FREEDOM AND FREE ENTERPRISE
The Following is an excerpt for Wade Cook's upcoming book, THE RIGHT WAY TO PROSPERITY F R E E D O M A N D F R E E E N T E R P R I S E
"Let us not dream that reason can ever be popular. Passions, emotions, may be popular, but reason remains ever the property of the few." —Johann Wolfgang Von Goethe
"Every single policy prescription that the president has signaled or is promoting works to make the United States . . . a less competitive climate for business formation and business expansion." —Michael Cosgrove "This is among the most incompetent series of economic policy moves in U.S. history. —US Chamber of Commerce and the business Roundtable "In a centrally planned economy, the state inevitably infringes on what we do, what we enjoy, and where we live. When the state has the final say on the economy, the political opposition needs permission of the state to act, speak and write. Economic control becomes political control. —Russ Roberts (WSJ) "Its duty is to protect the constitutional rights, nothing more. The state threatens the economy and our individual freedoms when it begins meddling in voluntary, peaceful activities." —Investor's Business Daily "Stimulus surprise: Companies retrench when government spends." — Harvard Business Review ". . . all of the actions of the governments around the world to 'save' the financial markets ignore this one very important fact: It is governments themselves that are to blame for this mess." —Ed Yardeni ________________________________________
The pendulum is always swinging: Left, right; good, bad; side to side and often exaggerated one way or the other. It never stops. Lately we have seen a political swing of gigantic proportions. If unchecked the swing to the left, or Totalitarian way of governance, will leave a grotesque mark on our way of life. There is no way to divorce free enterprise from our basic freedoms. A cursory look around the world, considering a glance at time, will teach a powerful lesson. The more freedom, the more free enterprise, the better off people and societies are.
Conversely, the more top-down control, the more left the policies, the more misery exists. The pendulum is always moving. We can ignore it, but the results will blind-side us. We can make choices, as people all around the world are doing, but we cannot choose the consequences. Most of the world is running from statist governments and liberal economic solutions to free market economies and benefitting immensely. Why then are the current batch of leftist politicians in America so driven to implement the machinery of misery on our population? We wonder as the pendulum swings left. We hope for a better tomorrow as we want to nudge the pendulum back to the right.
"Fortunately while this administration will never understand the dazzling, opportunity-creating dynamic of genuine free markets, the American people still do." —Steve Forbes
CREATING JOBS Most of what this current administration seems to push is a solution for one news cycle. They seem like they are not concerned with long-term growth. A temporary blip to them can be played out and talked about for a long time. Do you remember when President Bush okayed the $500 checks to everyone, that which we call the first stimulus bill? It worked for a month or so. The results were quick and temporary. We don't need blips, but permanent economic growth. Saying that makes us think how we would measure a better way of proceeding. We would measure and judge great results as an expansion of the economy, and the surest way to measure this would be job growth. Job growth as in the number and quality of jobs, the length of time each week people work and the prospects for improvement in the future. Micha Gisser stated: They ". . . tend to ignore Milton Friedman's seminal permanent-income hypothesis, which states that consumption depends primary on permanent income, not on transitory income." "In 1964 Congress passed substantial and permanent income and corporate tax cuts President Kennedy had proposed in 1963. Growth in real GDP was impressive, but most importantly the unemployment rate fell from 5.7% in 1963 to 3.8% in 1967. Also debt ratios fell." (Ibid Gisser) If President Kennedy had listened to his advisors who recommended "timely, targeted and temporary" spending adjustments instead of a permanent tax cut, it would have just been another blip.
Allan H Meltzer, Professor of Economics at Carnegie Mellon University and author of "A History of the Federal Reserve," backs this up. He said that the current administration is ignoring two of the most successful stimulus activities and periods of time since the Second World War. One is the Kennedy-Johnson permanent reduction in corporate and personal income tax. The second being the Reagan Tax cuts which created the longest boon in economic growth in our history. Nearly 21,000,000 new jobs were created. Arthur Okun, who played a major role in writing and passing this legislation, later set about to analyze the results and found that the most significant factor—Time out, Liberals make sure you're sitting down—was the permanent reduction in Corporate Income Tax. It was the most effective aspect that brought on growth, higher employment and of course, more revenues to the government. Growth always does that. So you ask, why can't the people in power, one's who loved John Kennedy, just follow his lead and do what he did? We wonder about this every day.
