Do you have to be illogical to be a Democrat? The concept most Democrats relate to is that of FDR’s New Deal—creating stopgap government jobs and making everyone equal for a day.
To Democrats, equal opportunity means wealth redistribution through taxation. The problem with that flawed idea is that job creation comes from the rich in America and abroad not from government, so stop complaining about free enterprise. Job creation never comes without investment money—money from rich people who see America as the best place to invest. In other words the place where their resources and wealth will grow the fastest.
Rich people can choose America or some other country. If our business taxes and regulations are too tight, naturally the rich choose other countries where they can prosper.
The “liberal” idea of creating a level economic base is a dangerously impossible task. History has shown time and again that an attempt to redistribute the wealth of this nation to every citizen backfires. Odds are that the bulk of it will be spent, squandered or lost within a generation.
“Any approach that doesn’t teach the principles of wealth is doomed to failure, said Robert G. Allen, one of America’s most influential financial advisors and author of best selling books Generating Wealth and Nothing Down.
Democrats have never been known to teach frugality—or about wealth creation. In fact, even the opposite: They almost beg for more dependency on their legislative largess for the empiricist-driven re-election ammunition it gives them.
According to The Oxford Club, the average wealthy American has $1,400,000 in assets, and $275,000 in debts, for a net worth of over $1.1 million. Of those assets, they're fairly equally split between "financial" assets (stocks, bonds, mutual funds and cash), and "non-financial" assets (real estate, personal business equity, collectibles).
Of the $275,000 in debt, about eighty percent is on properties.
For those of you who still have significant credit card debt, you should know that the average wealthy American has less than one percent of his debt on credit cards. These people are planners and never have to rely on government handouts. They don't live beyond their means, but save and invest every chance they get.
Let me give you an example of Democratic-style “giving” that later paid off politically for one guy but backfired economically for an entire state.
Hurricane Andrew leveled many poorly constructed homes in Homestead, Florida. These homes didn’t have a chance, largely because their owners had not planned ahead and made the necessary alterations to render them resistant to ninety-mile-an-hour winds as required in updated building codes. Also, these old homes were not built high and tight enough off the ground to resist ground water or water driven by wind.
Two of the state’s largest insurance carriers, Allstate and State Farm, initially denied parts of many claims due to such wind and water damage and sub-code construction. Their policies had exclusions for homeowner failure to maintain their homes according to code.
To the rescue came Insurance Commissioner Bill Nelson who waived these policy provisions. Initial claims estimates had been $4 billion to $5 billion dollars. But after the Commisioner Nelson manifesto, reserves had to be doubled and tripled. Carriers ended up paying more than $15.5 billion to Florida homeowners.
This led to lawsuits and in a liberal state like Florida the outcome was predictable. The insurers lost, causing them to eventually exit Florida. This created an “imperfect vacuum,” a sellers’ market. Rate hikes came in double-digit percentages. In addition, carriers that otherwise might have entered the Sunshine State homeowner market drew back and today you have sky-high homeowner rates for all Floridians.
The moral? Liberal Democrats love to ply people with money but have no idea of final consequences. Translated simply, their actions cause all the people to pay; but in the long term markets restrict and things become very expensive long term for everyone including those who got the state handouts.
The only true winner was commissioner Bill Nelson. Soon thereafter this liberal Democrat ran for the U.S. Senate and easily won the seat he holds today.
You decide. Were Andrew’s political insurance giveaways in the best long-term interests of the people of Florida?
No, but I’ve never met a Democrat who doesn’t like to make his constituency dependent on him, and that’s the real difference between Democrats and Republicans.
Both parties claim they know the solution to America’s problems. The Democrats believe that you create jobs by making people government-dependent. Republicans believe businesses and industry create jobs, not poor people or governments.
The tax and political climate must encourage men of wealth to produce products and services, thus creating jobs for all. That’s the only way America has ever spurred its economy for the long term. President Reagan’s “trickle down effect” was effective, as witnessed by the twenty years of prosperity in America.
Republicans believe that education and capital are the answers. Capital must remain in the hands of the movers and shakers, job creators, and the populace must become trained to do the job of industry.
Don’t take away the ability and desire of capital to make new American jobs. If you do, the investment money will go to foreign countries that have more liberal business tax laws and in the end all Americans will suffer and more jobs will go to foreign lands.
This is precisely what has happened, adding to a falling American dollar that, in turn, caused our oil prices to rise dramatically because the Arabs want to be paid in dollars that are worth something not cheap currency.
When will Democrats wake up and realize that we live in a global money economy? Investors always find the most lucrative countries in which to invest.
Liberals, arise and take heed. Stop treating poor people like wards of the state.
Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.”
Where’s the logic in short-term giveaways?
by Don WhiteWebsite Search Engine Submission