the ECONOMY
"Common sense, individual freedoms, faith in free markets and limited government will make America prosperous.” -Dr. Gerry Dembrowski
It deeply saddens me as I watch Congress and the White House reshape the United States economic model based on free market and individual achievements for a failed socialistic model based on proven unsuccessful principles.
The European Union’s (EU) financial model is the chosen economic poison of choice by Washington bureaucrats. The bureaucrats have to look at how well the EU’s economy was insulated from the financial meltdown caused by failed governmental policies regulating “government-sponsored enterprises,” FANNIE MAE and FREDDIE MAC (below is a brief summary).
YOUR REPRESENTATIVE IN WASHINGTON LOOKING OUT FOR YOU?
● From 1991 to 1998 James A. Johnson served as CEO of “Fannie Mae,” Johnson set a lofty goal of buying up $1 trillion in low-income mortgage loans. In 1992, Congress considered a proposal requiring Fannie Mae and Freddie Mac to disclose their debt to the Securities and Exchange Commission (SEC). Public disclosure of Fannie’s and Freddie’s debt would have allowed the SEC to monitor their business and ensure that these “government-sponsored enterprises,” did not over extend themselves. James A. Johnson opposed the proposal in a letter to House Financial Services Committee Chairman Rep. Ed Markey (D-Mass.) the 7th congressional district representative. Shortly after congress halted the measure. This action helped trigger the consequences that would become the sub-prime mortgage crisis. James A. Johnson received a reported $21 million in compensation upon his departure from Fannie Mae. To view click here.
After the financial “meltdown” the people of the EU are “Looking ahead to the next 12 months, slightly more than one-quarter (26%) of EU residents expected their household's financial situation to deteriorate. More than half (55%) of respondents expected that their household's financial situation would be stable and 16% anticipated that their household's financial situation would improve.” To view click here.
LESSONS ON INDIVIDUAL FREEDOMS, FREE MARKETS AND LIMITED GOVERNMENT FROM… RUSSIA?
On February 9, 2009 at the World Economic Forum in Davos, Switzerland Russian Prime Minister Vladamir Putin said “the US should take a lesson from the pages of Russian history and not exercise excessive intervention in economic activity and blind faith in the state’s omnipotence”.
He continued to say, “In the 20th century, the Soviet Union made the state’s role absolute.” Putin said, “In the long run, this made the Soviet economy totally uncompetitive. This lesson cost us dearly. I am sure nobody wants to see it repeated.”
Putin was the former head of the KGB, history has shown how they treated freedom and personal liberties, he continued with, “Nor should we turn a blind eye to the fact that the spirit of free enterprise, including the principle of personal responsibility of business people, investors, and shareholders for their decisions, is being eroded in the last few months. There is no reason to believe that we can achieve better results by shifting responsibility onto the state.” To view click here.
CHANGING THE WAY WASHINGTON DOES BUSINESS
1. Get the economy up and running. Nationally, only 11% of adults rate the U.S. economy as good or excellent. Most (52%) give the economy a poor rating. The economy will never grow as long as a non-wealth producing entity (government) is taxing the resources of the wealth producers (you and I). Increased taxes take money away from necessary daily expenditures, personal finances and future investments that will grow the economy. Among investors, 13% rate the economy as good or excellent, but 46% rate it as poor. Rasmussen Click here. Among investors, 24% say their personal finances are getting better these days, but the plurality (45%) say they are getting worse. Rasmussen Click here.
2. Get government out of the way of small business and corporate productivity. The financial crisis that is crippling the world economies wasn’t created by you and I. It was created by government regulations in the financial sector (FANNIE MAE, FREDDIE MAC).
3. Stop government spending and borrowing. The federal government doesn’t produce products or services that it can sell to make money. The money government spends is tax revenues, money taken from you, businesses or borrowed (China, Japan, Arab countries). The more government spends e.g. Stimulus, Bailouts, Health Care, the more government has to tax or borrow. When government borrows money it takes away from the reservoir businesses also borrow from for working capital and investment. Government spending, increase taxes and government borrowing decreases economic growth and is the perfect recipe for disaster. For more information click here. I warn you what you will see is shocking!
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