A CHECK ON HISTORY Tyranny is always bad. There is nothing good that can come from it. Our country is starting to glimpse what a socialist/progressive government looks and acts like. We will lose the ability and right to choose if we allow government to continue to grow and expand its control. Do you understand that every time the government grows we lose freedoms? There is a balance to this with awful consequences if we do not choose wisely. One choice we must face head-on is whether we want people in government to be Public Servants or Public Masters. If we do not keep control of this, they will usurp powers and take away our rights. What if we had heard this in 2008? We're going to spend One Trillion Dollars more than what we take in. In 16 months unemployment will rise to 10% (It did). We're going to lose 2.5 million jobs. And we're going to raise taxes all around and create such business uncertainty that no one will hire and expand. What would we have voted for? Growth or stagnation. Free Markets or Government takeovers, control and manipulation? Less taxes to spur growth, or more taxes to hinder and block more employment, profits, and hence more government revenue. The world has seen socialism fail everywhere. It's coming here unless right thinking people stop it. There is so little common sense anymore. Thomas Paine was a hero to the American people, but a pain to King George III. Read again the quotation at the beginning of this chapter by Goethe. So few, indeed. Just ask yourself the rationale of why so many employers are on strike? There is no common sense in this administration. It's like they have the Greek disease. In Canada at the G-20 Summit, the world's leaders were set against Mr. Obama and his tax and spend policies. "Only the neo-socialist Obama administration and its pals in Congress don't get it." —Lee Ohanian and Charles Rowley. As Lawrence Kudlow states: “The welfare state run amok. Right here at home. This is spreading the wealth in its most crass form."
TRUE GROWTH "As cash runs low in government coffers around the country, politicians are ratcheting up the intensity of their search for revenue and new areas to regulate. Small businesses are in their cross hairs in a mammoth, nationwide shakedown. They are the nation’s critical engine for growth, innovation and job creation, yet they are being starved for credit and slammed with more taxes, governmental directives and litigation exposure. This spells weaker profits and fewer jobs, risking a fundamental deterioration in America's private sector." —David Malpass, Global Economist. Can the American people be so blind? Can we be duped again? Yes, if the lies and distortions spread. "Any budget they pass will have to tell the awful truth—that their spending has locked in deficits and debt as far as the eye can see. The payment on the National debt will soon be $900,000,000,000 a year. That's just about what the government took in two decades ago. Funny, in the same time-frame, Medicare and Medicaid is scheduled to grow and spend every penny the government takes in. Did I say funny? How can just those two major expenses by themselves take all of the revenue the government takes in? Look at these three observations of David Ranson in the Wall Street Journal: 1. "The feds assume a relationship between the economy and tax revenue that is divorced from reality. Six decades of history have established one far-reaching fact that needs to be built into fiscal calculation: Increases in federal tax rates, particularly if targeted at the higher brackets, produce no additional revenue. For politicians this is truly an inconvenient truth." 2. "The tax base is not something that the government can kick around at will. It represents a living economic system that makes its own collective choices. 3. "The Greeks have always been trendsetters for the west. Washington has repudiated two centuries of U.S. fiscal prudence as prescribed by the Founding Fathers in favor of the modern Greek model of . . . DEBT, DEPENDENCY, DEVALUATION AND DEFAULT." Without private sector growth and the blessings that follow, there will not be a sustained recovery. There will be no net increase in job creation, except that of government. We do not need more vacant speeches. Note: $700,000,000,000 in TARP money; $1.2 Trillion in Fed money printing; $862,000,000,000 in Stimulus money; $70,000,000,000 to take over the auto industry; and $146,000,000,000 for additional stimulus. Results? VERY LITTLE MEASURABLE RESULTS. This boggles the imagination. Oh, and most of the results that can be measured are dismal. The crisis was primarily contrived to cause government to extend its reach into more of the American life. "The new Lords of finance look an awful lot like the old Lords of regulation, but with much more discretion to write the rules as they please." If we want JOBS there are two answers: (1) LOWER TAXES; and (2) CUT SPENDING (with all the debt that goes with it). That's it, pure and simple. Phyllis Schlafly said: "The best way to create jobs is to cut taxes on those who create them." Karl Rove quoting the President of the European Union (Mirak Topolanek) who was lecturing Mr. Obama, saying the road we are on is "the road to hell," added, "This is indeed the road to fiscal hell, and it's been paved by the president and his party."
"ARE WE GOING TO GIVE UP OUR FREEDOMS FOR THIS CON-MAN, THIS HUSTLER IN THE WHITE HOUSE?" —Jeff Kerner
I'll conclude with these comments by Russ Roberts, who was sharing the wisdom of Friedrich Hayak (Author of "The Road to Serfdom) in the Wall Street Journal. “Even when the state tries to steer only part of the economy in the name of the 'public good,' the power of the state corrupts those who would wield that power. Hayak pointed out that powerful bureaucracies don't attract angels—they attract people who enjoy running the lives of others." Let's pray we can vote them out before they run us over. _______________________________________________
© 2015 Wade B. Cook. All Rights Reserved. firstname.lastname@example.org. Go to wadecook.org for a FREE Money Report: JOB FREE INCOME.