Monday, November 5, 2012

What if the Economy Were a Garden? How Would You Help it Grow?

It’s a myth that we have been in the “Biggest Recession Since the Great Depression,” however, we have been in the “Worst Recovery Since the Great Depression,” and have supposedly been in recovery for years now. But does it feel like a recovery to you?

Imagine if our economy were a garden, with plants of all sizes, big and small representing people rich to poor. These are people and business that work in the private sector who create wealth, or our garden’s fruit. The entire bounty from the garden is our GDP, and taxes are a portion of that bounty which are used to fund the government.

Right now our economy has shrunk, which is like having a smaller garden. Plus we have a lot of dead spots and plants that are not producing, that’s our unemployment.

The question is, how do you grow the garden and help it produce more fruit?

Obama and people on the left want to stunt the growth of the bigger plants on one side of the garden in the name of fairness to the smaller plants. They keep telling us that this will, against all logic, produce more total fruit.

Romney on the other hand wants to nourish every plant in the entire garden, and enlarge the size as well. He also wants to reduce the demands on every plant so that the entire garden is healthier. A bigger and healthier garden produces more fruit.

Interestingly, after World War I, Democrats and Republicans and even the king of liberal economics John Maynard Keynes, all agreed that if tax rates were too high, it forced rich people to put their money into tax shelters, instead of investing in businesses that employ people. This was not at all politically divisive. Everyone agreed.

In fact, they all understood that when tax rates were reduced, money was taken out of tax shelters and invested in businesses that hire workers. This money does not trickle down, but goes directly to the workers in hopes that the business will succeed. If and only when the business succeeded, the money would Trickle Up to the investors.

It’s a myth that any economist or politician ever endorsed the idea of “trickle-down-economics” because it doesn’t exist. The phrase was started as a left-wing attack by FDR towards his opponents.

Ever since, tax rates have became a political issue and a way of dividing Americans. Democrats with the exception of JFK have since pushed for higher tax rates and Republicans for lower, with Republicans being accused of only wanting to help the rich.

After FDR, liberals began to believe that recoveries come from the government going deeply into debt and spending money it didn’t have, while raising taxes on the rich. But truthfully, if we taxed the rich at 100%, it wouldn’t begin to solve the problem of the current administration’s need to spend money it doesn’t have and go more and more into debt. Plus higher debt and higher taxes put more strain on a smaller and stagnant garden.

Remember that government does not create wealth and it cannot create any jobs. All it can do is take wealth from people who create it (the private sector), and give it to people who don’t (the public sector). And though we need a certain level of the public sector, most people agree that the system can’t be sustained when the US Government is already gobbling up over 40% of our nation’s GDP and growing.

Growing the government doesn’t create jobs and doesn’t create wealth it only puts more and more strain on the entire garden.

Something has to change and Mitt Romney is the only vote that will remove Obama and his strangling policies. A vote for anyone else is a vote for Obama. Staying home is a vote for Obama. And unless you vote for Romney, you’re voting for bigger government, more debt on us all, and a slower, stagnant “recovery.”

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