How to make Our Economy Work and Where the Government Went Wrong!

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     In 1935 FDR singed off on The Social Security Act. This was where things started to go wrong.  However FDR could not have seen the major flaw in this.   He could not have known that when WWII ended that we would have the largest amount of children born.  Here is the problem, as the “Baby Boomers” grew up and started working it was a different time.  Women’s rights came along and women started working and have careers.  This caused a drop in how many children were born.  In the 40s and 50s a family had 3 to 4 kids.  Now the average family has 1 to 2 kids. Here is where the plan starts to fail. So in the 70s and 80s the baby boomers are working and paying social security for the retired.  I can not find a ratio for the workers to retirees but I would guess that at that time it was 2 or 3 to 1. Everything was great.  So the government sees a surplus and started to use the excess for various things instead of letting it grow.  Are you seeing the problem?  Now there is a deficit due to two things, over spending by our wonderful leaders and a drastic change in the ratio. Now I would guess that the workers to retirees are closer to 1to 1 or 1 to 1.5 maybe 2.  I am 34 and by the time I retire social security will be no longer. So our money was affectively stolen to pay a bad debt by our wonderful leaders. 

      Also in 1913 we started pay income tax.  Ok I do agree we need to fund our government; however, there are better ways than taking the money off the top.  I see a huge flaw with the tax system as it stands today.  One is there are way to money loophole for people with the money to get out of paying what they should be paying. Two is if we have a huge nation deficit and our income tax isn’t covering it where is the money coming from when we get a tax refund.  

    Now we get to our wonderful leaders.  They are not driven by the desire to make our nation better. They are driven by the need to make their bank account fatter.  Most of them already have great wealth. We need to stop the palm greasing in Washington and point our leader back in the direction our founding fathers intended.  The government was created to govern and protect the people.  They, at this point, want to protect big business due to the fact that that is where their money is coming from.  Fewer restrictions on the way businesses are ran means a nice check deposited into the “Campaign Fund” of our leaders and law makers. 

     I have a few ideas that could help our nation. One: Get rid of the income tax and replace it with a federal sales tax. Impose a 10 to 20 percent sales tax and there is nothing to send back. Once it’s paid they have it to run the government with.  This way everyone pays what they should be paying. The lower income population will pay the least.  As you earn more you spend more and the more taxes that you will spend.  If everyone brought home their gross they would have more to spend thus stimulating the economy and there wouldn’t be a recession. Plus, there are 4 million illegal immigrants in our nation that are being paid under the table. This would even have tourist paying taxes. Turn the IRS into the federal sales tax commission and you have your collection device already in place.

    This brings me to the 700 million dollar Stimulus Package.  Giving it to the businesses is just putting gum in the hole in the Hoover Dam.  Here is the flaw in this plan, the reason the businesses are in this shape is because the people do not have the money to pay there mortgage.  Give the mortgage companies and the car industry money isn’t stimulation anything.  It’s just wadding up a piece of gum and shoving it into a leaking hole.  Here is a thought, give that money to the people. This will stimulate the economy.  People can pay their mortgage, credit card, and buy cars. This start to fix the economy, don’t reward companies for having bad business practices just because the hold most of the mortgages of congress.  This would also allow people who wanted to start a business to do just that and create more jobs.

     Now think about how much money states with lotteries raise for “education” each year. Let’s put that concept to use for federal reasons like running the government. Think of it a 50 state lottery. The numbers would be staggering. We also need to look to our imports and exports. We need to levy a higher tariff on all that we import. Now that I have you all thinking and I know I will hear a lot about how other countries have use the sales tax and how it didn’t work. Well if you think about their governments you have the answer. Yes I feel our government is headed in the wrong direction but we still elect or leaders. No chew on these thought for awhile. Please leave comments or your own post. Let turn this into a discussion and hopefully we can make a difference.


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