AEIdeas

The public policy blog of the American Enterprise Institute

Subscribe to the blog

Discussion: (67 comments)

  1. There was an article in the Sacramento Bee (newspaper in a VERY LIBERAL location) that told how many jobs have been LOST in the last years.
    Will that get folks to rethink whether Mr. o’bama “created 6.5 million jobs”? Probably not. It’s so nice to keep your head stuck in the warm sand.

    1. Folks don’t think Obama created 6.5 Million jobs, But the Bureau of Labor Statistics says Obama has created 4.5 MILLION new private sector jobs the last 3 years. Fact.

  2. Oh what shall we do! Nothing because the congress has made sure we didn’t. The data from the last 30 years is telling you what should be done, but that is politically undoable so enjoy the long painful recovery is your making less that 100K per year.

    1. The democrats sure didn’t do anything when they had BOTH houses in 2009-2010! The republicans in the House have at least tried by passing 30 jobs bills only to have Harry “Franken”reid (because he’s so scary) not let them come to a vote in the Senate. Again, a democrat is to blame.

      1. They also had both houses in 2007, and 2008..and allowed the financial meltdown to happen so they could get Doofus into the white house…since the surge was working so well in Iraq and they could not use “Bush Lied…The war is lost” mantra to gain control of both houses.

      2. You obviously do not know the meaning of the word “Filibuster”. The do-nothing GOP Obstructionist Senate set records for this 2 years straight. Now, they will pay.

    2. OK, the things that Obama HAS TRIED haven’t worked as advertised, the stimulus foremost amongst them. It didn’t keep unemployment below 8%, for example. So, why on Earth throw good money after bad on “jobs bills” supported by the President?

      Maybe if the Left ever got around to holding itself accountable for what it does with the opportunities it gets, it would get more opportunities to build on those accomplishments. As it is, you fail and then ask the rest of us to double down because you’re sure the next time’s the charm.

      Do you see how non-credible that posture is to someone who isn’t fully bought-in to your ideology? The rest of us aren’t trained seals who will respond to your every whim. Sheesh.

      1. The stimulus created 4.5 MILLION new private-sector jobs, kept teachers, firemen, cops, and nurses earning paychecks and paying taxes, and gave big tax cuts to the middle class and small businesses. You are just an uninformed ODS hater.

  3. eddiethegeek

    Unfortunately, things are about to get ALOT worse. We are starting to see the daily “restructuring” announcements with the planned layoff figures. And this will accelerate as pitiful third quarter earnings announcements are made. Sadly, it seems that July 1 was likely the start of another recession (although it won’t be announced until January after 2 consecutive down quarters). By then, the American public may well have “doubled down” on Obama and it will be too late!

    1. Do you EVER watch Bloomberg, CNBC, or read the WSJ? Or do you just listen to the voices in your head?

  4. I’m generally an optimist but I sense that no one has the political cajones to do what’s necessary to avoid the coming collapse of the US economy, and with it the United States of America as we know it. We may have already past the point of no return.

    The question is, what comes after the collapse?

    1. PaultheConsultant

      My sentiments exactly. Personally, I think we may well be past the point of ruin. I refer to it as the iceberg theory. Although many people on the Titanic took seemingly proper actions AFTER they hit the iceberg, it was the damning gash below the waterline that had already doomed them. They just didn’t know it. And so here we are with trillions in debt and an uneducated, disinterested populace. Personally, I think we are toast.

    2. There is no “coming collapse”, imbecile.

    3. A man on a white horse.

  5. Ilir Deebran

    Alex Gheg has a new consumer theory that makes more accurate predictions and allows the measurements of previously hidden thoughts, which means we can measure utility growth. Quantity, quality, variety and convenience in one equation. http://www.youtube.com/watch?v=u6tFLGpcOpE

  6. Marion Valentine 1 hour ago

    I am going to post this everywhere I can every day till election: Maybe since the facts can’t be disputed some liberals may let COMMON SENSE kick in.

    Obama took office two years AFTER Democrats took control of both Houses of Congress on Jan. 3, 2007.
    The
    financial meltdown happened in Sept. 2008 in the Housing and Banking
    sectors of the economy which barney Frank and Chris Dodd chaired from
    Jan. 3 2007.

    Prior to 2007 Bush and Republicans went before congress 17 times to
    try to rein in Fannie/Freddie. Blocked each time. Barney Frank called
    GOP concerns “Chicken Little”.

