Slouching towards Bethlehem

 Now Obama wants to raise the taxes on investment income in order to subsidies the middle class.  They’ve already brought 47 per cent of Americans to their knees feeding at the trough, but they’re not satisfied until they have us all of us bowing to Washington. There was a severe recession in 1921. Unemployment soared to 12 per cent.  All the government did was cut federal spending. In one year the rate dropped to 6 per cent.  By 1923 it dropped to 4 per cent.

Government intervention invariably has huge negative consequences.  Look at the recent housing crisis.  Government forces lending institutions to make questionable loans which causes a huge housing bubble.  The loans go belly up, the bubble bursts and we have another economic crisis.  Ironically enough, the two politicians who are most responsible for the fiasco, Chris Dodd and Barney Frank, push through legislation to prevent that from happening again and now the feds are back to making loans, this time with only 3 per cent down.  When do you predict the next crash will be?

We are all brainwashed to believe that government intervention dragged us out of the depression.  A big lie.  The market crash of 1929 caused unemployment to rise to 9 per cent, but by January of the following year things had begun to stabilize. Unemployment dropped to 6.3 per cent. Unfortunately, after the 1921 recession Hoover had convened conference between business and government officials which ended with a call for more government planning to avoid future depressions, so later that month the federal government stepped in to save the day. Within 6 months Unemployment surged to double digits and stayed there for nearly a decade, peaking at 24 per cent.

Several millennia of history repeats the mantra:  Government IS the problem. When the Israelites wanted a king, Jehovah said no.  He destroyed the Tower of Babel and scattered the people. We are all built of faulty timber.  Not one of us has either the wisdom necessary to be a king.  Even King Solomon, the wisest man in the world, screwed things up. By now every reading of history should remind us that governments of men will turn into tyrannies. 

            So what’s wrong with taxing investment income?  In the first place it amounts to double taxation.  Investors pay taxes on profit at the corporation level and then are taxed again on what’s left over.  It also strangles the economy.  The corporate profit that would have been used to invest again in business and hire more of the unemployed is confiscated by the government and flushed down the toilet. 

 It’s not that they are insane: doing the same thing over and over again and expecting different results. It’s not that they don’t know the truth.  They are all of them students of history.  It has to be that they are deliberately leading us into slavery.  They give us bread and circuses and we follow them, dead eyed and drooling, into the pen.