The Economy

 

To understand what is going on here, we need to look at the big picture.  So many are pointing fingers in every direction aside from the issue itself.  Fortunately, I remember things very clearly and I feel we need to take a trip down memory lane.  Let’s look at all the provable facts:

  • Circa 2008, George W. Bush, a Republican, had a booming economy. 

  • In 2008, George W. Bush, a Republican, tanked his own economy. 

  • In 2009, Barack Obama, a Democrat, became president and was tasked with the challenge of fixing a very damaged and broken economy. 

  • We all should remember how long it took to rebuild the economy.  It didn’t happen overnight.  It took years.  Northern Nevadans should remember this better than anyone else.  Remember when Reno was once considered, “The Most Depressed City?”  Now look at us… 

  • By 2012, President Barack Obama, a Democrat, was re-elected.  A sign that he must have been doing something right to get re-elected.

  • By 2016, the economy was booming under the Obama-Biden Administration.  After getting hit the hardest in the nation, Northern Nevada came back stronger than ever.  We all saw and felt the positive effects from it. 

  • In 2016, Trump inherited a well-oiled engine.  He managed to keep things moving along and was able to build on what President Obama had accomplished.  Trump made our economy even stronger.  (You must give credit where it’s due.)

  • In 2020, Donald Trump, a Republican, similar to what happened in 2008, tanked his own economy. 

  • In 2020, once again, the Republican was voted out and a Democrat was brought back in to fix the mess.  Fortunately, Biden was part of fixing the economy the last time.  The big question many of us should be wondering is, “Can he do it again?”

  • In 2022, inflation is insane, and we are all feeling it.  People want to blame President Biden, but we need to look back and see who is really to blame for it.  Is it Biden?  Maybe…

    • We need to look at what caused this problem.  We gave people expanded unemployment benefits AND stimulus payments.  Extra money that a lot of people didn’t need.  What do most do when they have extra money?  They spend it.  Who approved such a thing?  Well in 2020, when this all happened, Donald Trump was still president.  He signed the bill that allowed $600 per week ON TOP of the regular weekly benefit people were getting for unemployment.  He also approved the $1,200 stimulus payment that went out to every person making under $70k.  It was an election year so Republicans were feeling more generous than they normally would.  Inflation would have gone up even if Trump were still president because of this. 

    • There was then yet another stimulus payment of $600 that was approved under Trump before he left office. 

    • In 2021, President Biden signed a bill expanding unemployment benefits by $300 per week and gave everyone making under $70k a $1,400 stimulus payment.  The one under Trump should have been $2,000 as sold to many Americans, but he was throwing a fit after losing the election, so it was reduced to $600.  In which case, President Biden agreed to give out $1,400 after he took office.  He kept his word.

    • So really, both parties are responsible for the inflation problem.  Republicans are significantly more responsible though if we want to point fingers.  Democrats have so far had the sense to give less money out AND only give out ONE stimulus payment.  That was only to fulfill an obligation left behind by the prior administration.  Point fingers whichever way you want, but the fact is that Republicans are more responsible for this happening, despite both parties having some part in it. 

Now that we have looked at the facts, this entails why I think the way I do on this issue.  I have put my faith in the President in hopes that he knows what he is doing since he had a hand in fixing things before.  He has accomplished many things that aren’t seen or felt by many Americans just yet.  Like how unemployment is at an all time low.  I had recently taken an economics course and read about how unemployment will always be around 5% regardless.  President Biden managed to get the unemployment rate significantly below that.  He literally made my textbook a liar and achieved the impossible.  To me, that is VERY impressive. 

