Showing posts with label tea party. Show all posts
Showing posts with label tea party. Show all posts

Sunday, October 21, 2012

Contract From America, a critique

I was accused today of being someone who could join the tea party and that I didn't know what it stood for, so I decided to learn what it is for, and here is what I found on the Contract from America:
  1. Identify constitutionality of every new law: Require each bill to identify the specific provision of the Constitution that gives Congress the power to do what the bill does.
  2. Reject emissions trading: Stop the "cap and trade" administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.
  3. Demand a balanced federal budget: Begin the Constitutional amendment process to require a balanced budget with a two-thirds majority needed for any tax modification.
  4. Simplify the tax system: Adopt a simple and fair single-rate tax system by scrapping the internal revenue code and replacing it with one that is no longer than 4,543 words – the length of the original Constitution.
  5. Audit federal government agencies for constitutionality: Create a Blue Ribbon taskforce that engages in an audit of federal agencies and programs, assessing their Constitutionality, and identifying duplication, waste, ineffectiveness, and agencies and programs better left for the states or local authorities.
  6. Limit annual growth in federal spending: Impose a statutory cap limiting the annual growth in total federal spending to the sum of the inflation rate plus the percentage of population growth.
  7. Repeal the health care legislation passed on March 23, 2010: Defund, repeal and replace the Patient Protection and Affordable Care Act.
  8. Pass an 'All-of-the-Above' Energy Policy: Authorize the exploration of additional energy reserves to reduce American dependence on foreign energy sources and reduce regulatory barriers to all other forms of energy creation.
  9. Reduce Earmarks: Place a moratorium on all earmarks until the budget is balanced, and then require a 2/3 majority to pass any earmark.
  10. Reduce Taxes: Permanently repeal all recent tax increases, and extend permanently the George W. Bush temporary reductions in income tax, capital gains tax and estate taxes, currently scheduled to end in 2011.
The first part is already done by the Supreme Court, 5 of 9 have been appointed by Republicans.
I am going to ask the conflict theorists question for the second point: Who benefits from no restrictions on oil emissions? Oil companies.
I agree with balancing the Federal budget, but I have looked at it and except for massive cuts from the Department of Defense, it can't be done. This is something Republicans have never been behind for the past 30 years.
Simplifying the tax system. First of all, my economics textbook (written by Bush advisor Gregory Mankiw) claims that flat taxes (what they are calling for) is by its nature a regressive tax. I would prefer a progressive tax structure based on the cost of living with rates from 0% to 50% where 99% of Americans will pay less than 15% and it will be modified by states' cost of living, and capital gains will b one taxed as regular income. That will balance the budget. The Tea Party doesn't support that, it says so in the Contract from America.
5. Every department (except for the Department of Defense) is already audited. This is a moot point. Why haven't the Tea Party members of Congress (a majority in the house) proposed a bill to do this? Curious...
6. Limit the growth of federal spending, does this take into account potential disasters? If we limited ourselves from growing our services in the face of disaster, how would the government cope?
7. According to the World Health Organization, The United States pays an average of $8361 per capita on health care in 2010. Norway and Switzerland were about the same. Canada paid $5222 in 2010. Our health statistics, birth mortality, life expectancy, and others according to the CIA don't show an increase over other nations. The statistics show that our current private health care system doesn't benefit the average American. Our current system only benefits the insurance industry. They don't specify what they would replace Obamacare with.
8. If we generated our fuels domestically, they will be the same companies that drill abroad. Nothing will really change there. It will still be the same companies, and our domestic oil production is at an all time high right now. Houston Chronicle
9. Reduce earmarks. If the tea party is so against earmarks, why haven't they done anything about it? This is not the real goal of the tea party. http://www.opensecrets.org/bigpicture/earmarks.php
10. Reducing taxes. I agree and disagree here. In order to do some things efficiently, we need to do them as a country, and that means we need the government to raise money. Most of these Bush tax increases go to the rich. http://www.cbpp.org/cms/index.cfm?fa=view&id=1811 This is not going to benefit most tea party people.


