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conservative utopia

Liberalism is a mental disorder


The recession has been brutal on small business and President Obama has had an effect on its length with irresponsible rhetoric. The economy in America is an engine that runs on the fuel of small business as well as large corporations. Consumerism is the new economy in America rather than the old economy of the industrial age. Consumer spending in the retail markets, housing, automobiles, and other goods and services feed the economy and the tax revenue, which runs the government.  If an economy is faltering; consumer confidence is important to its revitalization. The Presidents job is to build this confidence with his policies and his words.

I began building a company in 1998 called North GA Window Treatments (hereafter referred to as NGWT). This company was a dream I had and worked hard to build for 10 years. In 2007 The Company was reporting sales of $250,000.00 a year. I had a very good income and several 1099 (contractor employee) employee`s working for NGWT.  The housing market began to fall in the winter months of 2007 and continued a downward spiral into the present. The economy received a slight increase in home sales during the spring of 2010 due to tax rebates in the amount of $8000.00 for new home buyers. This incentive, however,  failed to sustain my company. This downturn slowly eroded the sales of NGWT until the summer of 2010, and now at the present time; I must concede that the company is all but bankrupt.

This story is only one in several million such stories throughout America today.  Companies small and large are closing their doors and jobs are a luxury for most of the country. President Obama has the power from his bully pulpit to announce business incentives that would create growth and cause businessmen/women and consumers to have confidence to spend money. At present  there is an estimated  $1.8 trillion dollars in rainy day private sector funds according to a July 2010 Washington Post article that  probes the question as to why corporations won`t hire. The article goes on to discuss the implications of the White House and its rhetoric, which is creating uncertainty in the private sector. The White House went on to defend its positions saying that companies are sitting on their cash until consumer spending returns to normal (Yang, 2010).

The problem with this argument is people need a job in order to have money to spend Mr. President.  Consumers as well as business owners have seen and heard nothing from this white house except new spending and regulations. The stimulus money has been used primarily in the public sector for road projects and public grants. One such example is the state of Wisconsin well-known for its Democrat voting majority. According to Milwaukee journal sentinel (2010): 

Wisconsin spent $1.5 billion in federal stimulus money in the first four months after the law was passed……. The spending included $572 million to expand benefits for unemployed workers; $552 million in payments to school districts; and $342 million to support state health care programs, according to the Legislative Audit Bureau report (Audit: State spent $1.5 billion in stimulus funds , para.2 ).

 

     The economy needs a boost from consumer’s spending money instead of a public sector spending spree. These government employees’ salaries and pensions are paid by private sector taxation.  These public employees should support a tax cut as well because his or her job will depend on future tax revenues. If the private sector fails then in turn so will the public sector.

     NGWT would be back in business if a customer needed blinds for his or her new home or renovation project. The problem is that consumers and businesses are afraid to spend any extra money because they see no light at the end of the tunnel. Each day as an American citizen turns on his or her radio and television set he or she hears more rhetoric from the President about taxing the rich and spending for new programs. The money that Congress spends is borrowed from several foreign countries, and China is at the top of the list at $846.7 billion (US treasury department, (n.d.)).

     This money cannot be paid back by a so-called savings from the refusal to cut taxes. The gross domestic product of our country must grow, and the only way to do that is to spur business growth. When a business grows it needs to hire new employees, and as a result, the new employee`s have paychecks and money to spend.

     The Democrat controlled Congress holds the opinion that Tax cuts only serve to help the rich. The Democrat Congress is opposed to tax cuts unless they are targeted to middle class families. This sounds like a good economic formula on the surface or from an emotional standpoint; however, the rich own businesses, and businesses create jobs not middle-class families. Of course, middle-class Americans do own small businesses that create jobs and some do support the President’s position. I have never received a job from a poor person so I personally believe that the more money the rich have the better our economy will be.

     The state of Georgia has experienced its woes like all other states have in this recession.  NGWT is just one more story of a company that fell off the radar in a matter of months. This did not occur due to poor money management or bad business decisions; this occurred because this President is at odds with the private sector. This is about politics not about America. This recession would have been over months ago had this President decided to do what others before him have done; work with the private sector not against it. President Obama has the power to create fear or confidence with his words and even more important with his actions.

            Reference:

Milwaukee journal sentinel. (2010). Js online. Retrieved from

                  http://www.jsonline.com/news/wisconsin/89706642.html

            US treasury department. ((n.d.)). Major foreign holders of treasury securities. Retrieved    

                 From http://www.treas.gov/tic/mfh.txt

            Yang, J., L. (2010, July 15). Companies pile up cash but remain hesitant to add jobs. The

                 Washington post. Retrieved from http://www.washingtonpost.com/wp-

                 dyn/content/article/2010/07/14/AR2010071405960.html?hpid=topnews

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