Liberal Economic Myths
As the estimated costs of rebuilding after Katrina and Rita (those two gals are trouble - I tell ya!), continue to escalate. It's important to have a clear grasp of economic realities. This isn't always easy to do since there are so many people with microphones spreading falsehoods about the economy. The rhetoric comes fast and furious at times, but the truth does come out at some point.
The total cost for just Katrina has been estimated at around $200 Billion. Not withstanding the petition to the Federal Government by the Louisiana Senetors asking for $250 billion, as that probably will be pared back by congress. Nevertheless, it will take a huge amount of money, especially if we add in the cost of hurricane Rita. But that really isn't a lot of money relative to our economy.
The fact of the matter is that we are going to be able to pay for all of it, plus a whole lot more. Thanks to the tax cuts of the Bush Administration, the Federal tax revenues are way up. And it is no surprise. It is an economic true-ism that if you ease the tax burden on society, individuals will make decisions to use their money and thereby allowing it to be taxed. If the tax burden is too high, then those same individuals will protect their money so as to avoid any exposure to taxes. And now we see the net result in increased revenue.
Socialism constricts the economy with too many rules which equals a sluggish economy, low tax revenues and higher unemployment. Capitalism, on the other hand, is the only reason there is an economy in the first place, and the only reason their is employment, and the only reason there are any tax revenues at all. So it appears to the logical mind, that capitalism should be encouraged, and socialism should be feared.
There is not one socialist country, in the history of the world, that has achieved the economic statistics of the great capitalistic democracies in the world.
The total cost for just Katrina has been estimated at around $200 Billion. Not withstanding the petition to the Federal Government by the Louisiana Senetors asking for $250 billion, as that probably will be pared back by congress. Nevertheless, it will take a huge amount of money, especially if we add in the cost of hurricane Rita. But that really isn't a lot of money relative to our economy.
The fact of the matter is that we are going to be able to pay for all of it, plus a whole lot more. Thanks to the tax cuts of the Bush Administration, the Federal tax revenues are way up. And it is no surprise. It is an economic true-ism that if you ease the tax burden on society, individuals will make decisions to use their money and thereby allowing it to be taxed. If the tax burden is too high, then those same individuals will protect their money so as to avoid any exposure to taxes. And now we see the net result in increased revenue.
Socialism constricts the economy with too many rules which equals a sluggish economy, low tax revenues and higher unemployment. Capitalism, on the other hand, is the only reason there is an economy in the first place, and the only reason their is employment, and the only reason there are any tax revenues at all. So it appears to the logical mind, that capitalism should be encouraged, and socialism should be feared.
There is not one socialist country, in the history of the world, that has achieved the economic statistics of the great capitalistic democracies in the world.
posted by Rockin Rod at 7:04 AM
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