GDP is Gross Domestic Product. It consists of three parts: 1) Consumer spending. 2) Business investment. 3) Government spending. The more your GDP is made of the first two, the better off your economy is. The more it is made of the third one, the sicker it is. Regan proved that if you lower taxes and cut government spending you can create jobs. Some twenty million of them! Businesses make more money, hire more people who in turn pay more taxes. When you raise taxes business has less money so they hire less or lay off people. When you raise taxes businesses and individuals either hide their money or more likely don’t make as much and so pay less tax. Your homework assignment is to lookup how much Regan lowered tax rates and find out how much more tax revenue he collected than the previous administration. This is not the Obama way. Here is what is happening: 1) The Democrats, led by Obama, are spending money this country can’t pay. 2) They are raising taxes beyond sustainability. 3) Somehow they believe that they have to spend even more money in order turn it around. (WTF) Sorry, but this is the dumbest bunch of loonies there ever was.
Companies are either going out of business, downsizing or moving out of the United States. Taxes are going to rise dramatically in the next few years, income is going to drop like a rock. Tax revenues are already dropping and they will be on the floor by the time this jug-eared nincompoop is done. He thinks Keynesian economics is what will work. Ha! He just got back from the G-20 economic summit and the Europeans, Russians and Canadians told him to go pound sand with his spending. Why? They have been trying it for decades and they are all going or are broke. Now the Democrats are forcing a “Financial Reform” bill through Congress. This lump of llama leavings was created by the two A** holes that got us into the mess we are in, Chris, ‘Bank of America’s Friend’ Dodd (God only needed one ‘d’) and the ever lovely (in a dress) Barney Frank. Doesn’t anyone in Washington see something wrong with this? Don’t any of the donkeys up there that vote for this crap realize they are bankrupting this country?
John Maynard Keynes came up with an economic model which says that if the government spends a lot of money it will put money in the hands of the people and thus stimulate the economy. That is a very broad interpretation to say the least. The problem with the theory is threefold: 1) The government needs money to spend and they think the way to get that money is to tax, tax, tax. 2) The government spends this money on government projects which really adds very little to private business. 3) Once the government work is done, the workers are either absorbed by the government at an added cost or they are thrown out of work. In either case the taxpayers foot the bill. Many countries in the world have tried this and now are trying to dig their way out of debt.