Socialism and How Democrats have Destroyed our nation’s Economy

The democracy will cease to exist when you take away from those who are willing to work and give to those who are not.”
– Thomas Jefferson

With those words, Thomas Jefferson, one of our countries most influential founding fathers warned of the consequences of having the government interfering too much into economic policy. We are a nation based on Capitalism, which is the economic engine that has driven us to be the greatest nation on this planet. Capitalism is a friend of democracy and individual choice. It makes the American dream possible. It motivates people to create new ideas and innovations. It was Capitalism that brought upon the great industrial age and it was capitalism that has thrust this nation from a thirteen colonies into the grand and powerful nation it is today. When the government interferes too much it destroys the basis of Capitalism, people tend to relay more on the government for help. When this happens, the concept of the American Dream is shattered. People will no longer be motivated to try to work hard to better their lives. If I work hard to make a living and my neighbor Sally Sue gets government hand out checks basically equaling what I make, what would motivate me to continue working as hard when I can get along just the same by receiving a welfare check???
I’m not against the government helping out people when it is absolutely necessary, but Barrack Obama’s “spreading the wealth plan” is a plan that borders on total socialism, an enemy of Capitalism. He plans on taking away from small business, punishing them for their success. Barrack Obama will put a cap on the American Dream, and spread the wealth around, AKA Socialism.His plan will take away from the hard-working Americans, who are just trying to better themselves by working hard (the American way), and giving it to the folks who are just waiting for Obama’s hand me out check. Under Obama, we can expect to see an increase in welfare. As the great late President Ronald Reagan once said “We should measure welfare’s success by how many people leave welfare, not by how many are added.” This possible economic policy of socialism, favored by the democrats, is just one of the many reasons why if the Democratic Party takes control of both congress and the presidency in this upcoming election, the United States will further plunge into economic depression and into total dependence on the government. Socialism in America will be born on November the 4th, 2008 if this happens. That why it is vital for John McCain to win on Election Day, because if he doesn’t Thomas Jefferson’s warnings will turn into a dark reality for our great country.
What Barrack Obama doesn’t understand that his tax plan will hurt small businesses, the backbone of the US economy. Most small business owners make above the $200,000 dollar threshold in which Obama wants to increase taxes on. The majority of these small business owners file one tax return, not one for themselves and one for their business. It’s just easier to file one. Joe the plumber may make $250,000 according to his tax return, but most of that is eaten up by the expenses of running his own plumbing business. If Joe has to pay four other plumbers and an office manager, plus pay into healthcare for his employee’s, plus pay for equipment and supply costs, there is not much left over for his own salary. For example let’s say that each plumber makes $35,000 a year; the office manager makes $28,000, his cost of providing health insurance is $15,000, his rent for his office is $15,000, loans payments for the five company trucks cost $12,600, and supply, managerial overhead, and unexpected expenses cost Joe an additional $10,000 per year. That’s a total of $220,600. That’s leaves Joe a total of $29,400 to pay himself and Barrack wants to tax him more and spread the wealth around. What wealth??? Joe makes less than his employees. To make being in business worth it, Joe will probably lay-off either one plumber or his office manager resulting in the loss of two jobs. Now imagine this scenario on a large scale. Hundreds of thousands of jobs will be lost, small business may close their doors forever, and the US economy shrinks and becomes more dependent on the government, hence socialism.
Today’s economic shortfalls are not the result of the failed policy’s of George W. Bush as the media and democratic would like us to believe, no, it is the result of economic policy’s enacted by past democratic presidency’s and laws passed by democratic congress clashing with the values of Capitalism. The administration of former President Bill Clinton, a democrat, encouraged companies like Fanny Mae and Freddy Mac to buy high-risk loans, which encouraged more and more banks to hand out loans to people who did not have the money to afford that loan. As we now see, many many people defaulted on their loans and the whole banking enterprise of America collapsed leading to the problems we are facing now.
The minimum wage increase, implemented by Nancy Pelosi and the Democratic controlled congress, is the other reason why the economy not only slowed down in growth, but actually shrank in size. Now I’m not saying the minimum wage should be increase, but only to ensure that people’s “REAL WAGE” is kept the same. Inflation is normal, prices will go up and wages should increase at the same rate. The minimum wage was nothing to do with the economy or how much money a person has. The Real Wage does. The real wage is a person’s buying power. If the minimum wage was $40 per hour we would think, this is great I’m goanna be rich, but if bread cost $30 a loaf, then in reality we would be poor because we really have no buying power in the economy. That is why no matter how high we raise a person’s minimum wage, if we don’t increase their real wage, they will never get out of the economic situation that they are in. It is really simple economics if people would actually think about it, but most people don’t think, they are weak-minded and are lured in and enticed by the words “Hope”, “Change” and “Spreading the Wealth Around”.
When the democratic controlled congress raised the national minimum wage (and yes republican’s voted for it because it would be political suicide if they didn’t) they created a domino-effect of collapsing business and higher prices. Raising the minimum wage just didn’t affect those who made the minimum wage, but anyone who made in-between the old and new minimum wage also saw a pay wage increase, but the result was a negative one. If John Smith made $7 per hour, $2 more per hour than the minimum wage and minimum wage was increased to $7.20 per hour, John would most like see a pay increase to $7.20 per hour, not to $9.00 per hour to remain at the same economic stature he was in. John just went down the economic ladder because of the minimum wage increase. Prices will go up to compensate for the higher wage and his buying power, his real wage has just gone down. This concept is proven by the testimony of an Iowa woman who called into the Des Moines Register’s 2-cents Worth Column, her testimony is as follows: -- “So, last year I was making $7 an hour, 80-cents about minimum wage. Now, I’m making $7.25 (the new minimum wage) per hour and prices have gone up. Please Legislature don’t do me any more favors. Signed Poor Des Moines Woman”
Why do prices increase when the minimum wage is increased? The reason is simple as well. Businesses are in business to make money. That’s a fact. To make the most money they have to increase their revenues and reduced their expenses. To most business, labor is the expense that costs them the most. When the minimum wage increased, their expenses increased, they made less money. That means less money for company growth/expansion, pay raises, innovation and etc. To compensate most businesses raised their prices to make the same amount of profit. However the economy struggles to adjust because there are now many more people making minimum wage or now very close to it and prices have increased. Hundreds of thousands of hard-working American’s just saw their buying power decrease to the point where they can now barley afford their needs, let alone their wants. If it’s a choice between food and mortgage, food wins and they lose their house.
Every American, regardless of wage see’s his or her buying powers go down. The economy doesn’t just slow down, it shrinks because less money is being spent. Even with the price increase, businesses still struggle because people can’t afford the new prices. They sell fewer products and to remain in business they may have to close plants, lay-off workers, stop pay-raises, and etc. It is an economic nightmare and we have the democrats to blame for it and unfortunately they may get away with it. They have successfully manipulated (what democrats do best) people into believing that it is the Republican Party’s fault.