Tuesday, May 18, 2010

It's The Economy, Stupid

The biggest political issue that turns most elections is the economy. Obviously, when things aren't going so well, that is even more true, and things aren't going so well right now. Oh, sure, the Obama administration is incessantly chanting about being 'out of the woods' or having 'turned a corner' or 'come out of a ditch' or whatever...but that's simply not true. The numbers speak for themselves.

But, since his policies are a textbook example of what not to do if you want to restore a capitalist nation to economic health, they're simply trying to distract and confuse, and shift blame to anyone other than those who truly bear responsibility for the problems. And, it appears that the spin is so bad that we're in even worse shape than we previously thought:
In my article today over at The American, I explain why our debt or our tax burden will soon be much worse than government numbers acknowledge.

As you may recall, in May 2009, the Social Security Trustees' annual report projected that revenue from payroll taxes for Social Security would reach $848 billion, including $120 billion in interests collected on its $2.5 trillion holdings of Treasury bonds (remember Al Gore's lock-box?).

In reality, these assets are pure accounting fiction. For years, the federal government has been raiding Social Security Trust Fund assets for its daily spending, replacing the cash with federal government IOUs. Even the interest is paid in IOUs.

Hence, the only way for Social Security to avoid going into the red this year and in future years is if the federal government pays back Social Security. But since the money has long ago been consumed, it must borrow money from the public or raise taxes to pay its Social Security debts.

And remember, this does not include trillions of dollars in unfunded mandates from programs like DemCare or cap-n-tax.

Shockingly (or perhaps accidentally...) the media actually reported recently that many of the jobs that Obama has destroyed in the past year and a half simply aren't coming back. They're gone forever. How's that hope-n-change working out again?

The dominos that started it all and are a major economic factor even now, Fannie Mae and Freddie Mac, show zero signs of improving. In fact, they are much more likely to continue being a suckhole of economic health and prosperity indefinitely.

Even Wall Street types -- who largely supported Obama in 2008 -- appear to have gotten a clue that his agenda means their demise, or at least the destruction of their lavish lifestyles.

Barack Obama loves to complain (let's be charitable and say he complains incorrectly) about how Republicans aren't playing nicely, but they've offered real solutions that Obama has ignored. He also loves to whine about how he inherited such a horrendous problem, but that's also a load of total hooey. The lack of bipartisanship isn't coming from the Right right now.

No, the real problem is a radical Leftist agenda combined with a dangerously reckless spending addiction. Barack Obama, in just his first year as President, signed more spending into law than all 43 Presidents before him combined. Unprecedented really doesn't do the situation justice. But it still doesn't stop there - the Democrats running the House can't be bothered to stop with their mammoth takeover and spending bills long enough to fulfill their legal duty to provide a budget for next year. Even worse, they're out there encouraging Americans to stay unemployed because the government will give them handout after goodie after favor for doing so.

This is quite literally insane.

History and Econ101 show us what works: tax cuts, less regulation, and incentives for the private sector to grow. Obama is aggressively pushing tax increases, waves of new regulation, and one government expansion after another, which pushes the private sector out of those areas.

It's got to stop before Obama and his radical Leftist Democrats do irreparable damage to this nation. Hopefully they have not yet done so.

There's my two cents.

Related Reading:
Greece considering legal action against U.S. banks for crisis

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