Liberals under President Biden passed the $20 billion dollar “Inflation Reduction Act” in 2022 and it was signed into law. They promoted it as a great success. However, you need to be aware of what they have succeeded in doing. They passed out a massive amount of money in the form of free benefits to make people grateful to them and vote for them, but nothing is ever free. They now have to take back all the money they gave out but it will be buried in your tax bill so most people won’t see it, because it will be just a line item on their paystub. People will be grateful for the benefits and not realize how high a price they are paying for them. The rich will shift their funds to non-taxable funds and raise prices on what they sell so the main burden will fall on the middle class. The inflation is usually followed by a recession due to declining sales. The middle class lose again as declining sales reduce work and income, while the rich benefit by writing off their loses as tax deductions. As a result, the middle class lose both ways. Second, the bill included funds for a massive number of new IRS agents who joined the large number of FBI agents that President Obama hired just before leaving office in harassing and threatening conservatives who oppose their liberal policies. They promoted it as a great accomplishment in reducing inflation, however examining the facts will point out certain problems. First, they are responsible for the inflation with the massive spending bills that they have passed. Inflation is caused by a lot of money available with few goods to purchase. Goods are in short supply due to their failed economic policies and adding more money will only accelerate the inflation. To counter that, the bill included massive new taxes on the middle class to reduce the money supply. As a result, the middle class will lose due to both inflation and higher taxes.
Archive for the ‘Economics’ Category
Economics-Government Influence-II-V
They say to find corruption, you have to follow the money. We are seeing where all this money went as President Trump directs investigations into widespread fraud in Minnesota, California, and now New York. Minnesota had widespread daycare systems that never saw a child but billed the government for millions of dollars. Many were using the same addresses so anyone checking would easily realize the deception, but no one checked. Someone should have at least checked to see that the children were well cared for, yet no one did. California had widespread mental health facilities who billed the federal government for millions of dollars but never saw any clients. Now New York is found to have doctors and hospitals who billed Medicare for millions for treatment for patients that they never performed. It is impossible to imagine that such fraud could go unnoticed unless someone was paid to look the other way. That could explain why the politicians in those States became rich on a salary that could not produce such wealth.
Economics-Government Influence-II-U
Who Is Feeding the Dogs-There is a story of a rich man who owned a dog. He was very busy so he hired a neighbor boy to feed and care for his dog. After a while, he noticed the dog no longer ran to him when he returned home, but he would immediately run to the boy when he arrived to care for him. He was disturbed because he owned the dog and felt it should be grateful to him for providing for his care. However, the dog did not know anything about who owned him or paid for his food and shelter, all he knew was that the boy brought his food and brushed him and took him for walks. Liberals continue to freely spend tax dollars (your money and my money) to bribe people to vote for them. They are pushing student debt relief to encourage young people to vote for them. They tell those on Social Security and welfare that if conservatives get in power, they will cut off welfare and Social Security so the elderly and those on welfare will vote for them. Former President Obama doubled the national debt in just 8 years and President Biden equaled the expenditures of President Obama in just three months. President Biden pushed massive federal spending to buy votes from select groups that sent the national debt through the roof. Only a small amount went for infrastructure and the rest was spent to fulfill the desires (not needs) of a wide range of groups to induce them to vote for liberal candidates. We can not continue spending like this.
Economics-A-V
Digital currency is a government controlled programable digital dollar. It would be backed by the Federal Reserve rather than a commercial bank. It is pushed as a way to provide a safe and efficient means of economic transfers for individuals and businesses and lower transaction costs. However, it will allow the IRS to track every purchase you make, block transactions they don’t approve of, and freeze accounts at will. It is similar to the one China currently uses to monitor spending, punish dissidents, and enforce government compliance. It would require Congressional approval and that is not likely since many Congressmen from both parties oppose it over fear of government control of the economy. The Senate just passed a resolution in 2026 banning a federal digital currency by law until after December, 2030, though it does not ban private digital currencies currently in place. The Federal Reserve has already conducted experimental programs with major banks to test the feasibility of such a program in America, and several European countries are also experimenting with it. Once in place it will be very difficult to dissolve.
Economics-A-U
President Biden pushed through the American Rescue Plan Act of 2021 right after taking office. It will take effect in Aug., 2026 unless it is repealed. It required that the threshold of reporting for third party settlement organizations like PayPal was lowered from 200 transactions with an aggregate total of over $20,000 to transactions totaling over $600 with no minimum number of transactions. He claimed it would close the tax gap but estimates are that the increase in collections will only be a drop in the bucket. Personal payments like buying a car and reimbursements for expenses could easily be wrongfully included in taxable income. President Biden also ordered the hiring of 87,000 IRS agents but no provision was made to pay for them. It is estimated that this was designed to pay for them. It is supposed to tax the rich but the rich can afford expensive lawyers so it will primarily hit small businesses and individuals with side hustles. President Biden was also pushing a digital currency and many feel this was a step toward instituting one.
