Opinion — The economy part 2
Published 12:03 pm Wednesday, November 24, 2021
Last week, I wrote about how President Biden, by plan or by accident, is working to destroy our economy. This week I will follow up with what his “Build Back Better” will do to our families and businesses. While the president claims that he is a capitalist, not a socialist, he seems to be following a path away from capitalism. The High Priestess of Woke, congresswoman Alexandria Ocasio-Cortez, better known as AOC, does believe that socialism, not capitalism, is right for the United States. She has concluded that she can accomplish that through President Biden. Consider these issues:
One of our greatest assets is that Americans have had options of how best to build their lives and businesses using the assets available as wisely as possible. Our success has driven the world’s economy to make it better for all. President Biden and his associates have concluded that having options is not good. Options make it too easy to avoid government control of the people and our businesses. They believe that fossil fuels are evil, and they plan for Americans to be prevented from use of them in just a few years. AOC and President Biden, for most of his career, have lived in areas that are densely populated enough for mass transit to work for them. They do not seem to understand that most of America has limited mass transit or that the cost of forcing all to buy new cars that operate on electricity is beyond the budget of many families. They also do not appreciate what the cost of installing electric charging stations in every community would cost the taxpayers while destroying many current gas stations.
Changing over to all electric vehicles, beyond the costs, would challenge our existing power producing capacity. These folks’ goal is to close all coal and natural gas power plants, yet there are limited alternatives. One of those is nuclear power which partially powers Virginia. This leaves only the options of wind and solar. Currently, thousands of acres of farm and forestland are being converted to solar farms. They seem to not understand that trees not only produce valuable wood products, but they also help balance our air quality by converting carbon dioxide to oxygen.
The advocates of ending fossil fuel usage do not understand high grade coal is needed to produce steel. Electrical power cannot reach the temperatures required. Likewise, natural gas is required for many other manufacturing facilities.
Small local businesses are the backbone of every community. Those businesses and their employees are the ones that help schools, ball teams and every activity in our communities. However, because there are many and they often have independent streaks in their blood, they are hard to control. Therefore, the president is doing everything possible to eliminate them through regulations. Consider his proposal that would levy hundreds of thousands of dollars in fines if even one employee is not vaccinated. Another proposal would allow the government to monitor every individual or business that has as little as $10,000 that moves through its accounts in the course of a year. That effectively means businesses and most every family.
Additionally, the president has proposed hiring over 85,000 new IRS employees. This would mean far more audits of families and businesses. Big corporations already have tax experts on hand to challenge the results of such audits. Most smaller businesses cannot afford that expense. The result is that any minor issues found will result in fines that will further reduce the business’s profitability.
Government established minimum wages and employment regulation will make it that much more difficult to compete against large competitors that are more able absorb such costs. Over time, small family-owned businesses will be challenged to survive, leaving consumers with fewer options. Large businesses, with fewer competitors, will have a greater opportunity to increase prices.
For the government, this is great! They can more easily increase taxes which will then be passed on to customers. Without competition, businesses will offer limited resistance.
Each of the above will result in greater inflation. Wages will increase but will be matched by higher prices. Only government wins. Taxes will increase progressively as income goes up. The big losers will be those on fixed incomes, resulting in greater dependency of government programs.
Frank Ruff Jr. represents Lunenburg in the state Senate. His email address is Sen.Ruff@verizon.net.