Stubborn Ignorance by Walter Williams

This is a great article about how the budgetary system works. This is something I have always wanted to say to people whenever you hear about the powers of the President. Here it is from The Washington Times:

“All bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.”

How many times have we heard politicians, pundits and guardians of our news media say President Bush cut taxes, or Barack Obama is going to raise taxes? The fact is that presidents have no power to raise or lower taxes. They can propose tax measures or veto them but Congress has the ultimate power to raise or lower taxes since they can, with a two-thirds vote, override a presidential veto. The same principle applies to spending.”

This is Williams on the current credit crunch and he is saying the same stuff I have been saying for a long while:

“Many politicians and pundits claim the credit crunch and high mortgage foreclosure rate is an example of market failure and want government to step in to bail out creditors and borrowers at the expense of taxpayers who prudently managed their affairs.

These financial problems are not market failures but government failure. The Community Reinvestment Act of 1977 is a federal law that intimidated lenders into offering credit throughout their entire market and discouraged them from restricting their credit services to low-risk markets, a practice sometimes called redlining. The Federal Reserve, keeping interest rates artificially low, gave buyers and builders incentive to buy and build, producing the housing bubble.”

This a great article you will have to read for yourself. I have put up the best but there is also a very good part on, does the President actually create job?

The rest of the article can be found here.

~PCCapitalist

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