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If There Is One Thing That Could Save American From A Financial Armageddon As the Baby Boomers Retire and Start Receiving Social Security and Medicare Benefits It Is….Economic Growth – The US Must Grow the “Economic Pie” Or As Rich Karlgaard of Forbes.com Writes….”Slow Growth Will Destroy America” – That’s the TRUTH and Right Now In America There Are Way Too Many “Elected Leaders” That Are Going In the Exact Wrong Direction To Grow the US Economy – Luckily, We Have FACTS That Prove Which Direction Is Best…The US States…Which Show What Economic Approach Is Best for Its Citizens and Thus the General Welfare – Guess What? The States Run by the Wacko Liberal Nuts Are the One’s That Are Not Growing Economically and That Should Surprise No One Since the Wacko Liberal Nuts Rather Enjoy Waging War on Business and Telling People How They Should Live Their Lives – Yes, It Is Either “GROWTH” or Destruction For America and Right Now The Country Is Headed For Destruction

The problem with most “Elected Leaders” in America is that the vast majority of them never worked in a “for-profit” business (law firms don’t count!) and thus they often see the world in a very “static” way.

There is no better example of that “static” thinking than the debate over raising tax rates on people and companies to generate more tax revenue for government and they such things precisely because as folks that have never worked in the Real World “Elected Leaders” often see the world as a pie…

…that is set in size and thus their people in government’s never-ending desire to get more of that pie.

For those of us that run “for-profit” companies in the Real World we never see the world as a pie….

…that is set in a particular “static” size because if we are going to stay in business we have to always be growing revenues and profits or growth will stagnate and put the entire business enterprise at risk.

There is an alternative for the government-types that are always trying to get more and more of the “static” pie and that is to grow the entire pie to bigger size which will then generate more economic activity, increase employment and the standards of livings of the country and….listen up here very closely “Elected Leaders”….more tax revenues for government!

Yes, what an idea….but growing the entire economic pie bigger is something that is often not understood by people in elective office and they prove their misunderstanding by some of the Very Stupid Things that come out of their mouths.

There is a great danger though when it comes to economic activity and growing the entire pie of the economy is that when economic growth is slowed by foolish public policy choices, laws, regulations and taxes the pie will not only quit growing and stagnate…but sometimes grow smaller which only makes everyone more desperate to get their piece with government reaching out even further for tax revenues and making things even worse.  Look no further than the state of California for a great example of Incredibly Stupid people in political office that have done everything in their power to destroy economic activity in the state and to this day they wake-up everyday of their lives thinking of ways to punish and destroy business which of course just makes things worse for the people they claim they are most interested in protecting.

Rich Karlgaard of Forbes.com lays out the fundamental facts of the important of economic growth in his latest:

Slow Growth Will Destroy America

“From 1946 to 2000, America’s GDP annual growth rate averaged 3.5% and the country prospered. This growth occurred despite nine recessions – yes, nine – over the period. Since a recession is a pause or contraction in growth, the American economy actually grew by 4% or more in non-recessionary years.

It is tempting to look at the 1946 to 2000 period and analyze it as an anomalous break in history during which America essentially had no big problems and no serious global competition – hence the robust growth and happy memories. But that isn’t true. The immediate post-war years were burdened by a federal debt load that had peaked at 120% of GDP during the war. The economy also had to absorb millions of men back from the armed forces.

The 1950s economy was hampered by a federal government strangely hostile to innovation. These were the days when monopolist AT&T could “forbid attachment to the telephone of any device not furnished by the telephone company.” The American government agreed.”

Oh, the Madness…but Rich continues:

“Yet during all this time, from 1946 to 2000, America prospered and grew rich.

To say that America in 2011 faces tougher challenges than the country has faced before is not true. Our problems are not new or harder. Perhaps the political will is weaker; perhaps we are suffering a perfect storm of monetary malpractice and bipartisan incompetence. But our problems are surmountable.

The answer to America’s problems is obvious, but it seems to evade politicians of both stripes. The answer is growth. When is the last time you heard President Obama or any of the Republican presidential candidates talk seriously about economic growth?

