Friday, December 21, 2012

Recipe for Disaster

Democratic Strategy:  The current Democratic strategy of of offering voters "free stuff" as a bribe to get their votes has proven very successful.  This strategy got Obama reelected under conditions - when you consider the state of our economy at the time, would normally have been considered impossible:

The deficit: Soaring way out of hand. We stand on the precipice of becoming the next Greece - riots and all.
Unemployment - 7.9% at the time of the election
GDP - growing at a feeble 2.0% at the time of the election
Obamacare - forced down the throats of the American people
Average family salary - down $4K per household during the Obama administration
Benghazi: How can anyone feel good about an administration that sacrifices American lives for political (the Presidential election) purposes
Class Warfare: Obama's 2008 pitch about not red and blue states, but the United States has rung hollow. Instead of being the "great uniter", he has turned out to be the "great divider". His entire campaign was based on playing different portions of the voting populace against each other

Free Stuff versus the Deficit:  "Free Stuff" - large, and growing expenditures for entitlements (social security, medicare, medicaid, unemployment, food stamps, housing subsidies) , exacerbate our deficit shortfall in two ways - it encourages people not to work - which reduces our tax base, and it also increases the federal outlays for entitlements . If you'd like a pictorial description of our deficit - it's like a snowball, rolling down a hill, getting bigger and bigger, rolling faster and faster - as we race toward becoming the next Greece - riots and all.

Welfare/Unemployment Benefits Recipients: Many people on welfare (foodstamps/housing subsidies) and on unemployment choose to sit at home rather than go to work at the "Walmart"'s of this world.   Comment: This is one of the major factors relating to our current economic woes. In order to get people off the dole, and save at least some of the billions being poured into these entitlement areas, we need to do one of the following:

     a.) Directly reduce entitlement dollars: Make the pay/benefit differential between "Walmart", and welfare/unemployment greater by reducing the entitlement payments, and/or reducing the timeframes that the entitlement payments are allowable, or

     b) Enforce Entitlement Rules: We need to ensure enforcement of the Clinton era requirement for people on welfare or unemployment to actually look for/accept semi-suitable employment

Working Poor:  Heretofore, I've been a  supporter of not charging federal income taxes to individuals/families below a certain income level.  Since their income was low, and it's typically a struggle to make ends meet, thought that this was most humane way to approach things.  The fact that these individuals/families weren't contributing anything to cover the necessary expenses to run our country, was, well,  just the way it had to be.

However, after seeing what the Democrats have managed to do - bribe people with money that we don't even have, now believe that a change needs to be made.  We really need to adjust the income tax brackets so that everyone pays federal income taxes.  There's simply no other way to ensure that everyone has "skin in the game", and is concerned about federal spending/the deficit - i.e., that it's just not "someone else's problem".  NOTE:  Also, getting Americans back into the workforce, breaks the cycle of dependency, and this benefits everyone in the long run.

Final Comment:  By making every working person pay federal income taxes, am confident that we can get a more mature/rational voting pattern, and therefore make real strides toward solving our economic problems.

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