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Investing in America and Americans should be a no-brainer!

By       Message Karl Smith       (Page 1 of 1 pages)     Permalink

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Investments in education, health, infrastructure, and research are investments in America and Americans, and the investments pay for themselves and even make a profit for taxpayers! Here is how.

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These investments put significant money into the bottom of the economy where it gets spent quickly. Money repeatedly cycles through the economy creating tax revenues with each cycle which partially offset the costs. When more people have money, businesses hire and purchase creating more tax revenues further offsetting the costs to taxpayers. As people have more money, dependence on safety net programs is reduced which further offsets costs or even returns a profit. Finally, tax payers get a substantial return on investment in ourselves from an educated and healthy population with all the infrastructure and research necessary for a thriving economy.

These investments speed up the economy which is what needs to happen to grow the economy. The faster money cycles through the economy the larger the economy. To solve our unemployment, underemployment, wage stagnation, wealth disparity, and the deficit, we need to speed up the economy. The faster money cycles through the economy the more taxes are created, even at the same tax rates.

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When most of us and many smaller businesses get more money, we spend it quickly because we have past and immediate needs. Wealthier people and larger businesses tend to spend and invest more slowly as their needs are not generally immediate. They have the luxury of time to compare. Also, people and businesses with wealth do not want to lose their money so they invest when their business plans are favorable which is basically when customers have money. This means when the wealthy and big businesses have more money, they tend to slow money in the economy. Their money is pulled into the economy when customers have more money.

The wealthy could juice the economy any time they want but for the most part they do not have the "Field of Dreams" mentality: if we build it, they will come!

Businesses are dependent on educated and healthy employees from day one. However, businesses do not prepare these individuals. Healthy and educated customers tend to be good for business as well. Businesses need infrastructure and basic research to develop and provide their products and services. Businesses need customers with money. Our investment in America and Americans is fundamental for a vibrant economy and society.

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As a country, our past investments in America and Americans have been major drivers that build the middle class, created an environment for businesses to thrive, and created the most powerful economy in the world. The wisdom of previous leaders, from both parties, to invest in ourselves even in the worst of economic times, paid back hugely for America.

Now the GOP sells the idea that our government cannot do anything right and too many Americans are buying it! The GOP sells the idea that many Americans are just takers who will take your hard earned money. The GOP has sold too many Americans on the idea that no matter how much we want to invest in Education, Health, Infrastructure, and Research, we just cannot afford it!

The problem is that the GOP cuts take substantial money out of the bottom of the economy that would have cycled around collecting taxes, and the savings that are supposed to be created by the cuts disappear. Businesses then pull back which evaporates more tax revenues. Safety net programs increase and we do not get the economic benefits from healthy and educated Americans with supporting Infrastructure and research. The GOP cuts impacting the bottom of the economy hurt and destroy individuals, families, and businesses. GOP cuts create slowing pressures on the economy which have a range of negative impacts from driving up the debt, to higher unemployment, higher underemployment, stagnant wages, and wealth disparity.

Democrats invest in America and Americans which build the middle class and put free enterprise on steroids. These investments put money into every community in America creating opportunities for the poor to the wealthy, and for small to large businesses all across the country.

When we invest in ourselves, the investments not only pay back, but we make a profit growing the economy creating more tax revenues to balance the budget, and then pay down our debt. These investments are both fiscally responsible and critical for a thriving future.

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Democrat Activist, Small Business Owner, Father of Son with Autism

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Investing in America and Americans should be a no-brainer!