When government attempts to redistribute wealth, this incentive structure is thrown on its head. In the Auto and Bank Bailout the government gave money to those who were failing, effectively propping up the losers and allowing them to stay in business to the detriment of those institutions that were wiser stewards of resources. The same thing happened in the economic stimulus. The tax cuts predominantly went to those who weren’t paying taxes in the first place. The real middle class gets $8 a week while the bulk of the $787 billion goes to pet pork projects of congressional leaders, or to those who are already receiving assistance from the government. Our incentive structure is out of whack. Rather than rewarding those who are working hard just barely staying afloat, we pass over them and help those who are already being helped.
This exactly what is happening in Obama’s new mortgage plan that is expected to cost around $275 billion, and to which CNBC host Rick Santelli succinctly asked, “Why should the 92 percent of responsible people bear the burden of the 8 percent that were irresponsible?”
Essentially the Obama administration is spending our money to bail out and assist the roughly 9 million Americans who are currently facing foreclosure. They are trying to artificially prop up the housing bubble and reward people who acted irresponsibly. While some people were working hard and scrapping by, the question is if this actually serves to help those people. For the vast majority of them, the answer is no. This bill takes from those who made wise decisions and worked hard, and gives to those who lived behind their means. It punishes responsibility while pushing irresponsibility.
Our market economy rewards those who work hard and make good decisions. And as John F. Kennedy believed, “A rising tide lifts all ships.” Meaning, when people are free to be productive and prosper, the pie is growing and we are all better off. The liberal view, and Obama’s view, is that the economic pie is fixed and we need to rob Peter to pay for Paul’s mortgage. This is simply not the case. America was founded and has become the most prosperous nation on earth based on the principles of free enterprise and capitalism, allowing people to bear the fruits of their labor.
Obama is simply an enabler to those who made poor, irresponsible decisions. One reason Obama is doing this is for power and control, the other is because he wants people to like him and be dependant on him.
If Obama is allowed to continue to push his socialistic agenda, our wealth and prosperity will disappear. It is time for a taxpayer revolt. As Rick Santelli said, it is time for a “new tea party.”