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It’s Elementary, My Dear Liberal….

August 25, 2012

You wanna know what’s one of the most interesting, fun, fascinating and easy to understand subjects on the planet?

Economics.

Really…It rocks. I promise.

What?? What did you say?

I’ve lost my ever lovin’ mind?

M’kay…maybe I stretched the truth a little.

Ok. A lot.

Matter of fact, I’m sure if you looked up “Economics” in the dictionary, it would say “the opposite of fun”.

PLUS, it involves math. Which means it’s not only NOT FUN, but it’s torture.

I’m totally with you.

I get it.

Economics is boring, yo.

Which is why when I taught high school and was asked to teach Economics to TEENAGERS ( I know, I know, I’m a superhero), I was determined to make it as non-boring as possible….for my own sanity…and because I needed them to understand….. not just to be able to pass the tests, but to be able to understand, at least on a basic level, how economics works.

And so I would break it down into very elementary terms for them. Not because they were stupid, but because they WEREN’T stupid and could digest that elementary version and translate it to an understanding of the big picture.

Because it doesn’t matter, what you do, where you work, who you are….the principals of economics are REALLY just common sense and they’re the same for everyone.

And even though I no longer “teach school”, I still “teach”.

I get many emails, phone calls, etc from people asking me to explain various things they’ve heard from liberals, ESPECIALLY ABOUT THE ECONOMY.

Because liberals have hijacked that corner of the political debate and smothered it with lies. Lies. Lies.

And 99.99999% of what I am asked about is a lie that Liberals have told them or broadcast through the mainstream media and presented as fact. And NO ONE challenges them or questions them. ESPECIALLY when it comes to Economics.

It’s like the whole Republican party takes their FACTS and tucks them between their legs and scurries off.

I don’t get it! Well, maybe I do. I think the big wig establishment Republicans KNOW they truth, but think you’re too stupid to “get it”, so they don’t make any attempt to debunk it. They just give it up and commence wining about how biased and unfair the media is….right before they go on 60 minutes, or ABC, or NBC, or CNN or The View, where they let the talking heads hurl lies and they SIT THERE and still never try to debunk a thing.

So if this world is to be saved, I guess I’ll have to do it, debunking one liberals lie at a time.

Except for I’m not alone. Hundreds of regular people…everyday folks blog and debunk this stuff all the time. I mean we basically give the Republicans big wigs cheat sheets, complete with sources and they STILL won’t face the liberals.

Buncha Wussypants.

Below I have listed one of the most asked questions (to me) and biggest lies spread by the lying liar liberals.

So instead of explaining this concept and debunking this liberal lie several times every week, I’ve decided to debunk it here and in a permanent adopt, using facts and then explaining the common sense of it, in VERY simple terms. So simple, even a liberal can understand.

LIE: “We need to raise taxes (let the Bush tax cuts expire) to bring more money in to the government cause the government is in debt and needs more money. (government income is called REVENUE)

TRUTH: Cutting taxes INCREASES government revenue/income…and yes, that includes the Bush Tax cuts. After the Bush Tax cuts of 2003 were enacted, Government revenues increased by almost 10% over the next 4 years.

PROOFà HERE

WHY?  How does cutting taxes actually INCREASE government revenues?

Well, it’s very simple. (Here comes a little elementary Economics 101)

Meet Sebastian.

Sebastian owns a lemonade stand. He makes $100/week profit.

 

Let’s pretend that he pays 30% of that in taxes. 30% of 100 is $30, so he pays $30/week to the government. He has $70 left over (or what’s called NET INCOME).

 

So Sebastian invests $20 of that back into his company. But $20 REALLY doesn’t go very far….plus, he has to use part of the $20 to pay for new signs and advertisements.

 

He would love to use the $20 to hire his brother to help him so he could stay open longer hours and make more lemonade…. But it will cost him $25 per week to pay his brother (Sebastian could pay him less, but with minimum wage laws and such….)….

 

So his brother gets an unemployment check from the government while he sits in the house doing nothing because the government pays him to NOT work. (and they can afford to since they take 30% from his brother) but they only pay Sebastian’s brother $15 per week.

 

Sebastian also would like to expand his business to his grandmother’s neighborhood, but he can’t afford the start-up cost. He knows he could hire his cousins who live next to her. They also draw their unemployment and need jobs. So….

 

In an awesome turn of events, some sensible people were elected into office and lowered his tax rate to 15%.

