Liberals and Economics
I found a very interesting article online this morning. “Are You Smarter Than a Fifth Grader?” Self-identified liberals and Democrats do badly on questions of basic economics by Daniel Klien was published in the World Street Journal. It measures understanding of economics and identifies the scores according to political orientation. It appears that liberals have less understanding off the impact of their social beliefs, than Conservatives have of the negative impact of those social beliefs.
Actions have consequences. The economy works well all by itself, especially when government stays out of it. This article explains the poor grasp of economic principles seems to follow the political beliefs of the individuals surveyed. Those who tend to lean to more liberal social policies are the individuals with the poorer grasp of how the economy works. The economy is strengthened by more individuals who are committed to working hard and earning a living. The economy is weakened by fewer people working hard and earning a living. It’s also weakened by having the success of the successful punished excessively to pay for spending that’s non essential and not in the public interest.
The old proverb “Give a man a fish and you feed him for a day, teach a man how to fish and you feed him for a life time.” Is still valid today. That’s a concept that can be applied to most social policies. A helping hand instead of a free ride will have less of a negative impact on the economy and is the preferred method for providing a safety net for the population. When viewed with an eye toward the economy a helping hand is a short term payment to individuals when they are in short term trouble. When the trouble is past and they have a job and are earning an income and paying taxes and contributing to the economy everyone benefits and the economy is strengthened. Making a long term commitment to supporting someone who no longer chooses to contribute to the economy will have a long term negative impact on the economy. How many negative impacts can our economy take?
Instead of being jealous of the success of the wealthy, we should all admire them and learn from them and try to have some of that similar success. If you make a ton of money and you are living a life style that makes my eyes pop out, then Good For YOU. I want to try to understand that and do some of it myself. Some people try to demonize that success and try to punish you for having that success by making you pay for more than your fair share of the public burden. We all need to celebrate your success and admire you for it. I don’t like how our tax policies are working, but under the current policies the more you make the more you pay in taxes and then we stay more solvent. If we can effectively cut spending we will be better off and at some point, sooner rather than later look at cutting taxes.
Individual success has such a positive impact on the economy we can NEVER have enough success. It must be celebrated every time it happens and never demonized. Those who understand how the economy works know this. Success has a positive impact on the economy and should be cherished and encouraged. Drains to the economy should be corrected and eliminated. All unnecessary spending has a negative impact on the economy.
The Free Market will always do well on its own. The best way for government to improve the economy and improve job creation is to stay out of the way. Minimize regulation, reduce taxes and eliminate all unnecessary spending. The Free Market is always available to boost any economy it’s allowed to thrive in. The anchor, also known as government intervention, can only have a negative impact not a positive one.
Get the anchor out of the picture and let the free market do its job and we will have a positive impact on our economic situation. Encourage individuals to be independent and self reliant and believe that they can take a risk and earn some rewards by working hard and being innovative.
The economy is really a simple concept, stay out of the way and let it go all by itself. Encourage everyone to work hard and make a good living. Keep the government out of the free market as much as possible and let it thrive and flourish. Minimize government spending as much as possible. Liberal Social policies do not enhance the economy and the effects of that social policy usually has a negative impact on the very mechanism that makes those policies possible.
In November, when it is time to vote, try to find a candidate who understands the economy and knows how to make it work. A strong economy is healthy for all of us. A weak economy is a danger to all of us.