Tuesday, October 30, 2012

Why Romney Will SPEED Up the Recovery Better Than Obama

No matter what a President does, all recessions eventually end. However, the government can help by speeding up a recovery, or it can slow it down to a crawl, as we have seen over the past few years.

There are two schools of thought in what the government can do during a recession, and both are well intentioned. However, only one is helpful and the other is actually harmful and makes things worse.

The first school of thought, Obama’s plan, is for the government to inject huge amounts of money into the system to replace the lower spending usually done by businesses and individuals. Because spending is down, and therefore the taxes collected off spending are less, this extra money that needs to be injected comes from printing money and taking on more debt.

The second school of thought, Romney’s plan, is for the Government to reduce debt, live within a budget, and release the brakes that are holding back spending, by reducing and simplifying tax burdens for everyone.

Why is Romney’s plan better? It’s the difference between helping and enabling. Enabling may be well intentioned, but really it is defined as helping the wrong way, and makes the problem worse.

Romney’s plan actually works by making money stronger and it encourages growth in business. When businesses grow, they have more money, which they can either spend or save. And doing either is good for the economy.

A business can only spend money in so many ways: more jobs, more equipment, better salaries, more advertising, etc.  No matter what, the money continues to flow and get taxed. For instance, the employees who get paid spend their money at other businesses, the business’s suppliers spend money, and the faster that money flows, the more businesses are likely to expand and hire. Plus, the faster that money flows, the more that money is taxed at every step along the way.

If the business saves some of the money, it helps the business to be more stable (making them more likely to expand and hire people) and it helps banks (where they save the money) to be stronger, which in turn makes the banks more likely to lend out money. No matter what, every time that money flows around, it gets taxed again and again meaning that the government receives more tax revenue if money is flowing, and less tax revenue if money isn’t flowing.

Obama’s plan is to raise taxes to help make up the difference on those fewer people working, and Romney’s plan is to lower taxes and release the flow of money, which means receiving more taxes overall.

It’s as if the Government were a store in the mall and it were about to go out of business, the last thing they should do is raise their prices (raises taxes) because that would drive business away and dry up the flow of money.

On the other hand, by having a clearance sale and lowering prices on everything (like lowering taxes), they in turn make more money on the volume of sales (a larger money flow). However, just making more money isn’t all they need to do. They also need to reduce debts and balance its budget, and the same is true for the government.

Romney’s plan is better. Romney’s plan makes the economy better, strengthens everyone’s money, strengthens business and their ability to hire, and strengthens the Government’s debt position. Obama’s plan makes the economy worse, weakens everyone’s money, weakens businesses and their ability to hire, and weakens the Government’s debt position.

This is why when Obama supporters chant, “Four more years,” we respond with “Four more year of what?” What’s his plan except to do even more of the same? Obama admits that he hasn’t gone far enough, and wants to spend even more. He currently even refuses to put forth a budget, let alone balance it. Under President Obama, the US’s debt rating has dropped, and following his path will cause it to drop even more.

It’s okay to like the President and also realize that he’s done a terrible job of helping the recovery. If anything he’s harmed it and made it slower with his good intentions of overspending.

It’s time we let Romney lead our country, with his particular special set of skills of being a turn-around artist. He knows how to turn around failing companies, and if we vote right, he’ll be able to use those skills to turn around our anemic economy before it gets any worse.

Vote Romney, and until next time, America.

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