Thursday, November 8, 2007

Economy E-shmonomy

Where is this wonderful economy that everyone keeps talking about? I don’t know about the rest of you, but If I’m lucky my salary may increase anywhere between 2.5 % and 3.5%. In the last year I have seen my food costs go up by at least 10% and in some cases 20% or higher. My gasoline/transportation costs has increased by 10 to 20%. My home heating costs by nearly 30%. Well you get the picture. Now how does that compute to a good economy? Maybe corporate America is doing well and maybe the giant multi-national companies and international trade is going along, but think about this. If the consumer’s buying power is shrinking, wouldn’t it follow that it will trickle down and eventually there will be less consumed or purchased and in turn that will lower the profit of these companies and then you have recession and then you have inflation because the profits are down and the corporations need to raise their costs and pass the loss along to the consumer and viola, the vicious cycle continues. What’s the answer? I haven’t heard a single candidate give any solution, unless you count the democrat tax increases a solution, guess what? that will only serve to exacerbate the situation. The answer is simply this; now I know this is economics 101 but humor me a bit here. How about this unique innovative idea that has been proven time and time again ever since there has been organized commerce, "LOWER TAXES" it never fails. The lower the taxes the more the consumer has and the more they spend. This is not rocket surgery here folks, it’s common sense. Raising taxes has never, I repeat, never, been shown to help a failing economy. Right down through history, from the Romans, and I’m sure before that, the scenario has been tried and found to be true. My question is this; why would anyone vote for someone who is intent upon raising taxes and trying to socialize our free market system and the country?

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