What is something that all Americans are participate in every day of their lives but really know very little about? That’s right, it’s our economy. Understanding the economy is like speaking Latin for most people. They just don’t understand it. It is too difficult and the media makes it even more difficult to understand with all of their analysis and rhetoric. To say that most Americans don’t truly understand how the economy works would be an understatement. The frustration boils over as the bills show up every day but the income either stays steady or goes down. Where does this vicious cycle end?
I’ve got great news. There is an end in sight. However in order to get to that end, you need to understand how the economy works. That is the easy part. Sit back, enjoy and hopefully you’ll know little bit more about the economy and how it works after you get done reading this. Your understanding will also help you make an educated decision on November 6th at the polls in this year’s upcoming elections.
When you break it down, the economy is very simple. There are different ideologies behind what makes the economy grow and prosper, however the facts speak for themselves. The ideological differences between the Republicans and the Democrats are typically clearly drawn. In 2010 the tea party Congress came in with strong ideas About debt reduction, cutting programs, cutting spending, all while never doing anything to address revenue increases. It’s pretty easy to see what can happen to the economy if these ideas were all implemented. Cutting programs that help 98% of the American population to reduce the debt might sound great in theory, but will do wonders to destroy our economy. The Democrats believe that filtering money to the middle class will help grow the economy. This is where understanding the economy gets very easy.
There’s been a lot of talk on Capitol Hill about the job creators. You may have heard something about them, especially during the campaign season. The Republicans believe that anybody that has generated wealth is a job creator. Therefore, they’ve refused to raise taxes on these people citing that raising taxes on them will prompt them to move their businesses out of the country. Simply put, they believe that if the wealthy business owners receive tax breaks, they will use those tax breaks to hire more people or give out larger salaries. You may have heard this referred to as trickle-down economics. As history has shown, this method has rarely worked. The Democrats however, believe that people with wealth should pay the same percentages in taxes that the middle class in this country do.
The Democrats idea of a strong economy however, is a more rational and practical idea. They believe that the money from tax breaks should be used to increase discretionary income for middle-class Americans. The middle class will then take that discretionary income and spend it in their communities. When that money is spent in their communities, the demand for products and services go up which fosters business growth. When businesses grow, jobs are created. In fact, the wealthy are not the real job creators. You and I are. Consider this; if you do not have extra money after your bills are paid to spend in your community on fun things and things that you just want, how do the businesses in your community grow. When salaries and job growth are stagnant or decreasing, the economy gets weaker.
Take a listen to Robert Reich, one of the top economists in America today. He will debunk the seven biggest lies about our economy for you in the next 2 min.
As Robert Reich explains, sending money and tax cuts to the top 1% only weakens our country and our economy.
The election this year on November 6 is very important to our country’s economic future. The United States government is supposed to be structured so that there are checks and balances. If one party gets too much control, and makes bad decisions; decisions that are not for the betterment of you and I, then us 98% ours suffer. It is important that you understand how this stuff works so that you can make an educated decision at the polls. Regardless, it is important that you exercise your right to vote and you do so accordingly. Thank you.
Don Zelichowski ~ political enthusiast
Video provided by WWW.upworthy.com
Picture provided here.