Economy on Edge: What Government Needs to Do

President Bush today met with reporters who were asking about the seemingly troubled American economy. He tried to reassure the American people that its government will do all it can. But is that what we really want? More government interference?

The economic stimulus package did nothing but provide a short term spending spree that fizzled away. Businesses did not expand production or add new jobs because they knew it would be short term. To worsen things, it inflated our deficit and added to the national debt essentially inflating our currency also.

Lower interest rates have poured money into our economy, the idea being to stop any possible recession, and perhaps it has. However, it also has weakened the dollar and propelled gas prices even higher since crude oil is a net imported commodity.

The big problem with our ecnonomy right now is rising inflation. In fact, today one headline screamed, Highest Inflation in 27 Years!. Prices on everything are going up because we have more dollars chasing fewer goods and services and record gas prices are only worsening the problem since it takes gas to transport goods across the country.

The point is, government has gotten us into this mess with inflation. Please Mr. Bush, don't continue to reassure us that the government can help us out of this more! Please, no more stimulus payments; instead, how about tax cuts? Please, no more interest rate cuts; instead, how about balance our budget to relieve the inflationary pressure?

And as far as gas prices: kudos to President Bush for lifting the executive ban on offshore oil drilling but Congress must follow his lead and lift the legislative ban that's in place. We MUST increase our supply.

With rising supply and a stronger dollar (by lowering taxes, cutting federal spending, and stopping interest rate cuts), gas prices would decline. That will relieve price increases on other goods that depend on transportation. And that will get this whole mess under control.

You see, as Ronald Reagan said, "government is not the answer to our problem, government is the problem!"

I am pertrubed about a lot of things lately but today I find out that just because we claimed my recent college grad dtr on our taxes for 2007 she wasn't going to get a stimulus check, which she needs, having graduated and looking for work, apt, etc...

bad enough that she didn't get hardly a thing from the govt for her college, that mom and dad footed the bills, but now she can't even get this little bitty help.....she works and pays taxes too....

its all steal from those that pay the most and give to those that pay the least....

I agree. People who earned next to nothing got money back even though they paid nothing in taxes while others who paid taxes and earned money got nothing in some cases. We need a real, permanent tax cut to stimulate ongoing growth. And it doesn’t have to increase the deficit — there is always the option, seldom used as it might be, to CUT REAL SPENDING.

I know, it’s radical but hey - difficult times call for radical ideas.

on top of everything, just because I lost two dear parents in the last couple of years, who despite living like church mice left we children some money, we had to pay big time for 2008, and our college grad dtr will most likely not be claimed this year, although we could since we footed most of her bills thru July, we face stiff taxes again for this year....

and property taxes....it just doesn't stop....

we have a couple of inlaws who have been receiving SS disalility for some time;they drink, travel, have land and a rental and a fancy sports car, and time to gamble etc.....THEY get the stimulus....

It occurred to me last night that inflation has really stepped up since the minimum wage was raised. I don’t think the two are related, but it might be a good ruse to silence a liberal or two. They have no reasoning power whatsoever and frequently confuse coincidence with cause and effect. Just say, “Yep, we raised the minimum wage and inflation at the wholesale level has gone to it’s highest level in 27 years. We tried to tell you what would happen, but would YOU listen?”

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