attacked innocent Americans and killed some of our service men while they slept in their barracks at night during the 80's. The late and great President Reagan responded with a wake-up call to his home one morning. Unfortunately, he survived while one of his children perished. This move by our nation's greatest President in modern time served to put Ghadaffi in his place. He quickly learned that the American's were not to be messed with; and he left us alone from that point forward.
Lately, as Ghadaffi, and much of the world learns that we are not the strong nation we once were, he has come back out of his cacoon and began to flutter his wings. Yes, he has done some pretty bad things and yes, he has made some inflammatory statements. Yet he has not built up the guts to tempt fate by messing with us again. Not yet anyway. Perhaps this weekends attack will serve as a reminder of the past and he will once again go into his shell. That is, unless this morning's Carter-esqe crash of a military plan starts him thinking that maybe we are not as strong as we once were; and frankly, we are not!
Now about this attack on Libya...I have been looking for the protesters, the rage from the media, the angry opponents shouting, "illegal war" and "no blood for oil", but the voices appear to be silent. I may have been away from the television and radio for a while and may have missed it, but is there justification for this attack that we did not have in Iraq? Let me do some math - We sold Iraq chemical weapons and Saddam threatened to use them against us. Saddam was killing his people; slaughtering them and burying them in mass graves. Saddam was threatening Kuwait and Israel and overall peace in the middle east (if there is such a thing). Saddam violated or ignored 16 (give or take) UN resolutions which offered him more than enough opportunity to come clean and disclose all that he was hiding. So we attacked and liberated the country.
In Libya, another crazy man is essentially fighting a civil war with his own people - and a few outsiders here and there. He is not threatening to take over anyone elses country and he is not launching missles against detractor nations. He is basically fighting for his life, a fight which he will eventually lose on his own. However, we and others felt the need to attack the country in an effort to liberate them from themselves, in the name of NATO. This is akin to NATO launching an attack against a Tea Party Rally in D.C. - people in their own country, protesting against the leadership of their own country. Though we are sending our soldiers to fight and die, nobody appears to be bothered as they were during the Iraq war.
If anyone still does not believe there is a double standard in our country, it is time to pull your head out of the sand. This is one attack that our soldiers should have been watching from their flat screens while enjoying dinner with their families. Where are the protesters? Where are the angry mobs? Where is the outrage?
Lately, as Ghadaffi, and much of the world learns that we are not the strong nation we once were, he has come back out of his cacoon and began to flutter his wings. Yes, he has done some pretty bad things and yes, he has made some inflammatory statements. Yet he has not built up the guts to tempt fate by messing with us again. Not yet anyway. Perhaps this weekends attack will serve as a reminder of the past and he will once again go into his shell. That is, unless this morning's Carter-esqe crash of a military plan starts him thinking that maybe we are not as strong as we once were; and frankly, we are not!
Now about this attack on Libya...I have been looking for the protesters, the rage from the media, the angry opponents shouting, "illegal war" and "no blood for oil", but the voices appear to be silent. I may have been away from the television and radio for a while and may have missed it, but is there justification for this attack that we did not have in Iraq? Let me do some math - We sold Iraq chemical weapons and Saddam threatened to use them against us. Saddam was killing his people; slaughtering them and burying them in mass graves. Saddam was threatening Kuwait and Israel and overall peace in the middle east (if there is such a thing). Saddam violated or ignored 16 (give or take) UN resolutions which offered him more than enough opportunity to come clean and disclose all that he was hiding. So we attacked and liberated the country.
In Libya, another crazy man is essentially fighting a civil war with his own people - and a few outsiders here and there. He is not threatening to take over anyone elses country and he is not launching missles against detractor nations. He is basically fighting for his life, a fight which he will eventually lose on his own. However, we and others felt the need to attack the country in an effort to liberate them from themselves, in the name of NATO. This is akin to NATO launching an attack against a Tea Party Rally in D.C. - people in their own country, protesting against the leadership of their own country. Though we are sending our soldiers to fight and die, nobody appears to be bothered as they were during the Iraq war.
