Saturday, November 12, 2011

What will 1 trillion dollars in cuts mean to US?

Ron Paul is proposing a 1 trillion dollar cut in Federal Gov. spending in his first year as President. In the debates and in subsequent interviews, the media personalities and debate moderators show a lack of basic economic understanding. They ask, “what will happen to those people who will lose their Gov. jobs?”. Dr. Paul’s budget cut jobs, not thru mass firings, but thru a hiring freeze. What the media doesn’t seem to understand is that in order for a Government to spend money, it must first take it from someone who produces goods and services. Obama spent 1 trillion dollars in stimulus that went to special interests (political supporters) and the populous saw none of it. In addition, the way in which he chose to do it ADDED 1 trillion to the money supply (and our debt). President Paul’s 1 trillion dollar stimulus would go directly back to the tax payers (aka the citizens) and would do so by cutting expenses. What is implicit in the cuts but isn’t said is, THERE WOULD BE A ONE TRILLION DOLLAR “STIMULUS” GIVEN (BACK) TO THE ECONOMY EVERY YEAR THERE AFTER. One Trillion dollars in the private sector will create enough jobs to absorb all the Gov. bureaucrats, all the graduating college students, plus all of the 99% protestors combined. It would create prosperity for all. But first we have to give up on the idea that Government knows best how to take care of US.

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