ELDER PATRIOT – Every time I hear a liberal politician suggest another government program to solve a perceived societal problem I cringe because I know the ignorant masses that sit in the audience and applaud will wind up poorer for it.
There’s a simple fact of economics that governs who pays the cost of all government policies: it’s the people. It’s always the people. Government doesn’t. Corporations don’t.
Government serves no constructive role in the growth of the economy. It can’t because it creates no wealth. Government can only redistribute the wealth that has been created by others. The result of redistributing wealth is a distortion of the free market. Since, free markets have proven throughout history to be the greatest mechanism for encouraging money to flow into purchases and investments where it fuels the greatest growth, any distortion only serves to put a drag on the economy.
A slowing economy results in spending deficits as politicians have always stood steadfast in their refusal to cut social welfare programs. The accumulated debt that becomes the consequence results in further economic drag because it must be serviced. That means even less tax dollars are available to fund existing programs creating a nasty spiral of increasing debt and economic slowdown.
When politicians talk about shared responsibility they avoid putting any responsibility on social welfare recipients who, themselves, represent the greatest drag on the economy because they create absolutely no wealth at all. To those who would suggest, a la Nancy Pelosi, that social welfare recipients spend money and that fuels the economy, it should be realized that never taking that money from taxpayers would better fuel economic growth.
When it comes to corporations the most important piece of knowledge to understand is that consumers pay all corporate taxes, costs of compliance with regulations, import fees, and any other costs that result from government mandates. This is because corporations are in business to make money so all costs must be passed on by building them into the price of the corporation’s products and services. As a consumer, when you vote for politicians who preach increasing regulations and taxes on corporations you must remember that you’ll be paying more for the products you need and have less money for the products you want. This results in less overall purchases by the nation’s consumer base, further harming the economy.
The Democrat-Marxist movement that has taken root in the United States today, should, therefore, always be interested in encouraging unfettered growth of the economy, if for no other reason than to fund the social welfare programs that they are so proud of. That they aren’t raises questions about their true motives to knowledgeable political observers. Unfortunately the ignorant masses continue following blindly oblivious to the lessons of history and the rules of economics.