Wednesday, October 31, 2012

Why Romney Is Better for the Middle Class

Both sides may say that they want to help the poor and middle class, and both may mean it. But it is only through Romney’s sound business principles that it is actually possible, where Obama’s plan squeezes the middle class and further harms them as we have seen over the last few years.

Why? It is because Obama’s plan relies on spending massive amounts of money and using debt to grow entitlements. In Obama’s eyes, the reason we’ve had such a slow recovery is because he hasn’t thrown enough money at the problem, and he promises he’ll do better (by spending more).

The government only gets money from three places: by taking it from people who create it (taxes), through debt, and by printing it out of thin air. During a recession, tax revenue decreases because spending decreases. The only way to spend more and more money then is to take on more debt and/or print it, and in either case it causes inflation (money becomes worth even less, and it takes more money to buy things).

This affects the poor and middle class more adversely than it does the rich because the rich have the ability to invest extra money in assets that will hedge against inflation and grow as inflation grows.

As inflation grows, assets still have a certain value and therefore become worth more because money is worth less compared to the asset. But most things we have to spend money on depreciate over time, and only wealthy people have the ability to invest in real estate, mutual funds, and other assets that grow in value over time, hedging against inflation. This isn't possible for most middle class and poorer people, as they have a harder time saving extra money when everything costs more.

The more Obama gets to enact his plans of more debt and more spending, the more he hurts the middle-class and the people he says he’s trying to help.

Romney on the other hand wants to simplify and reduce tax burdens on everyone, reduce debt, and free up the money flow. This helps the middle-class better than anything. (See my previous article, “Why Romney Will SPEED Up the Recovery Better Than Obama.’)

President Obama’s approach is exacerbating problems, but at the same time he’s blaming the rich. Hopefully most people see his rhetoric as class warfare with its roots in coveting and envy.

It’s okay to want what others have, but the conservative mentality is contentment rather than envy.
Envy says, “I want what you have, and I don’t want you to have it.”  
Contentment says, “I too would like to be successful, but I will earn it rather than take it from someone else. Nevertheless, I’ll still be happy with whatever I have.”

Conservatives also understand that it’s people in the middle class who work hard and even start businesses that create the wealth needed to support the government. We find it confusing on one hand to see the government take on crushing debt and spend like crazy (putting that burden on us businesses and working people), and then on the other hand say that they’re doing it to help us.

You can’t run a business the way Obama is running the country, and it’s time for a change. It's time for someone to lead the country who really understands this and will help the middle-class.

The only way to a better and stronger country, economy, and government is to live better business principles of lower spending and less debt. This is especially true today and we are especially blessed and lucky as a nation to have Romney running in this election. Let’s vote for some real change for this country for the next four years.

Vote Romney, and until next time, America.

No comments:

Post a Comment