    “I think that the responsibility that the Democrats had may rest more
    in resisting any efforts by Republicans in the Congress, or by me when I
    was President, to put some standards and tighten up a little on Fannie
    Mae and Freddie Mac.” – Former President Bill Clinton (D-AR), September
    25, 2008
    BTW: Obama “inherited” a mess he voted for in 2007 and 2008 and has made it worse instead of “fixing” it.

    NUFF SAID Bush may have been in the car in 2007 and 2008 but Liberal
    Democrats had control of the Steering wheel, gas and brakes.

    Bush made a lot of mistakes..but Bush was Not a Socialist

    1. Ralph Lynch

      Exactly right. Specifically, the Community Reinvestment Act (CRA) promoted by Dodd & Frank required banks to lend to everyone, regardless of ability to pay, in contravention to reason, sanity, and common sense, and the upshot was, of course, damaged banks and disappointed homeowners. History clearly shows that the economic crisis was caused by liberals mucking with something they don’t understand, specifically the economy. The government may have the biggest guns, but that obviously does not make them smart, just dangerous. Economics is not child play.

    2. Paul from SA

      -and the annual deficit for years:
      2006: 248b
      2007: 161b (Bush’s last budget)

      Democrats took over congress in 2008, immediately raised the cost of labor (Bush agreed), began spending trillions and it’s been downhill since.

      1. Paul from SA

        Oops. Dems took control of congress in 2007, not 2008.

    3. Great comment with real facts and figures – thanks for your clarity! Democrats have the unbelievable ability to say stuff or make decisions and then pretend they never happened. Barney Frank is just one of them going back in time and there are many more. But amazingly, they’re campaigning today as if all the horrors of their financial recklessness over the past 4 years never happened – as if the promises Obama made before the last election that he never made good on never existed. Such as halving the deficit, closing Gitmo, getting unemployment below 6% if he could charge $800 billion onthe public credit card etc etc. They act as if nothing like Solyndra ever happened – as if the GM bailout never cost the taxpayers real money. You also make a good point about Bush too. Sure he made mistakes like anyone else in the office but he should not have to wear the blame for the recklessness of Obama’s friends who ran the congress during the last two years of the Bush presidency. The presupposition in Democrats’ arguments today is that Obama inherited a mess from Bush. He inherited this mess from a Democrat Congress – err which he was part of for two years (the other two years of his US Senatorial career were spent campaigning rather than representing Illinois). Sadly, many conservatives are buying the argument that Bush is solely to blame and forgetting the Democrats responsibility. Sadly, despite his fancy talk, hope is lost from the economy. Now we need real change.

    4. Ah, but yes Bush was a Socialist (Medicare part who-keeps-count-anymore?). And so are the voters, regardless of nominal politics. Therein lies the problem. If a politician suggests trimming more than cosmetically (and neither party truly does), voters will scream, both from left and from right. Blaming the other guy is just more of avoiding the truth and the problem.

      You want fiscal responsibility? OK, take the federal budget, divide by the GDP (which is also GDI), and that’s the tax rate, for individuals and corporations, from dollar one. That’s currently close to 25%. No personal exemptions, no discount (courtesy renters) for “pursuing the American Dream” (cue patriotic music), no tax credits for “investing strategically in America” (cue ode to science and technology and pork), no taxing more heavily the other one who’s a “sinner” so that the “virtuous” one can pay less, etc. 9-9-9 doesn’t cover it (even for pizza mostly). Nor do 17%, or 13%, or 15%, or other self-serving self-delusions.

      Tax rate seems too high? OK, cut spending, and not just the other guy’s in a vain attempt to appear virtuous while blaming everything on someone else. Tell the Pentagon to learn to kill enemy AK-47-wielding stone age goat herder combatants with $400 billion a year. Make the world safe for democracy and shipment with six carrier groups. Stop playing musical chairs with entitlements, endlessly postponing which generation will be caught paying but then receiving naught when the sound fades. Cut benefits to the bone now to make them sustainable, starting even with the generations who made this mess, and not just the generations trying to pay for kids and (no) house and put away for retirement with no job. Trim aid to (now quite well fed) colleges. No stupid high speed rail (and I like rail, and am an environmentalist…but get real). Government wages and benefits trimmed to match private sector, immediately. Reduce government payroll by a fifth over several years.

