Friday, January 30, 2009

The Middle Man

I once saw an advertisement, and you probably have too, which said, "We've cut out the middle man." The advertisement was indicating that whatever widget they happened to be selling could be purchased for an extra low price because there was no one between the manufacturer and the consumer. That is, there was no distributor, thus there was no reason to pay a distributor. The manufacturer was happy for selling to a larger client base and the consumer was happy for getting such a great price. They would then surely take their widget home and show it to their neighbors while bragging about what a great negotiator they are and everyone was full of joy.
What are you talking about Brian? Ok, ok... I'll get to the point. What possible reasoning could the government have for being the middle man in our economic stimulus? We all work and pay taxes. The taxes pay for things like roads, bridges, schools, F-22 fighter attack squadrons, and artificial turf for the National Mall, right?
According to President Obama, on Jan 28 in the White House East Room, "business, not government, is the engine of growth in this country." (More on this in an upcoming article entitled "The Reagan Mask") If business is the engine of growth in this country, why is there a middle man between business and its own money? It doesn't make sense and is in fact detrimental to growth, that government should confiscate money from business via a world record breaking 35% tax, only to return it to them with incentives or keep it via government expansion. Wouldn't the country be better served by allowing businesses to keep more of what they earn to employ people rather than have the government do it? After all, business, not government, is the engine of growth in this country.
It seems wholly illogical to me to allow an economic distributor to come in and reapply that money for transient and low-paying jobs, as directed by the Obama stimulus plan, when we have a host of businesses eager to apply it to permanent and higher-paying jobs.
I asked earlier what reasoning the government could have for this proposal. The only possible reason I could come up with is power. They want to control business. They want to control opportunity. They want to control you. How do I know this? Well, it's the only thing that makes sense. If Obama really wanted to stimulate the economy, he could do so easily by cutting corporate income taxes; this is not only common sense but historical fact. If he wanted to control you, he would take as much of your money as he could get his hand on and then tell you what you must do in order to get it back, which is exactly what this economic pork bill is all about. This bill is about control and the best way to do it is by making themselves the middle man.
The good news is, you don't have to let them do it. You can still retain control, but you have to act. The Obama stimulus bill has passed the House (with zero Republican votes), but it still needs to go through the Senate. You have a louder voice than you think you do. Call the Senate and tell them not to vote for this monstrosity. Tell them instead to cut the corporate income tax and the capital gains tax. This will spur the economy, this will give you control, and this will cut out the middle man.

No comments: