Friday, March 6, 2009

Stimulation

Over the past few months it seems that everyone is talking about the economy and asking the question, "What can be done?" During these months, the government has taken responsibility for the problem and passed a bill that will use almost a trillion dollars of tax-payer money in an attempt to stimulate the economy. Given my firm belief in the free-market, I am doubtful that this form of stimulation will have any effect on our everyday lives except for putting us one step closer on our way to a socialistic society. Popular press has joined in the misinformation by publishing articles that praise the temporary effects of government intervention. This sort of ink will no doubt lead to more people having an unfounded faith in bigger government.
What does the free-market say to do to save our economy? I found this article published on CNN as a commentary by Mitt Romney. I believe that had he run on these principles he would have made more headway with conservative voters and those that believe in the government our founders set up. His main point is that using the government and tax money to stimulate the economy will do nothing but stimulate the government which is already bloated. The number one thing that Romney advocates is cutting taxes to stimulate. These won't be your normal tax cuts, but the drastic ones that most government officials cringe at the mention of. What could be better for the economy than for Americans to suddenly have 25% more income? That's more money for consumers to use on things they need and want. This could mean the abolition of the income tax. I'll allow a second for the collective gasp at what I just said.
Some will inevitably say, "What will the government use to function if they don't have the income tax?" Truth be told, the income tax does little by way of making our government run. That also happens to be number two on Romney's list: belt-tightening in Washington. Who would actually say they think the government should spend more money? No one. Government should be held accountable for the money they use and need to cut back a little. Were they to do that, they would have absolutely no need for the income tax anyway, not to mention the money they would save from not paying the IRS and handling tax refunds.
I realize that this debate could go on forever...and will. Please comment if you have something to say. I am continuously learning about economics and am always on the lookout for more knowledge on the subject. I completely agree with Romney that if we are to stimulate the economy it must be done outside of government control or it will do nothing but make government larger which will only prolong our pain.

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