People who voted for Barack Obama did so because of his many PROMISES, the most important of which was to create 4 MILLION jobs. He has since broken that PROMISE several times-over by downgrading it to between 3 MILLION and 4 MILLION jobs.
But, in his latest revision of this incredible PROMISE, it has now morphed into creating and SAVING between 3 and 4 MILLION jobs, as if there isn’t a universe of difference between SAVING and creating.
Governments do not create wealth or jobs. Unions do not create wealth or jobs. Civil Servants, Teachers, Soldiers and Police Officers amongst such others, also do not create wealth or jobs.
Theirs’ are services we need. But make no mistake about. THEY DO NOT CREATE WEALTH OR JOBS!
ONLY PRIVATE BUSINESS CREATES WEALTH AND JOBS.
If that seems to be over-the-top, it isn’t. It’s the absolute truth.
BUT THERE’S MORE: People who earn their money on the public purse PAY NO TAXES. I bet that seems to be even MORE over-the-top. It isn’t.
People on the public purse don’t pay taxes because their salaries would not exist without our tax dollars, meaning; that what they supposedly pay in taxes is only a reduction in their salaries the rest of us pay for them.
So, what happens if there are more tax-costs needed to pay people on the public purse, than there is tax revenue at current rates from the people in the private sector who pay for them?
The answer is easy:
1 – Tax the private sector more to keep the public sector employed.
2 – Reduce the number of public sector employees and services.
3 – Reduce the salaries and perks paid to public sector employees.
4 – Or do a combination of all three.
The cowardly leader will always opt for number ONE, knowing that he or she cannot increase taxes on the working poor, since they are already bitter about how much they pay, even if they pay very little, and that the public employee sector is too well politically organized to offend or challenge.
Simple solution for them: TAX THE SO-CALLED RICH, since the rich are amongst the voting minority. Especially with recent campaign financing laws that strip people with a semblance of money from any means with which to wage a political fight.
But, who are the rich? According to Obama, the rich are people who earn in excess of a COMBINED family income of $250.000 GROSS.
Let me say this unequivocally: After taxes and cost of living, a combined family income of $250,000 is ONLY middle class. But, it is this middle class Obama points to as being rich, who are indeed the primary creators of wealth by whom they employ and by what they purchase.
THESE SO-CALLED RICH PEOPLE ARE THE GOLDEN GOOSE.
When Obama and other REAL RICH demagogues like him (millionaires) talk to a bitter working class audience about those greedy business executives who fly on Private Jets, drive in Limousines and vacation at 5 Star Resorts; he is lumping in everyone who seems to have a decent lifestyle.
And by the way, What’s wrong with flying in private jets, driving in chauffeur driven limousines and staying at 5 star resorts?
In other words, anyone who owns or manages a successful company is an enemy to the people. The number of GREEDY executives who’ve schlepped MILLIONS, and even BILLIONS of dollars from the economy are NOT REPRESENTATIVE of MOST businesspeople.
But, to a Demagogue like Obama, the few major-class greed-machine fraud artists have become the poster-folk for all business owners and managers, enabling him to create the US versus THEM syndrome allowing him to create his business bogeymen.
Believe me when I say that there are TENS of MILLIONS of people out there who have a visceral hatred for those who seem to live the good-life, unless of course the wealthy are from Hollywood, the government, or the elitist world of academia.
But, when it comes to people who make their wealth in business, it’s an entirely different story.
Running a business is not easy. Staying profitable in these troubling times is very difficult. Trying to forecast costs and profits is almost akin to hoping and praying more than anything else.
So, at this juncture in our history, the last thing any government would want to do is punish the people who create wealth and jobs by whacking them and their businesses with more operating costs though higher taxes, when in fact, what business really needs are less costs and roadblocks.
When Obama decries the lifestyles of the so-called rich, who does he think supply the means to those lifestyles?
Close down the luxury resorts and hotels, and you’ll be laying-off MILLIONS of people who provide the services in housekeeping, front desk operations, sales, waiters, busboys, cooks, banquets, room service, maintenance, valet parking, management and all the outside industries that provide additional services and products.
Get rid of private jets, and you’ll be laying-off the TENS of THOUSANDS of people who make them, including designers, engineers and the people who assemble the jets. And what about the THOUSANDS who fly and service the jets including the fuel and parts suppliers?
Jimmy Carter, the SECOND WORSE President in my lifetime, decided to place a luxury-tax on what he deemed to be luxurious items including expensive cars, boats, furs, diamonds, jewelry, and expensive meals in addition to increasing taxes on the rich.
The so-called rich stopped buying these items. They ate out less. They vacationed less. All of which caused enormous layoffs and hardships for the people who were employed in their production and service.
Courtesy of Carter, even the dishwasher found himself/herself gainfully unemployed because Carter decided to teach the so-called rich a lesson.
If I can’t make a decent income or become rich by running my business and enjoying the fruit of my labor, why should I bother? Or, if running my business becomes such a nightmare because of government regulations, bureaucracy and taxes, where’s my reason to keep it going?
If I shut down and TENS or even HUNDREDS of THOUSANDS of others just like me decide to say screw this, where will the government get the money to keep the ball rolling?
Who will be there to pay through their taxes for the Public Sector Salaries that have become a global entitlement?
EXTERNALITY is a tremendous word for all of this that I have just learned through one of the people who reads Galganov.com. It simply means, that for every economic action there is a reaction.
Think about it – My next editorial will continue upon this same frightening course.
Best Regards . . . Howard Galganov