Wednesday, December 8, 2010
- Tax Cuts Won't Help
I don't mean to put too fine a point on it, but there won't be any 'Tax Cuts' for the rich or anyone else. All this Obama compromise is, is an agreement to keep taxes the same. But even if there were tax cuts, they won't help because taxes are not the problem.
Our elected officials go on about how they're making 'an investment' in America. but they are no better at investing than they are at anything else. Government projects cost many times more than private projects of similar size and scope, and take MUCH longer. In very basic terms they offer a much lower return on the investment than private projects. The problem that we're having in America is that we aren't creating enough wealth for all the money we're 'investing'.
Government is too big. We need to slash it. We can't afford to pay people for doing nothing anymore. No more 'free' stuff from the government. It seemed to work fine when we could just borrow money to make up the difference, but those days are over. We're at our collective limit. Our credit card is about to be cut up by the Chinese.
It's going to take serious thinking to get us out of this. The adolescent, self congratulatory, top down thinking of the far left is going to need surrender to the metaphysical constraints of reality. If they don't wake up and smell the coffee soon the whole thing is going down. the problem isn't taxes per se. The problem is that we need to all get a higher return on our investment. We can't get that from government when all they do is take it from someone who is producing a lot, and giving it to someone else for consuming it.