Complex Things Aren't Simple

March 18, 2009

Many things in life are simple. It can be a big mistake however to over simplify things that aren't simple. Some things in life are complex, and you just have to accept that and deal with them.

A perfect example of this is economics. Some people think if the government needs more money, they should raise taxes. Others say that high taxes have a negative impact on business, and cutting taxes will stimulate business and actually increase the total tax revenue the government takes in.

So what is the answer? Should the government raise taxes or lower them? The problem with this question, is that it is way more complicated than this. Unfortunately, our previous president thought he had is all figured out and that it was simple - cut taxes and business will grow - period!!

Businesses have a lot of concerns in addition to taxes. Many businesses like my neighbor's excavating company saw their profits disappear during the spike in commodities prices in 2007 and 2008. Once a company's profits go away, tax rates become irrelevant. Commodity prices spiked due in part global instability and uncertainty, and a building boom fueled by unsustainable low interest rates and cheap credit. Keeping these factors under control was part of the equation for keeping the economy healthy, yet all the Republican party kept singing the same song about cutting taxes as the solution to everything all the way up until the last election.

The same mindset of oversimplifying complicated things can cause lots of problems in religion too.

-- Greg