By: Dale Weckbacher
Proverbs 3:21b-24
Keep sound wisdom and
discretion;
22 So they will be
life to your soul
And grace to your
neck.
23 Then you will walk
safely in your way,
And your foot will
not stumble.
24 When you lie down,
you will not be afraid;
Yes, you will lie
down and your sleep will be sweet.
NKJV
The Book of Proverbs is the
Bible’s book of wisdom. The word wisdom
used in Proverbs 3:21b is the Hebrew word hyvwt. This word implies a sound knowledge and a
sound efficient wisdom leading to success.
(1) In our modern language we might use common
sense to define this type of wisdom.
Unfortunately, as I have written earlier, this type of wisdom is sadly
lacking in our society today. This is
obvious when we look at how our leaders approached the 2008 economic
crash. We sadly need a restoration of
economic common sense.
The popular belief today is that
the economy involves Wall Street and the Fed, which sets monetary policy. Granted these are parts of the economy but
they are not the most important part of the economy and stimulating them does
little to bring real stimulation to the economy, something that should be
obvious after witnessing six years of manipulation of monetary policy and
stimulation of Wall Street. In spite of
these attempts to bring about a real economic recovery, millions are not
working and have given up looking for work, (2)
record numbers are on disability because their unemployment has run out, (3) and millions are dependent
on government for their food, evidenced by the increase in individuals on food
stamps. (4) We have tried six years of failed socialist
big government attempts to stimulate the economy giving conservatives an
opportunity to roll out a better means of economic stimulus.
The economy is much more than Wall
Street and the Fed. The economy is what
all of us participate in daily. When we
go to a store and make a purchase, we are engaging in an economic
transaction. These companies hire people
to insure the successful and efficient completion of our transaction with them. This includes the people we see at the store
but it also includes the people that deliver what we buy to the store, and the
administrative staff that insures the business works smoothly and efficiently. There are also people that work on the
assembly line manufacturing the product and those that supply the raw materials
that go into making the product we are buying.
In other words, that hamburger,
CD, or clothing you recently purchased created work for many people. To bring about real economic stimulation, we
must increase the quantity and value of these millions of transaction occurring
daily in the economy. However, there are
three things hindering the increase and value of these transactions:
1) High
Taxes – Taxes take money out of the hands of private individuals and businesses
and transfer it to government. As we
have seen over the last six years and even prior to that, government is
inefficient in spending money. Liberals
argue that private sector individuals and businesses will horde their money and
thus it is the responsibility of government to tax this excess money and redistribute
it so it will be spent and stimulate the economy. However, the only reason businesses or
individuals would horde money is out of fear of incurring loss or losing
everything. In a thriving economy,
businesses and individuals either spend their money or invest it, both of which
stimulate the economy. According to Dr.
Eamonn Butler writing for the Adam Smith Institute, tax cuts stimulate the
economy because they boost business everywhere.
(5) Government spending targets certain groups
and individuals and in order to stimulate these groups, government must take
money from other economic sectors. In
other words, government stimulation in one sector means suppression in other
sectors so there is no gain and usually an overall loss.
2) Excessive
Regulation – Some regulation or government oversight is necessary just like the
need for referees during a sporting event.
The oversight of government in business however, should be limited to
insuring contracts are honored, illegal activities are stopped, and fraud does
not occur. However, the regulatory forth
branch of government has overstepped these limits. Government now regulates the water in our
toilets, the type of light bulb we can use, and now with Obamacare, government
will regulate what kind of health care we can receive. These regulations cause businesses and
individuals to spend money on more expensive light bulbs, toilets that use less
water, and more expensive health insurance and health care. Businesses now must consider the additional
health insurance costs they might incur if they expand and need to hire more
employees, putting them over the 50-employee limit. A research paper written by John J. Dawson
and John J. Seater concluded, “Regulation’s overall effect on output’s growth
rate is negative and substantial.” (6)
3) High
Government Debt – Just as taxes take money or capital out of the hands of
individuals and businesses, excessive government debt takes investment capital
that could be invested in the private sector and puts it into the government. This is because the government must borrow to
cover deficits so it does not go into default.
Because lenders do not have money to lend private businesses for
expansion, new jobs, jobs that would be created through business expansion, do
not occur. According to Yaron Brook
writing for Forbes, it is not spending that stimulates the economy but
production. (7) To increase production we must first reduce
the corporate tax rate so businesses, like Burger King, do not need to invert to
avoid excessive taxation but will choose to remain in the United States. We also must reduce excessive regulations so
businesses do not invert to avoid regulations as well. The government must also balance its budget
so it can quit borrowing money that businesses could use to expand
production. Our economy needs the
liberation of increased production to put people back to work and get them off
food stamps and disability.
The conservative and Republican
message needs to be that we are the ones that will help you get a well-paying
job in an expanding private sector. We
are the ones that will put more spending money in your pocket by allowing you
to keep more of your paycheck. We are
also the ones that will make it easier for you to start your own business or
expand the one you already own.
Next Wednesday we will look at
what message conservatives need to communicate regarding the security of the
nation.
1. Strongs Concordance. Strong's Hebrew
Definition for #08454. www.apostolic-churches.net. [Online] Apostolic
Churches. [Cited: October 28, 2014.]
http://www.apostolic-churches.net/bible/strongs/ref/?stgh=hebrew&stnm=08454.
2. Eggleston, Steve.
The shrinking labor force participation rate. hotair.com. [Online] Hot
Air, November 12, 2013. [Cited: October 28, 2014.]
http://hotair.com/archives/2013/11/12/the-shrinking-labor-force-participation-rate/.
3. Gongloff, Mark.
Rise In Disability Rolls Helps Explain An Unemployment Mystery. huffingtonpost.com.
[Online] Huff Post Business, May 8, 2012. [Cited: July 18, 2012.]
http://www.huffingtonpost.com/2012/05/03/social-security-disability_n_1474621.html.
4. Klein, Philip.
CRS report: number of able-bodied adults on food stamps doubled after Obama
suspended work requiremen. washingtonexaminer.com. [Online] The
Washington Examiner, September 19, 2012. [Cited: October 6, 2012.]
http://m.washingtonexaminer.com/report-able-bodied-adults-on-food-stamps-doubled-after-work-requirement-suspended/article/2508430.
5. Butler, Dr.
Eamonn. Why tax cuts stimulate the economy. www.adamsmith.org. [Online]
Adam Smith Institute, February 1, 2011. [Cited: October 28, 2014.]
http://www.adamsmith.org/blog/tax-spending/why-tax-cuts-stimulate-the-economy/.
6. Seater, John J.
Dawson and John J. Federal Regulation and Aggregate Economic Growth. www4.ncsu.edu.
[Online] January 2013. [Cited: October 28, 2014.]
http://www4.ncsu.edu/~jjseater/regulationandgrowth.pdf.
7. Brook, Yaron.
To Stimulate The Economy, Liberate It. www.forbes.com. [Online] Forbes,
February 14, 2008. [Cited: October 28, 2014.]
http://www.forbes.com/2008/02/14/yaron-economy-regulation-oped-cx_ybr_0214yaron.html.
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