Just kidding about the vote often part. Vote once, but do vote. This is my 9th Presidential election, but I don’t remember one that is so critical in determining the future direction of our country.
Historically, the Presidential election has had very little discernible impact of the performance of the financial markets. We have had good and bad markets when both Democrats and Republicans have won. The more important impact in the election is one of philosophy. Going forward, are we going to be a people who work for and are dependent on the government, or are we going to be a people who are independent and who the government works for?
Democrats and Republicans want to make a stronger middle class; create jobs and help people up the economic ladder. They just have starkly different approaches.
Our current President believes to help people up the economic ladder he need to make them more dependent on the government. During the past four years, the number of people receiving some type of government assistance has skyrocketed. Food stamp usage is up. There are even advertisements paid for by the government, encouraging people to apply. Social Security Disability payments have jumped, mostly because people have given up looking for work and are turning to this for some income. Unemployment benefits have been extended out to almost two years. If you want to get a loan to go to school, now you are dealing with the federal government, rather than private lenders. Unless something changes, by 2014, we will be dependent on the federal government for our healthcare, with a group of unelected people determining which procedures are appropriate for each person. In terms of creating jobs, the government has decidedly put their efforts into creating jobs in the “green energy” field. By making loans to companies like Solyndra and AB Batteries, they hoped to create not only jobs, but impact the types of cars we drive and the type of energy we use. AB Batteries was attempting to make car batteries for electric cars that lasted longer than 36 miles of driving. Solyndra was a solar power panel maker. Both companies went bankrupt mostly because no one wanted their product. No new jobs, only jobs lost and no benefit to the economy, only tax dollars lost. The theme of the current administration is that government knows better than you what is best for you. So far that hasn’t worked. 23 million Americans out of work. Trillion dollar deficits the past four years. More people living at or below the poverty level than ever before. An economy growing at less than 2%. Not enough to significantly reduce the unemployed.
The Republicans have a different view. That is to get government off the backs of people and let Americans do what they do best. Work, create and innovate. The U.S. has the resources to become energy independent. It will take all forms. Oil, natural gas, coal, wind, solar, geothermal, nuclear. Let the markets decide, not the government. When the automakers build an electric car that people want (in my case it has to get as much mileage out of a battery charge as I get out of a tank of gas and it has to be able to easily go 70 mph and have as much room as my current car), people will buy it. Don’t spend taxpayer money on things people don’t want. As a businessman, I know that the best return I can get on my money is to reinvest it back into my business. By hiring more people, staying current with technology and making sure we have the tools to perform, my profits increase. Those are shared with my employees and also with those not so fortunate in our community. If I’m restricted by more government regulations and higher taxes, then these things don’t happen. Putting policies in place that stimulates business will create more jobs, bring more people onto the tax rolls, increase revenues without raising tax rates. More people working strengthens the middle class.
So, the choice is very clear this time. We can move our country down the path of more people working for and being dependent on government, or we can turn back to the path we were founded on which is independence, free markets and less dependence on government.
Mike Berry is a Registered Representative offering securities through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Legacy Wealth Management, LLC and Cambridge are not affiliated. Cambridge does not offer tax advice.
Copyright ©2012 Mike Berry. All Rights reserved. Commercial copying, duplication or reproduction is prohibited.
