Colon, Panama -- (SBWIRE) -- 11/30/2012 -- Peter Schiff is very well known for his critical opinion about the way the United States authorities are ruling the country that once was the land of the free and the home of the brave. The CEO and Chief Global Strategist of Euro Pacific Capital, Mr. Schiff seldom misses a chance to point his arrows against the government, blaming the people in Washington for the poor state of the US economy. The bygone elections for President and all the promises that were made during the election campaign did not soothed Peter Schiff and he believes that the situation in the States is going to get worse, not better.
In his recent expose about the means that have to be used in order American economy to be resurrected, Peter Schiff shares his opinion that resources used by the government have to be slashed. "The best thing the government can do for the nation is to slash spending and free up resources for more productive private sector use. Government spending is not “investment” but is simply wealth redistribution that creates political rather than economic benefits", believes Peter Schiff.
The other issue addressed by Mr. Schiff is the matter of the taxation in the United States. He does not believe that the idea of higher tax rates on the rich is a good one and will certainly have negative effect rather than positive. Taking more money from the wealthy people in the
form of taxes will mean less money for them to spend or save and to invest. That will lead to further deepening of the recession and will probably compel rich people to obviate taxation any way possible and they will less likely work or take risks. "As a result, growth and job creation will suffer and the government will not only lose tax revenue from the rich, but also from the newly unemployed middle class workers that they no longer employ", believes Schiff.
He shares the opinion that if the government fails in its efforts to cut the spending, higher taxation for everyone is better choice for the economy that higher taxes for the riches only. "Taxing the middle class is largely a means to substitute public for private consumption. On the other hand, taxing the rich typically converts savings and investment into government spending. Such an exchange actually inflicts more damage", says Schiff.
And there will eventually comes a time, when the middle-class people in the United States of America will realize that it is them who will be loaded with the burden to pay for all the free stuff promised by government. Of course, those voters, who cheered up their recent victory, may decide that they no longer want it.
And the idea that giving more money to the government is actually giving more money to your country is rather laughable. Giving away most of your income does not make you a patriot, it makes you a poor man. Peter Schiff also defends the idea that if people pay more taxes, they are less free.
"The elevation of taxpaying into an act of patriotism seems a stretch for most Americans. After all, the original patriots fought a revolution over their desire not to pay what by modern standards amounted to a trivial amount of taxes. To me, a true patriot wants to keep as much of his hard earned money as possible. America is supposed to be, after all, the land of the free. The more taxes we pay, the less freedom we enjoy. Plus, the income that is retained by those who earn it will lead to more wealth creation and, ultimately, to higher living standards for all Americans", believes the CEO of Euro Pacific Capital Peter Schiff.
He also debunks another myth that the current USA administration is trying to impose - the better educated people in the States will have nice jobs and lot of money. "President Obama promotes the myth that everyone must go to college. That if you don't go, your life will be ruined -- that you will end up waiting tables, or trapped in some other mundane occupation. The truth is, even with a college degree, you may still end up waiting tables, you'll just begin your "career" four or five years later, tens of thousands of dollars in debt," thinks Schiff.
He urges young Americans to reconsider their future and points as an example John D Rockefeller and Andrew Carnegie. Rockefeller dropped out of high school and began working full-time at age 16. Carnegie didn't even go to high school and began working full-time at age 13. And, of course, the richest living American, Bill Gates, who dropped out of Harvard during his sophomore year, has an estimated net worth of just $65 billion.
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