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Government Spending Does Not Equal Economic Growth
Campaign Blog
Written by Todd Sharkey   
Monday, 12 April 2010 23:36

I don't care what the politicians in Washington tell you - government does not drive the economy; the people drive the economy. All government can do is promote policies that will encourage entrepreneurs and business leaders to take risks and start new business ventures. This will lead to real job growth.


The proof that the government does not drive the economy can be found in the article "Income falls 3.2% during Obama's term" by Joseph Curl in The Washington Times. The article cites statistics showing the decrease in personal income.


"Real personal income for Americans - excluding government payouts such as Social Security - has fallen by 3.2 percent since President Obama took office in January 2009, according to the Commerce Department's Bureau of Economic Analysis."


"For comparison, real personal income during the first 15 months in office for President George W. Bush, who inherited a milder recession from his predecessor, dropped 0.4 percent. Income excluding government payouts increased 12.7 percent during Mr. Bush's eight years in office." (Source - The Washington Time)


Even with the stimulus bill, the Obama regime has not raised income (unless you work in the government).


"This is hardly surprising," said Douglas Holtz-Eakin, an economist and former director of the nonpartisan Congressional Budget Office. "Under President Obama, only federal spending is going up; jobs, business startups, and incomes are all down. It is proof that the government can't spend its way to prosperity." (Source - The Washington Time)


The article is a must read. However, it does end with the sober predictions from the Associated Press:


"c The unemployment rate will stay high for the next two years and still be at 8.4 percent by the end of 2011."
"c Home prices will remain almost flat for the next two years, even after dropping an average 32 percent nationwide since peaking in 2006."
"c The economy will grow about 3 percent this year, less than usual during the early phase of a recovery, but few jobs will be added."

(Source - The Washington Time)


I think Rush Limbaugh's summarized it well on the radio today "Bush's recession was better than Obama's recovery."


We need real economic growth. We must cut corporate taxes, capital gains taxes, and personal income taxes. Then, we must begin eliminating the existing income tax system and implement either the fair tax or flat tax. This is why this election is so important. I cannot stress how important it is for you to research the candidates. Make them earn your vote. I know when you get to know me, I believe you will know I will endeavor to do what is right.