You may not realize this but the reason that our founding fathers created the federal government was to pool the resources of the states for a common defense. That’s right the primary goal of the federal government is to protect the American people from enemies both foreign and domestic. It is amazing that our current president claims to be a constitutional scholar with a law degree. Why that amazes me is because he doesn’t appear to understand the basic tenants of the document itself.
Now then, perhaps it’s time we asked the Obama Administration why they believe the federal government should be allowed to spend $1 trillion a year in excess of what it collects in taxes. Keynesian economics theories aside, the money spent in the so-called Obama stimulus program didn’t work, because it was used in a crony capitalist strategy to help win friends and influence people to remain in power, to gain even more political capital, and to pay back political supporters. Perhaps, you think that charge is over the top? It’s my opinion of course, but I’d say that there is plenty enough examples, and I’m sure you can come up with 10 or more yourself if you stop to think about it.
Is not the federal government’s job to spend taxpayer’s money to help keep the executive branch in office or to prop up a political party. If we look at the incredible growth of the student loan program, the food stamp program, Obama Care, and many of the administration’s signature programs we can see quite quickly how they are buying votes. The federal government’s job is not to promote socialism, or ensure that one political party stays in power over another. Our government should not be putting us into debt, mismanaging taxpayer’s money, or demanding that the Federal Reserve print more and move liabilities to the asset side of the balance sheet.
Perhaps the executive leadership at the federal level believes there will be no repercussions for the wasting of this money, but I assure you that isn’t the case. Right now we are pissing off our allies and trading partners by inflating their economies, and when that money moves to safety it will fly into US markets, and that will cause inflation on our own shores. Inflation means that your money is not worth as much. It means if you have a dollar it’s no longer worth the dollar, because it only will by $.75 or $.80 worth of goods or services. Does that sound like a good deal to you?
Now our federal government claims that it is running out of money, that it must raise our taxes, and that we must tax the rich. Even if we taxed the top 1% nearly 99% of their income, it hardly puts a dent in $1 trillion budget deficit occurring annually. Therefore, they are going to asked to raise your taxes again. This is similar to what France, Italy, Greece, Spain, and Portugal are going to do. They think they can get out of their economic recession by taxing the people. I think you and I both know that will not work.
What the federal government is doing today under the Obama Administration is driving America off the cliff of socialism. I’m not okay with that, nor should you be. Indeed I hope you will please consider all this and think on it.
Lance Winslow has launched a new provocative series of eBooks on Economic Concepts. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net