MasterPo says: This blog is about topics and issues that are of importance to me. I am not one of the countless blogging lemmings that are tripping over each other scurrying down the hill and off the cliff of blogging oblivion trying to write the greatest blog on the latest topic de'jour. Your comments are welcome.

June 8, 2009

An Open Letter to President Obama: Keep the Uncertainty Flowing, the Economy Loves It (Not!)

Dear President Obama,

You have done a masterful job as President so far with the economy.

No other President in American history has talked down such a high market into the doldrums.
No other President has talked down consumer confidence as well.
Nor has any other President crushed the short and intermediate plans of so many Americans. (maybe even ending the long term plans for many too!)

It is truly an accomplishment, though not one I would suggest putting on your resume.

But I will say that are you partially correct on one aspect: Spending will turn the economy around.

But only consumer spending will, not government spend.

To be sure, when you throw so many trillions of dollars against the wall something is bound to stick. But that just can't be sustained as a matter of forward policy. No. Consumer and not government spending is the process you need to get moving again to turn the economy around. And it doesn't help when you want to usurp the power to take over businesses and industries at will while at the same time saying there is no promise it will save the business or a factory or someone's job.

It further doesn't help when every week yet another proposed ban on this, mandatory change to that, or something extreme change to individual's lives comes out of Washington. People understand: those things will cost them money!

And factor in the inevitable rise in taxes to pay for this awesome spending. People know it will hit them. Even if a direct tax on them they know business they rely on – food, medicine, fuel, clothing etc. – will just pass the cost on to the consumer.

So people are not willing to spend. Why should they? If they have money, have high incomes they know your policy Mr. President is to tax the hilt out of them. So they will need the money to pay your taxes. If you tax their employer they know that's less income down to them or even may loose their job! So they need their money to survive on. And even taxing other business when those businesses pass the costs down to the consumer the people will need their money just to purchase the daily staples of life. So they don't spend on extras.

Let me give you a personal example:

I am an avid sport fisherman. A few years ago I became involved in the sport of kayak fishing. I purchased a starter-level kayak, outfitted it with accessories, and have done very well with it. Now that I have some years of experience under my belt I better know what I like and don't like in a fishing kayak.

As such I have been entertaining the idea of buying a new, more advanced model fishing kayak. This new kayak would cost me around $1,800 just for the hull. Add in accessories and the total cost will come to at least $2,500. I would buy this kayak from a local kayak dealer who as much makes his living selling kayaks and kayak accessories. And I would be paying New York State and Suffolk county sales tax on this purchase.

I have the funds to buy it. But I hesitate to make the purchase.


I strongly believe I will need those funds to pay future taxes. Or to pay for markedly rising staples of daily life. Or some other directly or indirectly forced tax, fee, charge, excise, etc. mandated from Washington. So for now I choose to hold on to my money, not spend it, and there for not contribute to stimulating my local (and by extension, the national) economy.

I am not the only one who is taking this stance on discretionary purchases.

Always remember Mr. President: It is discretionary purchases that grow an economy and make a nation and its people prosper! Not simply the supplying and selling of the basics of life.

This is what your administration's policies have wrought upon our nation.

Very truly yours,


MasterPo says: If you enjoyed this article make sure to subscribe in a reader (one of the last good free things in life!)

No comments: