Does the government confiscation of private wealth stifle economic growth, or does government manage our money to better ends and produce greater economic results than private individuals?
This is the question that has been weighing in the balance, as the President and the Congress haggle over taxation rates for next year. And there’s only one correct answer to this question – if it is our collective American goal to “grow the economy” and “stimulate job creation” then we absolutely must arrive at the correct answer – and yet the President and much of the Congress seem to want it both ways.
The collective answer to this question was delivered from the American people via the U.S. Senate last weekend. President Obama’s plan to target “rich people” and raise their taxes while keeping taxation rates the same for other Americans went to a vote, and the Senate, controlled by the President’s own Democrat party, rejected the plan.
In response to this rejection, President Obama lambasted Republicans last Tuesday (despite the fact that HIS party delivered the “no” vote), calling them “hostage takers,” and struggling to make the case that all us middleclass Americans are being harmed because “rich people” aren’t getting sufficiently gouged by the IRS. It was a sad picture of a sitting U.S. President grappling with the dismissal of his agenda, and a painful example of what happens when rigid, left-wing ideology takes priority over rational, sound economics.
Put in proper context, it is understandable why a left-wing ideologue is our President right now, and why the last presidential election turned out the way it did. Think of all that was happening in the Fall of 2008. During the final weeks of the Obama versus McCain battle, multiple longstanding American financial institutions failed, mostly because of their overexposure to risky subprime mortgage loans.
This in turn touched off the failure of several banks in Europe, while the prices of stocks and commodities began to decline worldwide. And as this was happening, several countries temporarily closed down their respective stock markets to try and stop massive stock sell-offs, while the entire country of Iceland nearly slipped in to bankruptcy. Americans lost trillions of dollars in personal wealth, and the world seemed headed for collapse.
Austin Hill is an Author, Consultant, and Host of "Austin Hill's Big World of Small Business," a syndicated talk show about small business ownership and entrepreneurship. He is Co-Author of the new release "The Virtues Of Capitalism: A Moral Case For Free Markets." , Author of "White House Confidential: The Little Book Of Weird Presidential History," and a frequent guest host for Washington, DC's 105.9 WMAL Talk Radio.