If anyone still does not believe there is a double standard in our country, it is time to pull your head out of the sand. This is one attack that our soldiers should have been watching from their flat screens while enjoying dinner with their families. Where are the protesters? Where are the angry mobs? Where is the outrage?
Monday, February 14, 2011
Between The Lines...
So the Republicans presented their budget to the President over the weekend with all of the pomp and circumstance. They cut a few million from here and a few million from there. On paper, it all looked good. Of course, the cuts were in areas that are sure to raise the ire of the voters - construction projects, food stamps, medical for the elderly - the hot button issues. If you have not figured it out by now, this is a strategy our lawmakers use to present cuts that give the appearance that Congress is serious about reducing waste, but they know will never pass. It is also called window dressing.
To add insult to injury, the President came out and said the cuts are not deep enough and added more cuts - adding his own cuts which he knows will never see the light of day. Then he threw in a some spending - high speed rail, for example. The President used this strategy to show that he is moving toward the center - he is for ALL people.
Now here is what will happen...
The high speed rail will probably pass because, well, it costs money and Congress loves to spend money. This will give all of these lawmakers something to go home with and say, "I brought jobs to the state." But these are government jobs and government jobs do not grow an economy. They simply take money from one taxpayers pocket and "redistribute" it.
The spending cuts? Who is willing to stand up and say they will pass? Who can name one person in Congress that will be willing to go home and say, "I am the reason you do not have food stamps". Good luck with that.
Now, if I am right, that will mean, much more government spending, period! Oh, there may be a token cut here and there, but nothing near the level discussed on the weekend talk circus. The problem is, until we propose and enact serious cuts, the problem will continue to worsen. I admit, a high speed rail would be a great benefit to the country, but we just cannot afford it! I would like to have a landscaping service take care of my lawn, but just because I want it, does not mean I should have it. Like the high speed rail, I know if I have a landscaping company take care of my lawn, it will put people to work, it will benefit the neighborhood and it will make my life more convenient.
It is time for this President, this Congress and frankly, this media to get serious about the budget and stop "working" the American people. When we talk about spending freezes, let's talk about freezing ALL spending! The job of the U.S. government is to keep us safe. Provide for our military, keep them stocked and keep them safe so they can keep us safe. Everyone else should have their budget cut absolute necessities and nothing more - no private jets, no first class tickets, no cell phones, no extravagances at all! Heck, Jarod lost a lot of weight eating at Subway and you can eat there for $10/day. Cut the per deim to $10/day. Nobody in Washington will starve. If they need staples or paperclips, bring some from home. After every penny has been cut, and only after every penny has been cut; then should Washington look at cutting other programs.
The media can help by emphasising the non-emotional cuts a little more and the emotional cuts, such as social programs, a little less. I know they are just reporting the news, but all of us share the responsibility to bring this country out of our financial mess and as long as the media is working against our progress, we will never be able to move forward. It is not about suppressing the media, it is about shared responsibility.
As for the rest of us, listen carefully to what is being reported, but be careful to read between the lines. Rest assured, whether Republican or Democrat, they all have their agenda. Regardless of what is said on talk shows or campaign trails, the proof is in the pudding. These people are in it for themselves.
To add insult to injury, the President came out and said the cuts are not deep enough and added more cuts - adding his own cuts which he knows will never see the light of day. Then he threw in a some spending - high speed rail, for example. The President used this strategy to show that he is moving toward the center - he is for ALL people.
Now here is what will happen...
The high speed rail will probably pass because, well, it costs money and Congress loves to spend money. This will give all of these lawmakers something to go home with and say, "I brought jobs to the state." But these are government jobs and government jobs do not grow an economy. They simply take money from one taxpayers pocket and "redistribute" it.
The spending cuts? Who is willing to stand up and say they will pass? Who can name one person in Congress that will be willing to go home and say, "I am the reason you do not have food stamps". Good luck with that.
