Obama has continually said that he is the champion of the lower and middle classes. But the credit rating downgrade is going to hurt only the lower and middle classes and it’s going to benefit the rich. That is, the credit downgrade will cause interest rates to go up. Therefore, people who have money will now get a higher return on their investments (property, bonds, etc.). And being that they outright own things, they won’t be affected by the higher interest rates. Whereas, people who owe money (mortgages, cars, credit cards, etc.) will NOW BE PAYING MORE. So then, who is paying for Obama’s economic mistakes … the poor and middle classes (who have already taken a hit due to elevated employment). In essence, it will be a redistribution in the direction Obama didn’t intend … from the poor and the middle class to the rich.
How ironic. I hope that this point is continually pointed out in the upcoming elections. And it’s not just Obama who has led this country down this dark economic path, it is all of the democrats who vote as a block. We need to stop this slide while it is still stopable (unlike in other countries where it got out of hand). And that means the upcoming elections.
In the meantime, it’s very simple. The American public made a big mistake in 2008. This administration and congress have severely hurt this country, both socially and economically. The American public saw this error and started to correct that mistake in last year’s election and will hopefully finish the job in 2012. Therefore the Republicans (and most especially the Tea Party Republicans) have no reason to compromise, nor should they compromise if they are going to follow the will of the people.
The Vox Populi was heard in 2010. And an expression of that voice is that we should not be a country of redistribution but rather one of opportunity created by entrepreneurial efforts (a process that Democrats don’t understand). Therefore the government should not get in the way of that by putting undue burden on businesses or the national economy. And one way that it does that is by giving handouts without compensation by the recipients. But that is fixable.
Byline: Dennis Marcellino is the author of The Plague of Liberalism (which can be seen at www.ThePlagueOfLiberalism.com)Continue reading on www.LighthouseBooksAndMusic.com