Raising taxes solves nothing. And that my friends is why President Obama is stupid. It is why Harry Reid is a dunce. It is why Nancy Pelosi is the Queen of the Yum Yum Brains.
With the fiscal cliff looming before us it is time to warn you that this Christmas Season the only thing you are likely to receive are worsening tantrums from Washington. Most of these tantrums will come from liberal Democrats. Although make no mistake there will be many coming from liberal Republicans too. Sure there are a lot more of the former but the latter are just as bad.
The reason for these tantrums is simple: liberals just dont understand the problem. The problem is that America is spending more money than we are bringing in. Now liberals think that they can solve this problem by bringing in more money through tax increases on the rich.
Yawn. Its the whole robbing Peter to pay Paul sort of economics liberals excel at. Increasing taxes simply doesnt solve the problem. And all intelligent beings know this. You dont get growth by shifting money around.
Lets look at the math shall we?
Gross Domestic Product (GDP) is the way we measure a countrys standard of living. It is equal to private consumption gross investment government spending (exports imports).
Taking money from the private consumption and gross investment components (by taxing people) and moving it in to the government spending component changes nothing. Well it makes liberals who benefit from government spending happier but essentially the GDP stays the same.
The math is simple. Subtract a billion dollars from private consumption to add into government spending and nothing changes. Swat another billion dollars from gross investment and likewise move it to the governments control and still nothing changes. All you have is the equation now looks like this:
GDP(new) = (PC - $1 billion) (GI - $1 billion) (GS $2 billion) (exports imports)
And further:
GDP = GDP (new)
And then if you really want to deal with the real world things start looking not so good once you realize that government never gets the most out of the money it taxes from Americans to spend. If you doubt this I suggest you review the history of government spending money on failed green energy jobs. Lots of government spending has gone POOF with nothing to show for it. Again except for a lot of rich liberals who are laughing all the way to the bank with your tax dollars.
In reality GDP (new) is much less than GDP before.
The real problem is that the government spending component of the GDP exceeds government revenues by about a trillion dollars. Thats every year. This means that our GDP is artificially inflated by about one trillion dollars. Make any cuts which we need to do and the GDP goes down. That can have serious economic impacts in the short term. In the long term it solves a great many problems however.
But liberals wont let those problems get solved. They wont let them get solved because too many of their constituents rely on that extra billion dollars of funny money we are spending every year. And we all know what angry liberals do when they dont get what they feel they are entitled to. Just remember the Occupy Wall Street crowd and those rioting loons over in Greece if you need a refresher.
So instead liberals pretend that taxing certain Americans will make everything alright. And they will kick and scream all the way over the fiscal cliff if they dont get their precious class warfare codified. President Obama rants and raves about the need for a balanced approach to our problems. What he means of course is that unless he gets tax increases on certain people those he has deemed to be evil he will throw a tantrum the size of which America has never seen.
Yet as we can see raising taxes solves nothing. And that my friends is why President Obama is stupid. It is why Harry Reid is a dunce. It is why Nancy Pelosi is the Queen of the Yum Yum Brains.