Economy 101 for Liberals

UDATED for clarity.

uncle-sam-bruised-economy

First a disclaimer: I’m not a economist, I don’t play one on TV, Broadway or the local theater group … what I am is a guy that has a small business and thinks the government has got it wrong and I’ll try to state why…

The Government keeps pumping money into the economy to sure up the economy, but that’s taking money out of the economy. Confused yet? It gets worse. This all started with under George Bush and it has exploded on a huge grand scale under Barack Obama and it won’t work no matter who does it. Why won’t it work? Hang on we’ll get there. It will at best only have the most minimal marginal effects on the greater economy, but in order for the government to put money into the economy it has to get to money out of the economy. It’s robbing Peter to pay Paul and that is not a economic plan.

So where does the money the government gets come form, well the taxpayer right? Where is the government spending money it get from the taxpayer and who is it going to help, again the taxpayer. The money that the government is putting into the system is the same money the government is taking out of the system or borrowing against the future, now the government may not take all the money that they need out, all at once (they can’t… as it’s not enough there) but its got to come from someplace and vast majority of the money is the money that would have been in the future economy and is now removed in the form of reoccurring taxes that is used by the government to stimulate the economy long term or so they claim. Whereas if the government left things well enough alone the money would have been put into the economy anyway in do time in a more wide spread fashion than the government would direct otherwise and more money would have been put into the economy more efficiently and bypassed the huge bureaucracies of government that waste more money than is actually put back into the economy.

Yes I know duct tape is needed by now.

It’s a zero sum gain, you can’t take half of what you have in your right hand and put it in your left hand and say look you now have more because both hands are full. That’s bullcrap! That’s exactly what the government does, they take X number of dollars out of the economy and then put X number of dollars into the economy and say “Thank us, look what we did, aren’t we the niftiest thing ever? We stimulated the economy with money already there.” Sadly too many people buy this liberal propaganda crap on economics. How and why I don’t know it’s confusing as hell.

So how is that money already there? Well it is and it isn’t, they are borrowing against the present and the future. At some point that money has to be paid back and at some point the note comes do. So to pay back the money they borrow from the taxpayer they have to raise taxes on those same taxpayers thus removing that future money from the economy and continuing the same cycle of stagnate growth do to a short fall of money in the private sector as a result of government overspending on so-called stimulus.

Does any of this make sense? Am I making sense? I reread it and I’m not sure it does …

Let me try this another way … Barack Obama wants to redistribute wealth and he has said this. It doesn’t work. Why doesn’t it work? Well let’s look at two people Man A and Man B.

Man A makes $90,000 a year; Man B makes $20,000 a year. The government under Obama want to take $35,000 from Man A and give it to Man B, now both men have $55,000 a year, but the $35,000 is given to Man B in the form of Welfare, Food Stamps, government housing and Health Care so he doesn’t have control over his personal economy. Man A has $55,000 but it’s his money, however since all people, businesses and employers are paying more to the government in the form of taxes and have to raise prices of goods and services because of those taxes this reduces Man A’s disposable cash in his personal economy. Say Man A spends $10,000 on health care, $10,000 on food and $15,000 on housing … not unrealistic numbers he now has $20,000 too, just as Man B. Therefore in Obama’s world this is fair, but under this concept Man A suffers because he pays more to support Man B, and Man B suffers because there is not prospect of employment do to decreased demand. It’s a downward spiral for both, as Man A sees no need to work hard to support Man B and thus Man A does less and pays less in taxes and both have a lower standard of living that continues to decline.

Now let’s take Man A and Man B again and this time lets not over tax Man A … Man A works hard and keeps most of his money, he pays for his staples and has money left over. Some of it he saves, but most of it he spends on goods and services at area businesses. Man A goes out to eat, goes to the movies, the theater, buys a boat, a new car, buys a bigger house, goes on vacation and spending it on various other frivolous items. In Obama’s world this is not fair, because Man B can’t do these things, because Man B doesn’t have a job and only gets minimal government assistance from Man A. Well as Man A spends the money he gets to keep and 1000′s upon 1000′s of other Man A’s and Woman A’s spend money, businesses grow and businesses need help, they need to hire someone to meet the demands of the Man A and Woman A, they hire Man B and he starts making money, he has a J-O-B job. Now Man B starts to spend money for himself and no longer needs government assistances for anything and the government no longer needs to support Man B with Man A’s tax dollars. The government can begin to pay off the debt and instead of over burdening Man A by having a sustainable and reasonable tax rate on both Man A and Man B without damage to the economy.