Now, if I am right, that will mean, much more government spending, period! Oh, there may be a token cut here and there, but nothing near the level discussed on the weekend talk circus. The problem is, until we propose and enact serious cuts, the problem will continue to worsen. I admit, a high speed rail would be a great benefit to the country, but we just cannot afford it! I would like to have a landscaping service take care of my lawn, but just because I want it, does not mean I should have it. Like the high speed rail, I know if I have a landscaping company take care of my lawn, it will put people to work, it will benefit the neighborhood and it will make my life more convenient.
It is time for this President, this Congress and frankly, this media to get serious about the budget and stop "working" the American people. When we talk about spending freezes, let's talk about freezing ALL spending! The job of the U.S. government is to keep us safe. Provide for our military, keep them stocked and keep them safe so they can keep us safe. Everyone else should have their budget cut absolute necessities and nothing more - no private jets, no first class tickets, no cell phones, no extravagances at all! Heck, Jarod lost a lot of weight eating at Subway and you can eat there for $10/day. Cut the per deim to $10/day. Nobody in Washington will starve. If they need staples or paperclips, bring some from home. After every penny has been cut, and only after every penny has been cut; then should Washington look at cutting other programs.
The media can help by emphasising the non-emotional cuts a little more and the emotional cuts, such as social programs, a little less. I know they are just reporting the news, but all of us share the responsibility to bring this country out of our financial mess and as long as the media is working against our progress, we will never be able to move forward. It is not about suppressing the media, it is about shared responsibility.
As for the rest of us, listen carefully to what is being reported, but be careful to read between the lines. Rest assured, whether Republican or Democrat, they all have their agenda. Regardless of what is said on talk shows or campaign trails, the proof is in the pudding. These people are in it for themselves.
Saturday, February 12, 2011
Deny, Deny, Deny!
As a follow up to my most recent post, the news continues to usher in more of the same uncertainty that leads me to believe we are heading for one of the most eye-opening wake up calls of our time.
It started this week with news out of Egypt that protesters are jubilant about the decision by Hosni Mobarak to vacate his position and turn the country over to a new, yet to be named, leadership. The media is touting this as a victory for democracy and a chance for freedom in Egypt. I am all for the spread of democracy throughout the world, but we are talking about Egypt here, the neighbor of Israel - Islam's greatest enemy! Anyone who believes there is not a group of radicals preparing this very minute to make their move on Egypt is simply dillusional. With Palastine on one side and Egypt on the other, what chance would Israel have?
In this case, who will be the one to come to Israel's defense? Ordinarily, it would be the U.S., but with the standing President, I am not so sure. If we defend Israel if such an offensive should occur, it would cost even more money that we do not have. If we fail to defend Israel, what option would Israel have to push back the enemy? Israel has nuclear capabilities and who would blame them for using them when forced into a corner? The Mobarak government may not have been the ideal form of government, but it worked in that part of the world and say what you will, he continued to honor the Egypt - Israel Peace Treaty, which brought an end to a war between Egypt and Israel.
The news of last week brings an uncomfortable level of uncertainty to this region and may hasten changes in the U.S. as well. This is definitely one to watch.
The other interesting, yet troubling bit of news was from the budget talks in D.C. The Republicans proposed $61B in cuts to the budget. I guess we can call it a start, but hardly enough to pay down a $1.5T deficit. It is like paying $10 toward your credit card debt when the minimum payment due is $75. We continue to pay interest on the interest and the debt.
With the proposed cuts in place, there will be very noticeable changes across many sectors - state and federal - construction projects will stop which means people will be put out of work; government assistance will end or be reduced to some people and programs will shut down. If the proposed cuts are passed, they will be noticed. The problems are: 1. I do not believe Congress will allow them to pass - again, they do not want to upset their constituency. 2. As difficult as they are, they are not deep enough to save the country.
This is exactly what my last post talked about. The changes this nation will require to save us from ourselves are going to be so devastating, so drastic and so earth shaking that they will never happen. At least not until we have no other choice - when we hit rock bottom! What the people do not realize is that we can tighten our collective belts now, help each other through a period of very difficult times - 5, 10 years and come out much better on the other side, but we are all too selfish; all too greedy! Instead, by fighting to keep the luxuries we all feel we deserve, we will all collectively destroy the economy of the nation and bring the country to it's knees. This recovery will take much longer and the nation that rises out of the ashes will be a much different nation than the one we destroyed and that is not necessarily a good thing.
