Economics and you

The current economic situation should not come as a surprise to anyone. The global GDP has risen over 4.5% per year over the past four years and it is impossible to keep up at that rate of growth. Experts, as early as April 2008, were already predicting a rescission not just domestically, but globally as well, for 2008/2009.

In this year alone we have seen Bear Stearns go bankrupt in the spring, Freddie May and Fannie Mac starting their downward spiral in the summer and this fall Leman Brothers filled bankruptcy and had the US Treasury not intervened, insurance goliath American International Group would no longer exist. Now General Motors, a major player in the automotive industry over the past 100 years, is fighting an uphill battle just to stay in the business. This past April, GM only held 16% of the domestic automotive market, and the total market share by the Big Three was at 47.5%. The lowest it has ever been for American carmakers.

With all these firms collapsing, or on the verge of collapsing, it has an effect on the US Economy. The loss of business means loss of jobs. People once employed to businesses that were deemed “too big” to fail, have learned a lesson the hard way, the job security of old no longer exists. Firms that are one the verge of going under have had to cut variable costs, jobs, just to keep their heads above water.

The US Congress has deemed it necessary though to intervene on many of banks from going under and enacted the Emergency Economic Stabilization Act, more commonly referred to as the bailout. Through this act, the US Treasury is able to spend $700 billion to purchase distressed assets, especially mortgage-backed securities, and make capital injections into banks.

This bailout can be harmful for a free market society. A businesses success is directly related to how well it’s ran. If poor decision were made by the people in charge, then they should bear the consequences. Take a look at a local shopping center. There are businesses opening and closing all the time. This is not because the location is cursed, but because of poor management or failure to secure a niche in the market. When they go out of business, they do not receive an Economic Stabilization package from the government, the burden of failure is put upon the owners, and the same should hold for big business.

Consequences

What most people do not understand is the true effects of Obama's tax plan. While I am for the betterment of mankind, taxing the rich causes a backlash. Look at minimum wage laws, they were implemented to help those with less money to better themselves and what happened? their employers had to lay off many of their workers because they could not afford them. Yes this did better a few households, at the cost of others. The same thing will happen with Obama's tax plan, by taking the rich who are as a vast majority small business owners they will have less economic gain and will need to cut cost somewhere, in this case employment of "unskilled workers".

Although they will never come out and say it, Democrats want to keep the poor poor, this is how they get votes. Look at this past election at how many newly registered voters voted. The promise of betterment without working sounds like a great idea and they want to see that through. Democrats have been saying this for well over 30 years that they are going to end poverty and what has happened? there has been a further divide between the middle and lower class.

I would love to end poverty but in no way should it be the governments responsibility to do so. Hard work pays off, not only in the wallet but in self satisfaction. this is a moral that must be instilled not only on the youth of America, but those that believe in "change" as well. The only true change that can be made is self initiated.

The time is now fellow conservatives, we need to initiate change of our own. Whether it is through joining organizations like the young republicans http://www.youngrepublicans.com/ or by becoming community volunteers.

As Rush Limbaugh said yesterday, "Conservatism did not loose yesterday, it was not even on the ballot". We need to be just as organized in 2012 as our peers were this year for Obama. If we can get a true conservative back on the ballot I really do believe we will have a chance at reclaiming the white house in 2012.

When yesterday ended, so ended the worst day we will face in terms of emotion.

Just keep this in mind, when Obama does take office, the sky will not suddenly turn green, the ground wont turn to ash and the world will not end. For a vast part of our lives not much with "change" (I need to find a thesaurus, that word still makes me sick)

Whether you are religious or not, i strongly encourage each and everyone of you to say a prayer of blessing and strength for not only America, but future President Obama as well. Judging by the events that are already transpiring we will need all the help we can get.