Wednesday, January 14, 2009

Only the Government Can Save Us...

or so... that's what they would like us to believe..... "Oh please, Government take care of us!", "We are unable to take care of ourselves!" etc., etc.... and so socialism begins.
"In giving the broad outlines of his economic stimulus program on Thursday, Sen. Barack Obama said “only government” can provide the solution to the country’s economic ills.

Doing too little or nothing will lead to worse trouble, he warned. Government is the answer:

“It is true that we cannot depend on government alone to create jobs or long-term growth, but at this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe,” Obama said. “Only government can break the vicious cycles that are crippling our economy -- where a lack of spending leads to lost jobs which leads to even less spending; where an inability to lend and borrow stops growth and leads to even less credit.”

let's not fall for that, in truth this is what we need to be reminded of:

... "Those who do work are denied a fair return for their labor by a tax system which penalizes successful achievement and keeps us from maintaining full productivity.

But great as our tax burden is, it has not kept pace with public spending. For decades we have piled deficit upon deficit, mortgaging our future and our children's future for the temporary convenience of the present. To continue this long trend is to guarantee tremendous social, cultural, political, and economic upheavals.

You and I, as individuals, can, by borrowing, live beyond our means, but for only a limited period of time. Why, then, should we think that collectively, as a nation, we're not bound by that same limitation? We must act today in order to preserve tomorrow. And let there be no misunderstanding: We are going to begin to act, beginning today.

The economic ills we suffer have come upon us over several decades. They will not go away in days, weeks, or months, but they will go away. They will go away because we as Americans have the capacity now, as we've had in the past, to do whatever needs to be done to preserve this last and greatest bastion of freedom.

In this present crisis, government is not the solution to our problem; government is the problem. From time to time we've been tempted to believe that society has become too complex to be managed by self-rule, that government by an elite group is superior to government for, by, and of the people. Well, if no one among us is capable of governing himself, then who among us has the capacity to govern someone else? All of us together, in and out of government, must bear the burden. The solutions we seek must be equitable, with no one group singled out to pay a higher price." ...
-Ronald Reagan (from his Inaugural Address)

"Consider, now, how Ronald Reagan responded to the economic crisis of 1980, the worst since the Depression. In the "stagflation" of that Jimmy Carter era, interest rates had reached 21 percent and inflation 13 percent.

Reagan's answer was the tight money policy of Fed Chairman Paul Volcker and across-the-board tax cuts of 25 percent, while slashing the highest rates from 70 percent to 28 percent.

While unemployment hit 10 percent in 1982 and Reagan lost 26 House seats, in 1983 the tax cuts kicked in.

From there on out, it was boom times until Reagan rode off into the sunset, having created 20 million new jobs. "The Seven Fat Years," author Robert Bartley called them.

Reagan had followed the lead of Warren Harding and Cal Coolidge, who had cut Woodrow Wilson's wartime tax rates of near 70 percent to 25 percent, resulting in "The Roaring '20s," a time of unrivaled prosperity.

The JFK tax cuts of the 1960s, also a Reagan model, were equally successful.

Harding, Coolidge, JFK and Reagan all bet on the private sector as the engine of prosperity. All succeeded. Franklin Roosevelt bet on government. And the New Deal failed. It was World War II that pulled the United States out of the Depression ditch of the 1930s.

Comes now the financial collapse and economic crisis of 2008, inherited by Obama, with 40 percent of all stock values wiped out in a year, foreclosures pandemic, and unemployment near 7 percent and surging.

In crafting his solutions, Obama seems to be brushing aside the Reagan, JFK and Harding-Coolidge models, and channeling FDR and the New Deal Democrats."
excerpts from: Pat Buchanan

"The problem, of course, is that government has no money of its own, only the money it takes by force from the productive sector of society or it borrows and must pay back with taxes extracted from our children and grandchildren. In the private marketplace economic transactions take place only if both (or all) parties believe they benefit. Such private, profit-making activity, as most of American history demonstrates, involves not simply the redistribution of existing wealth but creation of new wealth. Increased government spending, however financed, takes money from the private wealth-generating sector of society and allocates it to projects not on the basis of their capacity to be economically self-sustaining, but on the basis of their political attractiveness. ...[A] government 'stimulus' can only be accomplished by taking money away from genuinely economically productive activity. Pumping dollars that will eventually be worth less than they are today into various projects may provide some short-term relief or appearance of relief. But only the private sector can actually create wealth and thereby stimulate genuine economic growth. This seems pretty elementary, but most people in Washington have powerful incentives to ignore elementary truths."
--Orange County Register

More articles to read on the new Administration:

The Obama-Pelosi-Reid Economic Recovery Plan: The Good, The Bad, and the Ugly

Who Are They Screwing First? The Pelosi-Obama-Reid Assault on Middle America

Congress to Force Obama to Break Word to Taxpayers Faster than a New Year’s Resolution?

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