I disagree with all ten at some extent. I wish to offer counter-proposals (that I wish Occupy would have embraced) on the same topics that are actually at issue. I have also addressed a few corruption issues that the Tea Party fails to addre
  1. Move off of fossil fuels and embrace Hydrogen fuel cells as a mode for fueling transportation. They are competitive, and fulfill Adam Smith's requirement that there be competition in a market for supply and demand to work. This will drive down the cost of transportation. They also are 100% domestic.
  2. Demand a balanced federal budget. Cut subsidies to lobbyists and make a strong simple and progressive tax code.
  3. Simplify the tax system. Make a tax system ranging from 0% to 75% of income (most Americans won't see their tax rates go up, down probably) and put in two deductions, one for all education expenses, and one for all health care expenses. As the budget is balanced, put the lowest rates into the 0% category to encourage growth from the bottom of the income ladder. Short-selling stocks will not make your taxes go down!
  4. Expand Medicare to cover all Americans. This will bring down our cost of health care by providing primary care for people who need it so that instead of going to the emergency room they can get early treatment which is less expensive. After doing this, Medicaid and Tricare will be fully abolished.
  5. Audit the Department of Defense.
  6. Reduce earmarks by making all elections publicly run, publicly financed, and outlawing lobbying through money in Congress. The Tea Party has not embraced this. http://www.opensecrets.org/bigpicture/earmarks.php
  7. Abolish the federal handouts to the Real Estate industry by abolishing the mortgage tax deduction to raise revenue, or decrease taxes.
  8. Stop sending money to nations that abuse human rights like Israel, Egypt, Saudi Arabia, and historically the Islamic Emirate of Afghanistan, Iran, and Iraq. Only send developmental aid that builds the nations capacity to grow and gets average people to be economically sustainable.
  9. Elect the President through Instant Runoff Voting. Elect Congress by the Single Transferable Vote using the Gregory Method. Abolish the Senate which was only created to preserve the interests of the politically established. Increase Congress to 750 members in the one remaining house.
  10. To save money, legalize marijuana. Legalize LSD. Legalize ecstasy. Increase taxes on cigarettes. http://www.mjlegal.org/cost.html This will save money and generate revenue.
Those will actually balance the budget. Most people will see their taxes decrease, the only people who will see more taxes are the ones who are paying 15% on million of dollars of income. The Tea Party doesn't support this, but it is the only honest way to balance the budget without cutting military spending.

Sunday, July 22, 2012

The motives behind politics

I am currently taking a sociology course at my local community college. One of the most important parts of sociology is the two major theories behind it. The first is structural functionalism, that every decision has costs and benefits to society, and the second is conflict theory, that society is in constant battles for resources. I want to look at the major issues of today to look and see where the Democrats and Republicans get their motivations from.

My sources are: www.opencongress.org for the votes. www.opensecrets.org for the lobbying, and news organizations, predominately NPR, BBC, Al Jazeera, and most importantly, PBS. I have chosen these four because I have observed they usually don't benefit just one side but give more balanced viewpoints and wider coverage than any other source.

First. The money. The motivation. According to www.opensecrets.org the largest financers of political campaigns in order are Finance/Insurance/Real Estate, Health care, communication/electronics, energy (oil), labor, construction, agriculture, transportation, and military. Looking at where the money comes from I will look at what they will get out of the major political debates.

Finance/Insurance/Real Estate have a mix of interests. The real estate industry benefits from subsidies for housing (Fannie Mae and Freddie Mac) and tax breaks for mortgages to encourage people to buy houses, not rent. Insurance has an interest in requiring people to get health insurance from them with no public option, and oppose all forms of universal health care which will shrink their business. Instead people are required to have insurance (which given the situation of money and media I think is the best available option for Americans. We spend far too much in the hospitals as a country for what we get.) Finance would be like banks and stock brockerages who do not want regulations and have collapsed the economy through their lack of responsability. They then get bailed out (what else are we going to do? Pay them unemployment and pay deposit insurance to all their depositors?) when they collapse the economy after lobbying to end government regulations and ruining the finances of real people.

