Increase Benefits with A Cost

So Congress has decided that they want to increase benefits to people that are receiving Social Security and Medicare. However, all this benefits are going to come at a high cost. Taxes are going to increase, the Congress is going to increase taxes so they could pay for all these benefits. As a result, inflation is going to occur and the people that are going to be affected the most are the poor people.

The poor people are going to impacted because Congress is going to decrease the amount of people that are going to receive aid. They have to decrease aid in areas that affect them the most. Like Head Start programs, Food Stamps and other forms.

Now before you start trying to blame a party. Look at it this way. One, Republicans hold a majority in House of Reps. Two, Democrats hold a majority in the Senate. Congress has decided that this was the only solution, but there is more solutions then what they think. This is similar to what happen in Jimmy Carter's time and Ronald Reagan decreased taxes in order to get inflation down.

History tends to repeat itself. People may think it is cool that Social Security and Medicare got increased, but in the end it is the same before the benefits were increased. Taxes increase and so does the price to live.

I feel like America is on a repeat pattern minus the Cold War

I was very much attempted to put a picture of Jimmy Carter and Obama right next to each other. The reason why is because they are carrying the very same policies in regards to taxes, rich, and the oil companies.

They are similar in taxes because Jimmy Carter had the taxes increased on the rich and than inflation happened. Obama wants to do a nice big increase on the wealthiest in America and cover up loop holes to make them equal to paying the taxes. However, they do pay plenty in taxes and if he wants to see the economy get out of the crap whole than he is going to have to do a small increase. However, does Obama know how much us the middle-class get in tax loopholes to and many get their money back after taxes have been filed.

If he wants to increase the taxes than he needs to do it gradually. Otherwise, inflation goes up and that really affects the middle-class. The middle-class helps run the economy because they are the ones that spend and work. The middle-class are the main consumers and if you have increase inflation than the consumers stop spending. Now we do not want that to happen.

Obama wants to deal with the oil companies and be a little ruthless towards them. However, if you are going to increase how much they need to pay than they are going to cut jobs and increase the price on gas. In which we do know that the wealthiest and high middle class are the ones that can afford electric power cars and not the poor. Once again the consumers (middle-class) is going to be affected.

By the way the people that are going to be most affected by the increase in taxes and dealing with the oil companies is the poor. If you increase taxes than the poor get affected by either cut hours, loss of jobs, or increase in prices.

I think that the best option for the United States is to deal with the problem of medicare and social security. In which they cut into the budge more than the military. Social Security and Medicare take up 2/3 of the budget. Want to know why that happened? It happened after the government first enacted the reforms of Franklin D. Roosevelt, they began to take the money collected and use it on other government issues. So really they need to deal with that, it is the reason why the United States has such a big debt.

Gradual increase in taxes on the rich will help with the situation too. Increase taxes and than get to a maximum point and than gradually decrease the taxes than do it all over, which is Euler curve.