The news is coming at us very quickly today. Events are happening at a pace that is difficult to maintain. You can look at history and justify everything that is happening today with comparisons of similar times in the past, but the variable today is that people are taxed at a level much higher than at any time in the past. Whereas in the past there was always more to take, the same cannot be said for today. The only solution to the problems today is deep, painful cuts in government spending like nothing we have ever seen before; deep cuts in taxes to drive the economy and bring business back to the nation; and a no-nonsense approach to defense - if we are going to fight, do it hard, do it cheap, do it fast and come home, or don't do it at all!
It started this week with news out of Egypt that protesters are jubilant about the decision by Hosni Mobarak to vacate his position and turn the country over to a new, yet to be named, leadership. The media is touting this as a victory for democracy and a chance for freedom in Egypt. I am all for the spread of democracy throughout the world, but we are talking about Egypt here, the neighbor of Israel - Islam's greatest enemy! Anyone who believes there is not a group of radicals preparing this very minute to make their move on Egypt is simply dillusional. With Palastine on one side and Egypt on the other, what chance would Israel have?
In this case, who will be the one to come to Israel's defense? Ordinarily, it would be the U.S., but with the standing President, I am not so sure. If we defend Israel if such an offensive should occur, it would cost even more money that we do not have. If we fail to defend Israel, what option would Israel have to push back the enemy? Israel has nuclear capabilities and who would blame them for using them when forced into a corner? The Mobarak government may not have been the ideal form of government, but it worked in that part of the world and say what you will, he continued to honor the Egypt - Israel Peace Treaty, which brought an end to a war between Egypt and Israel.
The news of last week brings an uncomfortable level of uncertainty to this region and may hasten changes in the U.S. as well. This is definitely one to watch.
The other interesting, yet troubling bit of news was from the budget talks in D.C. The Republicans proposed $61B in cuts to the budget. I guess we can call it a start, but hardly enough to pay down a $1.5T deficit. It is like paying $10 toward your credit card debt when the minimum payment due is $75. We continue to pay interest on the interest and the debt.
With the proposed cuts in place, there will be very noticeable changes across many sectors - state and federal - construction projects will stop which means people will be put out of work; government assistance will end or be reduced to some people and programs will shut down. If the proposed cuts are passed, they will be noticed. The problems are: 1. I do not believe Congress will allow them to pass - again, they do not want to upset their constituency. 2. As difficult as they are, they are not deep enough to save the country.
This is exactly what my last post talked about. The changes this nation will require to save us from ourselves are going to be so devastating, so drastic and so earth shaking that they will never happen. At least not until we have no other choice - when we hit rock bottom! What the people do not realize is that we can tighten our collective belts now, help each other through a period of very difficult times - 5, 10 years and come out much better on the other side, but we are all too selfish; all too greedy! Instead, by fighting to keep the luxuries we all feel we deserve, we will all collectively destroy the economy of the nation and bring the country to it's knees. This recovery will take much longer and the nation that rises out of the ashes will be a much different nation than the one we destroyed and that is not necessarily a good thing.
The news is coming at us very quickly today. Events are happening at a pace that is difficult to maintain. You can look at history and justify everything that is happening today with comparisons of similar times in the past, but the variable today is that people are taxed at a level much higher than at any time in the past. Whereas in the past there was always more to take, the same cannot be said for today. The only solution to the problems today is deep, painful cuts in government spending like nothing we have ever seen before; deep cuts in taxes to drive the economy and bring business back to the nation; and a no-nonsense approach to defense - if we are going to fight, do it hard, do it cheap, do it fast and come home, or don't do it at all!
