Tag Archives: economic growth

A New Welfare State?

A New Welfare State?
Pres. Obama’s government has well and truly entered the zone of the surreal with its senior staff increasingly looking like heroes in a Dostoevsky novel, who, unafraid of the ludicrous, march ahead, full of confidence, right to the edge of the cliff of a New Welfare State.
President Obama is trying through eloquent words to convince the public that taxing the “rich” will solve the problems that his policies have failed to do so.
The problem with most eloquent people is that after a while their words lose their significance
ending up in an abstract composition that cannot respond to reality.
Maybe Obama’s speeches are an effort to placate the middle class that see the lack of economic growth as a result of his economic and pro statist policies.
The government has obviously forgotten that the state is funded for the sole purpose of performing certain tasks and not to take ever so more funds away from the private sector in order to finance a new welfare State.
In the present day, this means that a small business owner who has been in business for 20 years and has a presumed income of a certain amount depending on the area where the business is located should pay higher taxes in order for the State to make up for the lack of competitiveness and private sector investments.
The government even goes so far as to brag about its policies, saying that it is saving the middle class and therefore we should support more of the same pro-statist policies. It has obviously failed to see that its amateurish handling of the economic crisis has created an uncertain environment for private sector investments and the economy is stagnating.