Thursday, January 24, 2008

A Keynesian Fantasy

Fire of Liberty

As Congress and President Bush cart out a "stimulus package" in an effort to calm down the choppy waters of our economy, I'd suggest that some calmer heads in Washington read up on their economic history or at least open up some books by Milton Friedman and Thomas Sowell before they latch onto a Keynesian economic scheme that pushes the deficit further into the red and fails to solve the problem. No matter how we look at the current rough patch(Which is far from be a recession like the hysterical media is touting.) , we shouldn't be stuck on a short time fix but rather the lawmakers of this nation should hone their focus on long term solutions like making the Bush tax cuts permanent, cutting the corporate tax rate from the extremely high 39% to 25% or less(Brings new jobs and corporations back to America), a further reduction and simplification of the Income Tax code, as well as reducing the capital gains and dividend taxes even further. All of these would by far better for the overall economy rather that handing out money that will be used on paying current bills or paying credit cards bills for goods that have already been purchased. We'll only kick start this economy back into full blast by making it possible for companies to expand their business, hire new workers, which in turn allows the American people the opportunity to make more money to go out and buy products like computers,TVs, stereos, iPods, appliances, vehicles, and other goods that are used in calculating the state of our economy. Now such advice will go in one ear and out of the other with a Democratic controlled Congress(Who are on a mighty spending spree to buy off their constituency) and President Bush facing the reality that the economy is slowing down(much like his father) and a Clinton is running for a cushy spot at 1600 Pennsylvania Avenue. While this "economic stimulus" will most likely be passed, I believe our best hope is to vote for a candidate that will put forward pro-growth economic policies that continue to make us the envy of the world.(Which is highly unlikely with Huckabee, Hillary, or Obama.)

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