It’s amazing how many people don’t understand basic economics, especially when it comes to how the government raises money, and how little the economy of the country normally affects the individual.
There are many things that affect an individual’s income besides the state of the economy. It’s all about a person’s position in life, if they have a career or job that is in a growth industry, and there is a downturn in the economy, their income might not be affected. I had my best years during the Carter Administration when the country was seeing high inflation, high interest rates, and high unemployment. It was because I was employed by a company that was enjoying high growth and I was getting record union wage increases every year.However, the company I was working for experienced many difficulties because of soaring fuel prices and high interest rates. Management personnel received stock as part of their bonuses, as a result of the economic problems that the country was facing, they couldn’t buy back the stock that had been purchased by managers, thus the managers had to wait to retire.
The company probably couldn’t have survived much longer if tax cuts hadn’t been initiated during the Reagan administration. The end result would have been that I would have lost my good job if taxes hadn’t been reduced and inflation and interest rates had not been gotten under control.
Also, people don’t understand how lowering taxes actually increases the government’s ability to collect more in taxes.
When tax cuts occur, people have more money to spend, thus more products and services are purchased, thereby increasing the GNP, which in turn increases the amount of tax money collected.
The Federal Government is currently collecting more tax revenue than it ever has, the problem is not the tax cuts that have been implemented by President Bush, they have been a great stimulus to jump-start the economy after the downturn in 2000, as well as the after effects from Sept. 11.
The reason for the deficit, which is becoming less and less every year, is that we have a congress that spends money like it is going out of style. Until congress learns to curb needless and wasteful spending we will always have a deficit.
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The author has been a writer/ photographer for over 20 years, specializing in nature, landscapes and studying native cultures. Besides visiting most of the United States, he has traveled to such places as Egypt, the Canary Islands, much of the Caribbean. He has studied the Mayan Cultures in Central America and the Australian Aboriginal way of life.Photography has given him the opportunity to observe life in many different parts of the world!
He has published several books about the various cultures he has observed.
For more information and a link to his hardcover and Ebooks, and contact information: please check his website, http://www.journeysthrulife.com.
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Each generation from the beginning of our country has contributed to what our country has become. By the same token, no one is perfect. Consequently, each generation has done and will continue to perform acts that it would have been better if some other course of action was taken.
The baby boomers have contributed much and have been blamed for the decline of America. What is the true story?