America’s economy, in GDP terms, is a bit over $14 trillion. Growth from this base would add per year:

1%     $140 billion

2%     $280 billion

3%     $420 billion

4%     $560 billion

5%     $700 billion

6%     $840 billion

7%     $960 billion

8%     $1.1 trillion”

Yes, it’s the Economic Growth STUPID or rather as Rich Karlgaard writes:

“Growth matters. It’s the whole ballgame. Growth creates mass prosperity. Growth gives hope. Growth pays for mistakes. From 1946 to 2000, the American economy averaged 3.5% growth per year. At that level, all of our national problems and worries, cited in the preceding paragraphs, were manageable. From 2001 to 2010, the American economy slowed to 1.7% annual growth. All of our problems — deficits, debts, unemployment, sagging confidence – got worse.”

Amen to that Rich Karlgaard, but saying that “growth matters” to government-types that have spent their whole life as thinking that there is one “static” pie…

…and that government needs to reach and out get as much of that pie as possible, you might as well be speaking English to an alien that just dropped onto Earth from a planet trillions of miles away.  It just doesn’t compute!

Luckily, in America, we have Real World experiences of not only what happens when the US Government does things that hamper economic growth, but we have the 50 US States as well which are laboratories that show everyone what the best approach is to growing the economic pie and thus making the lives of their citizens better and later in Rich Karlgaard’s column he points the key things that need to happen to grow the US economy going forward:

“– Strong and stable dollar

– Get federal share of GDP back under 20% (from 25% today)

– Simpler, flatter tax rates

– Lower corporate tax rates, in line with global competition

– Simpler, transparent regulation

– Pro-energy policy

– Immigration policy favoring skilled immigrants

– Stop war against business (e.g., Obama’s war on Boeing)

– Ban public employee unions

– Education reform (must break up teachers’ unions first)

– Patent reform (which currently favors large companies over entrepreneurs)”

Is the US Government now doing any of the above things to help grow the US economy and economic pie?

No, NONE OF IT and that means the economic pie will not grow in a significant way going forward and in fact there will be many Wacko Liberals that will passionately advocate for things that will make the pie shrink and just make things worse for everyone as more people, including the government, tries to get “their share.”

If one looks at the above items listed by Rich Karlgaard that apply to state governments:

“– Simpler, flatter tax rates

– Lower corporate tax rates, in line with global competition

– Simpler, transparent regulation

– Pro-energy policy

– Stop war against business (e.g., Obama’s war on Boeing)

– Ban public employee unions

– Education reform (must break up teachers’ unions first)”

One then can finds a Very Clear Who’s – Who of the states that are doing the above things that are now doing better than the average or even very well economically which the following are good examples of:

Texas
North Carolina
Florida
Tennessee
Georgia
Indiana
Virginia

And then there are the states that are doing everything in their power to raise taxes on their citizens and companies, to increase regulations of all kind to make life as difficult as possible for its taxpayers and generally very stupid things like the Incredibly Stupid AB 32 Global Warming bill in California which since it was put into effect in the Fall of 2007 has been the biggest job killer in the history of Man and Woman on Earth…and to think the Wacko Nuts and “Pacific Heights Wine Swilling Crowd” is desperate to make things even worse for business and people in the Broken State.

Below are the worst states for business in America today and notice they are the one’s that have governments that wage war on people and businesses and are going in the exact opposite direction of Karlgaard’s recommendations:

Hawaii
Connecticut
Massachusetts
Michigan
Illinois
New York
California

No, we no longer need to have the debate over whether MORE government spending and MORE regulations is better or worse for economic growth because the FACTS have already been established in the US States and the Winners are…

The US States that do or are headed for the following things:

“– Simpler, flatter tax rates

– Lower corporate tax rates, in line with global competition

– Simpler, transparent regulation

– Pro-energy policy

– Stop war against business (e.g., Obama’s war on Boeing)

– Ban public employee unions

– Education reform (must break up teachers’ unions first)”

Anyone in elective office that REALLY cares about the people they claim to be representing will do things that will make the entire society and the country better and by far the best way for the US Government to have any chance of having the resources and revenues to pay for the things that the country deems necessary for a civil society is to quit focusing on dividing up a “static” pie…

…but instead find ways to grow the economic pie which will make the lives of ALL Americans better and will secure the long-term future of the American Republic which is very much in doubt in the current political climate in Washington DC and many states that are going in the exact wrong direction.