The Real Solution That Will Never Happen
In the vast world of "the internets", we all have our favorite columnists from various sites. One of mine is Dan Fitzpatrick, who heads up stockmarketmentor.com and is also a contributor to RealMoney.com. In one of his latest columns (The Dawning of the Age of Aquarius), Dan has a section that is titled "The Real Solution That Will Never Happen". The Age of Aquarius refers to the second coming on January 20th, and this portion of the column offers up a plain, simple, and true solution to our nation's current financial problems;
When rich people have more money, they get even greedier and expand their businesses to make even more money. This creates the very jobs that most folks are so concerned about.
When poor people have more money, they spend it. They do not save it. And that is why they are poor. Period. This may sound harsh, but most truisms are harsh. They don't need free money. They need opportunities to make their own money. And rich people provide those opportunities. That is why they are rich."
We are enabling those who are doing the wrong thing, and we are penalizing those who have the most to contribute to the very things that the poor people need: JOBS!"
"Let's cut to the chase in very simplistic and general terms. While this may offend those who either envy those who are rich--or those who are rich and feel guilty about it--the best economic stimulus results from allowing more rich people to keep their money...not on giving poor people a $500 check so they can put it toward a big screen TV.
When rich people have more money, they get even greedier and expand their businesses to make even more money. This creates the very jobs that most folks are so concerned about.
When poor people have more money, they spend it. They do not save it. And that is why they are poor. Period. This may sound harsh, but most truisms are harsh. They don't need free money. They need opportunities to make their own money. And rich people provide those opportunities. That is why they are rich."
We are enabling those who are doing the wrong thing, and we are penalizing those who have the most to contribute to the very things that the poor people need: JOBS!"
Amen, Dan, Amen.
posted by Wes | 7:20 AM
10 Comments:
I think I will just stick with the fact that I'm on top
I think I will just stick with the fact that I'm on top
So, basically let the free market that we support as a supposed capitalist society do what it does best? No shit.
Here's the thing. What is a politician's job? Get (re)elected. In a "What have you done for me lately?" society it's hard to get someone to vote for you unless you can offer them something. This is always, tax breaks, credits, rebates, stimulus packages, etc. Ideally, voters would remember the grand contributions to society that a leader could provide. However, in our current American society everyone, from the multi-billion dollar bonus whoring executive to the welfare mom having more kids to fatten up that 1st of the month check, has their dirty, greedy hands held out. It doesn't matter who you give the money to, it all goes to the same black hole of artificial economic growth.
The best thing that could happen to us as Americans at this point would be to let some of these so called "institutions" fail. If you make shitty cars that no one wants, you fail. If you have been selling shitty electronics at huge mark ups and no one is buying anymore, you fail. If you are a nationalized bank that supports inflationary growth, you fail.
This situation is not about socialism or Robin Hood stealing from the rich and giving to the poor. This is all about whether or not the current system can sustain itself through this rough time. Neither giving money away through checks to "poor people" nor giving unconditional financing to "the rich" will solve the problem. This is not a problem that government intervention can solve at all.
I guess that cancels me moving to China then.... bah hahahahaha
Great article Wes, great response ERic.
Here's another article:
http://content.usatoday.com/communities/
theoval/post/2009/01/61036782/1
the POS is already giving his excuses for his failure, that he so "promised changed".
I hate, loathe, politicians.
. . .and China? Wth? You shall be called "rice-boy" from here on out. I'm going to New Zealand, they're harmless, unless u pick a fight w/ the Hobbits.
Good Morning Wes,
the trickle down theory has worked since long before it was stated by Benjamin Franklin 1750's. it is not likely to be imbraced by an incoming administration that was elected partially on a platform of redistributing the wealth.
ERic's well put comment is correct, open markets and competition will solve this problem. Unfortunately it will likely be after the government wastes several trillion dollars.
Well put WFMK. I agree with all except I will be sailing the Caribbean.
With all due respect, "trickle down" policy has nothing to do with our current situation and is really only a buzz term used by those "conservatives" who wish to portray themselves as Reagan-like (I'm looking at you, John McCain) when the rest of their policies are so far from what the last, true leader of the US stood for.
That said, the artificial growth and inflation perpetrated by the federal banking system is the problem. There are no real assets backing the lending that has been going on since the early 1800s. As a result, we have seen war and severe economic hardships forced upon the American people on several occasions because the government sees fit to finance failing markets by injecting cash into them unconditionally.
Thomas Jefferson, the true founder of American republicanism, put it best in 1816 when he wrote, "banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale."
The current system is not sustainable. We are looking at a paradigm shift. This will be a long, bumpy ride.
Good comments for a nice read during lunch hour. Well done, gentlemen.
I'm not rice-boy, but I do drive a rice burner....whoooooooo
Rice Boy. . . F YEAH!
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