It is impossible to spend your way out of an economic problem. If you or I get into a financial problem, the last thing we do is spend our way out, max out our credit cards. The only way to get out of the financial problem is to produce your way out of it. You or I would get a better-paying job or get a second or third job. When former President Bush spent $50 million for the Iraq war, he would get a couple of fighter jets or a fleet of Humvees, creating thousands of jobs. President Obama is spending $50 million on the Marsh Mouse in California and will get what amounts to a term paper and create maybe a dozen jobs.
According to the Federal Reserve, in January 2008, the U.S. money supply was $7,463 trillion and in January 2009, the money supply was $8,243 trillion. Where is all this money? It is stuffed in the proverbial mattress because people with money are afraid to invest it. Why doesn't Joe or Jane Investor want to invest $100 million in a new venture? Capital-gains taxes would devour too much of the profit. So that $100 million sits around doing nothing, no jobs are created, thus no federal income tax is being generated. This is because Obama wants to penalize the investor for risking an investment.
The government would get more income with 2,000 new jobs each producing $5,000 annually in income tax then trying to get millions from the original investor. Personal wealth in the area of stock, real estate and investment appreciation is not part of the U.S. money supply. Since Obama was made the Democratic nominee in May 2008, Americans have lost more than $3 trillion in personal wealth. If Obama had really wanted to turn this economy around, all he would have had to do was suspend all capital gains taxes and estate taxes. He needs to get America producing, investing and prospering again.
Government is the problem, not the solution. Socialism has always been a failure and will always be a failure.
Mike McKinzie, Bayfield