Economics 101 for inexperienced ultra-liberal presidential candidates who over-promise in an attempt to buy votes

If there's ONE thing I know, it's economics. I graduated from the University of Louisville in 1994 with a Bachelor's Degree in Economics, and was named a "Dean's Scholar"(perfect 4.0)

If, BIG IF, employers(any employers) are made to supply health care to employees, or pay ANY portion of an employee's health care, there is nothing stopping the employer from then reducing the wages of that employee to compensate for the increased cost. In other words, Obama would simply be making people insure themselves. The employer would be paying nothing. When government takes action, it changes behavior.

SO . . . if the business did not reduce the wages, they would be forced to raise the price of their goods/services . . . which means YOU, not the business, would be paying for the health care. Can you say "inflation?" I knew ya could.

Another thing employers could do is hire more employees, but make them all part-time. This would create a hardship on those reduced to part-time from full-time.

Also, an employer could hire outside labor as "contract labor," thus be exempt from any health care requirement.

Lastly, the employer could lay off employees, and not hire additional workers that otherwise would have a job.

So, in the final analysis, the business world is not just going to "eat" the expense of government mandated health care. SOMEBODY is going to pay for it . . . either the employees through lower wages and diminished opportunity, or YOU, the final consumer in higher prices.

Now . . . let's move on to taxes. It works pretty much the same way, but there are a couple of different caveats.

Raise taxes on ANY business, and the business is simply going to raise its prices. Higher taxes promotes inflation and unemployment, and lowers the overall standard of living, making people MORE dependant on the government that worsened their standard of living instead of raising it.

The BIGGEST effect of higher taxes on business is that it deters investment, particularly in the stock market. At this time, the LAST thing we need is a deterrant to investing in the stock market. Obama wants to raise taxes on capital gains so that, IF you make money in the market, he takes a larger portion of the "winnings" to share with the people who chose to do nothing. If you lose, that's your problem. If you win, however, we're ALL going to share in the profits! So investment is going to be discouraged. Taxes change behavior, period. THAT is why when you LOWER taxes it stimulates the economy by increasing paychecks, investment, employment, savings, and JOBS.

Additionally, thos ewho DO invest will pay a LOWER price for stocks, because as taxes increase, that lowers dividends, and it is the SIZE OF THE ANTICIPATED DIVIDEND in relation to the PRICE OF THE STOCK that determines the price of a stock. If taxes go up, dividends go down, stock prices go down, and 401K's will take YEARS to even get back to ground zero. There are TWO factors working(at least) in the sell-off that we see now on Wall Street:

1)Fearing an Obama presidency, people want to sell off BEFORE the election because the belief that higher taxes will lower the price, so there is a race to sell-off before it become a foregone conclusion that taxes will go up.

2)At least HALF the people are smart enough to kno wthat an Obama presidency would just about do away with Wall Street, so instead of losing EVERYTHING, they take what they can.

If McCain wins, look for stocks to SOAR each and every day, with investors seeign OPPORTUNITY instead of OPPRESSION. If Obama wins, the stock market probably won't even be OPEN in another 30 days. Who will be dumb enough to want to INVEST, knowing the dividends will be less, and that if they lose THEY eat the loss, but if they win, EVERYBODY IN AMERICA gets a bigger slice of the winnings?

Lastly, and the most DEADLY result of raising taxes on business is . . . well, we're already #2 in the world in corporate taxation. And we wonder WHy companies leave for Mexico, China, and other countries? There are TWO main reasons why jobs leave the USA. One is lower labor costs abroad. It only makes sense to move a factory to Mexico where workers are plentiful, and will work for far less than their American counterpart. It has NOTHING to do with George Bush, Bill Clinton, John McCain, or Barack Obama. Nothing. The President gets too much of the blame for EVERYTHING, and too little of the credit when things go right. But I guess it goes with the territory.

So we CAN'T control how much Mexicans are willing to work for. But we CAN control ho wmuch taxes we impose on a company to keep them HERE instead of the Bahamas, or someplace else where taxes are lower. It's just a simple fact that as you increase taxes on business, you increase the incentive for companies to relocate elsewhere. it's all about saving money. that's why people shop at Wal-Mart, isn't it? When you can get something cheaper at Wal-Mart, aren't you going to do it? Well THAT is what businesses are doing when they leave the US, and we need to LOWER taxes to bring companies TO America, not raise them and run them off.

Bottom line: as you raise taxes, health care premiums, or WHATEVER . . . as costs raise, companies begin to take measures to 1)avoid the additional cost, or 2)pass it on. In either event, they don't pay it. So Obama can talk all he wants . . . but all he is doing by raising taxes is slowing the economy down, putting people in the unemployment line, raising the price of goods and services, and sending jobs to other countries where taxes and wages are lower.

So if ya think that a vote for Obama is a vote for "change," it is. Everything will change. And it will take MANY years to undo the damage that he causes . . . and the people who vote for Obama will be to blame for being DUMB ENOUGH to think that someone can just wave a magic wand and make everything better.

Do some homework. Find ONE example of where socialism has been utilized to RAISE the standard of living for its people. Wherever you find socialism you also find misery, and you don't have to look very far.