Politics-AB-AN
They say that socialism will solve all our problems and make everyone happy but can’t explain why everyone is moving out of States dominated by socialists like California, New York, and others. People are leaving in droves. Almost 2/3rds of those who are still in Oregon have voted to separate from their State and join Idaho and 2/3rds of those who are still in California have voted to break away from their State and form a new State. Many companies have closed or pulled out of New York, California, and similar States due to high taxes and regulations. Forty five out of fifty three refineries in California have closed and most of the stores and businesses that we hear about closing are in States and cities dominated by socialists. That doesn’t sound like they are happy people.
Politics-AB-AM
My mother used to tell me that the proof is in the pudding while Jesus tells us that you will know them by their fruits. Many things look good but produce bad results and many things don’t look as good but produce good results. God wants what is good for everyone but our personal desire is to benefit me. Socialism promises that everything will be shared equal and that sounds good. But if you have six people and only one pie, no one will get all of it without taking it from the others. It will lead to fighting among the people. However capitalism says that if everyone contributes a pie, we have to give up a little, but everyone gets what they want and there is no fighting. They say that socialism benefits everybody because they get everything free but forget to tell you that you end up paying far more for it in taxes than if you buy it yourself. You just don’t realize you are paying more because it is hidden in taxes and you don’t see the real cost. The joke about the $75 toilet seat is not a joke. The government pays far more for things then if you bought it yourself. When I worked for the Area Agency on Aging, our agency paid a company $56 to mow a lawn when I could have got a company to do it for $15 or $20, but the government wouldn’t pay them because those companies didn’t have a contract with the government. It was so difficult to complete the paperwork for a contract that only very large companies could afford to do it. That is just for the goods and services. That doesn’t include the administrative costs which amount to about $3 for every dollar spent for goods and services.
Politics-AB-AL
God said He placed before us life and death and urged us to choose life. God told Adam and Eve that they could anything in the garden except the fruit from one tree and they would have eternal life. If they ate of that tree, they would die. Satan told Eve she could have that beautiful fruit and it would make her wise and there would not be any bad consequences. We face the same choice today. God has laid before us a plan to give us the best of this world but the powers of this world tell us that we can have the forbidden fruit and be happy without having any bad consequences. Their promises are as much a lie as those Satan told Eve. God’s ways lead to happiness and prosperity while the world’s ways lead to poverty and death. The media tells us that 3% inflation under Trump is bad while 8% inflation under President Biden was good. They also tell us that the economy was good under President Obama and President Biden when companies were laying off workers and moving overseas due to higher taxes and increased regulations and the fact that they spent millions of dollars on social programs to buy votes and funnel millions of dollars to their friends and their campaign funds. On the other hand, they are telling us that the economy is bad under President Trump where tariffs are bringing back jobs, decreased taxes and regulations are allowing businesses to expand, and the war in Iran is to prevent them from detonating atomic bombs in the United States. Like in the Wizard of Oz, you need to look behind the curtain and follow the money.
Senior Citizen issues-L
The media continues to push the idea that Social Security will go broke in 2030 resulting in a drastic cut in Social Security benefits if something isn’t done to instill fear in Senior Citizens. Democrats continue to push their old idea about taxing the rich to solve our money problems when every time they get a tax raise, they go on a spending spree and spent the money before they get it. Currently, there is a cap on taxing income for Social Security. Above the limit, income isn’t taxed. The Democrats propose raising that limit. That sounds reasonable until you do the math. First, the amount gained would be small since few earn over that limit. It would not provide the income needed to erase the deficit between benefits paid out and taxes taken in, let alone cover the raise in benefits that Democrats promise with the tax increase. Second, since benefits are based on a percentage of income, it would result in the rich receiving higher benefits which would result in a temporary surplus until those workers retired when their increased benefits would eat into that surplus. Some have proposed a limit on benefits but that would change Social Security from a savings plan to a welfare plan and that would not sit well with workers. Many workers already view Social Security as a welfare program and see retired people as excess baggage that drains government funds, even though the Seniors paid into the fund with the promise that the funds would be there with interest when they retired. They are not responsible for the fact that Congress betrayed their trust and spent the money on welfare programs so Social Security now has to rely heavily on the money workers pay in.
Senior Citizen issues-K
Lawmakers passed the Social Security Fairness Act just before Christmas 2025 while people aren’t noticing. This allows government union workers and their spouses to enjoy two full pensions if they worked at non-government jobs along with government jobs and earned enough credits. Formerly their Social Security was reduced by what they received in their government pension. It only benefits a small number of Seniors but will greatly increase the burden on the Social Security fund with no funding to cover the increased costs. The vast number of Seniors will receive no benefit and will face reduced Social Security earlier due to Social Security running low on funds sooner. It shows that the Democrats have total disregard for Seniors when it offers government workers facing retirement a huge windfall to buy union votes in upcoming elections. Democrats have always worked to benefit unions but have seen dropping support from police unions as they demonize police and from manufacturing unions as they push the switch from gas powered to electric vehicles which require less workers to manufacture and push importing manufactured goods from China and oil from the Mid-East which costs American jobs.