Response to: I Want to Hear From You
Response to: I Want to Hear From You Dear Congressman Diaz-Balart, I am writing on behalf of my brother and my mother. Today, we rece...
https://phistars.blogspot.com/2012/01/response-to-i-want-to-hear-from-you.html
Response to: I Want to Hear From You
Dear Congressman Diaz-Balart,
I am writing on behalf of my brother and my mother. Today, we received a questionnaire that asked us about three particular subjects. The first question ask us to rate from 1 to 5 : Economy, Foreign Policy, Tax Reform, Immigration, and Medicare. We personally had a problem with questions two and three.
Question two asked if we agreed that the federal government had to reduce dept to improve the economy. The question was weighted in favor of debt reduction. Federal debt is created because the economy is bad, not the other way around. If the economy was alive and well then we would not have a growing debt. Poor economics creates debt. When we lose our job, Medicare and Unemployment benefits kick in. Also, because people are unemployed, they cannot pay income taxes.
All these things combined naturally increase the dept. The Federal Government is basically paying people to sit on their behinds. Frankly, I think it is better for the government to borrow from the banks and create jobs.
As show by the Great Depression, it is Fiscal expenditure (like making roads, schools, and hospital) that got the US out of the depression. By creating jobs, the Federal Government can stop paying for Medicare and Unemployment Benefits. The payroll taxes and the income taxes from these Federal created jobs can then help pay back the Fiscal Expenditures. These small investments in the long run will reduce the government dept.
China spend their way out of their own housing bubble. So, why can't we try it too? Look at the Euro crisis, Greece debt reduction austerity protocol is making things so much worse. Their economy is stagnated. It will take an eternity or two for them to grow. Right now, it’s the best time for fiscal Expenditure because the interest rates are at a historical low.
So our answer to the question, "Do You agree the federal debt needs to be reduced to improve our economy? " Is no, because Greece is in debt reduction mode and things there are going from bad to worse. Debt reduction is not the answer. The polls are biased toward the “Yes”, thus the results that you receive would not represent the general feel of the population as a whole, but a manipulated statistic.
As for the third question, at this moment I do not see how tax cuts will create jobs. For starters, tax cuts only benefit major companies who swallow up small businesses. I personally would like to see the US anti-trust laws implemented from time to time. My sources tell me that big corporations are playing monopoly again. Big Banks are using the Federal bailout money to play their silly "whoever has the most money wins" game.
Right now, the problem is consumerism. If people stop consuming goods then new jobs cannot be created. Regardless of how many tax cuts you give, if people do not buy, then the small businesses will not create jobs.
Business is governed by consumerism. When the demand for a certain item drops, companies fire people. The business owners have learned that it is foolishness to get into price wars. So to keep prices steady, they manipulate the supply side. Right now, the demand for things has dropped. Thus, unemployment is what follows. Thus, lowered taxes will not create new jobs.
Suppose that taxes are lowered. A certain company already has all the gadgets they can produce. Since people are not buying more of their gadgets, the new tax cut money will instead be saved up. It is saved up because the demand for the product they sale declined and they use saving to cover the difference. Thus, lowering taxes will create more savings, not more jobs. Savings means the company does not buy goods to produce. The savings instead dissipate because eventually the money that is saved gets lost to miscellaneous expenses. The debt remains but the savings go up in smoke. Saving is self-defeating because if everyone saves, people will not buy the widgets causing companies to save even more. A tax cut would increase saving by companies not create jobs. Saving within a company means cutting production, cutting jobs, and reduction on consumerism. It’s a vicious cycle that once it starts it can only be stop by fiscal expenditure and government intervention.
These are the economic issues that keep us awake at night. I find it quite disturbing that this questionnaire fails to grasp the gravity of our economic situation. I hope that you will take my family's concerns into consideration.
Thank you for your time,
Teresita Blanco
Dear Congressman Diaz-Balart,
I am writing on behalf of my brother and my mother. Today, we received a questionnaire that asked us about three particular subjects. The first question ask us to rate from 1 to 5 : Economy, Foreign Policy, Tax Reform, Immigration, and Medicare. We personally had a problem with questions two and three.
Question two asked if we agreed that the federal government had to reduce dept to improve the economy. The question was weighted in favor of debt reduction. Federal debt is created because the economy is bad, not the other way around. If the economy was alive and well then we would not have a growing debt. Poor economics creates debt. When we lose our job, Medicare and Unemployment benefits kick in. Also, because people are unemployed, they cannot pay income taxes.
All these things combined naturally increase the dept. The Federal Government is basically paying people to sit on their behinds. Frankly, I think it is better for the government to borrow from the banks and create jobs.
As show by the Great Depression, it is Fiscal expenditure (like making roads, schools, and hospital) that got the US out of the depression. By creating jobs, the Federal Government can stop paying for Medicare and Unemployment Benefits. The payroll taxes and the income taxes from these Federal created jobs can then help pay back the Fiscal Expenditures. These small investments in the long run will reduce the government dept.
China spend their way out of their own housing bubble. So, why can't we try it too? Look at the Euro crisis, Greece debt reduction austerity protocol is making things so much worse. Their economy is stagnated. It will take an eternity or two for them to grow. Right now, it’s the best time for fiscal Expenditure because the interest rates are at a historical low.
So our answer to the question, "Do You agree the federal debt needs to be reduced to improve our economy? " Is no, because Greece is in debt reduction mode and things there are going from bad to worse. Debt reduction is not the answer. The polls are biased toward the “Yes”, thus the results that you receive would not represent the general feel of the population as a whole, but a manipulated statistic.
As for the third question, at this moment I do not see how tax cuts will create jobs. For starters, tax cuts only benefit major companies who swallow up small businesses. I personally would like to see the US anti-trust laws implemented from time to time. My sources tell me that big corporations are playing monopoly again. Big Banks are using the Federal bailout money to play their silly "whoever has the most money wins" game.
Right now, the problem is consumerism. If people stop consuming goods then new jobs cannot be created. Regardless of how many tax cuts you give, if people do not buy, then the small businesses will not create jobs.
Business is governed by consumerism. When the demand for a certain item drops, companies fire people. The business owners have learned that it is foolishness to get into price wars. So to keep prices steady, they manipulate the supply side. Right now, the demand for things has dropped. Thus, unemployment is what follows. Thus, lowered taxes will not create new jobs.
Suppose that taxes are lowered. A certain company already has all the gadgets they can produce. Since people are not buying more of their gadgets, the new tax cut money will instead be saved up. It is saved up because the demand for the product they sale declined and they use saving to cover the difference. Thus, lowering taxes will create more savings, not more jobs. Savings means the company does not buy goods to produce. The savings instead dissipate because eventually the money that is saved gets lost to miscellaneous expenses. The debt remains but the savings go up in smoke. Saving is self-defeating because if everyone saves, people will not buy the widgets causing companies to save even more. A tax cut would increase saving by companies not create jobs. Saving within a company means cutting production, cutting jobs, and reduction on consumerism. It’s a vicious cycle that once it starts it can only be stop by fiscal expenditure and government intervention.
These are the economic issues that keep us awake at night. I find it quite disturbing that this questionnaire fails to grasp the gravity of our economic situation. I hope that you will take my family's concerns into consideration.
Thank you for your time,
Teresita Blanco
