Saturday, August 29, 2009

Is our deficit: Capitalist or socialist

This is an interesting way of presenting our deficit issue:
There are two ways deficits occur: One is capitalist, the other is socialist.  
Capitalist deficits come from tax cuts or rebates, empowering households to decide how spending will occur, what items will be purchased, and it is a nice broad spending approach that is proven effective in growing the economy and restoring economic health to the nation. John Kennedy and Ronald Reagan, a democrat and a republican, both succeeded in bailing our nation out of nasty recessions with this policy. 
Socialist deficits come from government borrowing and spending that targets specific objectives, usually tied to political ideology, that fail to all inclusively benefit households. Why is it important that deficits benefit households all inclusively? Because consumer spending accounts for 70 percent of GDP. Under socialism, government is saying they are all wise, and can better decide how money is spent, and who are the lucky select ones who get it, for society's good according to their will. It says the people cannot be trusted to make good decisions, that instead an all knowing, all powerful overseers are to be trusted in making good spending decisions of your money.
thanks to: R. McHugh

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