Thursday, February 10, 2011
A State of Denial
Denial is a very tragic thing and the consequences of denial are equally tragic. Have you ever known a person who had a very sick relative? You knew the person was dying, but their close loved ones or spouse insisted they would recover? It tore you up inside to think of the pain that person would endure when they finally realized the truth, probably too late to prepare themselves for the loss. Some would say that it is good to remain positive, which I agree is true - to a point, but it is also true to prepare for the inevitable.
Such is the case with the state of our state and our nation. Many, many people are walking around assuming things will get better. It will soon be like the good old days when everyone was working and money was growing in accounts like dandelions in a field. The "haves" had everything they wanted and the "have nots" were given what they wanted by the government.
Fast forward to 2011 when the "haves" are struggling to keep what they have earned and the "have nots" are not going to be able to look to the government much longer for the luxuries they feel they deserve, or the necessities the need, like food or a home. My point is simple. It is time we realize that the country is simply not the thriving bounty it once was. The government does not have the cash it once had, borrowed or otherwise. Our state (and many others) has driven itself into bankruptcy and is looking to the taxpayer to bail it out. We are taxing our residents to death and it will not help bring us out of trouble.
Add to this, the fact that our nation is placed itself into a debt, the like of which we have never seen and we can never pay. What are we going to do about it? Tax people and tax corporations! As a nation, we now have the largest corporate tax of any nation in the world! What effect do you suppose this will have on business growth in the U.S.? The worst part is that the problem has only begun and will only get worse and nobody seems to notice or care. Not yet anyway.
Just in the past 24 hours, I purchased a gallon of milk on sale for $2.88 at the local grocery store. This same gallon of milk was only $1.99 one year ago. I purchased gas for the car at $3.29/gallon today, in February - a time of year when gasoline is usually the lowest price. What does this say about the price of gasoline in peak driving season, $4.50? $5.00? What will happen to the economy when people have to pay $5.00 for a gallon of gas? That gallon of milk will be $3.50 or $4.00. This would be a 100% increase since one year ago. Now, imagine if everything delivered by truck to market increases by 100%, what would that do to an already fragile economy? Okay, let's call it extreme, but if we look at only 20% which is not only realistic, but very likely, the economy will fail. The reality is if the inflation rate climbs to 20%, it can easily go to 100%. Of course there are always government price caps if the inflation rate climbs too fast, but we know what that did in the 70's. Farmers dumped milk rather than sell to market and let crops rot in fields. That will happen again.
Some people may think I am an alarmist, but nothing I am saying here is dreamt up out of a science fiction novel. This has happened before at some level in this country or other countries. The difference is, as a nation, our citizens have never been taxed so much and our government has never been so deep in dept when it occured in the past. During the 70's, the tax burden was not so high that the citizens could not afford to pay a little more. Today, taxpayers are paying 50% or more of their earned wages on some form of taxes or government fees. The government cannot take much more without depleting the fuel that keeps the econony rolling. The fact is, the well has run dry and the piper must be paid.
At a time when government, both national and state, should be cutting spending as much as possible - not just feel good, window dressing cuts, but real deep, painful cuts. Our lawmakers continue to spend, continue to try to win the favor of the voters by handing out more money for programs we cannot afford. The way I see it we only have one option though it may be too late already to save us from total economic disaster in this country. Our state and federal governments MUST begin to act as if they were a business in bankruptcy, spending only the money that is absolutely necessary to maintain operations. Where there is an opportunity to save a buck, take it. This is not about trillions anymore, it is about every single penny. This means government paid cell phones - gone! Government paid vehicles - gone! Government paid events of all kinds - gone! And don't forget to turn off the lights at the capitol building when the last lawmaker leaves at 4PM either. As Benjamin Franklin said, "A penny saved is a penny earned". Let's take a lesson from the past!
If we continue to live in this state of denial, we will soon wake up to a stock market that will make the crash of '29 look like a fender bender, $3.00/gallon gas, the good old days and change for a dollar, the punchline to a joke. If we continue to live in this state of denial, we will soon be staring at a much different country, a much different way of life and the day will come very soon when even the most blind of us will wake up one morning and ask, "what happened"?