The second would be health care. The largest are manufacturers of medicine, lobbying to get their drugs through the FDA before others. The American Medical Association is not included in the list on opensecrets.  This helps explain why universal health care has so few advocates in our government.

The third is Communications/Electronics. These are the people who support things like SOPA, PIPA, and other terrible things. They monopolize their respective markets and get the government to buy their goods. Others want to impact what regulations are passed that effect their business.

The fourth is energy. This is dominated by oil corporations fighting renewable energy and environmental regulations to protect their businesses at the cost of the country's economic dependence on foreign oil and a vicious cartel. They are almost entirely Republican financiers.

The fifth is composed of unions. These people fight for social programs, schools, or whatever else their industry is interested in. They are almost entirely Democratic financiers. An important note here is how unions are different from corporations, instead of being led by their leaders who are CEOs (like the rest of the lists here) the decisions are made by their members and their leaders are elected by the union members.

The sixth is made of construction, especially people who construct homes. These people donate across the board and are interested in keeping Fannie Mae and Freddie Mac how they are.

The seventh is agribusiness, and these people are interested in keeping their subsidies from the Department of Agriculture and having input on what regulations are put on their businesses. They also oppose legal work visas for Mexicans to work on their farms because they would have to pay them minimum wage and work them no more than 40 hours per week.

The eighth is Transportation. These people are diverse. The people who run rail lines (Berkshire Hathaway, CSX, and others) are interested in keeping AMTRAK on their lines only, keeping the other smaller lines without AMTRAK trains. The autodealers are interested in keeping funding mass transit at bay, so that they can continue to sell far more cars than are needed. (Notice the clash between Berkshire Hathaway and National Autodealers Association) Others include Courier Services who have an interest in keeping their ability to ship packages and stay unregulated. Also some airlines who are interested in keeping the environmental regulations (which cost money) at an absolute minimum. American Trucking Associations is another one that is heavily interested in keeping freight trains at a bare minimum.

The ninth is Defense. These people are interested in the government buying their goods and expanding our military. It is already the largest military budget in the world and the companies want us to buy more of their goods. It makes them rich and takes up a quarter of total government expenditure (half of all discretionary spending). Our government has two types of spending, Mandatory (social security and medicare are the largest amounts here) and discretionary (almost everything else) and the department of defense takes up more than all other mandatory and our annual interest on our debt combined! Also, assuming that it would cost the Federal Government $80,000 to send one American to college for four years ($20,000 per year), if we took half the defense budget out we would still have the largest military budget in the world and could provide free college tuition to 35 million Americans with only half of our military budget. That includes tuition, books, fees, room and board, the whole college everything. We would then make far more in taxes because people would not be deducting their student loans from their income tax, which would more than balance out in the end.

Part 2: The Policies

The Republicans and Democrats agree on a number of issues, the housing market, transportation (although a growing number of Democrats favor mass transit), agriculture subsidies, bailing banks, and Israel. Pro-Israel PACs (according to opensecrets) give 2/3 of their money to Democrats and 1/3 of their money to Republicans, and bth parties support continuing to give them money every year for their military. Perhaps they don't need to give as much to the Republicans because of their evangelical wing? Most of these are not usually brought up. Looking at the policies, we can see how they benefit the big donaters to political campaigns, but the American people often do not benefit as much.