      Oh, didn’t like that? Go back to self-indulgent blaming of the “other side”. They’re busy doing the same. Politics in most countries is strange and often avoids hard facts (having lived in five countries), but in America this partisan bickering is really just denial. Not even strange, just sad.

    5. Bush was not a Socialist?? Explain to me the entitlement known as Medicare Part D, then? Free drugs to Seniors? On the US credit card? Bush built that.

  7. James: Not sure if you read the comments but I have a question. I think you used to mention what unemployment would be if you used the projected participation rate that took into account boomers retiring.
    Obviously, it did not sudendly dawn on the goverment in 2010 that early boomers were getting ready to retire–or at least were getting old enough to be considered retirement eligible. There had to be a model. so I am curious what the rate would be if you used the model. I am guessing it would be in the mid to high 9s.

  8. Sadly we are seeing something happen before our very eyes like in no other time in American History .
    When Nixon , Ford , Carter , Bush 41 all failed .Carter worse than all the others .They were all Fired .
    That was before Obama who has failed far more than any other president ever .
    Yet He Pathetically has a 50-50 % change of Winning simply because he is half Black and Anti American .
    It he was all White even the media would want him Fired with his totally disastrous record on everything possible he has touched or ruled on .
    What this sadly proves is 1/2 of all American Voters are far left brain wasted who know no better and
    Are totally uneducated morons on common sense , reality and seeing the bigger Picture .
    They have no understanding of basic economics what so ever .
    Why ? Their hands are out wanting the Govt to take care of them …Our Govt is rewarming Stupid amoral behavior .
    60 years ago would have been shammed and considered being a dead beat .
    The worse the behaviors the bigger the Govt. tax payers Bucks .
    Obama ,Hollywood , The left and media have waged and all out war on morals ,ethics , Family Values , respect for Life ,self respect and Honor .
    Not to mention The Constitution ,Bill of Rights and Love of Country , Freedom and Democracy …. And they are winning ?
    Who would have ever thought .. Success ,Hard Work ,Individualism ,
    Personal Responsibility, Capitalism and Profits would be now called..
    Inequality, Greed, unfair and would draw great anger and be scoffed at by many Americans ?
    And lastly Democrats 3 times saying No No No to Leave God out of our parties planks .
    Karl Marx , Lien ,Mao , Saul Alinsky , all Atheist must be smiling in their graves in Hell as is Obama loving it all .

    1. knows economics

      Do you really think a nation that assaults natural law on every front-65,000,000 abortions, gay marriage, women in combat-mega trillions stolen from our children by bureacrats “helping the poor” will not be judged.America’s horroe has just begun.

    2. We are paying the price for the continued existence of the criminal organization of democrats who fiend for power and tax payer dollars. The party of democrats who believe they are entitled to rule and dictate how we Americans should live our lives are the cause and it is the American tax payers and the productive who are suffering the affect.

      The American people do not need the party of waste fraud and abuse to survive, it is they who need us for their continued survival. 9/11 is a perfect example of the price we pay for the continued existence of this criminal organization that fiends for power and tax payer dollars. These serial lying heathens belong in prison, not positions of power.

    3. Recon?? You lost the way a long time ago, Marine, back to digging latrines for your betters.

    4. “What this sadly proves is 1/2 of all American Voters are far left brain wasted who know no better and
      Are totally uneducated morons on common sense , reality and seeing the bigger Picture.”

      Wait, wait, wait… you insult these “1/2 of all American Voters” by calling them “uneducated morons” and yet you don’t know why these people won’t vote for your candidate, a candidate you don’t even like yourself but are only voting for him because you think “can’t do much worse”?

      The Republican Party as a whole is doomed. Changing popular opinion on social issues is moving against them, leaving them only economic issues. If they can’t win the presidency in this environment, they will never win it when the economy improves.

    5. I agree. What a lot of Republicans don’t see is that the GOP is also drifting leftwards, just to follow the leftward drift of the center of gravity.

      Reagan won in 1984 by a 59-41 margin.

      The same Reagan platform on 2012 would get just 39% of the vote.

      Obama can get 50% of the vote in 2012. In 1984, such a platform would have gotten just 30% of the vote.

      The country has shifted leftward by 20 points. That is the crux of the issue.

    6. American Farmer

      Your comments on race are a disgrace to your country.