Such is the case with the state of our state and our nation. Many, many people are walking around assuming things will get better. It will soon be like the good old days when everyone was working and money was growing in accounts like dandelions in a field. The "haves" had everything they wanted and the "have nots" were given what they wanted by the government.
Fast forward to 2011 when the "haves" are struggling to keep what they have earned and the "have nots" are not going to be able to look to the government much longer for the luxuries they feel they deserve, or the necessities the need, like food or a home. My point is simple. It is time we realize that the country is simply not the thriving bounty it once was. The government does not have the cash it once had, borrowed or otherwise. Our state (and many others) has driven itself into bankruptcy and is looking to the taxpayer to bail it out. We are taxing our residents to death and it will not help bring us out of trouble.
Add to this, the fact that our nation is placed itself into a debt, the like of which we have never seen and we can never pay. What are we going to do about it? Tax people and tax corporations! As a nation, we now have the largest corporate tax of any nation in the world! What effect do you suppose this will have on business growth in the U.S.? The worst part is that the problem has only begun and will only get worse and nobody seems to notice or care. Not yet anyway.
Just in the past 24 hours, I purchased a gallon of milk on sale for $2.88 at the local grocery store. This same gallon of milk was only $1.99 one year ago. I purchased gas for the car at $3.29/gallon today, in February - a time of year when gasoline is usually the lowest price. What does this say about the price of gasoline in peak driving season, $4.50? $5.00? What will happen to the economy when people have to pay $5.00 for a gallon of gas? That gallon of milk will be $3.50 or $4.00. This would be a 100% increase since one year ago. Now, imagine if everything delivered by truck to market increases by 100%, what would that do to an already fragile economy? Okay, let's call it extreme, but if we look at only 20% which is not only realistic, but very likely, the economy will fail. The reality is if the inflation rate climbs to 20%, it can easily go to 100%. Of course there are always government price caps if the inflation rate climbs too fast, but we know what that did in the 70's. Farmers dumped milk rather than sell to market and let crops rot in fields. That will happen again.
Some people may think I am an alarmist, but nothing I am saying here is dreamt up out of a science fiction novel. This has happened before at some level in this country or other countries. The difference is, as a nation, our citizens have never been taxed so much and our government has never been so deep in dept when it occured in the past. During the 70's, the tax burden was not so high that the citizens could not afford to pay a little more. Today, taxpayers are paying 50% or more of their earned wages on some form of taxes or government fees. The government cannot take much more without depleting the fuel that keeps the econony rolling. The fact is, the well has run dry and the piper must be paid.
At a time when government, both national and state, should be cutting spending as much as possible - not just feel good, window dressing cuts, but real deep, painful cuts. Our lawmakers continue to spend, continue to try to win the favor of the voters by handing out more money for programs we cannot afford. The way I see it we only have one option though it may be too late already to save us from total economic disaster in this country. Our state and federal governments MUST begin to act as if they were a business in bankruptcy, spending only the money that is absolutely necessary to maintain operations. Where there is an opportunity to save a buck, take it. This is not about trillions anymore, it is about every single penny. This means government paid cell phones - gone! Government paid vehicles - gone! Government paid events of all kinds - gone! And don't forget to turn off the lights at the capitol building when the last lawmaker leaves at 4PM either. As Benjamin Franklin said, "A penny saved is a penny earned". Let's take a lesson from the past!
If we continue to live in this state of denial, we will soon wake up to a stock market that will make the crash of '29 look like a fender bender, $3.00/gallon gas, the good old days and change for a dollar, the punchline to a joke. If we continue to live in this state of denial, we will soon be staring at a much different country, a much different way of life and the day will come very soon when even the most blind of us will wake up one morning and ask, "what happened"?
Tuesday, January 11, 2011
Time to Pay...and Pay We Will!
Governor Quinn was inaugurated with all of the pomp and circumstance of a BBQ in a blizzard. His administration is rolling out the largest tax increase in our state's history, making Illinois the state with the highest income tax in the nation. Great job voters!
