Saturday, October 25, 2008

Democracy Is Fragile

By Dr. John Washburn "A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship." This was said many years ago by a man named Tyler, and later repeated by Alexander Hamilton. I couldn’t agree more, which is the basis of my concern for America’s future. Our democracy has been in existence for nearly 233 years and I don’t recall in history any other democracy lasting that long. How exactly did the Roman empire fall? And when the Bolsheviks seized power in Russia, the moderate members of the Russian parliament walked out in protest, prompting Trotsky to say this to them: "You are pitiful isolated individuals; you are bankrupts; your role is played out. Go where you belong from now on — into the dustbin of history!" Sound familiar? Shortly thereafter, the Bolsheviks passed the Decree on Land, which ratified the actions of the peasants who had been seizing private land and redistributing it amongst themselves. In addition to this, the Bolsheviks: nationalized all banks, granted control of all factories to the soviets, confiscated private bank accounts, seized all church properties, fixed wages at higher rates and implemented a shorter 8-hour work day, repudiated all foreign debts. Indeed, I have seen a trend in the Democrat party for several decades, basically one of alienating the wealthy and pandering to the middle and lower class. I’ve heard some call this class warfare, and Barack Obama has taken it to an even higher level. This man’s campaign tactic, taken right from the writings of Saul Alinsky, is to cast away the 5% of America’s wealthiest and pander to the other 95%, literally promising them money for their votes. We hear things like “bottom up” growth and “fairness”. And it just may work. During the primaries, Obama did an interview and was asked about his tax policy. The questioner pointed out that past tax increases have often led to a DECREASE in government revenue. Obama acknowledged this to be true, yet when pressed about his tax plan he responded by saying that it was a matter of “fairness”. “From each according to his ability, to each according to his need” – Karl Marx I have a deep problem with Obama’s perspective. In my mind, taxes are a necessary evil. I don’t believe in anarchy, so we must have a functioning government to provide things like courts, roads and national defense. This costs money and the citizens are responsible for providing that money. It’s simply the toll we pay for reaping the benefits of a free society. But Obama, and most democrats, take a much different approach. They see taxes as means of balancing society, establishing “fairness” whatever that means. They describe the rich as “fortunate” and the poor as “less fortunate” as though the only difference between the two is varying degrees of luck, and they use taxation to balance the good and bad luck as a matter of fairness. In other words, taxation is the government’s way of exerting control over its citizens, by punishing the upper class and giving to the middle and lower class, essentially redistributing wealth. But more than that, taxation is the democrat’s method of self-preservation, a means of achieving and maintaining power by nothing else than taking from the minority and giving to 95% of the citizens. You buy votes, implement programs that encourage government dependence, and in doing so you guarantee yourself power. The more citizens depend on the government, the less likely they are to vote you out, this is how communists keep power by ensuring the citizens need them in power. Cater to the middle and lower class, isolate the upper class because you don’t need their vote to gain power, and if that’s not enough then you literally promise the “less fortunate” money for putting you in power, thus the ability to vote themselves rewards from the treasury. It’s simple. And, folks, if Obama DOES win this election and he is given a super-majority in Congress with a filibuster-proof Senate and just one or two Obama Supreme Court choices – easily appointing the most radical of liberals with his rubber-stamp Senate - then exactly how close will we be to a dictatorship? In theory, they could pass any law they wanted. Honestly, who will stop the Dems from doing it? This makes me very uncomfortable. I believe Obama’s economy will be disastrous. The last time our economy was this bad was 1980, when Carter lost 10 million jobs, had a 21% interest rate and inflation was at a staggering 12%. Reagan stepped in and immediately dropped taxes to the floor. The top rate was cut from 70% to 28%. As a result, 20 million jobs were created, and government revenues doubled. This is historical fact, yet Obama claims that trickle down economics doesn’t work. Obama plans to do the exact opposite. His plan couldn’t be any further from Reagan’s and instead represents a hybrid of Carter and Hoover. Remember, it was Hoover’s policy that turned the recession of 1929 into the decade-long Great Depression by minimizing free trade and raising income taxes. Obama’s plan is dangerous, and McCain is committing campaign malpractice by not hammering home this issue enough. You NEVER raise taxes in the midst of a recession. NEVER! He calls for a “new” new deal, which makes sense considering his basic beliefs. The New Deal was our first brush with socialism as the government basically began acting as a major employer, attempting to replace the private