Wednesday, October 1, 2008

The economy

If I was a senator I would vote for the current bill (raises the fdic backing from 100,00 to 250,000 as well as giving tax breaks to small businesses). The additional fdic backing on savings will build depositor's confidence helping to stabilize the economy, notabally, many of the major banks and financials who have been falling almost uncontrollably in the past months could use the extra capital to continue loaning money. And to find the money for the additional fdic backing, I think the government should raise taxes on the top 25% of incomes in the U.S. They have plenty of expendable income to cough up a few extra bucks in order to turn around an economy that seems to have derailed itself in the past year and a half.
Additionally the small, growing businesses will benefit from the tax break. The economy has obviously been quite belligerent with its smaller entrepreneurs and the tax break might be able to give them the capitol to hold up as the economy turns around. They will also be helped by the banks newfound ability to lend money, freed up by the extra capitol held from renewed confidence in savings gathered by the FDIC.
As for the tax breaks for renewable energy, which seems to have snuck in under all of the hub about the FDIC, I think its time this country starts to lessen its dependence on fossil fuels of any kind not just oil. In the long term freeing ourselves up from a dependence on a part of the world that hates us is not just smart, but requisite for the future of our economy.
Lets hope the senate pulls its head out of the sand on this one.

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