Capitalism, Economic Freedom, Taxes, State, and Federal Spending

Capitalism – Old or Young? Capitalism has been around as long as the barter system –When farmers, merchants, craftsmen bartered weren’t they trying to get the best possible deal? System used by the ancient Mesopotamians, Persians, Greeks, Phoenicians, etc –Did these cultures flourish or flounder?

Capitalism – good or bad? Pros –A–Allow hard-working entrepeneurial individuals to prosper –H–Hard work is often rewarded –P–Provides motivation for ppl to work harder –C–Can allow for choice and economic mobility –A–Allows a society’s class structure to be more fluid as opposed to rigid Cons –D–Does not provide for all ppl –B–Big owners/businesses can “squeeze” the little guy out –H–Hard work is not always rewarded –I–If not regulated unscrupulous ppl can take advantage –M–Many “fall through the cracks”

How much economic freedom should businesses and individuals be accorded? How much power to regulate should the govt have? Does the American govt have too little or too much? –Give an example(s) Are taxes a necessary evil or an evil monstrosity –What would we not have if govt didn’t tax its ppl Are taxes fair (amt paid by various individuals) –Would a flat tax be more fair –Do the tax codes need to be changed? If so what changes would you make

Who pays the majority of taxes? Wealthiest 10% pay 70 % of taxes. Top 50 % pay 100 % of taxes Bottom 50 % of Americans pay no income taxes

Have social programs such as the Great Society helped to decrease poverty? Poverty rate today is essentially the same as it was in 1965! Today approx 1/6 Americans is on food stamps (When President Obama took office 32,000,000 Americans were reliant on food stamps) More Americans rely on food stamps, welfare, unemployment, etc than at any other time in our nation’s history

Is the answer higher taxes? Is the answer something else – if so what? Is everything fine and there is no reason to worry?

Govt spending Currently our govt is spending more money per year than at any other time in America’s history If left unchecked the National Debt will become unmanageable by 2020

Who is at fault? From Pres Bush approx doubled the nation’s debt -from 5.7 trillion to 10.6 trillion With Bush in office spending was approx 500 Million dollars a day From 2009 – 2011 under Pres Obama the debt increased from 10.6 trillion to trillion With Obama in office spending has averaged approx 1.4 Billion dollars a day!

President Obama’s Stimulus Was more money than any other administration has ever spent (for the entire term in office!) If $1,000,000 a day had been spent since the birth of Jesus Christ it would still not have equalled the amt of the Stimulus! Has it worked, has the economy improved?

Stimulus success? When Pres Obama took office the unemployment rate was about 7%, now it is just under 9% (at its worst earlier this year it was 9.9 %) 47,000,000 Americans are on food stamps – more than at any other time in our nation’s history (by % or raw numbers) Our nation’s credit rating was downgraded for the first time in our country’s history The value of the dollar has fallen in comparison to every other currency Billions of dollars have been wasted on “pet projects” that have added little to no jobs!