Democrats Crocodile Tears
August 8, 2010Posted by on
Nancy Pelosi and the Democrats are calling Congressional members back to the swamp in DC to pass a bill that will as they put it give money to state and local municipalities to pay for teachers, cops and Medicaid. Now they claim to pay for this by using some unspent stimulus fund money but also by closing some loopholes in the tax code so that those nasty multinational corporations have to pay their fair share.
The Republicans and Tea Party groups have called the Dems on this as job killing in the middle of a recession, which in turn Nancy Pelosi and the Dems shed crocodile tears about how can the Republicans be against cops and teachers that will lose their jobs if congress doesn’t pass this bill, all the while stuffing Teacher Union donations into their campaign coffers.
Now in the Bizzaro world that the Dems inhabit that is the end of the story because to them they don’t believe in how the real world works.
They don’t believe in the fact that every time they cause the taxes of corporations to go up, the corporations make up the money lost to the Government by doing two things: raising their prices and cutting jobs/not hiring. They haven’t grasped the simple idea that a business is in business to make money, nothing else. Not provide jobs, not provide benefits and most assuredly not pay taxes to the US Government. Business’s work on a very old and simple principle: money earned-money spent = profit = successful business. If for what ever reason the equation goes this way: money earned-money spent = loss then you have an unsuccessful business and eventually it goes bankrupt. Of course the Dems have an answer for that too: Bailout/Government Takeover, however business and corporations don’t operate too well on that basis.
So what does that mean to you the average Joe and Jane sitting at home? Plenty, for you are the one that is going to take it on the chin not the “evil” multinationals, nor the teachers union, nor the bankrupt municipalities with their morally bankrupt politicians (See Bell California for that poster child)
Lets say the Dems get what they want and it passes, the loopholes are closed and the multinationals spend more in taxes. Well guess what? They are not going to eat that loss, they spread the pain. As an example one of those “evil” multinational companies is Walmart. Now whether you like them or not, they are the single largest PRIVATE employer in the US and two things will happen. One the low prices for those that shop there will go up, especially products that are made by other “evil” multinationals like Coke, Pepsi, Unilever and Proctor & Gamble because they will charge Walmart more, and Walmart will cut back on employment. You know the minimum wage earners, the poor that the Dems say they are trying to help. So there you go people that needed that paycheck are now out of work and the prices of stuff goes up, thus causing spending to go down. This will apply to all stores be they Target, your local supermarket and even wholesale clubs like Costco. Need a new TV, sorry Best Buy has to raise it’s prices too since Sony, Samsung, LG and the others are “multinationals”. Are you catching the drift? Yep it’s the dreaded Trickle Down Economics, except where Reagan cut taxes to give you more money to spend, Pelosi is going to make sure what you do have doesn’t go as far.
Now this has a follow on effect, because more people are losing jobs, that means unemployment goes up, which means more unemployment spending bills the congress has to pass. Thus the only thing this did was change where that pittance these people get is from: Walmart were they got health insurance, to the Government and public paying their health coverage. Other companies will do the same thing and the bloated government gets more bloated and gets more power and it gets deeper into debt as those people drop intot he “no longer paying tax” category. That’s right instead of decreasing debt as the Dems claim it will have the opposite effect. People need to engrave this on their foreheads increase in Tax Rate does not equal increase in Tax Revenue. This was something that Dems knew at one time, back in 1960 when JFK was President andsaid that Tax Revenue was inversely proportional to Tax Rate. I know and you thought trickle down economics was a Republican idea, the Dems kinda gloss that over when they bring him up, funny that they like to point to him but never talk much about his policies. Maybe that’s because his policies make him sound like Ronald Reagan?
I know what your saying: “Well at least the cops are still there because of this and the kiddies still have teachers”
Here is the truth on that: Unless the Feds do a complete State bailout, state and local governments are going to have to tighten the belt period. Now for those that saw the Glenn Beck program a couple of days ago this will be familiar, for those that didn’t it will be instructive. Lets look at two near by municipalities near where I live, that are in the hole spending wise. They plan to cut cops but in Philadelphia they are still handing out a million dollars for “street murals” and in Baltimore while cutting cops they are still spending a boatload on……wait……wait…..an Opera House. Yep there you go folks these cities are so far in debt they have to layoff cops but they can’t stop funding graffiti artists and building an Opera House. Now everyone knows that every lower middle class and low income family just can’t wait to pay huge sums of money to go see shows in the new opera house. Yep can’t cut that from the spending, nope got to cut the cops and teachers if the Feds won’t give us more money. Remember Opera houses are a need and cops and teachers are a want.
That’s why it’s Crocodile tears that the Dems are shedding for the cops and teachers, instead of cutting unnecessary things like Opera houses and paying for “Street Murals” they want to cut the basic functions government is called on to do, just so they can make political hay when the Republicans oppose them. This is just another Tax and Spend scheme, nothing new from the progressive wing of the Democratic Party. Matter of fact they haven’t had a new idea since FDR when his progressive programs prolonged the Great Depression for at least 8 years.
Unlike Captain Smith that didn’t see the Iceberg that sank the Titanic, Pelosi, Reid and Obama not only see they are steering right for it and telling you to keep with the course don’t elect Republicans or Conservatives. Yep keep with that course right into the Iceberg and watch the ship of state sink right after it.