Savings: Big Government Tax and Spend Policy Doesn’t Help the Average Working American

Posted by Tina

Neal Gabbler of The Atlantic writes that, “nearly half of Americans would have trouble finding $400 to pay for an emergency. I’m one of them.”

He’s right to shame himself and his fellow Americans for their hand to mouth, living on credit habits but his shaming admonition would also be appropriately fixed on federal and state excesses and waste that rob so many Americans of their hard earned money making it difficult, if not impossible, to save.

Both Jack and I have chronicled the various taxes and hidden taxes that we Americans pay. Federal and state taxes, Sales taxes, property taxes, taxes on utilities, taxes on vehicles, licensing fees, business and corporate fees and on and on. Our governments also find lots of reasons to increase our taxes and fees while at the same time failing to deliver on of basics like maintenance of infrastructure and well educated kids. Add to that grim reality the adoption of Keynesian economics over the past nine years or so with a long stumbling non-recovery and a lousy jobs picture and you have very slim chances for Americans to save for emergencies or retirement.

Americans have two big challenges facing them. One is electing representatives that know how to create conditions for a strong growing economy and a lean smart government. The other is self-educating about personal budgeting, saving, and investing. The first step in both cases is rejecting corrupt big government politics and politicians. Redistribution and high taxation is no substitute for a good job and a smart personal plan for the future.