  9. There is no better catalyst for the expansion and creation of social programs than a rotten economy. Obama knows that and knows it well. You will not see the economy recover until he gets something passed. I’m not sure what it is just yet, but if he’s re-elected, I’m sure we will all find out, and I’m sure it will be a shocker. Until then, economic suppression will continue.

  10. Sadly,
    No one on the left will let go of their deeply held beliefs to evaluate the facts and the media will never do their job to inform the public. We cannot stop the growth of debt with an anemic GDP Tax increases will only influence negative behavior (like they always do). Financial collapse is a certainty in the coming years. Obama has never met a payroll, never had a job in the private sector, and this is who is leading us out of the economic crisis? Wake up America!

  11. Paul from SA

    It would not be difficult to add to that list:
    10. manufacturing index below 50 for 3 months indicating a contraction in that sector
    11. private business investment is down and falling
    12. low quality of those new jobs
    13. recent college grads unwilling to work [hard]
    14. a workforce that can hardly write and speak English

    1. 10. Manufacturing index ABOVE 50 for 28 months before July.
      11. Total lie.
      12. Not so. Jobs have grown in every trade and industry
      13. Liar.
      14. Wrong. Our workfroce is the most capable in all the world. But they need fair pay for a day’s work.

      Pethokoukis received an assignment from his boss: PROVE to the folks the Economy is tanking, in the face of near-record highs for the DOW, 4.5 Million new jobs in 3 years, and record profits and top-line growth for most US businesses. Jimmy FAILED.

      1. I agree, the previous poster was incorrect.
        However, Pethokoukis didn’t fail.

        If you invest, as I do, you realize a few simple facts.
        1. The Dow is not a measure of economic activity (at this time). It’s a reaction to artificially depressed interest rates. What will happen to the Dow (and the economy) when rates rise (as they will eventually)? Seriously – if this is the BEST we can get with low interest rates, do you expect BETTER when rates rise? Or do you think we should keep rates this low forever? Mississippi Bubble much? Honestly, read a little history.

        2. 4.5 million LOW PAYING jobs. From 2002-2007, many jobs were added to the economy and the Democrats (correctly) screamed “McJobs!”. Where are those screams today? Under Obama, low wage jobs good. Under Bush, low wage jobs bad. Nice logic. Fact is 4.5 million jobs isn’t keeping up with the growth of the workforce, and was entirely created by debt monetization. So it’s not real growth, it’s artificially generated by a policy which can not go on forever.

        3. Record profits, indeed. I agree, this is the single good thing the economy has. However, again on the back of record-low interest rates and the stockpiling of cash for impending bad times (yes, this is part of the calculation – I’ve heard it discussed in my own office). The assumption is ‘make it now, because they’re giving it away for free and lord knows we’re going to need it at some point’. In addition, record profits TYPICALLY lead to increased investments and jobs. This isn’t happening. Sure, Google and Facebook overpay for crappy companies because they have ridiculous amounts of funny money, but that doesn’t improve the economy, it’s just shuffling monopoly money around and enriching small groups of people.
        Real investment and productivity is not taking place because there’s no place to park money and get an expected return that exceeds the free money you can get from the Fed/Treasury.
        Build a plant for greater production? Why? Nobody is increasing their spending, but if I park it in government bonds I can get 3%.
        I see this in my own household. I have a loan out on my whole life policy. I can refinance my house today at 3.5%, take some cash out, throw it against the loan AND pay down my entire policy and earn 5.8% annually, while my (after tax) mortgage rate is 2.8%….but it doesn’t increase productivity, it just shifts money and puts me in a better financial position.

        This is not a good economy, it’s just a money-flush economy.

    2. Yes! I forgot scrap NAFTA, the WTO and all the so-called free trade nonsence!! Nobody can compete with a $2 a week slave, don’t care what color they are!!
      Any company wants to work here is welcome any body wants to ship in trash needs to pay 100% tarrif!!

  12. The 8.1% unemployment number is a total joke. The actual number is more like 11-12% if all those who have simply given up looking for work out of frustration are counted.

    This president’s policies have failed utterly.

    It’s time to give someone else a chance. Maybe he can do better. He can’t do much worse.

    1. The 8.1% unemployment IS a total joke. If you subtract all the jobs lost in GOP state and city and local gov’t slashes, it should be below 7%.