How do the American people benefit from deregulating banks that then collapse? How do the American people benefit from exporting weapons to Israel? How do the American people benefit from the housing market collapsing? How do the American people benefit from having education cut to make way for military? How do the American people benefit from the highest rates for health care in the world with quality that is not significantly better than our European peers, but in many measures is worse (according to the CIA World Factbook)? How do the American people benefit from Monsanto getting government subsidies by less competition? How do the American people benefit from oil companies getting fewer regulations and renewable energy getting stalled, now for over 30 years? How do the American people benefit from AT&T monitoring what we do on-line?

The answer to all of these questions is, no, we lose massively. Very few politicians speak out against these massive corporate powers. Someone to speak out on the issue would be to say "America is going to get renewable energy." (hurting the oil lobby, dropping energy prices for 310 million Americans) "We are going to increase food production to bring down food prices by ending government subsidies to agriculture and scaling back the Department of Agriculture." (hurting Monsanto and United Fruit, now known as Chiquita, dropping food prices for 310 million Americans) "We are going to protect the access to all websites in America and reject pay per view for different websites as proposed in SOPA." (not giving Comcast more money, protecting access to the full internet for 310 million Americans) "We are going to outlaw dangerous lending practices." (Ending short-term gains for large banking institutions and stabilizing the economy for 310 million Americans) "We are going to have universal health care." (Hurting the never ending flow of cash to the insurance industry and decreasing health care costs for 310 million Americans) Behind all of this Americans don't get enough opportunities through education through lack of funding (despite having mostly excellent teachers) and don't cover issues like economics and politics that means Americans don't realize where the corruption actually is.

If someone said this, that person would be hated by those companies. Those people are President Barack Obama, Future Senator Elizabeth Warren, Senator Barney Frank, Senator Al Franken, Representative Dennis Kucinich, and these are the people who get the most hatred from right-wing media. We have not had a President who is so absolutely against these corporate interests since President Carter left the White House and he has received more than his fair share of hatred from the right wing. That is why FOX News and Romney's company Bain Capital's asset Clear Channel (which broadcasts Rush Limbaugh and other far-right pundits) are attacking President Obama. He is a threat to the massive lobbyists who control our government through campaign spending. He is the 99%, he just needs to say it. He was born to a mother from a poor (yet educated) farming family from Kansas and an immigrant father, what origin could be more humble than that? Because he is a threat to these massive lobbyists (especially the insurance industry) they have stepped up their spending, and their media doesn't represent what he really says because if the majority of people in the Deep South realized just how much they would benefit from his policies, he would win 40-50 states come November. This is why they are making voter ID which the NAACP, ACLU, SPLC, and other defenders of our freedom oppose. He is shaking up the status quo as much as he can, and he needs our help to help us. We need a Democratic Congress to pass a Constitutional Amendment to outlaw bribery (aka lobbying) and laws to make it punished severely. The Constitutional Amendment is needed so the Courts can't overturn the regulations again. If Mitt Romney is elected this will not happen, if Obama is kept there is a chance that we could see a massive decrease in corruption if he has a Congress that will work with him and pass these reforms!

They claim that he wants to end the American way of life, and there is some truth for this because he wants to change the system where everything our freedom is supposedly based on is a good that is provided by one of the major lobbying industries (namely own a house and own a car per person, look at the list of lobbyists and there is a clear correlation) and put less restrictions on what we can do, say, or protest, and provide every American with health care, college, and well funded public schools but he can't do that because Congress opposes everything he says, even routine legislation! He wants to change our country the same way Scandinavia's governments did when they became first-world democracies! On top of this most Americans don't hear what the President actually says and this is the big problem because what they think of him is what they are told by the media which is owned by the people who corrupt our system. Why else are there Exxon Mobil commercials on the evening news? If he is reelected and Congress is a Democratic majority than we could see universal health care, affordable college, and a growing economy with less corruption in Congress. If Mitt Romney wins, well, that's not possible because he changes everything he says on a frequent basis, whatever the lobbyists want him to say. If the American people vote for Obama and support him with a Democratic-controlled Congress (which is possible if people in the South start to vote) than there will be big changes, just like our greatest generation did and our standard of living will improve. I would love for the American way of life to be less dependent on the products of the same people who lobby our government.

