Guy Pacot: Dems to blame
This last week we have seen a woman exploit her position, sacrifice the financial wellbeing of the country for the sake of a completely false political diatribe and scolding, and be found complicit in actions that she condemned only a year or so ago ” that woman being Speaker of the House Nancy Pelosi. We have also heard Pelosi and her political associates Barney Frank, Christopher Dodd and many others lay blame on the current administration and deregulation.
The truth of the matter is that due to over-regulation of the Community Reinvestment Act, beginning in 1977 and perpetuated and strengthened throughout the years by Democratic lawmakers, banks were forced to meet quotas of loaning money to people with a statistical unlikelihood of the ability to pay it back. Further complicate that fact with the continual denial of the need for oversight in both Fannie Mae and Freddie Mac by their Democratic trustees (nearly every year of the Bush Administration and even in the years of the Clinton Administration) and you have a patented recipe for the current financial demise of Wall Street catalyzed by banking failures. Let’s lay the blame squarely where it belongs, on the shoulders of Franklin Raines, Barney Frank and Christopher Dodd as well as the rest of the Democratic stewards of Fannie Mae and Freddie Mac. Kudos to Rep. Davis from Alabama who had the intestinal fortitude to admit that he was wrong; and thank God for the recent convening of a grand jury to investigate this.
We’ve heard a lot from the Democratic candidates about cutting taxes for 95 percent of Americans, but what good is a tax cut if you lose your job? When you look at the Great Depression, which more closely resembles the current and potential financial climate of where we are and where we could easily be, you see a very fundamental financial mistake made in that era ” the Revenue Act of 1932. This act raised the taxes of the wealthy from roughly 25 percent to nearly 63 percent, the intention being that the wealthy could afford to be “patriotic” and help bail America out of its dire economical times. The net result from this failed act was a 13-plus percent drop in the GDP and a 7 percent increase in unemployment.
I was happy to see the extension of the tax cuts in the rescue plan that was passed in the Senate last week, but if Obama/Biden and the rest of the Democrats have their way, the tax increase on the wealthy will come to pass and only make things worse, not better. Income redistribution only works if there is income to redistribute. There are many legal and ethical ways to keep money out of this taxation bracket and believe me, those who are in that bracket will use those means if necessary as they cannot afford to pay greater taxes and create jobs.
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