      1. That’s brilliant. Count the jobs slashed due to massive government overspending and budget deficits, because we can print money to pay for these jobs, right?

        I’m curious. Explain to me how government jobs are a net good thing in the long run? If you pay $60,000 to someone, give them great benefits and a high(er) level of job security than the private sector (fewer gov’t jobs have been lost than in the private sector), what’s the long run plan to make all that money back from a tax rate of roughly 15%?
        You’re paying out close to $100k a year, with benefits, and collecting $15k back. Assuming the government were take up the slack – where’s the net benefit overall?

        Seriously, do people even think about this when they make outrageous claims?

        Fact is these jobs HAD to be cut in order to bring down deficits. I’m a Libertarian, not a Republican. I don’t care if a Democrat does things the right way….I’m all for it (Rahm Emanuel is learning today that Scott Walker had it right, after all).
        But the fact is governors like Walker and Christie are doing things the right way – and people should pay attention.

    2. Sure he could, whats needed is to stop the money presses, declare a bank holiday! Turn out the scum, and nationalize the banks till each one can prove they have learned their lessons… also restore all the old depression era restrictions!
      I’ll hurt some but it’s the only proven way to fix this fantasy economy were in!!!

  13. Mike Sweeney

    Will somebody please recommend cutting the US corporate tax rate to zero? Just that one move would kickstart our economy like nothing else. Every company in the world would want to open shop here.

    Taxing corporations just causes them to raise the price of their goods (a regressive tax that hits the poor worst), and makes them less competitive internationally. It makes NO sense.

  14. Take a look at my blog series detailing the big problems in our country and solutions starting here: http://gulfcoastcommentary.blogspot.com/2012/08/blog-series-1-what-are-usas-big-problems_3.html

    The front page of my blog is http://gulfcoastcommentary.blogspot.com.

    Readers here will probably appreciate my site too.

  15. month by month U6 unemployment rate (i.e. includes discouraged and underemployed workers as simply unemployed)….starting in October 2009 up until August 2012….

    17.2 – 17.1 – 17.1 – 16.7 – 16.9 – 17.0 – 16.6 – 16.5 – 16.5 – 16.6 – 16.9 – 16.8 – 16.9 – 16.6 – 16.1 – 15.9 – 15.7 – 15.9 – 15.8 – 16.2 – 16.1 – 16.2 – 16.4 – 16.0 – 15.6 – 15.2 – 15.1 – 14.9 – 14.5 – 14.5 – 14.8 – 14.9 – 15.0 – 14.7

    http://portalseven.com/employment/unemployment_rate_u6.jsp

    how is that “the wrong way”?

  16. First president to maintain unemployment at above 8% for 42 months! While guaranteeing than no employer will ever carelessly hire again given the $100/day penalty for hiring a person and not meeting all the requirements of the vague health care law. Requirements can change at the whim of the Secretary of Health and Human Services. Now the most powerful position in the world in terms of restricting access to employment. When you hire someone you are taking on the risk of $100/day/person fines. If you hire 100 people your potential fines are $10,000/day or $50,000/week. Never ever hire if you can avoid it while this law prevails. You can’t know if you comply, because the requirements for the law are left to the whims of the Secretary of Health and Human Services. Don’t hire in America, its not a free country. Not for employers, not anymore.

    1. Also, just because you don’t have employees doesn’t exempt you, it could be anyone that provides a service. You might end up paying penalties for any type of labor or service you hire. Also, did you know that you are required to keep records of all the non employees that you use the services of? Yes you are, just in case the government wants to check and see if there is a way to insinuate that they are your employees and its up to the Secretary of Health and Human Services to decide. Do not hire a lawn care service unless you are prepared to do the record keeping and pay the $100/person/day penalty. The number of hours per week required to count as your full time employee are not written in the law and can change at anytime based on the whim of the Secretary of Health and Human Services.

      1. You might be able to escape the law if you fall under an exemption, but those are few and far between, and are left to the discretion of the Secretary of Health and Human Services. Also, they could change at any time. Holidays are not even safe. They pushed this law on us at midnight over the Christmas/New Year holiday.

  17. former demicrap

    Actually both parties have failed us. All passed good ideas that we can afford. The world is on the brink of disaster… Do we really need more spending.. Do we really need more regulation that kills jobs and cost us more $$$. We wanted CHANGE. We got more of the same. Its time we have more choice. Or maybe we need to select economist or CEO instead of talking head….They talk good. But don’t have any common sense.