sector, which had been choked by excessive taxation. It was very costly and, more importantly, it didn’t work. The Depression continued until the industrial boom of world war two revitalized the economy. Obama’s tax plan will no doubt increase unemployment, hitting small businesses especially hard. He says only 5% of small businesses will be affected, but this is not the whole story. The truth is 50% of small businesses who employ 20 or more people will see an increase in taxation. These are America’s major employers. And I just don’t get the “bottom up” theory. How exactly does the economy grow bottom up? The economy grows through employment, and a $1000 check doesn’t get you employed. In fact, it will probably not even pay one month of credit card bills. If people are employed, they have money to spend. If they have money to spend, then investments increase, especially if capitol gains rates are low; retail sales increase; borrowing and major purchases increase; and all of this ultimately leads to more business growth and more employment. There’s a reason why immigration became such a major issue and it’s because our economy was so strong that we actually had to import workers to fill the need. And business taxes are passed to consumers. Let’s be clear about this, businesses DON’T PAY TAXES, they simply pass the cost to the consumer. As a result, the cost of living goes up, investments decrease and the economy staggers. You can write checks to the middle and lower class, but those will quickly be consumed by the higher cost of living and does nothing to create jobs. This was tried just this summer when we all got rebate checks, and it amounted to nothing more than a speed bump in the economic decline. Bottom-up economics is unsound. It just doesn’t make sense. If you want to grow the economy it starts by growing business since they are the ones who employ people. Instead, it is the businesses and corporations – the “petite bourgeoise” - that are demonized by the Left in their class warfare tactics as they maintain efforts to appeal to the middle and lower class. And one sector of the economy that continues to thrive is exports. The US is still the world’s largest exporter, accounting for $1.3 trillion annually or 20% of our GDP. This has come mainly through free trade, which has also resulted in a net GAIN of US jobs despite the dem’s claim to the contrary. Obama wants to limit free trade in the name of keeping jobs from going overseas. Again, this is nothing but pandering to key swing states hit hardest by some of the negatives of free trade, despite the fact that free trade is overall beneficial for the whole country. If trade is affected, it could potentially affect 16 million US jobs that would be threatened by trade restrictions. This is on top of what could be lost by the taxation on small businesses. And this doesn’t take into account the fact that free trade increases the buying power of middle and lower class citizens, who can buy cheaper goods and make their dollars last longer. Restrict free trade and you raise the cost of everyday goods, on top of the cost of living that goes up with higher corporate taxation. When Hoover restricted trade by imposing a 40% tariff on imports, it led to a loss of 6.5 million jobs in his 4 year term, half of these were lost in his final year, and the GDP dropped by 25%. Obama is talking about doing much of the same. Our economy simply can’t handle it and if he has his way the recession of 2008 could quickly become the next great depression. And if this happens it will compel the Dems to enact more government programs, make more people dependent on their power. Again, McCain has failed to make this point clearly enough. Biden says Obama will be tested by an international crisis and that’s concerning enough, but still not nearly as concerning as what will happen to our economy. The signs of disaster couldn’t be any clearer. I wonder if the chaos on Wall Street is somehow related to his current position in the polls, and I fear that on Nov 5 if he’s declared the winner the market could plummet. His ideas are radical, hardly those of a moderate democrat, and he has a radical as House Speaker and as Senate leader. Not a good combination when we are in dire need of economic growth. Mark my words, if he wins we’re looking at some very dark days ahead. posted by John Washburn @ 12:59 PM 6 comments links to this post -->

3 comments:

SNAKE HUNTERS said...

A thoughtful reading of Dr John's
summary in the closing days of Election 2008 will provide a fresh insight into what may occur if we violate our concience, and vote emotion rather than common sense.

Since 9/11 we have all been subject to a vast propaganda barrage by the Vast Left-Wing, demeaning our President in a Time Of War.

At least $100,000,000 has been spent over the years on a simple phrase, "Failed Bush Policy In Iraq", and we need "Change" in the last 18 months. The Mainstream Media and Hollywood have chortled the hate-mantras of MoveOnDotOrg, DailyKos, Huff Post, et al

It's time we did some independent thinking before we comment on this fine summary, and before we vote.

Editor

Anonymous said...

Dr Washburn provides a thoughtful article, but only for those of us that are weary of those boring televison 15 second sound-bytes, and speeches at political rallies.

-greybeard-

Anonymous said...

pARTY UNITy mY ASs!
Hillary Was Robbed Alright

helen & friends, tacoma