Wednesday, April 15, 2009

GREAT THINKER LECTURE #3

GREAT THINKER LECTURE #3
I, Great thinker Freddie L. Sirmans, Sr. decided to give this short lecture on government spending. I will try to make it as short and to the point as possible. I keep hearing so many public figures saying that almost all economists believe increasing government spending is good for the economy during a recession.


I totally disagree with that, I don’t buy it for one second. Sure, if it means cutting taxes to the bone and spending to establishing government shelters, government kitchens, and hospitals, yes. Well, I may be the one that is the fool, but I believe mass increased government spending is a foolish idea.

I believe the main problem with the economy today is hardly anyone truly understands how a free market is suppose to work, most of the general public doesn’t even have a clue. The only sure way is to go back to the very beginning with a group of people bartering and learn from there. All of these Wall Street inventions are just policy with procedures that only they truly understand.

The big question that matters is what creates wealth? The following is what the great thinker believes, me. I figured excess profit is what creates great wealth. And excess profit cannot be created without first risking an investment. Further, no nation can become rich and wealthy without a lot of people willing to take an investment risk.

Rule one is almost no one is going to be willing to take a great investment risk without first the expectation of a great profit reward, too high taxes diminishes that reward. The more government increases taxes and spending the less profit is going to be left for the businessman. To stay in business a business must make a profit, otherwise the business is history.

Increase government taxing and spending forces a business to raise its price to keep making a profit, thereby raising the cost of living on all of the people. Everything about a free market economy runs on profit. No profit, no risk takers, no risk takers, no wealth for the government to tax and spend. No profit is the reason all non free market economies remain dirt poor.

I believe there is a saturation point for rising taxes and our welfare state may have reached it. Just look around you the cost of living is leaving almost everyone broke. Most people simply don’t have the money anymore to buy major items like new cars. And credit cards are making many people debt slaves.

Something gotta give, you can’t get blood out of a turnip, and you can’t have wealth to tax without a lot of people making a lot of profit. Lastly, how to run a successful free market economy? There are simply too many variables for the government to ever run a successful free market economy, intelligence, charts, figures, and all of that stuff is practically useless.

Allow free competition and let the free market place work is an ideology that has produced abundance of everything time and time again. However, hands off is a lot easier said than done for government, government is all about rewarding its friends and punishing it enemies.

I believe the idea of increased government spending during a recession is a liberal state of denial to hold on to power even if the country goes to hell. I really tried to keep it as short as possible. Class dismiss.

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