    1. Precisely. Thinking of our economic situation along party lines is doing exactly the opposite of shedding prejudices to coming closer to a solution. Truth be told out of all the blogs, posts, and data I’ve read, both Dems and Reps have passed on bad policy decisions (or effects thereof) like a hot potato on each other. The only people reaping the benefits (and are better off) are the status quo who hedge positions in contributing to both party lines. Its a waste of their time to figure out out of all the talking heads promoting either side which one wins out. They just throw money at the rhetoric with the certainty that one way or the other (Dem or Rep) they’ll get their way. If not, they go to Singapore. Its a win win for them. Straight up.

      So for us to stand around saying Romney this or Obama that are just playing a fool’s game believing that these “candidates” stick to their guns anyway.

  18. The mainstream media is to be blamed for the government we now have. They have championed the liberal cause for years. They along with the racidcals in our educational system are to blame. This country has been sliding into this abyss for 60 years and now as the Rev Wright said it. ” The chickens are coming home to roost”

  19. I have hope for Romney/Ryan. 2 guys who actually know numbers, and for all those who think it’s about millionaires, just STFU. Obama has treated this presidency like ‘the golden ticket’, leading from a swan boat on the ‘media of love’ ride at the carnival. I’ve never liked the unproven savior, and his own predictions that he should be a one-term president are evident from most intelligent people I talk to. The others get their news from the Daily Show and Colbert Report.

    I applaud the twitterverse for having all of the debate to review… if you don’t twitter, get an account, and start following smart people (on both sides). The truth will present itself if you dig deep enough.

    I’m more concerned about the lack of response by this current administration regarding the firekeg that is the middle east. This could get ugly in a hurry, and Mr. Empty Suit isn’t being much of a President if you ask me.

    As the saying goes, prepare for the worst, hope for the best. Don’t let the polls or the dumbasses get you down. We got this. The truth will set us free.

  20. Mitt Romney asks “Are you better off today then you were 4 years ago?” To get the honest answer to this question, let’s look at the numbers as reported by the Federal Reserve Bank of St. Louis:

    On July 1, 2008, the last report prior to the recession, the total measure of the goods and services produced in the previous 3 months by the economy (GDP) is 14.4 Trillion dollars. The percentage of Total Capacity Utilization by US Industry was 78.9%.
    The After Tax Corporate Profits for the same time period is 1.21 Trillion dollars. The S&P 500 stock market index is at 1280, and the Unemployment rate is 5.6%.

    Over the summer the recession started and by October 1, 2008 the economy had begun to shrink. Then a great financial crisis occurred which was not part of an ordinary business cycle recession. It was an institutional Bank Panic, akin to the 1929 Wall Street Crash and a great deal of wealth and potential purchasing power was lost (IRA’s, home values, 401K’s, etc).

    By January 1, 2009, 20 days before Obama became President, the quarterly GDP is 13.9 Trillion (down 4.5% from 6 months before). The percentage of Total Capacity Utilization by US Industry was 71.6% (Down 7.3% in six months). However, the After Tax Corporate Profits had collapsed to 643.7 Billion dollars, A LOST OF 50% FROM 6 MONTHS PREVIOUSLY. The S&P 500 stock market index is at 903.25 (loss of 31%), and the Unemployment rate is 7.3 %, but 10 days after Obama took office the Unemployment rate was 7.8% (up 39% from 7 months before).

    We were officially in a recession, but given the rapidity and severity of the economic decline, the question on everyone’s mind was, were we headed for another Great Depression.

    In doing our analysis we must keep in mind:
    1) The economy is like a car, it will gain a certain amount of velocity in one direction, and if you want to stop it, you apply the brakes, but it does not stop immediately. It takes some time and you travel some distance in the direction you were going, before you stop. Our economic car was speeding downhill with a great deal of velocity.

    2) The day a President takes office he can not put all his programs and policies into effect. It takes time to pass laws and enact economic stimulus programs, especially if there is opposition to them. Sometimes you can do major things without congressional authorization, such as saving the automobile industry by using TARP, but that is the rare exception.

