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February 28, 2009 in economics, health, politics, society | Tags: America, Democrats, healthcare, inflation, new deal, poor, president obama, recession, republicans, rich, socialism, stimulus plan, stock market, tax cuts | Leave a comment
It is about time someone came out of the shadows of a speechless population and say enough is enough directly to government. In this case, government means most Republicans: they might just become the sole reason America can’t rise from the ashes of this worsening depression. There is no time for excessive debating over that which has already been proven wrong. When all is said and done, more has been said than done.
Our economy has always been unbalanced, because the rich have always owned more of all wealth than the poor. It may seem like common sense when worded in that fashion. Now think… how would tax cuts help? Wouldn’t it just increase the gap, and destroy the middle class? This is exactly what’s happened the past eight years. To level the economy, it’s coherent to increase taxes on the rich and decrease taxes on the less fortunate. That’s exactly what President Obama is planning to do. That’s number one.
Number two is the statistical proof that tax cuts don’t work. Mark Zandi of Economy.com had done an excellent job effectively showing why tax cuts don’t add enough money to the economy. On page nine of his paper, “The Economic Impact of the American Recovery and Reinvestment Act,” Table two shows tax cuts don’t work as efficiently as spending increases. The most tax cuts would add to the GDP is $1.28 per tax cut, compared to food stamps—which were incorporated into the New Deal—which add $1.73 per stamp into the economy.
Speaking of the New Deal, conservatives and general critics of Obama’s stimulus’s package cite it as proof spending doesn’t work… wrong. The only way to prove that correct is to try and prove this is show unemployment figures from the time, but completely exclude those who labored in work-relief programs, such as the famous WPA. If included, it’s clear unemployment rates went on a steady decline from the moment FDR became president in 1933, minus the years 1937 and 1938. Why? Spending was cut those two years to “balance the budget.” Who thought of that idea? Republicans, my friend… Republicans; isn’t hypocrisy just grand? There was a reason World War II helped as well: an increase in consumer goods, which the U.S. currently doesn’t have.
To make sure nothing else comes up, nobody—absolutely nobody—should cite Ronald Reagan as proof tax cuts and trickle down theory worked. Reagan was not only the first president to increase National Debt by $100 billion in one year, but also $200 billion in another year. The productivity growth rate dramatically decreased in his years, and the poverty rate increased. And, to top it off, the rich did get richer, and the poor didn’t necessarily get poorer, but didn’t improve much. Well… at least inflation was decreased.
It isn’t true that the stimulus plan is from the hands of God or that it’s perfect, by any degree. Half of what critics say of the plan isn’t true, either. First off, there isn’t any spending on “golf carts”… but fuel-efficient vehicles. By “remodeling federal offices”, the plan is for making buildings more “green”. There’s also no money specifically for butterfly parks, or Frisbee golf courses… or water slides. There’s also nothing about “floating trains,” but high-speed rail projects, which America lacks in compared to the rest of the world. If there is any pork, it’s not nearly as much as conservatives claim there is.
As the factual breakdown starts to wind down, the proper way of addressing this economic catastrophe must be addressed. America must produce something, and export it… period. Stand out for something. Importing more than exporting doesn’t help when competing in a global market. That “socialist” idea known as Universal Health Care would actually help. In fact, it’s not even socialized medicine. It’s a guarantee that all citizens have health care. Therefore, government wouldn’t necessarily provide it, if someone still thinks it’s “socialism.” It’s also been proven to save money, not waste it, according to the National Coalition of Health Care. UHC could save at least $320 billion over 10 years based on four different scenarios the NCHC tested, with a single-payer system saving $1.1 trillion over 10 years. It should be noted we have around a $1.75 trillion deficit… See something here?
The last thing to possibly say is that America must keep its head up. A significant chunk of this recession/depression is mental. Confidence significantly influences the stock market, after all. Quarreling doesn’t solve anything. The media is notorious for confusing the ever loving heck out of people because of all of the different views it shows, with no true answer. America must be informed. It must know everything will be fine, but it depends on the people. The people must unite as a nation, and put personal views aside. Fighting will lead to an inevitable destruction of the values America was founded on: hope and change.
Sunil is my brother. He’s also pretty awesome. Check out his blog at http://ssk001.wordpress.com.