 

He now only has to pay the government 15% of that $100, which is $15.

 

He WAS paying $30 in taxes, so now his profit has increased by $15

 

So, instead of investing $20 back into his company, he is able to invest $35 per week into it. He then takes $25 of that and hires his brother and puts the other $10 into some additional advertising.

 

In one week’s time, his brother’s help has caused their production to more than DOUBLE and they can hold longer hours. Because they can produce more, they can handle the extra business that the additional advertising brings in…

 

 Now, because of the tax cut, he is bringing in $300 in profit per week and the government is getting 15% of that, which means that the government is now getting $45 dollars per week from him….and even a 5 year old can tell you that $45 is MORE than $30.…

 So….*gasp*… I know what you‘re thinking….

NO WAY.

The government CUT Sebastians tax rate and that caused them to actually pull in MORE revenue/income FROM Sebastian….??

Yep. The government is actually bringing in $15 MORE from Sebastian than they were getting before the tax cuts.

PLUS, the government no longer has to pay Sebastian’s brother unemployment, so the government is SAVING another $15 per week….which means that they are now up by $60.

 GENIUS!

 I KNOW, RIGHT?

 Whoever invented this theory should come up with a cool name for it.

Like, the “Everyone Who Works Hard CAN Be Successful” scheme.

Oh, wait. We already have a name for it.

It’s called CAPITALISM.

A.K.A “The FREE MARKET”, REAGANOMICS, and Obama’s favorite:

The evil “TRICKLE DOWN” theory.

But, don’t skip off just yet… that’s not the end of Sebastian’s story.

Now, remember at the beginning, the government was charging 30% taxes and getting $30 per week?

 

Now they are charging 15% in taxes and have gained $60.00 per week. Just by cutting taxes, the government actually DOUBLED their revenues that were getting from Sebastian.

But, WAIT! THERE’S MORE!

Because of the increased profit, Sebastian is able to open up 2 more locations and not only hire his 2 unemployed cousins, but 2 of his best friends.

 

He took 4 MORE people off the unemployment rolls and both of those businesses are booming

 

So…..yep, you guessed it…. he is paying taxes on those additional lemonade stands and the government is taking in MORE tax money.

 

And. I know what you’re thinking… Sebastian is paying MORE now in taxes than he was when the tax rate was higher. But, you see, he doesn’t mind…. because HE IS ALSO making more money.

See? Everyone wins here. EVERY. ONE. Even the greedy government politicians win.

Wait. One group DOESN’T win. The Socialists and Communists.

They aren’t fans of Capitalism or the Free Market…or people being independent of government help.

But, everyone who loves America wins. And that’s what matters.

But, liberals lie to you. Because it’s what they do. They lie.

They tell you that Sebastian is EVIL because he wants to actually keep more of his money to invest back into his company.

They tell you that Sebastian is part of the evil 1% and cares NOTHING about poor people.

Except they miss the part where he actually gives them jobs.

And when liberals are faced with these basic elementary facts, they will simply tell you that it’s more complicated than this and you can’t possible be smart enough to understand the whole economic system. (As if THEY DO)…yea, right.

Actually, it IS this simple.

And History has proven it time and time again. The Bush Tax cuts proved it. The Reagan tax cuts proved it…The Kennedy Tax cuts proved it, as did the tax cuts of the late 40’s, and the Coolidge Tax cuts… As a matter of fact…

So when Obama announces AGAIN that he wants the Bush tax cuts to expire and the taxes (even if only to the very wealthy) to go up… you can email the White House and Congress and refer them to this blog post.

Or not.

On second thought, scratch that.

You can’t teach stupid and you can’t fix stupid.

But…… YOU CAN VOTE THEM OUT.

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5 Comments
  1. j brown permalink

    Standing ovation!!!!

    ________________________________

  2. fabulous!

  3. Sue Hoffman permalink

    Finally – even I can understand it. Now if the idiots in Washington were to read and understand it maybe we could have a country again instead of a welfare nation.

  4. cdr permalink

    It would be helpful if they let you speak at the DNC so you could explain this to all listening. Simple is good.

  5. Doug permalink

    You forgot one thing… Not only does Sebastian’s brother and cousins and friends come off welfare, they also start paying income taxes, so the govt is bringing in money not only from Sebastian, but also from his employees.

    And of course, with their increase in income, Sebastian’s brother, cousins and friends are going out to eat more often, so the local restaurant gets more income… and hires another server and cook…

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