Tuesday, September 1, 2009

It's Capitalism Stupid

I really have to ask something, why can't Democrats & Liberals realize that there is a correct path of action in regards to economic down turns, and that there is a wrong path of action in regards to economic down turns. Or, how come they cannot understand that little inconvenient truth, that their path of action does not work.

For the most part over the past three decades, America has done quite well in regards to the national economy, thanks to Ronald Reagan allowing business to expand for the first time in over two decades, the Republican Congress which held the big spending & taxation by Clinton to a minimum, not to mention George W.Bush, who pushed through tax cuts which have benefited millions of Americans.

Some claim that the above mentioned caused the current economic recession, considering the "social program" which started this whole mess, was created & put forth by President Clinton, Barney Frank, and other left wing goons during the late 1990's, I would beg to differ. As their little social welfare for housing, led to banks cheating the books to magically turned a profit, and led to people who could not afford those houses in the first place, to eventually be foreclosed on. All because of one social program, which helped led to one of the largest since the Great Depression.

Democrats have attempted the "Hoover-FDR" approach of big government involvement, they both failed. In fact, the love affair with the unions by both administrations, was a leading factor in why the depression lasted so long. See, when times get tough, businesses have to cut back on all costs, including labor, they would not let that happen - so what occurred, they cut back on workers, which as Matt described in an earlier article, led to cutting back on production of new products.

Leading to a trickle down effect of less wealth for everyone, hmmmmmmm, the Conservative options lead to a trickle down effect of more wealth for everyone, wealth actually earned through hard work.

This is one of the reasons I am against the minimum wage on principle & practice, because it does not allow for the process of supply & demand to dictate payment, it is also another government intrusion into the workplace, and surprise - surprise, not on the behalf of the business owner, who actually runs the business.

I suspect with all that Obama is doing, our debt will increase, inflation is bound to go up, with planned tax hikes, not to mention letting the great Bush tax cuts expire, I do not see a real recovery for a long time to come.

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1 comment:

Luke said...