The Nov. 2nd Election: Socialism vs. Economic Growth

The upcoming election on 11/2/2010 presents the American people with an opportunity to decide whether they want to regain control over their own lives, or if the Liberal/Progressive/Democrat leadership in Washington DC will continue to expand government, expand control over American's lives, and try to control all wealth in the United States.  Barack Obama and others dislike the word "socialism" perhaps because it accurately describes their agenda.  In many respects, this election is a referendum for Americans to decide whether they, rather than government, will run their lives.

In the Liberal/Progressive/Democrat worldview, government is the solution to all problems, real and perceived.  The private sector is viewed with suspicion and tolerated as a source of taxes and campaign contributions.  The fact that the private sector is the primary source of jobs, creates wealth, and delivers important innovations is completely missed by this worldview and its political agenda.  As a result, the Democrat economic policy for the past two years has been to inject repeated doses of economic steroids:

• Spend and print trillions of dollars.
• Debase the value of the dollar relative to gold and other currencies.
• Avoid any accountability for the ensuing problems.
• Increase government regulation and control over the economy and Americans' lives.

Just now, the Liberal/Progressive/Democrat leadership is wondering, "Why isn't the economy growing?  After all the money we printed and spent, why aren't businesses investing, growing, and hiring people?"  After all, they tried every trick in the Keynesian stimulus book.  The short answer is this leadership has no understanding and no direct experience with the private sector.  They have no idea what drives private sector businesses to invest, grow, and hire people and what actually works to get the economy growing.

As you consider the candidates for whom you will vote on November 2, 2010, identify whether a particular candidate supports the socialist agenda or Americans running their own lives.  If a candidate supports economic steroids or raising taxes in any way, they basically support the Liberal/Progressive/Democrat/Socialist agenda.  Candidates who talk about cutting government taxes, spending, and regulation support Americans running their own lives.

China Educates Washington DC on Exchange Rates

The past few days have been interesting as various U.S. leaders make noise about new "quantitative easing" actions and further debasing (i.e., manipulating) the U.S. dollar.  At the same time, our distinguished leaders attempt to lecture China about what they see as China manipulating the yuan.  In fact, China has done a commendable job of maintaining a fairly stable economy and currency through all of the turmoil from the largely self-inflicted U.S. financial crisis and "Great Recession."  As a public service, a Chinese economics teacher provides an education about what China is doing and why and also where the current foolish course of U.S. action will lead if certain U.S. leaders do not come to their senses fairly quickly.

When choosing the candidates who get your vote, make sure they understand that current U.S. exchange rate and quantitative easing actions will cause serious problems and need to change.

Democrat Economic Plan: "It's All China's Fault"

Apparently, this is the best the Congressional Democrats can do as they continue to try everything to get the economy growing, except anything which actually works.  The Democrats' acts of economic futility include multiple rounds of Keynesian "stimulus" and the ongoing debasing of the value of the dollar.  There are also the Democrats' hopes, all reason and history to the contrary, that ObamaCare,  the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the expiration of the Bush tax cuts will somehow get the economy back on track.

The Democrats' latest act of futility is to blame China for everything wrong with the U.S. economy:

• The Chinese trade surplus with the U.S. is somehow a "problem."
• China "manipulates" its currency, the yuan, to keep it "undervalued."
• China is somehow "stealing" U.S jobs through "outsourcing." 

The Democrats' answers are more protectionism and for China to raise the value of the yuan to whatever value (currently unspecified) which the Democrats find acceptable.  The economic relationship between the U.S. and China is one of the most important in the world which affects many other countries as well.  Perhaps Nancy Pelosi, Harry Reid, and the rest of the Democrats can explain what they hope to accomplish by putting the US-China relationship at risk.

What is scary here is how little the Democrats apparently know about the U.S. economy and how to get it growing.  When choosing the candidates who get your vote, find out whether they support the Democrats' economic mythology which could lead to a repeat of the Great Depression, or if they support taking actions which are demonstrated to get the economy growing.

Democrat Bigotry: More Taxes for "The Rich"

There is a spirited debate about the upcoming expiration of the Bush tax cuts, and Barack Obama and the Congressional Democrats have brought out their usual arguments with new vigor and creativity:  "The Deficit," class warfare, income redistribution.  Here, Obama and the Democrats are demonizing "The Rich" and targeting them for higher taxes in what can only be called an act of economic bigotry.  For reasons known only to the Democrats, they appear determined to repeat their "stimulus" mistakes since January 20, 2009, ignoring at least 100 years of economic history of what works and, more importantly, what does not work to get the economy growing.

