Monday, August 20, 2007


Let me, Freddie L. Sirmans, Sr analyze and dissect the inner working of the US economy. After the “New deal” the liberals set in motions this inflationary spiraling economy we have today. Inflationary spiraling is when government gives mass amounts of money to individuals to meet whatever price the merchants demand, thereby allowing the merchants to dictate the cost of living.

That is a no-no; the cost of living should be dictated by the public’s ability to pay in the free market place. That was the beginning of the inflationary spiraling we have today. The first thing is the government doesn’t have any money unless it is taken from somewhere. That is why government should stay out of the market place as much as possible and take only enough funds to defend the country, run the government and not take on a provider role or any other burdens.

In a natural non inflationary economy the merchants can’t charge more than the poor people can afford and stay in business because of their numbers. There are never enough rich people to support too higher prices. Throughout history when one couldn’t afford to pay he turned first to the extended family, the church, community organizations, and lastly the government. The government should never have gone past funding community wise things, such as kitchens and shelters.

Giving money to individuals on an individual basis is the dumbest thing a government can do in a democracy for long term survival. It sets up the system we are in today where the merchants need to raise prices higher and higher to stay in business, and the government needs to raise taxes higher and higher to support it’s provider role, so the poor can support the merchants higher and higher prices in a never ending upward spiral.

Many hard working people are as much as ten years behind the curve and are falling farther and farther behind by not getting a raise every year. If you think that is bad, look at the destruction it has done to the nuclear family, our bread basket small farmers, our manufacturing base, our bartering capacity, and on and on. But, here is the real kicker that most Americans don't think about; this whole system depends on mass money circulation to survive, whereas a natural free market system doesn’t.

If money circulation slows to a crawl it could collapse the whole system and starve most us to death. Whether true or not, the old “Sling” expressions of liberals booming the economy with mass social spending and conservatives booming the economy by fighting wars may not work anymore. The people are just about taxed out and so much of what we buy is made overseas that the only thing that really booms the economy anymore is mass building construction.

So, if house building and construction slows to a crawl we will be in for a lot of hurt. After restocking and paying operating cost the profit margin for some retail businesses can be as low as three percent. The billions of US dollars going overseas to purchase foreign made products and merchandise are not circulating back here in our economy. Sure, they may buy US treasure bonds and some big ticket items, but that’s still not very much circulation to help boost and keep our economy healthy.

That is why I rant and rail so hard about our government lessening its burdens through privatizing. There is no painless way out of the fix our economy is in but at least privatizing is a step toward sanity and long term survival.

May God bless and keep this great free nation always.

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