Thoughts on private sector misguided

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Michael Ferguson's July 3 letter ("Don't let private sector overtake nation") elucidates exactly what is wrong with America today -- his mind-set.

Facts will never get in the way of a misguided philosophy. Do you think Mr. Ferguson knows that the majority of the private sector of the American economy is small business, not large corporations?

Do you think he knows that the world's biggest private oil companies own only 5 percent of the world's oil, or that governments and monarchs own the other 95 percent? Does he know that most small-business owners such as myself would rather see General Motors fail than support an artificial marketplace?

Do you think Mr. Ferguson knows that government policies such setting a minimum wage rather than the market doing so, and union control of labor, have driven jobs offshore? Unemployment benefits can be the equivalent of a $12-per-hour employment position.

Do you think Mr. Ferguson is aware that Jimmy Carter's administration came up with the idea of giving mortgages to people who could not afford them, and that Barney Frank and the Congressional Black Caucus corrupted that idea beyond imagination?

Does Mr. Ferguson know that Fannie Mae and Freddie Mac refused to take bundled mortgages without a certain percentage of these risky loans included? Does he know that the banks hedged against these mortgages because they could see the risk the feds could not?

Does he know that the Bush administration saw the risks and tried to reverse the federal policy, but were soundly defeated by a Democratic Congress?

Does Mr. Ferguson know that the portion of health care the feds now control is an unmitigated disaster of corruption and bureaucratic misappropriation, and that he is supporting turning the entire system over to that abomination?

Private citizens receiving rather than giving to the public good are soon to be a minority. Where will Mr. Ferguson get his handouts then? Obama's welfare-collecting African aunt though America owed her housing and subsistence. So, apparently, does every wrong-thinking person such as Mr. Ferguson.

William J. Welsh, M.D.

Augusta

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The Tall Man
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The Tall Man 07/16/11 - 12:21 am
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I'm going to put it in an

I'm going to put it in an Analogy. So some of you confused folks can get on the correct page.

Republicans are like mom and the democrats are like dad. Mom went off and maxed out the families credit cards (took her friends out to dinner (Halliburton) went fancy places (Iraq and Afghanistan) when the family barely had a balanced budget. Now dad has to go and try to find a loan so he can fix his car up (Stimmulus and Education training so people can find new jobs) and still go to work. Then mom says look at all the work you did to your car! that's some freaking BULL!!! You spent money!....But that's not the worse part. Mom instead of going to find a job (increase revenue) because she likes hanging out with her friends (the corporations) she wants to just cut the kids school supplies (educational benefits) and save gas money by not taking grandma to the doctor (Social Security). To help pay off her credit card bills (the debt).

Reading through many of the comments/letters/editorials here on AC.com is downright depressing. The amount if misinformation and gross ignorance on such important issues is appalling. What is most upsetting is the number of people here who have bought into the Big Lies of the Republicans in Congress, particularly the Tea Party fiscal extremists.

Raising taxes on the wealthy will NOT kill jobs. That belief is simply not borne out by recent economic history. First of all, tax rates for the wealthy are at their lowest point since 1950. Second, our periods of greatest economic growth came when taxes were highers, especially during the 50s, when the top rate was 91% and there were a fraction as many tax avoidance methods available in the tax code. Third, the vast majority of small business owners in this country earn less than $250K/year. The small business owners that the GOP is protecting are the "s" corporation, which define small business as having a small number of owners. By that definition, Koch Industries and Bechtel, the world's largest engineering firm, are small businesses. Fourth, those households earning more than $250K/year would only see their tax go up 4% on what they earned in excess of that number. So, if a family was earning $300K/year, their tax would only go up 4% on the extra $50K. If a family is making more than $300,000 per year, that means their bi-monthly paycheck equals $12,500. People who are earning the median income in this country are getting less than 1/6th of that per paycheck.

Hiring is NOT driven by tax cuts. Think about it. Why would a company hire people they don't need just because the owner is able to pay 4% less on April 15th. Hiring is driven 100% by consumer demand. If customers have more money and are buying more product, then the business owner will hire more staff regardless of how much he's paying in taxes. Taking services and programs away from the middle class when wages have actually gone down over the last 10 years is killing this country's consumer base. Further proof of this is the fact that major corporations in this country are currently sitting on more than $2 trillion in record profits, but they're NOT hiring. Why? Because nobody is able to buy. 401Ks have been wiped out, millions are out of work, health care is more expensive, and people are afraid.

You don't fix this situation by transferring even more wealth to the wealthy, who have already seen their share of wealth increase over the last decade by more than 250%. You fix it with jobs programs that will put spending money in peoples' pockets. So far, the Republicans and Tea Partyers who were voted into Congress last November have not do a single thing to help create jobs and get this economy going. NOT ONE THING.

