Why if a company is too big to fail, is it forced to buy another company and become even more too big to fail…??? It makes no sense unless the objective is not to do what you are saying, saying the economy, as much as you are consolidating. And why consolidate the banks? Why did the government do that, when it seems to clear be the opposite of what the government had done before, which was to break up companies because they were too big. Like back when the phone company was broken up, and forced to compete with others.
Why lower taxes would help this country:
John F Kennedy once said “
It is increasingly clear that no matter what party is in power, so long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough revenues to balance our budget just as it will never produce enough jobs or enough profits… In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.”
Yet Obama does not heed these words, although it can be demonstrated that in every instance where taxes were lowered, the tax income to the government increased, as the economy accelerated…
I wish he would study up on what democrats did in office that were remembered as being good for the country…
Brief and to the point!
ReplyDeleteI might add that when companies or banks are bailed out, it has the effect of telling them that they can continue the risky behaviour that got them in trouble, because there are no consequences. Much the way an amnesty for illegal aliens doesn't clear a backlog, but only sends the message that it is ok to immigrate illegally, and thus more of it is generated.
No company is too big to fail, and in the past many big companies have fail. Do you know of a company with the initials A&P? A&P is The Great Atlantic & Pacific Tea Company, and at one time was the largest supermarket chain in America, much as Wally World is today. Now they are a small company and almost nonexistent; in 2008 the number of shops were only 460. The idea that a company is too big to fail is a relatively new idea and it is time that the taxpayers say no in very loud words.
ReplyDeleteFor a man that many claimed to be well educated, the Glorious Leader seems to know very little about even basic economics, or even basic history. The idea that the way to recovery is by spending has been shown time and time again to not work. When I heard the Glorious Leader's comments during his campaign about using public works as a way out of the recession/depression/stagnation I immediately christen it the New Deal II, as it was along the same lines as the failed New Deal that Roosevelt tried during the depression of the 1930s. Why the Glorious Leader would think it would work today, with even greater numbers out of work, when it did not work before escaped me completely. Did the Glorious Leader sleep through that part of American History 101?
I was dismayed at the CARS programme (I wish they would stop with the cute little names for these programmes; I wonder how much time was wasted to come up with a name for the bill that would spell out the word cars?). CARS was as bad as the subprime mortgages fiasco, enticing people to give up fully functioning automobiles and to go into debt for a new vehicle. Not only did the programme create waste since the old cars were scrapped, it wasted taxpayers' money and did little to help the economy.
They have twisted economics around so they can play with the numbers and make things seem better than they are. The first thing is to go back to counting the actually goods manufactured in the country as a basis of the economic indicator. However, if they were to do this, then the US economy would clearly be below the x axis. The reason why the Chinese economy is so damn strong, and growing, is because they produce products, real products that you can hold in your hands. Unless the idiots in Washington wake up and realise this, then there is no hope for economic recovery in the US. Instead of bailing out the banks and insurance companies, the money should have been used to reopen the factories in the US so people can go back to work! How about increasing the import taxes on Chinese goods to the point that no one in America can buy them? If the US does not close down the Chinese imports, then the country is doomed.
One last point, it is time to start counting the real number of people that are unemployed. When anyone drops out of the unemployment system they are no longer counted as unemployed. Just because someone is no longer eligible for unemployment insurance does not mean they are employed. However, once a person is dropped out of the system they are no longer counted. That is why you will see unemployment rates fall when people are still unemployed. It is a numbers game that is not reflecting the true situation.