This is why I am voting OBAMA 2012.

www.barackobama.com

Thursday, March 3, 2011

Tearing us apart from the inside

Anarchists, might sometimes sound amusing at what they say, but the system of government is the scariest of all the systems. Of 195 countries in the world 1 has what could be considered an anarchistic form, and that would be Somalia. Every other nation has the government involved in many things, infrastructure, education, public utilities, public goods, and other things that directly help the People. They currently have been eliminating funding for programs that go directly to the people, education is getting the axed with the saying of "budget" all the while people's incomes are being sucked up by health care more than anywhere else in the world (World Health Organization) and places where actual waste happen are not being targeted. We spend more money on military than any other nation except Israel (which is understandably spending a lot being in a region in complete turmoil and instability) while we are in the safest part of the world. This goes back to my previous previous post "Of, By, and For the Rich" where the rich can buy these "fiscally conservative" tea party members to get billions of tax payer dollars sent to the politically powerful.

But what actually disturbs me about this is that they do not focus a lot of energy into making government more efficient. Every American should look at the US Immigration system which is I hope the most convolved part of the law. Also, why does the tax code have to be 16000 pages long? That seems bloated and if it were simplified by removing the lobbyists' sections the government would not have a deficit and everyone's taxes could go down, stimulating the economy, and decreasing the amount of bookkeeping necessary to keep the government running. If they really were proponents of small government they would have this on their platform. They don't which tells me that this isn't what they are concerned about. They then must be the lobbyists' best friend.

One idea I have is that Social Security should not be mandatory. Many people do not want the paychecks. If they do not want the help they should not be forced to have it. It should be a voluntary basis though because some seniors live on social security paychecks and they keep them from being a burden on their families. Those seniors' families benefit greatly by the paychecks for their years of work and the seniors live better lives.

Also, on welfare, there is a lot of waste in the system. Many people get their welfare checks and spend it on things that should not be covered, such as big luxuries, cigarettes, drugs, and other things that should not be covered. Welfare should be designed to give people enough money to live when they are down on their luck so that they can recuperate from an injury, or some other condition. Welfare should be designed so they can buy things that they need and other things that give them the information they need to stay on top of the news. Things like food, newspapers, internet, cable, books, toiletries, pet supplies, fuel, basic insurance, and inexpensive electronics so that they can stay on top of current events and developments, but do not buy luxuries that they wouldn't afford otherwise. It should be seen as an intermediate step and they should spend their welfare dollars on a debit card. They should be allowed only $100 of cash from the debit card and an upper limit of the current cost of living so that they cannot overspend or purchase things that are not necessary. This would eliminate the waste that happens saving billions of dollars that are wasted.

Education should not be cut. Education is the one part of government services where I do not see any real waste because, excluding teacher's salaries, every penny goes directly to maintenance and education. It should be the last to be cut because it is where students should learn the skills necessary to succeed in the modern world. Education should be looked at as the greatest investment of them all because through it our economy becomes stable through our future leaders and professionals, no matter what their career, get the jobs they need to keep our country running. It should train students to be active members in society and know how society works, which it has not been designed to do with the emphasis on testing and the removal of High School Civics several decades ago. The reforms have made the curriculum less preparing for what we are going to need as adults with many concepts, like economics, psychology, and political science being removed to dumb down the curriculum. An attitude change is needed here. Children are brought up by our culture to think that school is a chore and not supposed to be fun. It should be more focused on preparing children for being world citizens than passing tests and going to college. The culture of high school sends students to college who then go on to do careers that do not require college education for their entire lives, which forces up the demand curve for college, making those of us whose careers require advanced degrees have to spend more than we should. Many of the "college-bound students" should go to trade schools. Most programmers for instance should go to trade schools because they are prepared for their careers. Once high school prepares people for the responsibilities of citizenship and adulthood, career training would be all that is required for productivity and full societal participation. This would save society billions of dollars for society and save years of time and tens of thousands of dollars each for many young adults in unnecessary college tuition.
     Also, school districts across the country should get the amount of money that they need to have state of the art equipment, up to date textbooks, up to date school buildings, and an environment that tells students that America cares about their futures. Rural school districts have to scrounge for money to replace out of date equipment all the time while rich school districts get their computers replaced all the time. Every school district should have the same high standard of education that is appropriate for the richest nation in the world. China is still a long ways behind us in GDP.

