Do You Really Believe

Do You Really Believe…

Recently the Democrats held their convention in Denver and concluded with the final speech from their Presidential candidate Senator Barack Obama. He delivered his speech, which many are calling oratory brilliance. When listening to speeches that are filled with flowering oratory, most of the time the oratory is a replacement for substance.  When listening to a mesmerizing speech one comes away thinking "all's well with the world" but after they spend time to focus on what was said, they are not as pleased with the reality of the speech.

Alexis DeTocqueville, the author of "Democracy in America" wrote in the 1800's [and I am paraphrasing] "his biggest fear was people who had a great command of the English language but little intelligence to support their speech". So many times speeches are written by speechwriters whose main focus is to persuade the people to their way of thinking. When listening to fancy oratory it is important to remember the substance that is being talked about.

When listening to Barack Obama anyone would have a tendency to listen to him as one would a polished evangelist, whose main goal is to get you to believe in his thought and follow his ways. This is not about his ways or his belief, but what he will do for the American People, and how he will do it. Like the skilled preacher telling listeners that salvation is achieved through only one way, Obama is letting people think that he is the only way to solving the problems of the United States and the World.

When the dust settles it is up to you the American People to decide if he can muster the horsepower to get done, what he said he would do in his speech. Are there politicians in existence that will actually do what they say, or are they saying these things to get elected and then back to business as usual.

In reviewing one of the things [There are many that will be addressed in later articles.] he said, one that is standing out in my mind, which seems pretty drastic and harmful to our American economy and that is "Raising taxes on the top 5% of the people". When researching the top 5% it is very hard to get a handle on the income levels, but from what I can see this is anyone who makes a combined income of $150,000 at the low level and then upward. So everyone in America who has a combined minimum income [income per family] of $150,000 or more will see their spending power drop. These people are a mixture of self-employed to skilled employees in major corporations, and are the heart of the economy. By raising taxes on the top 5% of America will put this country into an economic tailspin that could exacerbate the existing economic problems.

This is an example of putting rhetoric above practicality. It would be impossible to tax the top 5% of producers in the United States and think that it would solve the economic problems. It would be foolhardy to think that you could take money from the top 5% and redistribute it to the bottom 95%. There would have to be a separate government agency put in place to distribute the money or expand the existing IRS to give money back instead of collecting it.

I realize that the speech was designed to try to persuade a huge chunk of the 95% to vote for Senator Obama but is the people in the 95% block think the statements through they would soon realize that it would be impossible to redistribute the wealth without creating more cost on everyone.

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Thanks for reading

Dr. Raymond Jewell, Economic Advisor

 

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Dr. Raymond Jewell
610-637-4884
Skype: rbjewell