Washington, in its great wisdom knows all the answers to everything. Go back in history and you will see that 99% of the time the solution is almost always the same:
SPEND TAXPAYERS MONEY.
Does that sound familiar to what is going on today?
Obama is spending more in his first month than Bush did in the last 2 years. Not that it makes any difference. Bush called himself a Republican, but is really a painted over Democrat. He has the same philosophy.
History in its sad commentary shows that each time the government has tried to solve a major problem they have made it worse. For reasons beyond logical thought once people are sent to Washington their brains stop working – at least most of them.
All over the world it is being shown in major industrial countries that socialism is the path to bankruptcy. We are now on that super highway to oblivion. Each time a new welfare program is enacted those receiving it give up freedoms. There ain’t no free lunch.
The Civil War freed the Negro slaves. All they have done is trade one form of slavery for another. Anyone, black, white, any color, on welfare has succumbed to silent slavery and are not aware of it. It is not the job of government to take care of people from womb to tomb. They should be taught to be self sufficient.
You cannot make poor people rich by making rich people poor. It is the people with money who start businesses and create new jobs. Real jobs, not make work projects. Raising taxes does not increase government income.
There is an interesting tax study known as the Laffer Curve, created by Arthur Laffer, a well known economist. Actually government income increases when the tax rate declines. The curve will indicate an optimum return point. Unfortunately our leaders do not seem to be aware of it. It really works. You might want to investigate this on the Internet. Ask your Congressman or Senator if he understands it.
Once elected the new leaders now suddenly know all the answers to the economic problems. The people have been promised a solution that includes more jobs and higher home prices. Neither can be done by Washington. That solution must come from the people, from the entrepreneurs who start new businesses.
Now that they have assumed office they find their campaign promises may not be able to be fulfilled. If they did nothing and let the normal economic cycle work it would have the same effect as the one they are proposing, but the time period would be much, much shorter. Now their solutions will make the inevitable outcome last longer and be no less painful. A major worldwide depression is coming and Washington cannot stop it by applying monetary band aids. It is going to be nasty. Their actions show they do NOT have any answers to the current economic problems.
You may receive Al Thomas’ investment letter that profited 15% in 2008 at no charge for 3 months on the web site www.mutualfundmagic.com Never lose money in the stock market again. His book “IF IT DOESN’T GO UP, DON’T BUY IT!” has become a classic. Copyright 2009. Williamsburg Investment Co. All rights reserved.