Okay, this is simpler than you think…March 7, 2011
I was listening to a bit of Sean Hannity’s radio show tonight, and he had a caller from Texas who apparently used to live in San Francisco. He still has family there and was trying to explain Federal budget cuts to them. They apparently had that knee-jerk liberal reaction that if any cuts were made, anywhere, elderly Americans would be eating cat food.
This is not rocket science, people. (Oh, and rocket science isn’t so difficult any more; it’s rocket funding that’s the challenge.) Follow me as I go through it step-by-step.
First, cutting 4 per cent of what we are now calling the “discretionary” part of the budget is chicken feed. We really need to cut ten or more per cent to actually see it have a positive effect on the economy. The libs would have heart attacks with that one, which might be a positive effect right there.
Go take a look at the Federal budget, even just an overview, sometime. It is almost impossible to comprehend. That’s one of the reasons it’s so hard to attack – you can only deal with a small part of it at a time, and each part is guarded by its own interest group.
That whole thing about a balanced budget amendment used to sound good to me. But a balanced budget, with taxes so high it strangles business and cripples taxpayers, is still an abomination. First the beast must be cut down to size.
Cut ten per cent of that part of the budget, maybe three per cent of the whole budget, and there will be some serious job losses in the public sector. We’re talking thousands of Federal jobs. It might be enough to temporarily cause a jump in unemployment, but then, after a while, the magic happens.
Tax rates go down. Investment goes up. Venture capital people open their wallets up again and new businesses get started, thrive, and grow. People buy things again, because they have more money and they no longer think it could be taken away from them tomorrow. (A huge factor in the current economic mess is that businesses started to hunker down even before Obama’s election, figuring he was going to raise taxes big time. They shed jobs as a pre-emptive strike, which depressed the economy some, then he spent a colossal bundle of bucks he didn’t have, which showed them they were right…and that they would be paying higher taxes for years to come. Who would be crazy enough to hire more people in that environment?)
As the budget decreases more each year taxes can be reduced, and a really magic thing happens: tax revenues go up. Yes, up, with lowered rates, because business is no longer being strangled so much. It’s worked that way several times in the past 50 years when we cut taxes – in fact, pretty much every time we cut taxes.
Now at this point the temptation in the government to steal more from the producers kicks in again. This is when fiscal and regulatory restraint is most difficult. Instead, take more and more of the restraints off business, and the tax revenues will increase without increasing taxes. (For example, let’s sit down with the Big Book of EPA Regulations with a big pair of scissors, shall we? A bunch of that stuff can be cleaned up by executive order, you know. Not all of those regulations were directly a result of legislation from Congress, and if they were, they can repeal them ten times faster than they approved them in the first place.)
I’m going to be real libertarian at this point. By this point most Americans will be able to see what real prosperity can be. Think about it – if we could cut your taxes, all of them, by 25 per cent, the trickle-down would probably increase your actual take-home pay by 50 per cent. It can be done, folks!
Those out-of-work Federal (and State) employees? The private sector is booming now; business is hiring all over the place. Sure, some of them will have a hard time, because they never really worked before. Most, though, will be able to make it in the real world, and they will be far happier for it!
This is not a fantasy, friends. This is what America is about, or was, before it became rich enough to become a target, to be systematically looted by an entire class of people that grew, like a cancer, for the last sixty years. Through the 1950s and 1960s it became apparent that the American economy was ripe for the picking. The movement grew slowly and quietly under the guise of names like “the Great Society.” Over the last two years it came out into the open, but some people still don’t believe the monster really exists.
We can kill the monster and put us back on track. We can do it in a hurry. A couple of elections of the right people – call it six years, tops – and we can be well on our way back the the American dream. We need to keep bringing in grass-roots candidates like the Tea Party folks who have the guts to cut the bloated Federal budget and cut deep. They need our continued support so the media can’t say Americans are losing faith in them. I’m not requiring that they are Republicans. They can be of any label. They just need to be people smart enough to know that looting our bank accounts is morally wrong, and that the size of government is so incredibly beyond our ability to comprehend that we must do something immediately to bring it under control before it kills us and enslaves our children.
We also need viable candidates to replace those pseudo-conservatives who lack the courage to do what’s best for America. But that’s another story, folks…
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