Insanity has been famously described as doing the same thing
over and over again, but expecting a different result each time. The
pattern of massive government spending, heavy Washington control, and cash
handouts to politically connected ventures has been repeated for four years,
with the same dismal results each time. Retail spending remains in the
doldrums, manufacturing languishes, and home prices continue at their low
level.
Most devastatingly, unemployment remains at near-depression
levels. Both the number of
unemployed persons, at 12.7 million, and the unemployment rate, at 8.2%, remain
unacceptably high. The number of long-term unemployed (those jobless for 27
weeks and over) rose from 5.1 to 5.4 million, accounting for a deeply troubling
42.8% of the unemployed. The number of those forced to work only part time
edged up to 8.1 million. There are also 830,000 discouraged workers, and many
others who remain uncounted.On
the other hand, since January 2008, the federal government’s payroll has
skyrocketed by 11.4%. With a near-depression economy, there are no funds
to pay for all those extra government jobs, and no tangible programs or results
to justify the hires.
Other economic indicators are equally troubling. Since 2007,
inflation-adjusted family income fell 7.7%, and the decline in family median
net worth has dropped 38.8%. No improvement is in sight. Recent college
graduates, whose consumer habits and needs can normally spark the economy, are
now a drag on it due to heavy tuition indebtedness, at a stunning $904 billion,
a $30 billion jump since the last quarter. It’s so high that it exceeds
America’s massive credit card debt.
The future currently holds no immediate hope of
improvement. Stocks are expected to sharply drop this fall. Most
worrisome of all is the looming threat of “taxmageddon,” the combination of the
expiration of the Bush tax cuts and the implementation of 5 of the 18 new tax
hikes from the President’s Health Care Act. These two factors will draw
almost $500 billion out of the private sector.
The Heritage Foundation breaks down the
increase on individuals as follows: for families in general, a $4,138
increase; baby boomers, $4,223; low income workers, $1,207; millenials,
$1,099; and retirees, $857. The burden falls primarily on the
already hard-hit middle class, since the expiring Bush Tax Cuts provided 60% of
its benefits on them and low-income taxpayers. Many analysts believe that the
reluctance of businesses to hire now is a reflection of their concern over the
predicted economic downturn from “taxmageddon.”
The reason the economy hasn’t improved over the past several
years is clear. Washington’s overspending—which benefits incumbents and
not the nation or its citizens—remains unabated. Even worse, bureaucratic
meddling in the private sector, which prompted the Great Recession in the first
place, continues to prevent it from recovering.
Governmental intervention in the housing market in the1977
Community Reinvestment Act forced vast numbers of unsafe mortgages on financial
institutions. Decades later, President Clinton pressured Fannie Mae to increase
its ratio of unsafe loans. The inevitable result of extensive mortgage failure
held by these large institutions prompted the Great Recession.
Rather than pull back from high taxes and intrusive regulation,
Washington continued and enhanced the very attitude that prompted the recession
in the first place. Decisions were and are being made based on politics, not
practicality.
Bailouts and “stimulus” programs have left the taxpayers deeply
in debt, with nothing to show for it. Unlike
President Roosevelt’s New Deal, which failed to end the Depression but at least
produced roads, buildings, parks, and other “brick & mortar” projects,
there are no tangible results. In fact, the depression-era arms buildup
that did eventually put the nation back to work has been replaced by budgetary
policies that cut planned funding for the military.
Our federal, state and local elected officials use your tax
dollars as a campaign piggy bank for the benefit of their own re-election bids,
offering everything to everybody regardless of whether it helps or hurts the
national interest. Heavy handed Washington control, and the
redistribution of collected revenue, particularly from middle income taxpayers,
is bankrupting the USA
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