President Obama and his Democratic colleagues in Congress are wrong about the fiscal cliff. If we manage to avoid this looming economic crisis that promises to come at the end of this year, we must be willing to do more than slap a Band aid on the problem and then forget about it. Fundamentally, our economic model is flawed and it needs to be fixed. Is Obama up to the challenge?
My guess is no, he is not. The Democrats have been framing this discussion of the fiscal cliff in terms of a one-time problem that needs fixing. It’s not. We need to view this approaching crisis as a result of unsound economics on the part of the U.S. Government.
We need to extend the tax cuts for both the middle class and the so-called “wealthy” as a means of fostering growth down the road. Sure, this will not bring immediate revenue this month, but if President Obama had ever had a real job, he would have learned the value of long term gains compared to short term gains. By shaking down the job creators, Obama and his band of Democrats seem more interested in making a point than doing what will yield results for our economy.
The left scapegoats those that are wealthy. Their agenda is one driven from creating division in America and creating class strife. The argument coming from the left is not one of practicality, but seemingly one derived from a purposeful incitement of resentment for the upper class. It’s a staple of all modern despots who wish to distract the masses from their own ineptitude.
The left doesn’t want to compromise. Allowing us to reach the fiscal cliff allows them the moral high ground to paint the absurd narrative that the Republicans are nothing but irrational obstructionists. Further, it allows them to continue to complain that the rich aren’t paying “their fair share.”
Whilst we negotiate with the hard-line socialists in office, the Republicans need to do a better job painting a fuller picture. We don’t need to simply dodge this one problem, we need to begin to systematically disarm the left-wing rhetoric by outlining the long term benefits of increasing revenue through growth instead of tax hikes.
The GOP needs to explain the complicated issue in easier terms. If we turn the screws on the wealthy- the job creators- we get immediate revenue. They, in turn, do not expand their businesses and hire no new employees. In fact, many are liable to lay-off employees to maintain profitability.
However, if we extend these tax cuts and focus our attention elsewhere- such as cutting entitlement spending- then there’s more money in the pockets of the business owners. Business owners don’t take their money and shove it under a mattress. They tend to reinvest their money into business growth, which usually requires more personnel. These middle class workers then have income and pay taxes, which leads to increased revenue for the government and less people in the unemployment line.
Granted, my explanation is highly simplified, but the point remains the same. If we can simplify this discussion and diffuse the class-warfare-inciting rhetoric from the left by explaining the value of tax cuts for the wealthy, then we can stop the leftist propaganda machine in its tracks.