How best to use our tax dollars to help the economy?
The debate continues...trickle down economics vs. welfare hand-outs. I think we need to lose those rhetorical descriptives that only polarize us and go a long way to distracting us from focusing on, and enacting an economic policy by which our nation can not only survive, but thrive.
Many would agree, money dumped at the top has a hard time filtering down to the worker bees. But, if all we do is hand out to the worker bees, then we form a dependency that is unhealthy and unsustainable by any nation. Since it is taxpayer money we are talking about...if 90+% of taxpayer money comes from the top 5%, how can we argue that our money is going to the rich...seems like it's going back where it came from. Personally, I don't make enough to pay taxes...I always get most of my federal income tax back every April.
If "business as usual" is truly on its way out of Washington, D.C., then I am hopeful that a smart, healthy and sustainable approach can be devised, and both political parties refrain from throwing out inflammatory and misleading labels to distract us, because one side does not want the other side to get credit. P. E. Obama seems to be on the right track so far...and I am supportive and hopeful in his endeavor.
It seems obvious that a government should foster a business friendly economic environment, i.e. a tax structure that does not punish acheivement, and one that provides incentives for businesses to grow - when the business grows more jobs are created, providing more income to be spent on products, and the cycle continues...though, it is not to ensure that the top layer walks away with riches beyond most of our comprehension - regardless of what happens to the companies over which they preside.
If that healthy economic environment does not exist, how does the business grow? If the government only subsidizes the worker, how is that sustainable? Where would the government recoup those expenditures? Seems like that would lead us into a race between businesses raising prices, and the government keeping pace with payments to us.
As far as these bailouts (which I view as separate from economic theory)...who knows what theyare doing...seems like they are doing what they know best...got a problem...throw money at it. Seems like they are paying for those failed businesses to continue doing the things that got them into fiscal trouble in the first place...can you say AIG? The approach so far seems to ensure that a few more fat cats can continue to bloat, and eventually leave with their pensions in place while the companies they ran fail in the future. My apologies for being cynical.
On the bright side...Alternative Energy companies and technologies are a silver lining on this dark economic cloud...a light at the end of the tunnel...lets get on board that train and drive our economy strong again!
Best regards to all and Happy Holidays!