25 Sep Economics for Dummies!
I repeatedly hear people talking about what they receive from the government. I point out that government produces nothing and therefore cannot give a person anything. The government takes from tax paying Americans and redistributes the funds to those whom they choose to assist. Millions of our collective taxpayers dollars, along with funds borrowed from China, (one of every three dollars spent is borrowed) are given to foreign countries in the form of foreign aid (this from a country on the verge of bankruptcy) as well as social programs such as Social Security, Medicare, Medicaid, Food Stamps etc. Each and every one of these programs are clearly unsustainable for those who are under 50 years of age!
So, understanding this then let’s ask the question, What happens when the funds collected are less than the funds distributed. The answer is, government borrows or prints more dollars. However, there will come a time when the government will not be able to borrow nor print more funds so the distribution ceases. As you read this if you are under 50 you should be getting very angry because the government is taking funds from you that they know full well they will never be able to give back to you in the form of Social Security nor any other aid as these programs will clearly cease to exist in a very few years.
Business, on the other hand, creates jobs and make it possible to produce goods and services that people want and need and will pay for. As people buy these goods and services the business grows and the business owner who risks his/her funds to start the business makes a profit and uses some of that profit to hire others to work, and in turn increases the goods/services produced and sold. The people who are hired to assist the business owner pay taxes to the government who redistributes the funds. Now watch this; if there is no business there are no taxes collected! When government injects itself into business and imposes regulations that make it difficult, if not impossible to produce/expand the business, funds are restricted and business owners simply get out of the business resulting in lost jobs and lost income. Once this begins to occur people turn to government and demand government provide for them.
Enter Greece! In Greece Trade Unions, assisted by government regulations on business, have made promises to the Greek people they simply cannot provide so what happened; riots, demonstrations and a country that is economically imploding! This IS GOING TO HAPPEN in AMERICA and SOON UNLESS we get rid of the President who does not understand how America, the Corporation; America the Business works!
As November 6 approaches Americans under 50 better think about this and vote for Real Change that Must Come or Else! Put a businessman in charge of America the Business who understands economics 101!
Just my Thoughts