Wednesday, July 6

Both sides in the budget debate miss the point

The Democrats and Republicans are taking the nation's economy and the world's economy to the brink on the budget and the national debt.  Their handlers tell them to do that.  Those handlers are well paid and watch the polls and the money flowing into campaign accounts and party accounts well.  Drama is the game now.  The Democrats, led by the President and his people, hint at invoking the 14th Amendment  to raise the debt ceiling.  Both sides seem unwilling to budge on their positions.  Republicans want to cut spending.  Democrats want to raise taxes and close tax loopholes.  

The problem is, if both the Republicans and the Democrats got their way, the debt problem would still be there.  Simply put, the United States can not cut its budget enough or raise taxes enough to solve the debt problem.  Like in times before, we have to grow the economy.  What we have now are two sides of fools doing what paid political hands tell them will satisfy this or that group, with no one seeming smart enough to see the solution that is real economic growth.  

Let VUI be clear.  Combine the plans put together by the paid for consultants who run both parties, and you still have a debt problem.  There is no way around it.  The numbers are stubborn.  However, economic growth will get us out of this mess.  

Now, how to grow the economy.  For years now, VUI has advocated the Fair Tax.  Scrap the corporate and individual income tax, replace it with a consumption tax, and our manufacturing base will return and our revenues will roll in and the government will have more than enough to spend on things that the majority of Americans expect it to.  At the least, the capital gains tax needs to be eliminated or at least set way below income taxes, so people are encouraged to invest.  It is Economics 101.  We have to encourage businesses to stay here and people to invest here.  

Sadly, the leaders in both parties are not willing to adopt such measures.  They fret about the next elections.  They have highly paid consultants who grease the wheels, so to speak on both sides.  What we the people get are two groups of people, virtually paid for and living in fear of fringe interests, who stake out their positions hoping that this or that block of voters will support them.  Apparently, the days of statesmen, men and women in politics who did their own homework, and thought for themselves, are gone.  It is about about what this or that politico tells them to do.  

That might be okay in most political things.  But,the economy shapes the nation's survival.  Where are the great leaders of courage?  We seem all too much like Rome in its later days, once the hope of mankind, slumping along with its leaders succumbing to the endless parties and bribes of those who had their ears, leading to government for the few by the few to cause the ruin of it all. 
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