November 20, 2008

True Economic Stimulus

When it comes to stealing people's money, no one does it better than Congress. There is word that now there are two more stimulus packages in the works. Remember the first stimulus package? Look how well that stimulated the economy. Now, they tried to call these things "tax rebate checks" but don't be fooled. If you rebate taxes, you are giving some of the money back, arbitrarily. The spending apatite still remains, so Congress just has more money printed to cover these checks. Thus, resulting in devaluation of the dollar. So, Great! We have two more on the way. How do these people keep getting elected?!

If you want to stimulate the economy, "rebate checks" won't do it. You need to cut taxes. When taxes are cut, we get to keep more of our paycheck. Since we have more money, we have the ability to spend more. Company's recognize the sudden increase in spending ability because demand starts to increase. When demand increases, a company must increase production to meet that demand with their supply. Wait, it gets better. If the company only has 100 workers to meet their current supply, what will happen if supply goes up? You're absolutely right--they must hire more help. Cutting taxes just helped to areas of the economy. It increased the spending power of the citizens; as well as curb unemployment.

Now, I left out a small detail. What about Congress? After all, don't they get to reap anything since they were so nice to give us a tax cut? Yes. You see, with more people working, there is more in federal income taxes being sent to the Government. When Ronald Reagan cut taxes, the Federal Treasury was taking in 450 billion annually. After the tax cuts, the Federal Treasury was taking in 900 billion annually.

My friends, if you want to stimulate the economy, simply cut taxes. Call your Congressman and demand that he not support the new stimulus package and demand he put forth a bill to cut taxes.

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