Economy & Budget

The November 2012 election is a choice of whether we're going to be for, of and by the people or for, of and by the government.

There is a mindset in our country that the government is becoming progressively smaller and less intrusive. Those who doubt this mindset often reference the New Deal, often cited as the government’s solution to the Great Depression by creating workforce programs. However, this was an isolated point in our history where extreme government intervention was necessary in order to preserve any type of economic freedom.

In politics, a damning report is in the eye of the beholder. The Washington Post published an account this week about a report former Homeland Security Secretary Tom Ridge released that warns the offshoring of U.S. manufacturing jobs has put the nation's security at risk and made the United States more vulnerable not only to terrorist attack but to natural disasters as well.

Mr. Frank, your display on the House floor this week speaks volumes on the financial debacle that the world suffered four years ago. You were emphatic that the Federal Reserve Board was above, beyond, and exempt from oversight. In your arrogant display, you attempted to belittle Rep. Ron Paul's (R-Texas) legislation that called for auditing the Federal Reserve.

Forget the fear that the Republicans and the Tea Party spread across the financial markets on the debt-ceiling fiasco last year. Forget the gridlock they created over the budget and inability to solve real problems such as getting out of the economic rut. Forget that they turned upside down every rule of sound fiscal management with their antics.
 
Now the Government Accountability Office (GAO) tells us that the extremist Republicans cost the taxpayer over $1.3 billion in 2011 with their months-long obstructionist behavior. That figure will only increase in years to come, according to the GAO.

Shakespeare warned, in Hamlet, "neither a borrower nor a lender be — for loan oft loseth both itself and friend. And borrowing dulls the edge of husbandry." That aphorism conveys primarily a moral, not a financial, message. In our discussions of the modern world, the basic principles are often put off into broad generalities — whether we want to speak about governments, banks, corporate America, the mortgage industry or consumers. But at the basic level, every one of these abstractions is built upon the activities of individuals. One of the most salient lessons we can learn from the subprime debacle is about individual behavior — specifically, the way in which individuals should deal with debt.

A recent Wall Street Journal article examined how the Fed’s use of low interest rate policies has failed to reach those most in need. Aptly calling it the “credit divide,” the article finds that “Fed officials have been frustrated in the past year that low interest rate policies haven’t reached enough Americans to spur stronger growth, the way economics textbooks say low rates should.”

Over the weekend, our president stated that if you are successful in America you have the government to thank. He said, "If you've got a business, you didn't build that. Somebody else made that happen."

Without the roads, bridges, teachers and other things provided by the government, people could not have achieved success in America.

I think these are some of the most asinine statements I've ever heard from a world leader. Comments like this are a slap in the face to the American Dream and reveal the president's naïve view that government, and not the hard work, talent and initiative of people, is the center of society and the economy. Obviously Obama has forgotten that there are many other nations in the world with roads, bridges, teachers and other things provided by the government that have not even come close to the achievement levels of the United States.

The other day, at our local fresh fruit and veggie stand, I noticed that a young woman working there was requesting tips for her “college fund.” I put $5 in the jar that she had and asked her where she was studying. Her mom, who runs the stand, said wearily, “I’m not so sure college is the right idea anymore. A college degree doesn’t necessarily mean a job when you have so much debt.” John Zogby, the noted pollster, calls such people CEWCGJ: College Educated Who Cannot Get Jobs.

This summer we have seen some devastating fires in the West. Many people have lost their dream homes and will have difficulty rebuilding them over the long term. We have also lost a lot of our natural forests. Many see this as a tragedy as well. However, the burning of forest is a natural gardening tool that improves our ecological situation because if there were no forest fires, the brush would become so thick that it would choke the life out of trees and ruin many animal habitats. It's an example of something that appears to be horrible on the surface yet actually has a long-term beneficial effect.

Yesterday, the Obama administration unveiled its new plan to extend the Bush tax cuts for one year for everyone except the rich. According to the Obama administration, they are the individuals who don't pay their fair share of taxes.

The administration's view is actually quite naive and out of touch with reality.

The truth is, the top 10 percent of taxpayers pay more than 40 percent of all taxes and 50 percent of people pay 97 percent of all the taxes. So if anyone isn't paying their fair share, it's the other 50 percent of the population that only pays 3 percent of the taxes.