President Barack Obama continues to emphasize growing the economy from the middle class out. The phrase itself is merely a campaign slogan and not a plan for economic growth. It demonstrates his total lack of life experience outside of politics.
There are only two ways to grow from the middle out. One option is massive infusions of cash from the government in the forms of welfare and assistance. The other option is to create a business environment that stimulates small business as never before.
The president has shown no inclination to help small business. In fact, the onerous Affordable Care Act is a stumbling block to both small and large business.
The government’s infusion of cash is unsustainable for the long term. After all, there are only two ways to finance such programs, taxation or socialism. Taxation leads to ever increasing taxes on those who actually contribute to the economy, both workers and management. These taxes may provide money for social programs, but the amount returned to the middle class is far less than the taxes extracted from them.
The second, and Mr. Obama’s dream agenda, is the government takeover of business — scrapping capitalism and replacing it with socialism. This latter choice, history has proven, does not result in a secure middle class, but does ensure the governing class becomes more powerful while everyone else, the working class, suffers a loss in freedom and a reduction in economic status.
The result will be that there will no longer be a middle class, but only the rulers and the workers. A dramatic move toward communism.
Mr. Obama criticizes trickle-down economics, but the truth is that all economics are trickle down. When it trickles down from government, it is in the form of entitlements, otherwise called redistribution of wealth. The option that benefits the most people is trickle down from private enterprise, the creator of wealth for all citizens in the form of wages, dividends, interest and capital gains.
When I was a youth, I worked in a privately owned pharmacy. The wages I earned trickled down from the owner whose profits trickled in from his customers. I benefited by earning my college degree. The owner benefited by growing his holdings to two stores. That is a small scale example of trickle-down economics.
General Motors, General Electric and Apple are only different in the numbers of people who benefit from their invested capital. The size of the company is relevant only to the extent that the larger the corporation, the greater the number of workers and stockholders who benefit.
Our national economic priorities should be to cut government spending and stimulate business, which will create new jobs in the private sector. The result of decreased spending and increased tax revenue from an expanding workforce will result in an economy that is sustainable and hence the security of the middle class.