Now, what more should we expect in our state over the coming months and years? Lets see, we have Richard Daley fleeing the Mayors office before the city implodes under loads of debt he created in anticipation of his failed 2016 Olympic bid. To counter the massive debt, the city will have no choice but to turn to the state for more money. The state will have two choices - let Chicago fall into ruin or hand out more cash, which will of course, come from each and every one of us. If the state gives the city the money, ten cents on every dollar will go to help the city and ninety cents will line somebody's pocket.
To add to this disaster, the state is going after business, big and small, for more tax money. Governor Quinn did not learn anything from Blago's destruction of business in Illinois. As Blago taxed big business, big business fled the state and took jobs with it. As Blago taxed small business, small businesses closed and put more people out of work and homes. Now Quinn is going to try to build a new mouse trap. The only trouble is, he is using the same design.
I am amazed that people voted for a man who promised higher taxes. I am even more amazed that people criticized me for scrutinizing Quinn for wanting to raise taxes rather than cut spending as a means of bringing business back and reducing state debt. For those who enjoy paying high taxes, you are in the right state. For those who wish to give all of your earnings to the state, you will love the next several years here in Illinois.
As for our state handbook, a few things will need correcting however. The state once known for it's steel and automotive industries will now be the state of a new, robust industry - repossessions and foreclosures. A state which once touted Ford, Chrysler, AT&T, Caterpillar and Navistar as it's largest employers, will now list Illinois Department of Employment Security as the largest employer. The state that once listed the cardinal as it's state bird, will now list the resident as the state bird as millions are seen flying out of the state to find hope and opportunity in another state. To be fair to those traveling through our state, I feel it only fair to properly warn them. Therefore, I reccommend that all signs entering Illinois should be changed to read, "Welcome to Illinois, Beware of Tax Rates, Lock your doors and hold on to your wallet near any state facility!" Signs leaving the state should read, "Thanks for visiting Illinois, you may think you got away, but you have to come back through to get home!"
For no reason other than the greed of a few narcissistic politicians, we have watched the Land of Lincoln turn into the Destination for Disappointment!
Now, what more should we expect in our state over the coming months and years? Lets see, we have Richard Daley fleeing the Mayors office before the city implodes under loads of debt he created in anticipation of his failed 2016 Olympic bid. To counter the massive debt, the city will have no choice but to turn to the state for more money. The state will have two choices - let Chicago fall into ruin or hand out more cash, which will of course, come from each and every one of us. If the state gives the city the money, ten cents on every dollar will go to help the city and ninety cents will line somebody's pocket.
To add to this disaster, the state is going after business, big and small, for more tax money. Governor Quinn did not learn anything from Blago's destruction of business in Illinois. As Blago taxed big business, big business fled the state and took jobs with it. As Blago taxed small business, small businesses closed and put more people out of work and homes. Now Quinn is going to try to build a new mouse trap. The only trouble is, he is using the same design.
I am amazed that people voted for a man who promised higher taxes. I am even more amazed that people criticized me for scrutinizing Quinn for wanting to raise taxes rather than cut spending as a means of bringing business back and reducing state debt. For those who enjoy paying high taxes, you are in the right state. For those who wish to give all of your earnings to the state, you will love the next several years here in Illinois.
As for our state handbook, a few things will need correcting however. The state once known for it's steel and automotive industries will now be the state of a new, robust industry - repossessions and foreclosures. A state which once touted Ford, Chrysler, AT&T, Caterpillar and Navistar as it's largest employers, will now list Illinois Department of Employment Security as the largest employer. The state that once listed the cardinal as it's state bird, will now list the resident as the state bird as millions are seen flying out of the state to find hope and opportunity in another state. To be fair to those traveling through our state, I feel it only fair to properly warn them. Therefore, I reccommend that all signs entering Illinois should be changed to read, "Welcome to Illinois, Beware of Tax Rates, Lock your doors and hold on to your wallet near any state facility!" Signs leaving the state should read, "Thanks for visiting Illinois, you may think you got away, but you have to come back through to get home!"
For no reason other than the greed of a few narcissistic politicians, we have watched the Land of Lincoln turn into the Destination for Disappointment!
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