Showing posts with label Obama. Show all posts
Showing posts with label Obama. Show all posts

Tuesday, February 10, 2009

Trickle Down Economics

Ok now this may not make me the most popular person in the world but I firmly believe that the trickle down theory of economics works. What our current administration should be doing is giving tax breaks to businesses that will in turn be able to redistribute that money back down the food chain.
When corporations get more money in their pockets via tax breaks it benefits society as a whole. With more money to spend companies can either hire more employees and/or cut the price that consumers pay for their goods. Either way this in extremely beneficial to society. If the company gives a man a job he is essentially creating another consumer, which in turn helps stimulate the economy. If the company passes the money down by cutting the price of their goods, they make it so that more people will be able to purchase said item.
Now, if the government instead gives money directly back to the lower classes what will they do with the money? Well they will either spend it to neccessitate their immediate survival or they will save the money in the bank for "a rainy day." Neither of these things accomplishes anything long term for the good of the country.
The truth of the matter is the top 1% of the country effect the economy more than the 99% of "lower class" people. Whats sad is that most people agree with that statistic but over 40% of the people in this country think they are part of the 1% at the top.
Sorry this is getting a little bit rambly (not a word, but it should be). Moral of this story, give money to the rich, yes they can fix this country, they are the only people who can fix this country. When the government goes out playing Sherwood Forest with rich persons money to give to the poor it puts us one step closer to socialism.

Financial Bailout/General Complaints

How frustrating is this administration for the stock market. Last night Obama comes out and tells us nothing about the future of our economy other than "we need to creat 4 million jobs". His big talking point was about Iran, now no one in America cares about Iran today, people just want to hear about domestic issues for the time being and believe you me there is plenty to discuss.
Now as for Tim Geithner, first of all this man is essentially a crook, he cheated on his taxes, as soon as he was nominated he "realized" it and paid them off... looks at least a little suspicious to me. But anyways, my real complaint about him is that today there is a big press conference and we are going to be rolling out the plans to save our financial institutions....and guess what? He didn't tell us anything new, we have no in depth plans for how the banks are going to be saved. And now we are seeing this reflected in the stock market.
I must say I thought the Obama administration was going to be bad for the stock market long term, not because they weren't going to throw money at it, lord knows, to quote Obama, "he's all ginned up to spend taxpayer money." No we thought he would be bad because of his false impression that helping the poor directly helps the economy in the long term. this is the equivalent of giving a man a fish. We need to have tax breaks for the rich because the trickle down theory of economic does work. As soon as Americans realized Obama was going to be president, and trust me people knew about it in the summer (at least those of us with half a brain did; a giraffe could've beaten a republican candidate this year), the market really started to turn downward. OK we can't blame it all on Obama, but him coming in guns blazing with talks about raising the capital gains tax certainly didn't helop things any.
Obama and Administration hear me:
Tell the public something good, tell them in a clear and precise manner exactly what we will be doing to save our financial industry, as an investor I need to know before I am able to (accurately) decide what I should do with my money