According to the Democrats' plan, economic growth was to have started by now, triggered by their Keynesian stimulus, actually payoffs to key constituencies using taxpayers' money.  Then, the Bush tax cuts which the Democrats have always despised, could be allowed to expire quietly.  Unfortunately, reality intruded, and raising tax rates back to Clinton levels would make a bad economic situation worse.  The Democrats' solution is to single out the "The Rich" for higher taxes for the "offense" of having wealth and the perception that "The Rich" can afford it.  In this economic context, as with all forms of bigotry, many of the same dynamics are in play:  ignorance, seeking economic short cuts, instigating animosity among groups of Americans, arbitrarily favoring some groups over others, and arbitrarily taking wealth from one group and giving it to another.  In a word, Democrat-sponsored bigotry.  (See 9/21/2010 post - Democrat Strategy:  Divide Americans Into Classes)

All Americans, including "The Rich," need to come together to get the economy back on track,  The Democrat tactic of dividing Americans into classes and demonizing "The Rich" is not helpful.  When candidates ask you for your vote, be sure they support all Americans coming together to get the economy back on track.

Democrat Strategy: Divide Americans Into Classes

The upcoming expiration of the Bush tax cuts has prompted Barack Obama and Congressional Democrats to say and do some curious things.  This is the first of several posts on the current situation with taxes and why the Democrats' thinking and proposals, despite perhaps the best of intentions, simply will not be successful as understood by the real world outside the Washington DC Beltway.  This post looks at the ideology and agenda which appear to drive Obama and Congressional Democrats.  This will help provide context for future posts and for the curious things Obama and the Democrats say.

The foundation for the Democrat/Liberal/Progressive agenda and ideology appears to go back to a quote from the Franklin D. Roosevelt administration, although there is some dispute about who actually said it:  "We are going to tax and tax, spend and spend, and elect and elect."  The top priorities of this ideology in today's Washington DC seem to be:

• Secure Democrat control of government; the end justifies the means.
• Create and expand Americans' dependency on government.
• Expand government control of all wealth and people's lives.
• To make this all work, divide Americans into classes and demonize and favor different classes as needed.
  

Obama and the Democrats appear to have missed or chosen to ignore where the Declaration of Independence talks about the self-evident truth "that all men are created equal," and "life and liberty" as among "certain unalienable rights."  As candidates seek your vote in the upcoming elections, make sure they reject the Democrat/Liberal/Progressive agenda to run America, and they understand the Declaration of Independence means what it says.  

The Teamsters vs. Mexico: Everybody Loses

The North American Free Trade Agreement (NAFTA) was negotiated in 1993 and signed and ratified by Canada, Mexico, and the United States as a commitment to protect and expand the free flow of trade among the three nations.  The purpose is to promote economic growth and provide all North American consumers with a wider choice and availability of products at lower prices.

NAFTA includes a commitment by the United States and Mexico to give their truckers freedom to operate in both countries.  U.S. truckers currently operate in Mexico.  Since 1993, the U.S. has not upheld its commitment to allow Mexican truckers to operate in the U.S. due to the efforts of the International Brotherhood of Teamsters and the U.S. Presidents, Senators, and Representatives who support the Teamsters agenda.  Mexico recently concluded that years of good faith attempts to resolve this with the U.S. would not be successful and imposed 15%-20% tariffs on a large assortment of U.S. exports to Mexico.  The Teamsters win a very shortsighted political victory which, for now, eliminates the competition of Mexican truckers operating in the U.S.

Overall, everyone loses.  Fewer, more expensive exports to Mexico mean less business activity and fewer jobs in the U.S., including Teamsters members.  If your state (or employer) has exports to Mexico, especially the states of California, Texas, Washington, and Wisconsin (there may be more), find out if the candidates who want your vote support the shortsighted Teamsters political agenda, or if these candidates support U.S. exports and jobs and support honoring the commitments the U.S. makes to its friends.

If the US (and the World) Really Wants to Help Pakistan….

A good place to start is economic and political freedom and the human struggle to achieve them.  Today, Pakistan is battling both terrorists and the recent floods.  The two battles are connected, and Pakistan needs to win both to achieve much of what we in the US and Europe take for granted.