    3) The goal of any corporation is to maximize profits. If profits decline, they will seek to address this by cutting expenses, most often by employee layoffs, or outsourcing to another country with cheaper production costs. In the past, laying off employees meant production went down, but with the computer and robotic automation revolution in the workplace, this is no loner true. Companies “trim the fat” by laying off workers, and work the remaining employees a little bit harder. These Companies still produce as much as they did with the larger workforce. However, their expenses have gone down, so their profits have gone up. But unfortunately, as a consequence unemployment has also gone up.

    Because of the first two factors cited above, I do not believe it is appropriate to evaluate Obama’s economic program from the first day he took office, January 20, 2009, but rather use as the baseline July 1, 2009. This is when most of his economic program had just been enacted. This baseline may be thought of, as the moment President Obama took full responsibility for the economy.

    On July 1, 2009, one year after the recession started, the GDP is 13.9 Trillion dollars (down 500 Billion from the year before)’ The percentage of Total Capacity Utilization by US Industry was 66.8% (Down 12.1% from the year before). The After Tax Corporate Profits is 1.09 Trillion dollars; corporate expense cutting seems to be working just fine as profits increased in six months by 450 Billion dollars. However Corporate Profits are still down 120 Billion dollars (10%) from one year before. Unfortunately, corporate expense cutting has lead to an unemployment rate of 9.5% (up 3.9% in absolute terms, and up 70% in relative terms from one year before). The S&P 500 stock market index is at 919.32 (Down 30% in one year).

    Having now established our baseline, let us see what are the results of the Obama economic program. As last reported on July 1, 2012 the total measure of the goods and services produced in the previous 3 months by the economy (GDP) is 15.6 Trillion dollars (up 12.2%). The percentage of Total Capacity Utilization by US Industry was 78.9% (up 12.1%). The After Tax Corporate Profits for the same time period is 1.65 Trillion dollars (up 51.3%). The S&P 500 stock market index as of September 1, 2012 is at 1399.48 (up 52.2%), and the Unemployment rate is 8.3% (down 14% from the baseline).

    One final comparison and a few observations. How does the economy compare today with that existed prior to the onset of the recession: The total measure of the goods and services produced in the previous 3 months by the economy (GDP) then, July 1, 2008, was 14.4 Trillion dollars, today it is 15.6 Trillion dollars (a full recovery, up 8.3%). The percentage of Total Capacity Utilization by US Industry then was 78.9%, today it is 78.9% (a full recovery, exactly the same). The After Tax Corporate Profits then was 1.21 Trillion dollars, today it is 1.65 Trillion dollars (a full recovery, up 36.4%). The S&P 500 stock market index was at 1280 then, now it is 1399.48 (a full recovery, up 9.3%). The Unemployment rate then was 5.6%, now it is 8.3% (no recovery, up 48.2%).

    You may ask how is it possible everything in the economy has recovered, except employment? I will explain that latter, but first I would like to make an observation. President Obama’s “stimulus program” was demand side driven; building infrastructure like roads and schools, prevent layoffs in local communities, and support unemployed consumers. If Mitt Romney was president, his “stimulus program” would be supply side driven; tax cuts for the wealthy “investor class” in the expectation they would build new industries and expand businesses. Assuming we give Romney the same baseline we gave Obama, I have no doubt the Romney “stimulus program” would be a complete and abject failure. Just look at the Total Capacity Utilization by US Industry which was 66.8% at that time. One third of the Industrial capacity we already had at that time was not being used, there was no demand. What idiot would invest his tax break money here, when you have the rapidly growing economies of Brazil, Russia, India and China. For a wealthy investor, like Mitt, the only important thing is “return on investment.” In fact, Mitt Romney’s “stimulus program” could have made the recession worse by draining that tax money out of the American economy and sending it to Brazil, Russia, India and China. I am sure they would thank us for the stimulus we gave them.

    So Mitt in answer to your question, yes, the American economy has slowly healed itself. It is growing and no longer shrinking. Except for unemployment, all economic indicators are above pre-recession levels. So as a nation we are better off then we were four years ago.

    But as far as the problem with unemployment, it must be realized President Obama does not have the power to order companies to hire people. This nation is not Socialist, no matter what the radical right thinks. It is private corporations that make hiring decisions. Look at that number for After Tax Corporate Profits, up 51.3% during the time Obama has been in office. This was only possible because they were cutting expenses, by firing people (Mitt enjoys “Cutting Fat”), and outsourcing jobs to other countries (Mitt knows about that). Unemployment is high because of people like Mitt, corporate financiers and CEO’s trying to maximize profits. So Mitt, if you want to know what is wrong with the American economy, look in a mirror.

