All Presidents Raise Taxes!
All presidents raise taxes, lets stop pretending like it’s a Republican or a Democrat policy. The government has NO MONEY, the only money it has is what it takes from the people. We are the people being taken from. Anytime the government spends money it doesn’t have IE: deficit spending, it has to come from somewhere, and guess who it comes from? The People! By raising taxes! Whether it’s income taxes, estate taxes, gas taxes, sales tax, or whatever other tax they can think of. Every time there is government spending of money that they need to borrow and do not have readily available is raising taxes!
Not all presidents spend so much money!
Classic arguments that arise from this thinking always revolve around Republicans spending less and Democrats spending more. The last time the USA didn’t have a deficit was 1835, under president Andrew Jackson. So, no it’s not a one party or the other issue, its an overall issue. For the first time since WW2 our debt is exceeding our GDP and there isn’t any slow down in site as indicated by the chart below.
Paying the Piper
At some point, a generation will have to pay the piper. They will have to let a United Airlines fail, or a General Motors to not be bailed out. It will cause unemployment and a stock market to fall, but borne from that failure will come innovation. It isn’t pleasant, but continually amassing debt and deficit spending is simply raising taxes on the people.
For everyone who argues about which president is best, the question we should ask ourselves is “who is going to make difficult decisions that may cost them reelection in the short term, but are good for the country and the people in the long term.” Often times, failure leads to our greatest discoveries, and if you don’t believe me just go open your kitchen pantry and pull out a box of Kellogg Cereal.
Breakfast by Mistake
The Kellogg Brothers were attempting to make a simple pot of boiled grain. They must have lived alone because they left the pot on the stove for days. When they realized and checked they saw a dry, thick substance covered in mold.
You and I would throw it out and move on, but the Kellogg Brothers recreated this substance, without the mold of course, and born was Kellogg cereal, one of the largest consumer goods brands in the world.
Failure is okay
I know that the prospect of letting companies like Boeing or General Motors fail seems catastrophic, and in the short term it might be, but innovation is borne from failure and near failure.
- Apple – In 1997 they were on the brink of failure until Microsoft swooped in at the last second with a $150Mil dollar investment
- Marvel Entertainment – Filed for Bankruptcy in 1996, re-evaluated their strategy and product and moved away from solely print media via Comic Books and began exploring making movies. I think that worked out well!
No President is willing to make these hard choices, because regardless of what is said on the campaign trail, as soon as they walk into the Oval Office, some pixie dust is dropped on them and the first thing they think about is……reelection!
Ed Catmull, former president of Pixar and Walt Disney Animation Studios (and arguably one of the most creative souls on the planet), has this to say about our collective attitude towards failure:
“We need to think about failure differently. I’m not the first to say that failure, when approached properly, can be an opportunity for growth. But the way most people interpret this assertion is that mistakes are a necessary evil. Mistakes aren’t a necessary evil. They aren’t evil at all. They are an inevitable consequence of doing something new and, as such, should be seen as valuable; without them, we’d have no originality.
Partisan Politics are useless
Partisan politics serves no other reason than to argue at cocktail parties and dislike your neighbor, and it certainly doesn’t look at real problems and attempt to create solutions.
The biggest threat we are all facing has and will continue to be increased government spending under the guise of helping the people, but through mismanagement (billions of stimulus sent to dead people) and inefficiency all we are doing is taking from the people. Remember, the government has no money, all of their money comes from the people.
So What?
So how does this impact all of you?
- All Presidents raise taxes, don’t listen to what they will do with the tax rate listen to what they will do with spending.
- Tune out the noise, CNBC, your neighbor, and the guy at the dry cleaner don’t care about giving you financial advice. Stop listening to them.
- Ripping the bandaid off on failing companies is the only way to stop the excess spending
- Failure leads to innovation which in the long run is whats best.
- Stay safe and healthy
Stock market calendar this week:
Tuesday October 27th, 2020
Case Shiller national home price index @ 9:00AM
Thursday October 29th, 2020
Q3 GDP report @ 8:30AM
Initial and Continuing Jobless Claims @ 8:30AM
Most anticipated earnings for this week
Latest Covid-19 Data