I am going to come out and say this as plainly as possible: DEMOCRATS ARE MOSTLY RESPONSIBLE FOR OUR POOR ECONOMY. Why do I say this? Because, the laws that created the current Economic problems were all passed under Democratic controlled Congresses and Presidencies. That is correct, folks; the Democrats controlled both Houses of Congress and the Presidency concurrently as each of the following laws were passed:
October 3, 1913: Revenue Act of 1913 which created the Federal Income Tax.
December 23, 1913: Federal Reserve Act which created the Federal Reserve System.
August 14, 1935: Social Security Act which created Social Security and started the current Entitlement system.
June 9, 1943: Current Tax Payment Act which reintroduced Tax Withholding for Income Taxes by employers. (It had been part of the Tariff Act of 1913 and repealed by the Income Tax Act of 1916.)
All four of these Acts were created, passed, and signed by Democrats. These four Acts are the foundation of our current Semi-Socialistic Society and Economy. The Federal Income Tax created a system where a person's hard earned income can be taken away completely, and in fact before deductions at times the rate was 70% or higher. Federal Withholding compounds the situation by allowing the Federal Government to take your hard earned income before you even get your paycheck. In truth, this is the first of the legalized crimes/thefts that the Federal Government has committed over the years. The most current legalized crimes being Insider Trading by Congressmen and Senators using proposed and passed legislation to buy and sell stocks, bonds, and real estate, the quid pro quo of the Ethics Committees, and the passing of the Stimulus and PPACA. The Stimulus, if you have been following seems to be sending a lot of money to Obama Campaign donors and Democratic supporters via Department of Energy loans to "Green" companies. The vetting process for the companies getting the loans seems to have ignored many warning signs as the money has been going to companies that are either failing or have failed for the most part. And, it turns out many of these companies have major donors or bundlers for the Obama Campaign from 2008 on their boards or as executives. PPACA forces us all to have health insurance or be fined even if we cannot afford any such premium. This is the first time in history that Americans are being told by the government to purchase something that used to be a choice. And, before you all argue about car insurance, not everyone drives or even has a driver's license. Everyone has some sort of health condition, whether it be perfect health, poor health, or something in between. That means that a perfectly healthy person has to purchase health insurance that they may not need ever in their life.
The Social Security Act started our Entitlement system as we know it today, despite having been meant to be a TEMPORARY measure. It was passed at the height of the Great Depression during the Dust Bowl time period. But, because people pay into it, it has to be maintained. Yet, this created the Trust Fund that Congress continuously raids to create "Balanced Budgets" and "reduce the deficit". If Congress left it alone, there might be money left in it. Also, the bonds that Social Security purchases to maintain the Trust Fund are non-guaranteed bonds from every source I have looked up outside ssa.gov. If you try to look up the bonds on the Social Security website, the only information is the type of bonds that are bought not whether they are guaranteed or not. This leads to the possibility that Social Security is now a scam, particularly a ponzi scheme.
Now we get to the Federal Reserve System. This system is the worst of all of the laws enacted, because this is the smokescreen that Congress and the President hides behind. They listen to the Federal Reserve Chairman for how to manipulate the economic system to either improve the view of the economy by people or to "save" the economy from real or perceived problems. They let the Federal Reserve Banks print our money. They are quick to do whatever the Federal Reserve Chairman asks. However, in all of this they claim that they cannot audit or investigate the Federal Reserve System; because it is a semi-private organization despite having been created BY CONGRESS.
Most people wrongly believe that we are a Capitalist nation, with the laws I have pointed out above; we are, in truth, a semi-Socialistic nation at best. At worst, we are a Socialist nation with some Capitalist leanings. The bailouts of banks are the primary evidence of this lack of Capitalism in this nation. In a Capitalist society, the banks would have failed and gone through bankruptcy proceedings where they either would have reorganized and come back or they would have been broken up and sold to other healthier banks. Instead, we have Wells Fargo using bailout money to buy out Wachovia. We have AIG, Goldman Sachs, Bank of America and other investment and insurance firms and banks handing out hefty bonuses. I know, the bailout money was paid back for the most part. But, we still lost money in the process, in fact according to CNNMoney.com's bailout tracker, we lost about half the money actually invested in banks from the bailout. Out of the $700 billion set aside for TARP, only $356.2 was used and of that amount only $118.5 was actually repaid. Of course, they stopped tracking it on Nov. 16, 2009. And, the bailout of GM and Chrysler lost Americans $14 billion, again according to CNNMoney.com.
The truth is that the Democrats by passing the laws they did in 1913, 1935, and 1943 set the foundation for the greed we see in Washington. And, in so doing created the entire economic situation we find ourselves in. But, instead of trying to fix things and repair the damage, they are more interested in playing political games and attempting to score cheap political points. The Republicans aren't much better as they squandered their chance from 1995 to 2007 when they controlled both Houses and failed to fix the foundation before the meltdown that occurred since 2007. But, the Republicans are also correct when they argue that we have a spending problem not a revenue problem. If you look at the data for government spending, deficits, and revenues; you will find that until 1913 the vast majority of federal budgets were balanced or had surpluses. After 1913, our deficit started ballooning with the last sustainable balanced budgets (4 or more years) before 1998 were during the Harding, Coolidge, and beginning of the Hoover Adminstrations (FY1920-FY1930) and that the last time a Democratic controlled House had a balanced budget or surplus was in 1969.
Look closely at the numbers included in the following charts, they tell the story of the greed in Washington as created by the Democrats and the failures of the Republicans to curb them:
These charts are the final pieces of evidence that all of our problems stem from the actions the Democrats took in 1913, 1935, and 1943. These numbers show how balanced the budgets were before 1913 without a Federal Income Tax and how bloated government spending got after the Federal Income tax was enacted. Compare them and see for yourselves.