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Economic Crisis

The hot topic on the table tight now in this term’s presidential election is mainly the economy. Many factors play in to how our economy got into the mess it’s in right now. 

It all started back in 2001 with the bombing of the World Trade Centers, the Pentagon, and the plane crash in Pennsylvania. The attacks themselves are not to blame, but the ongoing Military Operations and spending in the Middle East that we have chosen to continue even after the death of Osama Bin Laden. Economics tells us very simply that an increase in the quantity of currency in circulation decreases the value of said currency. The amount of Military spending over the past 10 years has involuntarily led to inflation and a devaluation of the American Dollar.

Military Spending Chart

The second cause of our financial woes deals with the government subsidizing just about everything it gets its hands on. Education, Healthcare, Housing, even the “Cash-for-Clunkers” could be considered a subsidy of the government. The motive behind these action of our government are not bad, but the principle and how it is used, is. Subsidization of assets in the private sector by our Federal Government is just a fancy way of saying socialism. If you don’t have it, the government can get it for you. But what is bad about all these programs is the abuse of them. If we offer free healthcare and education to those who ask for it, we create a high demand for these products and services. Economics tells us that an increase in Demand must be met by an increase in Supply, but when the Demand is greater than the Supply, then taxes are increased and the quality of the goods or services provided decreases. Another factor played into this problem are the illegal immigrants in this country. We invite them in with tales of free hospital care and free education for their children, but they do not pay taxes into the system that they use. Therefore, the hardworking taxpayers must increase the amount of taxes paid to compensate for the increase in demand for the services provided.

And last deals with the spending at the time of the current Presidential Administration. The bailouts have marred our economic integrity immensely. Not just the ones you hear about on CNN or Fox News, but the ones you dont hear about. Lets start with the small one. In 2008, Congress and President Obama signed into law the Emergency Economic Stabilization Act. The bill spent over $900 billion dollars in the name of preventing their collapse and another Great Depression. What these law makers failed to realize is the basics of economics again. “An increase in the quantity of currency in circulation decreases the value of said currency.” With $900 Billion being thrust onto the shoulders of the American people in an instant caused a massive decrease in the value of the American dollar. You think this is bad, well I’m only getting started. At the exact same time, the Federal Reserve used the publicity of the $900 Billion monstrosity to pass their own bailout. While the media was preoccupied with the spending of $900 Billion, the Federal Reserve secretly passed their own spending bill tuned to the amount of over $16 Trillion. Yes that is Trillion with a “T.” If $900 Billion did a good bit of damage to our currency, then imagine what 17 times that did.

Value of American Dollar

All of these economic problems have plagued our great nation for the past 10 years, if not the past almost hundred years since the signing of the Federal Reserve Act of 1913. Since then, the U.S. has not been in control of its own currency or regulation of its own banks due to the fact that the Federal Reserve is not a government agency, but a private banking figurehead.

In order to solve these problems, we must first return all control of our currency and banking regulation back to Congress. Under Article 1, Section 8, Clause 5, “Congress shall have the power… To coin Money, regulate the Value thereof, and of foreign Coin…” The Federal Reserve must be abolished and the Treasury must be put back into control of of the American Dollar, as the Treasury is under control of Congress.

Unnecessary spending on global wars must also be put to an end. It is very important to create alliances and help other people, but not at the destruction of our own nation.

And last, the subsidization of American goods and services must be eliminated. Our market is that of a free-market enterprise, not of socialism. Faith in private medicine, education, and housing must be returned without government regulation. Only then can we eliminate the leeches that have been thriving off the system and return our market to normality.

The road ahead for our great nation is uncertain, but if our system of government is to continue to exist, we must learn to coexist within our means. Peace both in war and in the market is essential to create an environment where we can all achieve “Life, Liberty, and the Pursuit of Happiness.”
by YourLocalSecurity.comBlogging Scholarship

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