Matt Towery

What about the other side of the equation -- savings and investments? Because we allegedly have no real inflation, the Federal Reserve is giving money away, and their low interest rates also guarantee that you will get next to nothing for parking your money in a money-market account. In fact, about the only place the average American can make any real money is in the stock market. This is a market that has risen while the rest of the nation has been stalled out. Now does anyone really trust the stock market long term, in light of the high jinks we have seen surrounding just the new public offering of Facebook stock? The answer is, not likely.

Businesses are already building in the increased costs of doing business in America if Obama wins a second term. They have already been regulated to death, but the threats that come with four years, particularly if Republicans do not control both the House and Senate, have virtually every entity that employs people -- from the largest to the smallest -- preparing for the worst.

They know an Obama re-election means that the Bush tax cuts go away and that marginal rates will rise for virtually anyone who participates in our free enterprise system. Most deductions will disappear, and the natural reaction from businesses will be to trim more fat (is there any left to trim?) and try to charge more for a product or service.

If anyone doubts how desperate companies can get in a crunch, just look to the airlines. Most charge you extra for everything but the supply of oxygen and cabin pressurization onboard. If we don't look out, they may start charging us to breathe while in flight.

It appears President Obama believes in his own form of trickledown economics -- we just trickle down to nothing.


Matt Towery

Matt Towery is a former National Republican legislator of the year and author of Powerchicks: How Women Will Dominate America.
 
TOWNHALL DAILY: Be the first to read Matt Towery's column. Sign up today and receive Townhall.com daily lineup delivered each morning to your inbox.
 
©Creators Syndicate