We have all heard how there's going to be a recession in 2008 in America. How the whole world is afraid of the American economy going down and how it will take the rest of the world's economies down with it.
That's actually almost funny. What's really not funny about it, is that there are people that hope it will happen. They WANT the American economy to drop, and are doing all they can to make it happen.
However, they are not the point of this article. I want to tell you about another group of people. They don't really want the American economy to "tank", but what they do want will cause it to tank, and there's a lot of proof available. But they ignore the proof, wanting their way anyway.
To whom do I refer? Those that want the new entitlement programs to be carried in by a new president that will bring in a new era of American politics where the government will do even more and more to take care of the citizens. Those that want the recent tax cuts to be allowed to expire.
Want proof? Want proof that if they win the American economy will drop like a rock? Want to hear that old phrase ... "It's the economy, stupid!!!"
Watch the stock market. Everytime it looks like the Democrats will rise to power, and put a HUGE economic burden on American Employers, the Dow Jones Industrial Average and the other markets will go down. Why?
Because most stockholders know that these new benefits, and the repeal of the taxes will make it much more expensive to run a company in America. Companies located overseas won't have these expenses, and will be able to compete better. There will not be a level playing field at all. Not that there is now, but it will be even more lopsided against American private sector employers.
How do these companies protect themselves from the HUGE burden so many expect to come soon? First remember, that one of the reasons these people have done well, is that they do something the scouts tell young children to do ... PREPARE! So, they are selling their stocks to raise cash to help cover expenses. They are already reducing costs to improve cash flow and some are speeding up their plans to move overseas.
Watch the stock market. If, and I mean if, there will be credible news about the Republicans winning, and it being one of the more conservative ones (Sorry, John, you are no fiscal conservative, and that's why the Dem's like you!) the stock market will move up.
If the so-called "Bush Tax Cuts" look like they'll be made permanent, the stock market will rise.
If it looks like the Liberals will NOT get there HUGE entitlement expansion, the stock market will rise.
Go ahead, check this out. Graph it over the next few weeks. Whenever the media praises the Democratic front-runners, who will use either race, gender or class (gee, can you well which one has already started and which one is using which?) to divide American voters and push forward their new era of Government entitlement programs (they call them new, but Lyndon B. Johnson started it. Well, actually, FDR did. Well, actually, Woodrow Wilson did, but nevermind.) then the stock market will respond because people will prepare themselves for that scenario.
You heard it first here. This election see-saw is affecting the economy greatly, because the Liberal wing of the Democratic Party has a very good chance of having it's way, and the private sector leaders of America have to do what they have to do to survive under that leadership.
Oh, and the Liberals will complain about companies going overseas, about the lost tax revenue, etc. Don't worry, they don't really mean it. They will be thrilled that they will have more control over those left behind.