Fixing the Economy

Fixing the Economy

Something so simple for someone with the “balls” to take on all the crooked politicians throughout this country, yes all fifty states.

It takes taxes to keep the government running; it also takes taxes to repay the monies we (The U.S.) have borrowed up to now to pay for the mismanagement of government. It takes taxes to pay for disaster relive whenever we have a large scale disaster mainly caused by nature. We also need our military to protect us, (not other countries) and that is paid for with tax money and finally there is the poor in this country, a number that keeps getting larger every day, and when the government gives us assistance that money also comes from taxes. There are other services like border patrol, police, fire fighters, etc that also are paid from taxes; most people don’t stop to think how wide spread a government expense obligation is and how if not managed correctly, very quickly you run out of funds to keep the country going.

Where do taxes come from? Well, taxes come from different sources and I will give you a few examples: Income tax, sales tax, property tax, etc.

Starting with the obvious, income tax: if you have ten people unemployed for any length of time here is the consequence: being that they are not working, they are not paying income tax, they will collect unemployment which some think is all paid by the previous employer, it is not. Part of that unemployment check is paid for out of tax money, especially if there are extensions of benefits, and lately there have been at least three or four. Let’s say that one out of the ten people unemployed one has an accident or simply gets seriously sick, since they are unemployed more than likely they have no medical insurance, so the hospital doesn’t get paid and at the end of the year deducts the debt from the taxes they are supposed to pay claiming a loss and therefor giving less to the government, or if the government pays for the hospital bill, it does it with tax money, and since the government does not pay the full amount charged by the hospital, the difference is still claimed as a loss. 

So now let’s suppose that each of these men were paying in income tax, now being unemployed not only they aren’t paying in, but they are drawing about four times as much as their contribution would have been, not only that, but since they have no money to spend, they are not making purchases that would bring in sales tax, and after being unemployed for too long, they will lose their house as it’s happened to so many Americans therefore not paying property taxes and creating a supposed loss for the banks holding their loans.

If you notice allowing our citizens to remain unemployed snowballs crippling our economy even deeper, because not only is the effects of the cash money not being paid in taxes and the money being paid out to help the unemployed, but since they are not consuming as much, other employees in other businesses will lose their job as they are not needed being that the demand on them has lessened. 

Multiply the above by three or four millions and you will arrive at our present state of despair.

At the time our economy begun to deteriorate it became public that it was the banks and financial institutions that actually caused the economic breakdown of our way of life, and being that those same banks and financial institutions own the politicians, those same politicians were quick to recommend the bailing out of the banks with stimulus money that came out of taxes, regardless of whether we borrowed it from China or had it stashed under the mattress, the money was from the tax payers. Now most, not all of these banks that were so eager to take the money and profit with the suffering of the average American paid the money back, but now and for the past year have refused to help our economy by refusing new loans, repossessing property that they themselves inflated the prices in order to make their profits bigger, and prevent small business owners to expand by not wanting to give out money necessary for the growth of these small businesses.

One good idea that will never happen is: force the banks to bail out the country as we bailed them out. Another good idea that also will never happen: the government should take ownership of the banking system. By the way, these same banks that were robbing us blind for years finally had someone (Obama) stand up to them and limit their reckless dipping into our pockets, so now they are coming up with new gimmicks and charges, just like the airlines. Apparently the people of the United States and the world for that matter have forgotten that banks use our money to survive, to make loans, to purchase property. You want to help our economy? Withdraw every cent you have in the banking system, no matter how much or how little you have, and tell the banks how you want them to operate; believe me, when the banks find themselves without funds to do business with, they will do whatever it take to fix their economy. I don’t know when it happened that the people became so stupid as to give an institution money to operate and on top of that paid them to use their money.

If the first stimulus money had been given to the average American that was in financial trouble and distributed equally among them, not the investors, but the average head of household or small business owner, the economy of our country and the world, would have flourished and there would have never been a need for a second stimulus package nor a third, or any other emergency measure.

The powers that be own this government and have in reality never lost any money, in fact they are richer now than they ever were and it is the average person that is suffering the consequences.

Many, many other things can be done to fix our economy, but none will be implemented so long as our representatives and our government is corrupt. It will take a very long time to get out of the slump we are in.

Jorge