Today, Congress is finally debating the rising unemployment issue and the falling economy. Up until now they haven't touched the stuff. But finally, after first making sure to secure their own political invulnerability through the Health Care bill and financial security through sweeping bank "reforms," Democrats now feel they have the political capital to attack job creation at its source. By allowing the Bush Tax cuts to expire, Democrats will destroy small businesses, the source of job creation.
The government doesn't create jobs, it can only facilitate them by empowering the private sector to do what the private sector does best; hire. But, "the power to tax, is the power to destroy" (Justice Marshall), and heavy taxes hurt the middle-class small-business owners worse than anyone else. When they close, the jobs they provide are lost too. Some Democrats understand how ruinous taxes are, that's why they don't pay them (Charlie Rangle). For the most part though, short of calling all Democrats stupid, I'll settle for the thought that they want to destroy the private sector.
It's no coincidence that as 2.5 million private sector jobs disappeared, 700,000 public sector jobs suddenly materialized out of the need to audit and kill companies like the ones that had provided those 2.5 million jobs in the first place. The only thing Democrats are facilitating is a subtle transition from self-reliance and prosperity to government-subsidized poverty. This is underscored by a distinct lack of incentive to succeed anymore, what with the 55% estate tax once you die. And God-forbid there should be a law requiring citizens to be responsible, to put 3.5% down on all mortgages. Because as Sen. Dodd worryingly put, that "would restrict home ownership to only those who can afford it."
Thanks to the taxes, there are fewer jobs, which leads to fewer people being able to afford housing. Since Frannie/Freddie May/Mac's time, this has meant that home ownership is still open to everyone, but just payed for by more productive citizens at penalty of law.
Posts
TT: So you want to see a show?
11 hours ago
In the housing boom, the unresponsible homeowner made many purchases. They amazingly purchased a home without paying a cent for it. Now the same people are walking away from these homes because they have nothing to loose, except for some bad credit. The unresponsible homeowners also refinanced their homes to the max. For some reason they are not living like our parents and grandparents where it was best to pay off their mortgage. They will not be able to retire in their home. Their mortages will be to costly for them in their senior years. I wonder how many middle aged homeowners are thinking of this now? Without all the money from housing going into the economy we will continue deeper into the recession. With homeowners who have no equity in their homes,it makes it easier for them to walk away.
ReplyDeleteWith more vacant houses, vacant stores, no job creation, more taxes, more surcharges on the middle class we are just about at the point of loosing the Middle Class. Middle Class will apply for food stamps,public Housing, public schools,medicare,unemployment, college aid, public transportation-no longer being able to afford private cars, houses,medical insurance,dental,food or education. The more taxes, surcharges, utility, water, and insurance increases to own a private home,the more likely government is doing away with Middle Class. The Middle Class is hanging on by a shoe string.