Henny Penny is always there. As she screams that the sky is falling and that since Obama, the most popular President in the world this nation has ever had, is surely a sign that the end is near, the only ending is their ideologies. Is there current market volatility that reflects instability in a negative way? Yes, there is, but when a grand bargain or even a punt is decided upon the market will shoot back into comfortable territory. That makes this period a buy opportunity, not a reason to throw all your stock portfolio into the bin. Obviously, recommending stocks for person who are not suitable to stock market volatility is not within the desire of this blog’s responsibility. because I write my blog full well knowing that not all products all suitable to all buyers. That’s a courtesy not even Suze Orman pays her audience.
Secondly, any “fiscal cliff” is mistakenly assumed to last at least a year when they spew the statistics about the damage it would cause, so that a few days past a December deadline can easily work in the favor of those pushing for a restoration of Clinton era rates, and that’s what that is. It isn’t a tax hike, or an increase in taxes. It is a restoration to rates that we have seen before, paid before, and been successful with before, so all the crying seems a bit dramatic in a numbers game.
Mary Bono Mack, a Republican, has now been replaced with a Latino or Hispanic Dr. Raul Ruiz, a local Doctor who really lives in the area. There are two economic realities that underscore that tremendous victory. Hispanics do in fact exist. They also vote. They also work. They also pay taxes. They also want to go to school. They are us, and we are them. Particularly in this part of the Desert Valley. This new reality is something I am happy to see.
The mentality of the takers and makers is insulting, and that mentality has been bounced out of office. When the American Revolution occurred, one of the main reasons was because the illegal immigrant or at least immigrant residents did not feel that they were adequately represented by the taxes they paid. The Boston Tea Party comes to mind. Today many feel they are not adequately protected, nor have access to proper healthcare nor proper schools nor infrastructure free from dangerous lack of maintenance from monies collected as taxes of various types. Taxes are collected in sales taxes, property taxes, income taxes, and fees and taxes of various sorts. When a government raises those revenues, it owes the people from whom it collects those very revenues a minimum level of dignity, otherwise the legitimacy of the government is questioned.
There are those who want no government at all, and in a country of 350 million, that is not practicable. A shot gun in every home won’t eliminate a need for a police force either. Police need training and supplies. Yes, all that costs money.
When people talk to me about the costs of Social Security or Medicaid or Medicare, I believe that these programs do indeed have to be paid for. A removal of the cap on taxes paid for Social Security is something that I have’nt heard talked about much, but would easily solve this insolvency. Increasing the retirement age as the population gets healthier longer, and a means tested tapping of social systems are all solutions.
I hear a lot of people saying we can’t “afford” these programs. What we can’t afford is not to lead the world in the making of the greatest experiment ever tried so far anywhere in the world in the history of country making which is America, The United States of America, just now 200 and some very proud years old. Please send me questions or comments at my website: www.johnpaulvaldez.com