Tax Relief as a Political Tactic

As we saw with the gas rebate tactic that was shot down, Republicans are trying to save some face by looking for ways to reduce taxes. As David Dreier of California put it: "By virtue of being Republicans, we are born to cut taxes." Unfortunately, cutting taxes during a war that has caused a massive deficit is fiscally irresponsible.

Republicans used to be known for reducing spending and taxes, which is a sound practice. Now, if anything, they seem to be increasing spending and reducing taxes. The result of such moves will be toxic. The U.S. currency is losing its luster, and that will force further interest rate hikes so the dollar remains attractive; which will in turn allow us to continue to fund such spending.

Inevitably, in the end, Americans will pay dearly down the road though. So, be careful, a tax reduction might just cost you more in the end--whether it be in tax increases or interest rate hikes.

The Economic Impact of Student Loans

CNN posted an interesting article on student loans and their impact on society. Many graduating students are financially strapped after college. That, in turn, forces them to choose a job based on money and make compromises; those might eventually include delaying or avoiding marriage and children.

Given the increased need for students to get a college education given the virtual disappearance of manufacturing, it seems vital to address this issue. Sadly, little has been done. Even worse, the federal government has made cuts that will only increase the debt burden. Hopefully this will change given today's more critical political environment.