And, now, they are willing to see the country go into default and watch interest rates skyrocket because of their antiquated, pig-headed anti-government ideology. The President has shown saint-like patience with Cantor and Boehner in this meetings. And then he gets criticized for simply showing frustration with their blatant obstructionism.

copperhead
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copperhead 07/16/11 - 01:15 am
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I agree! The private sector

I agree! The private sector MUST be illiminated all together. It is EVIL! ALL should be under government control. END private business today! EVIL! EVIL! EVIL!

Craig Spinks
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Craig Spinks 07/16/11 - 03:04 am
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The Tall Man is not short on

The Tall Man is not short on facts.

Fundamental_Arminian
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Fundamental_Arminian 07/16/11 - 03:22 am
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Both Dr. Welsh and Tall Man

Both Dr. Welsh and Tall Man make good points. Truth is, Democrats and Republicans alike have run up trillions of dollars in debt, which puts our nation at the mercy of the wealthy international banking system.

Right now, our best hope is to have gridlock until a strong third party can emerge.

Fundamental_Arminian
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Fundamental_Arminian 07/16/11 - 03:36 am
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"Fourth, those households

"Fourth, those households earning more than $250K/year would only see their tax go up 4% on what they earned in excess of that number. So, if a family was earning $300K/year, their tax would only go up 4% on the extra $50K. If a family is making more than $300,000 per year, that means their bi-monthly paycheck equals $12,500. People who are earning the median income in this country are getting less than 1/6th of that per paycheck" (Tall Man).

You're talking about households whose income consists of wages, salaries, commissions, and tips. This kind of income, the income of working people, is discouraged by our progressive tax system.

The really wealthy get paid with dividends, stock options, and interest, from which no money is collected for Social Security. For them, 15% is the top tax rate, while some interest is tax-free. These same people also avoid inheritance taxes by setting up irrevocable charitable trusts.

Our current tax system is grossly unfair, and it helps perpetuate a nobility class who have the means to exploit the system's loopholes.

southernguy08
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southernguy08 07/16/11 - 07:10 am
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Well there you go, folks. In
Unpublished

Well there you go, folks. In case you forget, just remember RETIREDARMY's mantra..."ITS ALL THE REPUBLICANS' FAULT!" Obama and his supporters know about as much about growing the economy as I do about fishing under the polar ice cap which, according to liberals, is melting because of George Bush. Yeah, I'm laughing. So are a lot of others.

southernguy08
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southernguy08 07/16/11 - 07:11 am
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FUNDAMENTAL, I agree that our
Unpublished

FUNDAMENTAL, I agree that our current tax system is unfair. Are you ready to get onboard the FAIR TAX train?

WW1949
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WW1949 07/16/11 - 08:07 am
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RA gets a govt check. I

RA gets a govt check. I wonder what will happen to it if the debt ceiling is not raised. His money comes from taxes paid by the top percentage of income earners. Simply not the entitlement class. I would not mind paying a small percentage more if there was also a drop in spending and Congress would change some of its benifits to the same thing we have . No golden egg for them like now.

southernguy08
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southernguy08 07/16/11 - 08:20 am
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"We don't need a balanced
Unpublished

"We don't need a balanced budget amendment." Barack Obama, July15, 2011. But, he and the Dems want taxes raised, obviously with no restrictions on how they use those funds. What is to stop these nitwits from collecting this extra money and just spending us deeper into debt unless a BBA is passed? Answer: Nothing!

Techfan
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Techfan 07/16/11 - 08:37 am
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Don't you love it when a link

Don't you love it when a link to one of their own stories has to get approval from the AC?

david jennings
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david jennings 07/16/11 - 10:18 am
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It seems government is doing

It seems government is doing a good job dividing us,I mean with the educational decision in Calf. and all the class envy being created with unfair tax policies,and or many issues.I hope we find the answer but I dont see it in 2012.With all the problems in the world I find Faith an only refuge,when I remind myself,nothing else matters.

dichotomy
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dichotomy 07/16/11 - 10:49 am
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You can blame the blame game

You can blame the blame game and the wealth envy card all you want. Here are a few incontrovertible facts:

1) We are spending 40% more than we are taking in. Our credit is no longer any good.

2) The "rich" people the Democrats want to increase taxes on already pay most of the taxes. They pay enough already, while almost half of the country pays nothing. We have truly reached the point where half the country works for a living and the other half votes for a living.

3) Our corporate tax rates are already among the hightest in the world. That, combined with our over regulation, nightmarish EPA bureaucracy, and government support for the unions, has incentivised the corporations to move their operations offshore. Higher corporate taxes are the last thing we need. I'm sorry, that's business. I don't blame them. If you want those jobs you had better do something that would encourage them to stay here.

