What is the RIGHT Answer to the Economy?

I took yesterday off from blogging to really think about the $700 Billion bail-out, the role of the federal government in our society, and what needs to happen to ensure the economy survives this self-made crisis.

To start, it is necessary to understand the source of this melt-down of the lending firms. The source is not so much "greed" as it is "good intention". The Congress has struggled on economic issues in the past, attempting to do good for the market and main street, however, their constant intervention has led to the mess we are in today. So says the history books: The road to hell is paved with good intentions. That is where we find ourselves today - economic hell... or do we?

I haven't seen any run on the banks (those that are still operating). Folks are continuing to invest in the stock market - making some risky trades in order to capitalize on the shifting market. Ultimately, the market is still working - the economic fundamentals are sound in the United States, and as such, the economy will be sound as well. McCain was right. However, there is a stipulation.

The stipulation comes with the government bail-out. Bush and the Democrats keep coming forward claiming that every minute we wait is another minute that the country's economy continues to fail. Yet the only failure I have seen is nothing more than a correction in the market, and a move on the value of the dollar due to the Federal Reserve cranking out the funny money. (the value of the US dollar is currently 6% of 1913 dollar value - a loss of 94% value) The bail-out, if it is planned to be a $700Billion buy-out - which is code word for nationalization of the Investment, Insurance, and Banking industry - gives monopoly business power to the Federal Government... The US government will become a competing business who also makes the rules for the game... very dangerous.

What is the right answer?

After a long day contemplating the Constitution (yeah - it still exists, barely!), I have determined that the best plan forward would look like this:

If the economy is in trouble, reduce government spending. Pass a line-item-veto, or a "no earmark" law, eliminating pork and allowing the US to use all tax revenue to pay the military, pay the elected officials, and pay off the debt. They should all also agree to a constitutional amendment to balance the US budget each year. No more deficit spending. No more living beyond our means - as a country, or as a citizen!

The government should institute a Flat Tax, or a Fair Tax (consumption tax). This would give initial money back to the people 100% - allowing more money to exist in the free market for investment, consumerism, or savings. This Fair or Flat tax would also include Corporations. Eliminate unnecessary taxes on businesses, offering incentives for business to come back to the United States. In doing so, with a larger tax base, even at a lower tax rate, the income to pay down the debt and run the bare-bones government would increase.

Let the bad businesses fail. The need will still exist for companies to develop and fill the void. Instead of backing a bad investment, let the free market flux weed out poor choices, and encourage innovative Free Market solutions - such as self regulation (or government sponsored, so long as it works) regarding CEO compensation and fraud loopholes that currently exist. If a company makes a bad choice, I should not be forced to bail them out. Let them fail - it re-enforces good business ethics!

Ultimately, if the plan looks like it will be a pay-out, we are stuck with a bigger government, another bureaucracy, less freedom to enter the free market as a start-up (as the Government is now your competition), and a tax burden from which we will never recover!

John McCain and the economic advisers of the far right should do whatever they can to stall the bail-out. The treasury secretary, the President, and the leadership calling for the Nationalization of the economic sector are nailing the coffin of Capitalism in America.

This is a case where we pray that our leadership does what is RIGHT, and not what appears as politically expedient!

Socialists in the Democratic Party

Just days ago I posted a blog on the dangers of an Obama Presidency, citing the Socialization of the United States, especially when it comes to energy.

Here is the proof: Democrats answer to the oil crisis is to nationalize the refineries so the government can control the flow of oil.

This is the FUNDAMENTAL CONTRAST between Republicans and Democrats in 2008. The Republican party still has ties to the far right, but very faint. The GOP has become a Political Party that would even be too liberal for the likes of John F Kennedy, should he be running for president today. However, the GOP maintains that Personal Property Rights are the fundamental basis of which rule of law and liberty are founded. The Democratic Party is hardly representative of it's name. They are Socialists, fundamentally. The very ideals that we fought through the Cold War have now come home to roost. The answer to every issue on the table is governmental control, or nationalization, of the land, industry, etc. Their belief is that the individual, or collective of individual private owners does not have the capacity to function in a way that meets societies needs, so they opt for control of those goods and services from their own offices. This is an ELITIST IDEOLOGY, that "they know better than I". It is a cancer in a free society, on every level... and now they are really showing their true colors (i hate to say it, but I told you so!)

What we need in 2008 is a rebirth of McCarthy. Someone willing to provide a list of all the members of Congress and the Senate who are outright Socialists, and point out the destruction they seek on the free United States.

Our Society is going the way of Atlas Shrugged, in which the government made it impossible for an industry to succeed with archaic laws, and when the industry could not survive, they nationalized it. Systematically the country fell to the whims of those in power... and the United States became a Socialist Hell-hole. Of course in the book the leaders of industry refused to continue to produce, and in so doing, took their knowledge of HOW to produce out of the hands of the government, leaving nothing. (a great read)

But I digress...

Every citizen of the United States needs to be made aware of the dangers that lie ahead with a Democratic Majority. There is nothing Progressive about Socialism or Communism. Public ownership / Government ownership of industry, property, and production are Marxist ideals that do not coexist with freedom. Freedom can only be achieved through individual rights, rule of law, and protection by the government of those rights... any role above these by the government is one that limits freedom.

The Democrats love to target the "Rich"... They love to tell stories about how the rich have become wealthy off the backs of the people. They have created a class warfare of blame and resentment. They want you to want what others have, and be willing to take it, if not by force, by granting them the power to take it on your behalf... WHAT YOU DO NOT REALIZE is that once they seize the property of the affluent, what protection do we, the proletarian, have?

When times are hard in America, we pick ourselves up by the boot-straps and we work through it. In the case of energy, we adapt... we evolve... we support an auto industry in favor of changing their power source from petroleum to electricity or other alternates. We support the free thinking imagination of the inventors, and rally behind great new technologies.

What we do not do is turn over all facets of life to the government, thus giving up entirely, and asking them to sort it all out for us. We are Americans. We do NOT take a back seat to our own destiny!

Take an active role. Contact your Senator or Congressman. Call the White House and leave a message for the President: We do NOT support the Socialist take-over of our refineries. We do NOT support the socialist tendencies of the Democratic party in these United States. And we will NOT support Socialist Democrats in 2008!

US Capitol Switchboard: (202) 224-3121
White House Comments: 202-456-1111
White House Switchboard: 202-456-1414