What they are doing is eliminating the very programs that allow the people who are not rich to not go bankrupt, the same programs that raised the United States from an agrarian nation to a first-world industrialized superpower are being put first for cutting. These things are so ingrained in society that many do not realize the impact these have on our society today. This makes the number of lobbyists fighting for them small, while the corporate interests in the military-industrial complex are very interested at more arms sales, because they get richer.

This would look like corruption but it also shows a purposeful lack of care for what happens in the future and a hatred for government. Some civilizations fall from invaders and some fall from revolution. Others fall from internal vandalism to society's structure. They are destroying American's acts of citizenship through a massive propaganda machine spreading fear through lies, i.e. the so-called death panels. By destroying all of the things that our country is built on they are effectively destroying our country by bringing our society from the level we share with Western Europe to the only country on the face of the planet that does not provide any services for its citizens, Somalia. This is treason and must be stopped.

Wednesday, March 2, 2011

Of, By, and For the Rich

I've finally had enough. I woke up this morning to hearing a five minute clip of John Boehner explaining why the government shouldn't outlaw internet censorship through making some websites have higher priority than others. It all reflected around the one central belief of the Tea Party movement: Government is Bad.

This is a lie. This is such a big lie that I was literally swearing up and down for about 5 minutes it was so incorrect. If you go onto any watchdog website that gives donations from corporations: I recommend opencongress.gov and you look at the amount of money being sent to all members of Congress (especially the Republicans) to increase military spending and deregulate media putting control of content into corporate hands, the number is in the millions. Corporations give them altogether billions of dollars on all the things they want: mostly more weapons to be purchased, less regulation, and pet projects that then cost most of the national budget. In response the conservative members of Congress can keep their 5 mansions each. They become filthy rich and tax payer dollars go into huge wastes and it is covered up by the right extremist media who never mention it.

This enough to make one balk, but it is worse than that. The Democrats do not ever speak up and give the reasons why the Republicans are hurting everyone by selling where they send our money. They let them put in the huge pork of guns, pass the bills into law and Lockheed Martin becomes filthy rich. We become the country with the largest mostly unused arsenal in the world that is added to every single year.

That is revolting , but it is even worse than that. Public programs that benefit all Americans are then canceled and are made difficult to get to decrease the debt. The money that actually goes to the people is cut and the money goes to the filthy rich leaving the poor and lower middle class with very little compared to the other two income groups. The income gap is widening America, and most people are seeing their average real incomes fall. Nobody wins, except for the Lobbyists with Seats in Congress who can do whatever they want because the "news" that their constituents get leaves out all the real pork, and they get filthy rich with all of their billionaire sponsors.

This could be stopped in a heartbeat. The President, who as invisioned by our forefathers to represent the entire country should use his State of the Union to call out the corruption of corporations and bring people to check the facts. There will literally be nothing that the Republicans could do in response. Once this is done and the corruption of the modern tea party is shown for what it really stands for, America will loosen up and we will be in less danger of revolution.

