Saturday, March 02, 2013

The Simple Solution

Conservatives and most liberals in America have traditionally believed that private enterprise and free markets create economic growth.  But for some inexplicable reason the current group of liberals in charge of the Democratic Party think government spending does.  It is not a profound revelation that bureaucracies are the most inefficient, unproductive, unaccountable and most corruptible form of organization in existence.  Government is the biggest organization there is, so it follows that it is the most inefficient, unproductive, unaccountable and corrupt.  Most Americans used to understand that.  But it is quite clear that today's Democratic Party no longer believes in capitalism and democracy.  They have evolved into hard-core autocratic dictators, and there actions are not to be questioned by us mere lowly citizens.  They are now indoctrinated in Marxist theology which does not tolerate different opinions, much the same as Islamic theology does not tolerate non-believers.

The purpose of government regarding economic activity is to legislate and enforce rules and regulations that produce and maintain a fair and competitive commercial and industrial environment with as little intrusion and interference in the marketplace as possible.  It should not be involved in determining how investment capital is allocated or in awarding subsidies or tax preferences to stimulate specific political agendas.  Its only influence in the economy should be in purchasing goods and services from private organizations in fair competition that are necessary to effectively carry out its duties of providing national security and in the administration of required public services.  Those services include the provision of a reasonable safety net for the less fortunate citizens who truly need support.

Despite being on the right side of the less versus more government issue, conservatives are losing the argument against the Progressives / Socialists / Marxists of the Democratic Party.  They are losing the argument for two simple reasons.  One is that this far left wing of the Democratic Party controls the vast majority of the popular media, incessantly indoctrinating the public with non-stop lies, misrepresentations and propaganda regarding the conservatives motives and agenda.  Demonization of the opponent by fabricating lies and then accusing the opponent of lying is very effective politically when all the information the public hears is biased bullshit.

Since the electorate is still nearly evenly divided despite the brainwashing, as evidenced by the closeness of the last election, the lies could be easily overcome if conservatives would pull their heads out and understand the second reason they are losing the argument.  The majority of Americans at all income levels really do believe that the top one or two percent on the income scale do not deserve the outrageous amounts of money they make, particularly corporate CEO's and the Lizards of Wall Street.  And they are right.  Why is that so hard for the most vocal conservatives to understand?

There really isn't a good argument against eliminating all tax preferences and raising tax rates on the mega-earners, those with the seven figure and up annual incomes.  Tax preferences are nothing but government directed allocation of capital that promote special interests and increase corruption, a blatant violation of free market principles.  Furthermore, I challenge anyone to produce strong evidence that raising marginal tax rates by another five to ten percent on the mega-wealthy will have a significant impact on capital investment or diminish incentives to work hard.  Productive people will always strive to innovate and make more money than their peers.  A marginal increase in taxes on earnings at the very top will not stop folks from working to maximize their income.

Certainly increasing tax rates and eliminating tax preferences must be leveraged with more spending cuts.  After all, offering tax increases is the only way to get Democrats to do the right thing even though we always have to suffer through their tiresome temper tantrums.  Lord knows there is still room for massive cuts in federal spending.  The Government Accountability Office, a supposedly non-partisan agency that works for Congress, identified 1,362 government programs that duplicate positions with nearly identical jobs and similar responsibilities at a cost of $364.5 billion each year.  That is the fat that needs to be eliminated, not the meat that Obama says is being cut by the $85 billion sequester that Chicken Little and his Democratic Party cohorts are throwing conniption fits over.  That doesn't even mention the out of control entitlement programs that have us on a collision course with disaster.  Of course the problem for the Dems is that cutting the fat instead of the muscle means canning their most reliable voters, and they couldn't possibly put the country ahead of their own selfish interests.

If conservatives would advocate higher taxes on the mega-wealthy the Democrats would lose their most effective issue.  Until conservatives recognize that the majority of people think those at the very top unfairly make too much money, they will continue to lose.  And by the way, the top one percent in America includes a considerable number of people who financially support the Democratic Party (see below).  For Republicans, raising tax rates at the top is a win - win proposition.  So what is the problem?

http://politicalticker.blogs.cnn.com/2013/03/02/obama-campaign-reveals-biggest-donors-around-election-day/

http://legalinsurrection.com/2011/10/the-top-1-probably-voted-disproportionally-for-obama/ 

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