Cut Taxes, cut spending and quit propping up losers

What the critics of tax cuts don't take into account, in my opinion, is the problem of confidence that must be solved if the economy is to move toward growth. Creating construction jobs is good for construction workers, but cutting tax rates, cutting government waste and allowing failing companies to fail would be good for everyone. We have such a diverse economy now that construction jobs are a small part of the problem, even if you add engineers, planners and managers to the mix. But this is all beside the main point.

What's needed is widespread confidence that all our wealth is not going down the tubes. By cutting tax rates, eliminating capital gains, limiting government to its basic responsibilites of protection and dispute resolution, and freeing businesses of heavy taxation, this would immediately infuse money and confidence into the market. But, again, what our country needs is confidence we can do it -- our confidence in a capitalist system has to be restored. 

If government sent the message that it's allowing (how sad is this "allowing"?) the private sector to handle the recession according to natural supply and demand, people would feel empowered to act and there wouldn't be the uncertainty of upcoming, mysterious changes which prevents them from planning long term. Uncertainty causes the loss of confidence, especially with investors, entrepreneurs and home buyers. But government won't do this, so it has to be demanded by the private sector -- an emboldened private sector (you could even say "courageous").

A strong signal that government is backing off and getting its own wasteful house in order would inspire individuals and businesses in the private sector to get their houses in order. We need leadership at this point and not necessarily from government. Our whole country needs to lead the way to a global recovery and show that free market forces are the way to prosperity.

Also, an end to government support of failing companies would inspire (allow) the competent companies to expand and excel. Companies which win in competition should be rewarded. The market calls for change and when the government prevents change by propping up failing companies it begins creating government-businesses whereby the actions of the company are influenced by political decisions. Companies in a free market follow the signals of the market and this is as it should be so that supply and demand take a natural course. The artificial movement of money and energy according to state motives is economically inefficient -- just as it would be inefficient for me as manager of my real estate company to move money and energy according to motives of someone I allowed to make decisions which are not market based -- say a gambler -- and I put all my money on horse races -- unless I'm lucky I'll soon be out of business, although the bookie will have done good for awhile.

All across the country there are people who undertand capitalism and free markets, practically, although they might not be able to explain intellectually all the concepts, and they're being misled by a government they've trusted to protect our way of life -- these people have not understood the statist-creep and how our mixed economy has failed. I hope they're awakening to the fact that a mixed economy will move towards statism over the long haul. There's no middle ground anymore. It's coming down to a choice between a free market or having our economy run by the state.

Everyone who's been fooled into believing government is necessary to prevent financial collapse and the rule of the rich over the poor is living in an illusion created by the state for expansion of the state and control by the state. Our country has failed due to lack of commitment to a capitalist system which can't function under state control. Those who believe that capitalism is just another form of control by the rich don't understand the nature of freedom and how capitalism is merely free choice and open opportunity. But if this is how America uses the freedom it was promised -- to give it up to the state, allowing politicians to control the economy -- then America doesn't deserve freedom. The problem is, though, when enough people give up their freedom, those, like me, who wish to live free are shackled by that choice against our wills. Don't think the control won't get worse. And don't think free thinkers won't fight back.

The point is, the confidence everyone talks about won't come from government -- it'll come from being free to act -- it'll come from acting.