Louisiana U.S. Senate Candidate on the Economy

This is the second in a series of articles on issues with the candidate from Louisiana for U.S. Senate Tony Gentile. The second will deal with the economy, this issue is especially important to me as the industry I made my living in has crumbled. Over the two years I have found myself in the same position millions of others are in of being underemployed or unemployed. This election season my vote seems to be much more important than in previous years. Though we have had stimulus and a lot of statistics many in the job market can't see the results. Though I ask the questions, I print Mr. Gentile's answers exactly as he presents them so the message is not changed or corrupted.

Q. Mr. Gentile, in your opinion what is the most important economic issue that faces our country today?

A. This is a tough one because there are a few, however I believe our economy hinges on the employment of Americans. We need jobs, good paying jobs. The American citizen is the only way our economy can be stimulated. People have to work because when they do so they spend money. The citizen drives the economy up and down. It's a simple concept. People much smarter than I try to geologize it but you don't have to dig too deep.

Q. The financial problems in Greece and Europe make me question government spending in our country. Do you think the United States faces the same issues and if we do how should we handle them?

A. If our government does not stop spending money that we do not have inflation will wrap around and crush us. There is only one proven way to prevent this and that is to cut spending and cut taxes. Put the power with the majority, the American citizen. We all know what happens when we have a few extra dollars in our pockets, we buy something! Our government gives me the perception that they don't want us to succeed under the free market system. They work for the American citizen. It's time they get reminded.

Q. Were the government bailouts and stimulus effective? With that, money that was loaned to the banks was interest free while the banks invested back in the government and receive interest. What are your thoughts on the subject?

A. The government bailouts were a flop. The Bush stimulus put money in people's hands and it got spent. Obama gave the money to the banks who were in the forefront of the failing economy. The banking industry lobbied our elected officials and got the Usury Laws reduced to nothing. These laws prevent them from charging ridiculous interest rates, it was our protection. My neighbor showed me his interest rate on one of his credit cards, 24.99%. Thank you Washington, I am sure glad you work for me.

Q. American wages have stagnated while the salaries of high level financial positions have grown exponentially. Is this a consequence of a free market or something that should be investigated?

A. I believe it is a consequence of a free market. We as consumers or potential borrowers really don't care from as it is a mean that justifies the ends! Creative financing was a ticking time bomb that exploded on us. Banks only make money by loaning it out, financial firms make money by investing, that's a given. Let's face it, I don't know too many people who aspire to be poor. Some people have better better morals or ethics than others and actually care how they make their money. I for one could not be happy knowing I crushed the lives of thousands of families. An investigation needs to be done, but not by the politicians who are in these people's pockets. Who then? A panel of citizens, perhaps by the people who lost their homes and jobs as a result of the poor decisions made by the institutions.

Q. Recently the German government placed restrictions on short selling stock. Should the United States consider this as well?

A. I'll be honest I had to look this one up. I am not rich enough to gamble my money in the stock market. This play on stocks has been around for a long time. The investor does bare some risk, however if you have the money to manipulate the stock market you can do well. The stock market needs to be steady as it is a volatile component of our economy. I agree with the German government that we too should limit this practice until we can get ahold of unemployment and the weak U.S. dollar.

Q. The mortgage meltdown was one of the major catalysts of the poor economy. Was this problem the homeowners, mortgage companies or banks and how does the country recover without having the problem again?

A. You forgot one entity in your question! The Government. Banks were coerced by the government to lending money to people when they knew well and good they did not have the means to repay. As I mentioned before, creative financing was one method used to put people in homes that were outside of their means conventionally. It drove up the housing values which only exasperated the problem. If I had to put it in order of who is responsible it would be this way, the government, homeowners, and mortgage companies. All very close, all share some responsibility. Lending has to go back to the old standard. Debt to income ratio, straight financing, fixed rates and qualifying practices that are proven.

Q. Government spending has increased dramatically while millions have become unemployed or underemployed. For those of us that have to balance a checkbook and don't have a degree in finance how does that work out?

A. It's funny how we would go to jail for counterfeiting but the government can print money with no backing and survive. Don't get me wrong, I do not advocate the average Joe go make his own money. I do believe the government should limit their spending as a means of operation rather than printing money we don't have securities for. Times are tough, we the citizens are tightening our belts, the government needs to also. Their income has sharply declined with 10% unemployment, by all rights they should reduce spending by at least that much. In short the accountable are not accountable, or at least they think so.

Q. What will restore the jobs that have been lost and what can be done to bring back good jobs and not just low paying positions?

A. An across the board tax cut. This will give the citizens more spending power and businesses more investing power. If businesses can invest in themselves they can grow, they can hire people. As they grow they become more competitive in the marketplace and offer higher wages and benefits. Economics 101.

Q. Louisiana has weathered the financial storm better than most of the country, what if anything needs to be done to insure our state's financial well being?

In light of the catastrophe in the Gulf we need elected officials to stand by one of our state's biggest employers, the oil industry. We are a energy state, and that business contributes billions toward our economy. We must take care of the businesses here at home. Work with them to help them grow and prosper. This is not only for Louisiana but for all across our nation. Americans come first. Free trade must be fair trade. Pound for pound, dollar for dollar. No exceptions.

Q. One of your main issues is the fair tax plan. For those who are not acquainted with it would you give an overview of it and why you support it.

A. To put it briefly, it is basically a consumption tax. You only pay tax when you purchase something. On your paycheck there will be no more federal income tax, no more FICA. That money goes into your pocket. Now there is a 23% tax on purchased goods. What the plan takes into account is that people will be taxed on necessities. To counteract this a prebate check will be sent to everyone's home in advance of the taxes you will pay on these goods (food, medicine, clothes,etc.). A family of four will receive about six hundred dollars a month. It goes up or down based on the size of your family. What this does on the business side is that businesses only pay taxes like we do on purchased goods. This gives them more money to reinvest in themselves, grow, hire people, pay competitive wages and offer benefits ro attract the best people. Ask any economist and they will tell you that the Fair Tax Plan will have this economy skyrocketing almost overnight.