Why Conservatives Will Fail

by

Ed Dedelow

Why will they fail?

CONSERVATIVES AREN'T GETTING ALL THE PEOPLE INVOLVED WHO SHOULD BE. That is everyone on every class level (Although I hate even using the word class).

Don't get me wrong, failure is not what I want. It is, however, as important to know your weaknesses as it is to know your strengths. My goal is a permanent solution, not just one to suspend the trampling of our rights and the march to Socialism.

Unfortunately, the conservative movement is headed by a bunch of rich "capitalists" who think they are the ones who have been most damaged by the tax burden. THE TRUTH IS THAT MUCH OF THE TAX BURDEN FALLS ON THOSE LEAST ABLE TO ENDURE THE COST and that includes those likely reading this commentary. To the rich, incomes are the reward for being good capitalists. Their goal is too obvious and personal. Conservatives have ignored the weighty affliction in dollars laid on the average worker and only mention them as the recipients of jobs that the rich have created. The rich apparently do not believe most people pay taxes. Fortunately, a lot of people who are not rich have gotten involved. Unfortunately, it is more complicated than to say that the one who writes the check is the one who suffers the consequence of a bloated overpaid government. Unless conservatives come to grips with how taxes - and regulation - inflict pain on us all, the great majority of Americans will be left out of the discussion.

I just read a Blog in which the blogger expressed sorrow that the upper 15% of taxpayers paid 85% of the taxes. Now, from a practical standpoint, the taxes the rich complain about are income taxes and their share is only 29% of these taxes paid to all levels of government. Real estate taxes, for example, are imposed regardless of income. If you listen to the conservative talk show hosts, you hear over and over again about the "enormous injustice" imposed on the rich for their high income taxes. It is as if the other 85% of us are mere beggars. Such grieving is more likely to produce satisfaction by the 85%, than compassion. So, the rich pay a lot of taxes: THAT WILL break everyone's heart.

If you read any of my commentaries and surely if YOU HAVE read my book, you know that I say that, as the burden of government increases, wages decline. It is not simply that government's burden is included in the cost of our products, however, it is noteworthy, that taxes are about 50 cents of every dollar purchase, it is more complicated than that. Not everything is as easy as we want it and certainly not as easy as the politicians present it. If you are one of the rich writing big tax checks, take time to understand that if you plan to continue being rich, you need as many involved as can be gotten. Some would be affronted by my claim and I have met several who are. Of course, that "breaks my heart."

Understand this, Capitalism rewards people (makes them rich) in many ways. Besides rewards for selling in the market place, people get rich selling goods and services to government. Capitalism also rewards those who handle the regulations and laws passed by government (attorneys), those who provide services to our businesses to ensure compliance with government regulation (environmentalists-sociologists), or those who provide services to ensure compliance with agency financial reporting requirements (accountants). These regulations make a lot of people rich, but they are also part of the cost of doing business. The investor must also pay an overhead and realize a profit. Ultimately, sales price versus cost must justify the investment, and all these costs flow back to the investor. Therefore, taxes and regulation make investments less profitable, and higher profit margins and higher returns are required to afford the tax. Whenever a business invests capital, it must make a profit, otherwise, the business fails and jobs are lost. However, not everyone can afford higher prices and, when they cannot, a business must cut costs. Besides increasing efficiency, the only other means a business has is to trim the price of labor and when that happens, workers on all levels lose wages. This is what transpires so that businesses can afford the taxes yet allow jobs to survive. Now why doesn't anyone understand this? It does not matter who writes the check, one way or another, taxes (and regulation) that are built into the cost of a product, result in wage losses and ultimately make someone else rich.

There is another more simple way to explain this, probably too simple, but here goes. The king taxes the nobles and the nobles add a tax to the surf's production. (Where else would the nobles get what they have?)

If we are to insure freedom's cause past the next election, we must involve everyone because now, as throughout all time, everyone pays for the excesses of government. And, whether one is just a good employee or a captain of industry, everyone realizes the benefits of capitalism. Capitalism produces endless benefits to all if we can limit government to an equitable share. Is a rising tide not expected to carry all ships? A prosperous society is given birth by its workforce and not just its captains. "Lead, follow, or get out of the way" is a Thomas Paine quote that has received 30 million hits on the Internet. Yet, who has read between the lines and realized there is more to this quote? The communist movement failed because followers lacked motivation. Leadership was tremendously motivated either by fear or true ambition; but the workforce just did not give a damn.

The US population has been skating because of three things: the strength of the dollar, extraordinary efficiencies brought about by computers, and the 75% decline in interest rates since the early 80s. These advantages may have come and gone. If the conservative movement is to achieve its goal, it must inspire/motivate/incentivize the workforce. Every significant movement, from our own founding, to the Nazism of Germany and the Communism of China and the USSR, has reached out to inspire the worker. Liberals are reaching out with the promise to provide health care, to end the destruction of the planet, to divide the wealth and to punish the rich. Right now, conservative leaders appear more as Kings and princes than leaders of a society on the verge of greatness. It is time they reached out to the masses.

TAXES AND REGULATION ARE EVERYONE'S COST