There are many jobs available and not enough workers.  I think the next step in fixing the economy is making sure employers are doing their part.  That would entail paying people living wages in the location they do business.  People have to make 2.5 to 3 times the rent in order to get approved for a place to live.  If businesses are paying less than that, what’s the point of even working?  Businesses are getting out of paying taxes.  I think that is fine, but ONLY if they are doing their part.  Their part would entail ensuring that their employees are taken care of so the government won’t have to.  Student loans, healthcare, living wages, etc.  This is something congress should be helping businesses afford to do.  In the event a business is able to do these things for their employees, they should absolutely be able to deduct these expenses and not have to pay taxes if they have enough deductions.  If their deductions aren’t benefitting taxpayers and the economy, then they should NOT be able to deduct these things.  The government needs to collect taxes so they can afford to support these people when they later have to rely on the government for support.  The burden falls on taxpayers when these companies fail to do their part and businesses should absolutely have to pay.  Not the taxpayers.  This would be the incentive for businesses to step up to the plate and motivate them to take care of their people.  Their employees would then pay the taxes like they currently are.  The difference is that this will now put more money into the pockets of hardworking Americans.  Whether that be pay increases, no more student loan payments, or less out of pocket costs for healthcare.

 

So with that said, we need to change the tax laws for corporations to reflect that they will have to pay a minimum tax.  If they take care of their employees and have enough deductions, then sure, they shouldn’t have to pay tax.  Incentives are the answer.  At the same time, congress needs to do their job and work with businesses to help save costs.  Starting with health insurance companies and their vendors like big pharma. (Btw – our revenue budget from corporate taxes isn’t very big anyway.  Give that money to the people and let them pay taxes on it.)

Gas Prices

 

As far as the president having control over the gas prices, if you think he could make them go down overnight, don’t you think he would by now?  How quickly people forget we had the same problem under Trump and how quickly people blamed Trump for them.  The president wants your vote and it doesn’t benefit them when the gas prices are up. 

Gas prices are driven by supply and demand.  Gas station owners also set prices in a way that allows for profit.  You have to understand what’s driving the price of oil.  Without supply and demand, you would see gas prices never changing and constant fuel shortages around the country.  If we can’t find the equilibrium where supply meets demand, then we will constantly run out.  Hence why prices go up when there is a shortage.  This is to hopefully prevent people from purchasing gas while also increasing profits. 

I completely understand how difficult this time is for many hardworking Nevadans.  If this were about 10 years ago for me, I would be struggling financially as I’m sure many Nevadans are.  I remember how difficult it was living paycheck-to-paycheck and trying to afford gas and groceries.  While I make enough to be able to afford these things now, I would also rather not be paying these ridiculous prices.  Whenever I go to the store, it is stressful to pay for things that used to cost me half of what they cost today.  I often wonder what my situation would look like now had I not been fortunate enough to increase my income significantly over time.  I remember how easy it once was to once make $15-$20/hr and live fairly comfortably.  Today, I don’t see how a single person can get by making less than $30/hr.  I have no idea what my life would look like now had I faced this type of inflation a decade ago.  When you live paycheck-to-paycheck, you are already maxed out each payday.  There is no extra money coming in.  I very much remember these days and I truly sympathize with the Nevadans who are struggling with this rising inflation.  This is why I am focused on putting more money into Nevadans pockets by going after employers to do their part.

 

If I were in office today, I would be demanding funding to support local food pantries and help ease the struggles of Nevadans.  I would also work to increase the income guidelines to qualify for food stamps.  People need to eat to survive.  Kids need to have access to quality meals.  I truly believe many Nevadans are quietly struggling to put food on the table right now.  Sadly, people are too busy complaining about gas prices for the cost of groceries to get any attention.  Since gas is more of a political issue than groceries, that is all we are going to hear about.  My opponent, Mark Amodei, has done nothing to help ease this burden on hardworking Nevadans. 

I truly hope this is fixed sooner than later.  It may be a great issue to run on, but these are peoples lives that are being played with.  I am not here to do that.  If Mark Amodei wants to step up now and do something, more power to him.  Just remember that as of 5/29/2022, nothing has been done and I am the first to call him out on it.  If he does finally do something, please remember who got the ball rolling.  Election years seem to magically make people more productive…