4) Businesses and the financial community like a little certainty in their future for planning purposes. From Obamacare, the doubling of the deficit, to the soak the rich mantra from the Democrats, everything that has happened for the last two years has brought even more UNcertainty to the business, financial, and investor sectors. The result....no business expansion....no jobs.....more foreclosures.....increasing unemployment.

Yes, Bush and the Republicans lost their friggin' mind when they failed to pay for the wars and passed the drug benefit without paying for it. But Obama and the Democrats have made things worse and broke the country doing it. Their "stimulus" has failed and they lied about the cost of Obamacare and both of those actions have started the final nail in the last board of our coffin while we lay in the hospice care ward of the financial world. Yes, we were already sick but going to China to take the miracle borrowing "cure" only made things worse.

Everyone knows the answer. The answer is to reduce spending and start paying DOWN the debt. NOW.....this year........immediately. It's what you would do in your household, it's what I would do, that's what most of the states are doing, it's what any responsible person or entity would do.

That leaves the last question. Do we also raise taxes? I say no. But that is just me. I believe there are plenty of unecessary programs and agencies that could be zeroed out in the budget along with huge amounts of corruption, fraud, waste and abuse in all government contracts, Medicare, Medicaid, and entitlement programs that can be cut if someone actually investigated and prosecuted the perps. BUT, if the Democrats really want to raise taxes I say we raise EVERBODY'S taxes, especially on the 48% that pay no federal income tax. The rich are already toting their portion of the load so it's time for the government to start supporting equality when it comes to actually PAYING income taxes. People who are PAYING taxes make better citizens and smarter voters.

I know it sounds contrarian but if you want to reduce the deficit, balance the budget, and end up with a citizenry that actually pays attention to where our tax money is going I say cut spending and raise taxes on the poor. After all, you are not going to get much more from the rich. They have enough to be able to legally avoid most taxes if they wish. Tax the poor....that's where the money is. When the previously exempt voters start having to PAY taxes they too will start demanding the government spend less. Problem solved. So Democrats...raise THOSE taxes.

The Tall Man
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The Tall Man 07/16/11 - 12:11 pm
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Dichtonomy our corporate tax

Dichtonomy our corporate tax rate is lower than it's been in over 50 years!

This has got to be the low point in this county's political history, and a great example of what happens when you have an uneducated citizenry in a democratic society. Ruin the USA's credit by failing to raise the debt ceiling over an ideological dispute and the Tea Party is going to destroy the foundation of wealth in this country and the basis for our economic and military dominance.

Having the dollar as the standard currency and U.S. treasuries as the world's safest investment brings in the equivalent of tens of thousands of dollars in economic value each year to every American, allowing us to practically print money. Ever wonder how we can maintain such an incredibly high standard of living in a country with no manufacturing base and one of the weakest educational systems in the developed world? It's not just "American greatness" and Hollywood, folks - it's economic and military dominance that our forebears bought with blood and treasure.

A citizen that would risk all of that to save a few bucks in taxes (particularly for the benefit of the super-rich) and win an election isn't worthy of the title.

Brad Owens
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Brad Owens 07/16/11 - 01:24 pm
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The Tall Man is telling it!

The Tall Man is telling it!

Brad Owens
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Brad Owens 07/16/11 - 02:13 pm
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Dr. Welsh is wrong about one

Dr. Welsh is wrong about one thing, Jimmy Carter did not advocate giving loans to people unable to afford them.

That non-sense of zero down and variable rate loans was a 90s thing.

What President Carter wanted to do was to provide a way for lower wage folks with solid jobs (working at McDonalds for ten years) to have a path to the American dream of owning a home.

I know all the GOP types hate JC, but this one was not his fault.

Otherwise, he is pretty much right on except his defense of Bush's CAH-RA-ZEE spending and choices.

Brad

harley_52
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harley_52 07/16/11 - 01:44 pm
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Two questions for the

Two questions for the progressives....

1) how do you define "rich?"
2) how do you define "super-rich?"

Please include a dollar figure for both gross income and taxable income.

harley_52
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harley_52 07/16/11 - 01:45 pm
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Brad, What does having a job

Brad,

What does having a job at McDonalds have to do with one's ability to pay for a house?

hounddog
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hounddog 07/16/11 - 02:26 pm
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‘Dr. Welsh is wrong about one
Unpublished

‘Dr. Welsh is wrong about one thing, Jimmy Carter did not advocate giving loans to people unable to afford them.’
The 2nd worst president in history got the ball rolling then in the 90s the banking queen and the dimmycrats finished the job.

The Housing and Community Development Act of 1977, is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining.

Brad Owens
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Brad Owens 07/16/11 - 02:30 pm
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Those are low wage jobs

Those are low wage jobs mostly but with a super solid company that isnt going anywhere. It was an example only for that reason.

