Sushi Money

It’s time to move on.  Along with the economic uncertainties we’re facing, many people are questioning the degree to which government is stepping into our public and private lives these days.  Instead of seeking to restore order and growth in free market structures, it appears we are at a cross-roads of ideological change where some are seizing the opportunity to reshape the economic landscape.   Perhaps its an argument we have waited too long to have.  Maybe there is little choice given the circumstances and we will come out stronger in the end.  Maybe it’s going to get worse before it gets better. 

For many of us, the debate centers upon questions involving how much, and in what way, we should allow government to dictate or influence our future economic viability- and sovereignty- moving forward.  In any event, I’ve enjoyed posting a few thoughts these past two years, and it’s time for Sushi Money to close shop.  I may begin again under a different site name and theme at some point, but now will simply watch from the sidelines for a while and focus on personal goals.  Thanks for visiting and best regards in the future.  We do live in interesting times.

Disheartening.  Among other things.  It seems that the government intends to punish those who would work hard to build and achieve in life while rewarding those who do not.  It seems we are intent on rewarding failure, or the status quo, and punishing success.

It is shocking to consider that the new administration has proposed more spending in the past six weeks, than all other U.S. government spending from the founding of the country to January of this year.  Some of this spending may indeed do great things.  Yet most of this spending is money that we and our children’s children will long carry the burden for.   We call it spending, but it’s really borrowing.

Is all of this spending and new legislation really designed to fix the economy over the short term?  Or is it something more, something greater- a design or framework of spending established to foster a new political structure for the future?    It doesn’t seem that the stock market has any degree of confidence over the direction of government policies and support for free enterprise.  The past couple of months have seen nothing but great uncertainty and fear. 

The stock market has lost 25% since the beginning of the year… 3,000 points since the November ‘08 elections!  And the President is running out of people to blame.

“What is new is the unveiling of Mr. Obama’s agenda and his approach to governance. Every new President has a finite stock of capital — financial and political — to deploy, and amid recession Mr. Obama has more than most. But one negative revelation has been the way he has chosen to spend his scarce resources on income transfers rather than growth promotion. Most of his “stimulus” spending was devoted to social programs, rather than public works, and nearly all of the tax cuts were devoted to income maintenance rather than to improving incentives to work or invest.”

Incentives to work or invest… that, coupled with hard-working people, is what has made America great, through a framework of capitalism under the umbrella of freedom and liberty to pursue one’s dreams.  That is why people have always seen America as the Land of Opportunity.  How do we foster business growth and entreprenuership, hence jobs, profit and spending, when we become the Land of Income Transfer and Social Programs?   Ultimately we would become a wasteland of mediocrity.  

Would you buy a home or even want to live somewhere that didn’t have the structural vibrancy of free enterprise to support the citizen’s needs?  Where business failed and crime became rampant?  Where people were leaving in droves because there was no reason to stay? Look around… there’s a city or two across the nation well on their way to that eventuality.   What does that say about the path for our nation?

In very specific language for example, the pending legislation on the budget reduces taxable deductions for charity and mortgages for those making $200,000 (individual) or $250,000 (family)  per year.  To be perfectly candid, I do not make that much money each year.  But I know many people who do… and they are not rich. 

Certainly they live more comfortably than someone making $35,000 per year, especially with a family.   But most of these are people who have also worked incredibly hard in life becoming educated, growing a business, or taking risks in order to provide a home for their family and often a business in a small community.  And we are increasing taxes in key areas that may dissuade these people from giving to charity or deducting interest expenses on their home mortgage.  Those extra tax dollars they pay will need to come from somewhere- for a business, maybe one less employee.

Will this legislation help charities?  Will it help support home sales across the nation?   Maybe you believe the taxes are too low to really matter, and these folks can afford it.  Well they probably can afford it, but it doesn’t change the fact that they will be paying more money to the government who in turn will be redistributing it to people, or institutions, who can’t.  Some folks think that’s a good thing, and it’s only for a short while. Let’s hope so, because it cannot last.   

It’s not just those making a lot of money who will pay of course.  We will all pay. More importantly, who will finance this tidal wave of income transfer and spending?  We, the people, will.  Those who work the hardest to grow and achieve things in life.  Taking things away from achievers and giving it to those who are not is simply unsustainable.