Bailout Blues
I have been pissed about this so-called bailout since last week. Immoral, illegal, stupid! Just imagine if Obama does get in and starts to raise taxes - that is going
to deepen the recession or possibly trigger a depression.
I go back to the Great Depression to understand this - in 1930 Hoover and congress raised tariffs on imported goods and then in 1932 raised taxes on the top wage earners - both of these actions deepened the recession and triggered the fall into the great depression. Now I know that many people continue to look at his policies and say "yeah that's right the top wage earners need to pay more in taxes" but these are the people who invest in the economy and help to create jobs.
If you raise the capital gains taxes - who is going to invest in the market - if you raise the top tax rate which small business owner (they file as individuals) is going to be able to hire more employees or even keep the ones they have right now?
And with the credit crisis we are in right now - no matter what the federal government does - credit is going to be tough to get because lenders are going to be more wary of lending money to people or businesses that may be at higher risks. The only way to get out of this is to insure the companies that buy up the bad paper - not have the government buy it all up.
Look - the other thing that many don't get right now is that once these companies get rid of the bad paper then those losses come off of their books - they won't show a profit this year but next year they will and that could trigger these large bonuses for these fat-cats - that is something that nobody wants to happen but if the bailout goes through it will. The government shouldn't let these companies off the hook and that is what is going to happen if they just give this money away. End of my soapbox for today!
I go back to the Great Depression to understand this - in 1930 Hoover and congress raised tariffs on imported goods and then in 1932 raised taxes on the top wage earners - both of these actions deepened the recession and triggered the fall into the great depression. Now I know that many people continue to look at his policies and say "yeah that's right the top wage earners need to pay more in taxes" but these are the people who invest in the economy and help to create jobs.
If you raise the capital gains taxes - who is going to invest in the market - if you raise the top tax rate which small business owner (they file as individuals) is going to be able to hire more employees or even keep the ones they have right now?
And with the credit crisis we are in right now - no matter what the federal government does - credit is going to be tough to get because lenders are going to be more wary of lending money to people or businesses that may be at higher risks. The only way to get out of this is to insure the companies that buy up the bad paper - not have the government buy it all up.
Look - the other thing that many don't get right now is that once these companies get rid of the bad paper then those losses come off of their books - they won't show a profit this year but next year they will and that could trigger these large bonuses for these fat-cats - that is something that nobody wants to happen but if the bailout goes through it will. The government shouldn't let these companies off the hook and that is what is going to happen if they just give this money away. End of my soapbox for today!
