Just this week, I have been seeing a political ad put out by the Elizabeth Warren for US Senate campaign. In this ad, she says “We’ve got bridges and roads in need of repair and thousands of people in need of work. Why aren’t we rebuilding America? Our competitors are putting people to work, building a future. China invests 9 percent of its GDP in infrastructure. America? We’re at just 2.4 percent. We can do better.” When I heard this ad, I was again struck by the ineptitude of Ms. Warren.
It seems that she doesn't understand what GDP means. So, for Elizabeth's sake, here goes. GDP stands for Gross Domestic Product. Gross Domestic Product is the total of all goods and services produced in the country. The word "gross" signifies that it is BEFORE deducting expenses. So, Ms. Warren thinks that we should spend 9 percent of our GDP on roads and bridges? Does she not realize that many businesses operate on less than 9 percent profit? Tax dollars are paid out of profit, not our of GDP. So, if we would be spending 9% of our GDP, then what is the amount that we would be taxing people out of their profits? Never mind that roads and bridges are not the only thing that tax dollars need to pay for. We still have to pay for teachers, police, our military, state parks, the whopping Obamacare system and IRS worker's salaries.
Does Ms. Warren think that businesses can still run if we tax ALL of their profits? That would lead to more unemployment, which we certainly don't need. Does she not realize that if they don't go out of business, they would need to raise their prices considerably? I guess she isn't concerned about inflation either.
Maybe Ms. Warren doesn't realize that we shouldn't be modeling ourselves after other countries. China has huge areas that have no roads or bridges. Then again, there are areas where there are "ghost towns". These are areas with unused public buildings and miles of unused roads. Here is a link to a newspaper article from the UK Daily Mail that highlights this economic folly.
Elizabeth Warren, this is not China. This is Massachusetts, which is located in the United States of America.
I strongly urge all of you to support Scott Brown. He has the common sense not to be trying to model our country after a communist nation. Please vote for Scott Brown. Beyond that, please consider helping with the Scott Brown campaign. Put a Scott Brown bumper sticker on your car or a Scott Brown sign on your lawn. Or maybe you can help with phone calls or door knocking. The official Scott Brown campaign website is www.scottbrown.com.