Pakistan’s textile industry presents an easy way to help Pakistan win these battles.  According to the fibre2fashion Web site, Pakistan’s textile industry accounts for 60% of exports and 38% of the workforce (almost 6 million textile workers).  Leveraging Pakistan’s textile industry can provide lasting economic growth and jobs, and help Pakistan’s people recover from the floods, achieve a higher standard of living, and reduce recruiting opportunities for terrorist groups.

Currently, the US levies an average 17% tariff on textile imports from Pakistan, and Europe has a 12% tariff.  US and European consumers pay for these tariffs as needlessly higher prices for clothes, linens, and other textile products.  These tariffs also create an unnecessary obstacle for Pakistan to export these items.

Eliminating these tariffs and any import quotas permanently would benefit everyone.  Consumers would pay lower prices for clothes and other textile products.  Pakistan's economy would grow and create more jobs, and, as its exports grow, Pakistan would be less dependent on aid from US and European tax dollars.  Everybody wins.  Ask the US candidates who want your vote in November when they plan to eliminate permanently this 17% US tariff on textiles from Pakistan.  Our friends in Europe need to ask their candidates the same questions.

ObamaCare and Future Health Care

Dr. Hal Scherz, a practicing physician in Atlanta, had an enlightening opinion piece about ObamaCare in today's (9/1/2010) Wall Street Journal.  Dr. Scherz is president of Docs4PatientCare, and he makes some compelling points:

• According to the Affordable Health Care for America Act (ObamaCare), the US Secretary of Health and Human Services (among other bureaucrats), will determine if and when your doctor can provide health care services to you.
• Your doctor will basically take orders from the federal government.
• You and your doctor will no longer work together to make decisions about your health care.
• Some Democratic politicians, in a desperate attempt to save their jobs, are trying to convince voters that ObamaCare is somehow fixable...after the election.

Dr. Sherz's opinion piece and "Dear Patients" letter are required reading for anyone who needs health care now or in the future.  Please read these, and ask the candidates who want your vote in November if they think ObamaCare is fixable, or if they plan something more serious to ensure everyone can continue to work with their doctors to make their health care decisions themselves.

Obama/Pelosi/Reid “Stimulus” Spending? Or Federal Money Laundering?

There are now two “stimulus” bills:  the American Recovery and Reinvestment Act of 2009 and the Aid to States for Medicaid, Teacher Employment, and Other Purposes Act which was signed into law 8/10/2010.  Aside from questions of whether and how the federal government should intervene in the economy, will this “stimulus” actually do anything to get the economy moving?  In fact, this “stimulus” is mostly a big federal money laundering operation to return to taxpayers the money they had paid as taxes and to recycle tax dollars as campaign contributions.  Other than a grab for more economic power and control over people’s lives, why does Congress think this makes sense?  Be sure to ask the candidates who want your vote in November.

Washington DC Prospers. The Rest of the US? Well….

Recent government reports show the federal government prospering while the rest of the country struggles with today’s economic realities.  The US Commerce Department reported the only growth in 2009 net earnings and personal income in the 52 US metropolitan areas with populations over 1 million occurred in the federal workforce.  All private sector earnings and income declined.  The Federal Reserve Bank of St. Louis released a report which showed an overall loss of 12 million jobs since the peak in 2007.  When choosing the candidates who get your vote in November, ask whether they understand this coming train wreck, and what do they plan to do about it?

Week of 08/02/2010: An Exciting Week for Taxes

It’s been an exciting week for taxes.  For some reason, the federal “deficit” has suddenly surfaced as a crisis now, only after the explosion of spending since January 2009.  Tax increases are frequently put forward as a way to “solve” the “deficit crisis.”  Historical data and actual experience would suggest otherwise.  Here is some information to help you decide which candidates get your vote in the November 2010 elections.

Welcome

Welcome to the Your Vote and Your Taxes blog which is intended to help voters and taxpayers in the United States and from all nations make informed decisions when they vote for their political leaders.  No political parties or candidates are endorsed here.  You decide which candidates get your vote.  This blog will attempt to help you decide by providing information and clarity rather than ideology and philosophy about the ideas for the direction which the United States will take.

In the interest of full disclosure, the "information and clarity" provided here does come from a certain view about the economy and government.  For more about this and a complete introduction, see About This Blog.