"It is not fit that you should sit here any longer! You have been sat too long here for any good you have been doing lately. You shall now give place to better men! You call yourselves a Parliament. You are no Parliament. I say you are no Parliament! Some of you are drunkards, some of you are living in open contempt of God's Commandments, following your own greedy appetites and the Devil's commandments. Corrupt unjust persons, scandalous to the profession of the Gosepl; how can you be a Parliament for God's people? Depart, I say, and let us have done with you. In the name of God, GO!"
~ Oliver Cromwell Address to the Rump Parliament 20 April 1653 London, ENGLAND

Wednesday, January 5, 2011

Things the Tea Party is Deliberately Forgetting

The Tea Party is in power now. Their ideas about how economics work are about to be tested and they are going to be the people doing everything for the next two years. Here are some reminders of past Tea party movements in American History and how they ended up.

  1. Reconstruction. After the South was completely brutalized by the Civil War they had no infrastructure, no industry, and no economy. Their was nothing to get the economy started and the Republicans decided to jump-start the economy. They built infrastructure, rebuilt Atlanta, Montgomery, and other southern cities so that Americans could have the infrastructure of the north. This went on from 1866-1877, 11 years. Then the Democrats came to power under President Rutherford B. Hayes. The South which once was as industrial as the North has not been the same economically since. The only major project after reconstruction was of course the Tennessee Valley Authority bringing power to rural people and jobs to one of the country's most impoverished states.
  2. The Great Depression. People overspent and overlent until people didn't have enough money to keep the money flowing. President Herbert Hoover comes to power and seven months later Black Friday happens and the economy is in depression. He holds fast to the modern Tea Party's belief in Laissez-faire, that the government should be as far from the economy as it possibly could. The economy continued to shrink for the next four years until the Keynesian (the economic philosophy that government can boost the economy through spending) Democrats under President Franklin Delano Roosevelt bring on the New Deal creating jobs for people, keeping their resumes up to date and making the decelerating economy speed up for the first time in four years. The process was long, a good six years until WW2 created more jobs continuing the New Deal's good work. Some people would say that it was World War 2 that ended the depression. But may I ask the question, where would the United States have got the money to wage war on Germany, Japan, and Italy in 1933?????
  3. 1970s. During the 1970s big oil hiked the price up quickly once President Carter entered office and made the economy slow because we were (and still are) addicted to petroleum as was proved then. Reagan was elected following the Iran-Contra affair and Big Oil decreased the cost of gasoline. This is a different reason from the past two examples and may be discarded because of different reasons for the beginning and end.
  4. 2008. People overspent and overlent until people didn't have enough money to keep the money flowing. President Obama entered office and proposed legislation that was strong and would move the economy out quickly. Republicans viciously amended the legislation to the level of vandalism until the bills were barely powerful enough to do anything, blamed it on the Democrats, and then say it is the Democrats fault that the economy is not back to 2000 levels. They win in the 2010 election and expect the laissez-faire of President Herbert Hover to work in 2011.
Here are the reasons for why laissez-faire economics did not and will not work now in order of importance:
  1. It assumes that a populace whose vast majority (I estimate about 98% to be generous) do not understand what money is will act appropriately to bring the economy back to the levels required.
  2. It assumes that businesses are going to take risks that are almost guaranteed to fail with the first point will continue to expand and manufacture when they are in the red.
  3. It assumes that these two things are going to happen with practically no insurance, security, or any guarantee of money coming back to their investments. Basically, the economy is at a standstill at best, actually it is more likely to go into free-fall like the period of 1929-1933.
Here are the reasons why Keynesian Economics works:
  1. It gives businesses (large and small if it is done correctly) some extra cash to keep their employees so they can still be involved in the economy during a rough patch. It allows them to not have to cut jobs which makes unemployment better and then the economy more stable.
  2. It keeps banks open and stocks decent which make it so people don't lose their investments and continue to be productive members of society and active members of the economy. This also makes the rough patch smaller.
  3. It gives jobs the now smaller number of people who are out of work, which keeps people employed which is an essential part to any economy. This keeps the economy flowing with more people active.
These concepts are all based on the truth as seen by history and is agreed upon by any economist even President Bush's economic advisers.