Brad

CorporalGripweed
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CorporalGripweed 07/16/11 - 02:31 pm
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The truth generally lies

The truth generally lies somewhere in the middle. As a conservative I'm LIVID at the lefties in this country who want to penalize achievement and tax job creators out of existence to be replaced with what? A truly Fascist economy run by the government. I'm also mad as heck at the the righties who did nothing under Bush to curb the orgy of spending that got us here in the first place.
Now what do we do? One thing is for certain. The economic policies put in place by Our Dear Leader are not working. In fact they are making things worse. A course correction is needed. Quickly or I suspect I'll need to start buying gold and ammo in order to survive the coming collapse began by the left and enabled by the right.

Hucklebuck
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Hucklebuck 07/16/11 - 03:56 pm
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The problem with taxes is

The problem with taxes is that everyone doesn't pay their fair share. How come only half of us even pay taxes to begin with. I think that if you work you should pay taxes. The rich should not have to foot the bill all alone because they have been successful. Everyone across the board should be paying taxes. That's the real problem.

Trickle Down economics can't work in a global economy. The rich will continue to invest in India and China where cheap labor is in place.

harley_52
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harley_52 07/16/11 - 04:00 pm
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Okay, Brad, but the question

Okay, Brad, but the question remains the same? What has that to do with buying a house?

The answer is "not much." Lots of people with lots of income can't qualify for loans either. Banks make loans to people they think can/will pay them back. They normally won't loan money to people they believe to be "unqualified" by virtue of their income, their debt, their history of debt repayment, etc.. The point is that income is only part of the qualification process.

Starting with Jimmy Carter (best I can tell) democrats have been hell bent on getting as many people into their own homes as they could. Go back and review who was on the boards of directors of Fannie and Freddie during the nineties. Also look at who in Congress refused to regulate Fannie and Freddie during that same time.

Which President said "Now we have begun to expand it again. Since 1993, nearly 2.8 million new households have joined the ranks of America’s homeowners, nearly twice as many as in the previous 2 years. But we have to do a lot better. The goal of this strategy, to boost home ownership to 67.5 percent by the year 2000, would take us to an all-time high, helping as many as 8 million American families across that threshold." And which President do you think directed his Housing Secretary and his staff to 'make it happen?'

NoCatchyName
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NoCatchyName 07/16/11 - 06:26 pm
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How do y'all suppose that

How do y'all suppose that this Country rose to greatness without all the Federal regulation, the impossible tax system, the layer upon layer of government, and the massive redistribution of income that is accomplished by the current welfare and other government handout systems?

Craig Spinks
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Craig Spinks 07/17/11 - 05:36 am
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CorporalGripweed, In US

CorporalGripweed,

In US economic history, economic recoveries from financial panics have been slow, weak and protracted. Why should be expect this one to deviate markedly from its historical predecessors?

By the way, I'm beginning to appreciate that popular ignorance of our nation's own history is having deleterious effects upon our ability to govern ourselves intelligently and to lead the world toward freedom.

Craig Spinks
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Craig Spinks 07/17/11 - 05:37 am
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OOPS: "we" and not "be" in

OOPS: "we" and not "be" in the second line of my 5:36 AM comment.

david jennings
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david jennings 07/17/11 - 08:08 am
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I agree with Huck,but I dont

I agree with Huck,but I dont think if one works he should pay taxes,if you spend you should pay.That way everyone would be making a contribution,maybe thats why they call it the Faiir Tax.

desertcat6
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desertcat6 07/17/11 - 08:12 am
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Wow! So much partison info

Wow! So much partison info flowing. I don't care who's to blame as much as I want the debt problem fixed and a government that operates sanely and within its means. For the record, Congress funds the nation through revenue and debt bills. Budget bills are the program of execution. Once signed into law by the President, the executive branch executes the budget law through the OMB and support of the federal reserve.

Congress more than any one President is responsible for getting our nation in this mess. President's aren't blameless. Some started wars that Congress supported and funded without revenue. Some enacted policies that cut-off revenue and bailed out big cats and states that Congress supported and funded without revenue.

Now one party wants to reduce the budget in order to raise the debt limit. The other wants to reduce the buudget and increase revenue by changing the tax code to raise the debt limit. Oh yeah, the economy is in one of its worse down turns - ever.

Is raising taxes required to reduce the budget? No, but it scores political points in a variety of ways.

TK3
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TK3 07/17/11 - 01:04 pm
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Our ship of state, pirated by

Our ship of state, pirated by Congressional Neo~Fascists, your children loaded as debt ballast, with socialist planners at the helm who bring her into another tax heading, has a Neo~communist for a captain who shouts at the approach to the rocks of default, "damn the debts, full spend speed ahead".

"People try to live within their income so they can afford to pay taxes to a government that can't live within its income." ~Robert Half

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