Saturday, October 11, 2008

Investors Fear Obama Socialism

What is up (or should I say 'down') with the markets? The ginourmous bailout was supposed to stabilize the lending industry thereby stabilizing the stock markets. Investors aren't convinced. Or, maybe something else is the problem.

This is an election year and it is not uncommon for the markets to be a little edgy. Granted, what we are seeing is more than "a little edgy."

There are several theories out there about what is at the root of this problem. One such theory that should be investigated by every person who intends to vote on November 4 is this. Some people believe that investors are scared of Barack Obama and his ultra-liberal, socialist past. Investors know that socialism is the antithesis of free markets. Higher taxes (especially corporate taxes) and more government regulation are detrimental to the economy.

Fixing our economy will require a president and a congress that will allow more money to stay in the private sector and in the pockets of individuals. Higher taxes and more regulation will only succeed in driving our economy deeper into recession.

Lower taxes allow for more disposable income for individuals and more capital investment opportunities for businesses. At the same time, lower taxes result in more revenue for the government. This is a win-win situation here people. You liberals and moderate Republicans in DC need to get your head out of your rectums.

No comments: