Friday, April 15, 2011
I Agree With A Libratarian!
My Blogger friend the "Libertarian" (lilatomic) has an opinion that's a bit controversial, but quite frankly I "somewhat" agree with what he is saying. Now somewhat is very vague so let me explain. First I don't think rich people are bad people. I mean some of them could be, but just because someone is rich doesn't mean that they are bad people. Now I agree increasing taxes on the rich isn't going to fully balance the budget. But it has to be done! I think all the Bush tax cuts should be eliminated. Now that isn't enough to balance the budget. What will have to happen is to not only eliminate the Bush Tax cuts, but also to raise the retirement age and think about either a sales tax, cut military funding and cut medicare (which I don't suggest). If the U.S eliminates the Bush tax cuts, makes a sales tax and cuts the military they will be able to balance the budget. I don't think Rich people have no role in the economy I think (lilatomic) is right in what he says that rich people put money in the bank. Although that helps the economy as it gives money for the bank to invest in order for banks to actually give money to people to make small business there needs to be people who aren't rich (or they would have the money themseleves) that are finicially liable in order to take a loan, because if they are dead poor the bank won't give them a loan. The idea that giving rich people money to put in the bank helps create small business isn't 100% true. There needs to be people who are middle class to be loaned that money by the bank. We can't have these middle class people start a business if they don't make money. So the easier way to start a business is to have a middle class. But with the Bush tax cuts the average income of the middle class and the poor has shrank so the tax cuts didn't even work! The top 400 Americans make more money then the bottom 50% of the U.S. The rich are doing fine in the U.S they should be taxed 50% not the low 35% they are currently taxed. Because it is either taxing the rich or cutting programs for the middle class and poor which won't help the economy. Now I think in order to balance the budget the poor and middle class need to give up a few things too, but the Rich should be the first to pay then we work are way down. The middle class are the people who work the economy. If we continue with Bush policy that shrank average income the main driving force of the U.S the middle class (the small business people) then the economy can't grow and yes if no one takes a loan in the U.S the money will stay in a vault. I am sure people who are rich worked hard to get there, bur many patrotic millinaires told Obama last year to raise there taxes so that they could help reduce the deficit. I agree with lilatomic that eliminating the tax cuts to the rich won't balance the budget, and I believe that the rich have a role to play in the economy, but what I disagree with is that just giving money to the rich won't help the economy. What helps the economy is having a strong middle class and the way to achieve a strong middle class the U.S needs to raise the minimum wage encourage unions not discourage. The problem in the U.S is that the rich are getting too much at th expense of the poor, although money for the rich helps banks have money to loan out. If instead of that money going to one rich person the economy would do much better going to a poorer person. Because buying products helps the economy more than putting money in the bank that won't be loaned out, because the middle class is getting poorer in the U.S. And unless the rich pay there fair share then the economy can't grow.