By Edward Leone Jr. DMD MBA CFP RFC
Contact Information: leonee@vzw.blackberry.com
The rhetoric as reported in the media is creating significant concern by me. The Affordable Care Act is more a tax legislation than it is an attempt to improve health care access for the disadvantage in our society. In fact, it is this community as a result of limited access due to legislative mandates who will suffer the most. It’s impact regarding the reduction of unemployment in our country is negative. It appears that by my investigation, those who will pay for the intent of this legislation are the elderly in the form of reduction of the Medicare budget, the high income earners in the form of much higher taxes, and the young in the form of coverage mandates. It appears that everybody is a loser. The reduction in the opportunity for employment is staggering as a result of the actions of this legislation.
These are all negative factors in the attempt to grow our economy out of what has been a 5 year trough in the business cycle at this time. Along with all of that, initiatives announced by the executive branch of government this week will further inhibit economic growth which is the salvation of our economy and the status of the US internationally. It has been my opinion for an extended period of time , that our exit from the financial troubles generated by the federal government and the financial industry will rest with energy resource expansion, IT innovation and the enhancement of the manufacturing infrastructure in this country as a result of available cheap energy along with the export of energy resources.
There are two avenues by which our federal government can influence the business cycle, but not control it. Monetary policy which under control of the Federal Reserve Bank has been effective ,but over done as a result of lack of effective fiscal policy by the Congress and the Executive. They (Congress) are going in the wrong direction with tax policy, in my opinion. This is not a time to increase taxes. Instead, money need to be put in the hands of consumers by reduction in the tax burden. Consumption is a 70% factor in economic growth. Government, get out of the way and let it happen.
It is also evident that many factors which guide the international economy (we are a part of a global economy and cannot escape that dynamic) are troubling. It is clear that leaders in the EU from France and Germany clearly do not get along. It is a question in my mind regarding the continued existence of the EU into the future. Other emerging economies in Asia and South America along with Australia are experiencing short term challenges. The US seem to be a leader in global economics because we are less troubled by past government and finance industry activities. We should be leaders and not best worst. The tenth and sixteenth amendments to the US Constitution put restrictions on such negative financial activities which are not being enforced by the Congress. Let your representatives at the Federal level know that they need to take the Federal Government off auto pilot regarding spending even if it reduces their campaign contributions. It appear to me that many of them are bought at the expense of benefit to the entire country and it’s valuable and out standing citizen population.
For The Record:
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Suggested Reading: “Obama Care Survival Guide” By Nick J. Tate
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