To my liberal friends, this is the difference between a handout and a hand up. Neither Man A nor Man B will thrive under Obama’s plan, however both will in a truly capitalistic world. It will not come over night to Man B; his success lies within his desire to succeed and not within the government to support him. It’s all about opportunity and that’s the only entitlement. Socialism has never worked and it’s not going to work here, you can’t take water out of one side of the bucket.

I could drone on and on about who enabling dependency, snuffing ambition, denying opportunity etc and so forth, but you either get or you don’t. Sadly to many on the left just flat out don’t get it.

So what can you do to stop this generational theft, this rob from the so-called rich (i.e. middle class) and give to the poor? What can you do to stop enabling Man B to live off Man A? How can we get the government out of our wallets and out of our life?
On April 15th 2009 there is going to be several Tea Parties, get involved and get moving! Tell the government in numbers we’re mad as hell and we’re not going to take it anymore.
Here is some useful links to more info, parties and party aids.

Tea Party update: Revolution is brewing
Tax Day Tea Party Planning Guide
Tea Party Conservatives vs. Dinner Party Conservatives
Tax Day Tea Party Handout

The MSM has been trying to avoid reporting on these little parties, but if enough people show up and enough noise and made, and enough bloggers and conservatives get the word out why it will be “to big to fail” to quote the Dear Leader and the MSM will actually have to report it even if they hate it.

Post to Twitter Tweet Post to Yahoo Buzz Buzz Post to Digg DIGG Post to Facebook Facebook Post to Ping.fm Ping Post to Reddit Reddit Post to StumbleUpon Stumble

Related posts:

  1. Obama to raise taxes … the slackers need more money.
  2. Obamacare… stop it, stop it, stop it, stop the Party of Tax.
  3. Obama’s deficit tops $1.1 trillion as the War in Prosperity drags on.
  4. The Job Summit summed up.
  5. “Tax Cuts for the Rich” rebranded “Middle Class Tax Cuts”
  6. Tax, Tax, Tax and Tax Some More
  7. Obama: A failure in Leadership 101
  8. Let there be pain…
  9. Do the right thing??
  10. Obamabots Mobilized


You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or create a trackback from your own site.

3 Responses to “Economy 101 for Liberals”


  • Comment from John Marlowe

    I have a way to tackle two problems at once.
    There is your argument about freeloaders and handouts which I agree with.
    Then there is all of this whining about the Mexican drug cartels violence spreading over into the U.S.

    Maybe our government has it all wrong, instead of wasting time, money, and the lives of highly trained officers (DEA and the such) trying to cut off the supply why not save money and cut off the DEMAND.

    i.e. anyone receiving a government handout between the ages of 18 and 65 should be subject to regular random drug testing. This would include looking for any and all known narcotics, halucinogenics, and masking agents. Anyone failing said test or voluntarily failing to take the test should have their government handouts terminated. Another trigger would be any drug related criminal offense.

    Why am I picking on these people you may ask? I’m not really, it’s just simple statistics. Look around you, how many people do you know with a decent paying job that sit around and do drugs in their spare time? There are a few I’m sure but it doesn’t even compare to the number of people on the dole that sit around and do drugs on their free time, all these people have is free time.

    If you find a way to stop these people from doing their drugs on their free time then just maybe they might possibly want to get a J-O-B in their free time and start contributing to society.

    As a by product their will be much less demand for the Mexican drug cartels product. I call this a win-win

  • Comment from AWG

    You won’t get an argument from me, I’ve always thought that if you get a government check you need to take a drug test, just like the folks that WORK for their check have to do.

  • [...] that are going to be happening in the near future, it is currently up to 150 and growing. As I predicted the MSM is for the most part ignoring these little revolts against the run away spending of the Obama Presidency and I’m not alone in my observation [...]


Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>



21 visitors online now
4 guests, 17 bots, 0 members
Max visitors today: 31 at 03:04 am UTC
This month: 31 at 09-02-2010 10:26 pm UTC
This year: 156 at 08-05-2010 01:49 pm UTC
All time: 156 at 08-05-2010 01:49 pm UTC

© 2008-2010 The Angry White Guy All Rights Reserved