  21. JaaaaayCeeeee

    1. True (but more on why it’s Republican’s fault, not Obama’s later – correlation is not causation).
    2. False, or at best misleading. Romer (before inauguration) did 6.6% based on incomplete data, not Obama promise broken.
    3. Relevant only in that Republicans have blocked 2011 Jobs Act and fiscal policy in an effort to keep unemployment high.
    4., 5., 6., and 7. Here are the relevant charts The unemployment is not going down because of state govt layoffs http://krugman.blogs.nytimes.com/2012/09/08/employment-in-two-administrations/ And yes, this directly contradicts FOX’s bogus numbers today that the Obama admin has doubled unemployment (They doubled the second number to 14+%, maybe by accident?) Again, the continuing lack of progress on unemployment is due to Republicans blocking the 2011 Jobs Act and refusing to reduce state govt layoffs. Both Bush and Reagan did transfer payments to stop this drag on fixing unemployment.

    7. (continued) inefficient govt is the least of our worries – see charts I linked to, although crony capitalism is a big one. Here’s where the crony capitalism is:
    Republican healthcare plan = ins. co. death panels = crony capitalism. Their stimulus? Unrequested, deficit-spending on not-shovel-ready military spending = crony capitalism. Their jobs plan? Redistribute more taxpayer $$ upwards. Republicans, especially Paul Ryan, created the fiscal cliff and pretend that Obama did – everything I’m saying you can fact check. You hear Solyndra, Solyndra, Solyndra, while this administration is on track to install 10 times more cost effective solar in 2 years than the past 10 years combined. Think about exactly who it profits (hint, not you nor the economy nor our future) that you only hear Solyndra, Solyndra, Solyndra, which was a rounding error at most. Crony capitalism subsidies for the fossil fuel corporations won’t reduce gas prices or grow economy.

    Freedomworks scores legislators not on how they represent constituent needs, but on how they deregulate, cut taxes, weaken regs & unions(who up ALL workers’ pay by avg 30% btw), profitize education (so taxpayers get less for their tax $$), and goal number one: avoid richest paying fair share of taxes for healthcare, Medicare, and Medicaid. This is crony capitalism. When Republicans say that we don’t have enough revenue for a Social Security program that is solvent, they are just trying to bamboozle voters into letting Wall Street skim it, pretending that in your golden years you’ll enjoy becoming a day trader competing against the High Frequency Traders!?! That’s as silly as Ryan saying that the magic of the marketplace will let you find cheaper insurance than Medicare, when you are old and not the shopper you once were, despite the fact that Medicare is cheaper to run because it’s non-profit, not full of corruption like Wall Street, and has purchasing power. So the Republicans are only offering crony capitalism on these programs.

    We could have much less unemployment if the big Republican donors weren’t willing to sink the ship (economy and middle class) to drown the captain (Obama/Dems): Republicans blocked Obama’s 2011 Jobs Act. blocking between 1.1 – 1.9 million jobs there alone. Listen to the Bill Clinton DNC’s speech on youtube, because although he took credit for anything in sight during his admin, his and Obama’s arithmetic actually does add up, while Romney’s and Ryan’s just doesn’t. All Romney and Ryan have offered is more trickle down and deficit spending on $5 trillion tax cuts that overwhelmingly benefit the .01% – this won’t create any jobs (demand does that). It will only increase the debt they hypocritically pretended to suddenly care about, ever since Obama was elected. Do any of you remember Dick Cheney saying that deficits don’t matter any more, just writing energy bills with the fossil fuel companies, behind closed doors, to their advantage, not yours? This is crony capitalism, like Eric Cantor did when he cut out of the Stock Act any registering of those who sell advance DC insider trading tips to big investors who want to make a killing on who is getting de-regulated next.

    And those commenters who think Republicans did the economy any good, by voting 33 times against Obamacare (which reduces USA’s outrageous, inefficient cost of healthcare, not benefits)? Republicans should have been voting to get the corporations with the most lobbyists off taxpayer funded welfare, because that will help the debt. You need to check Clinton’s arithmetic. Those of you who think Obama had a majority for 2 years? Maybe you don’t know that he had 60 fillibuster-proof senate votes, for a few days, over a measly 4 month period. Who does it profit for you to be constantly told otherwise, by FOX?

    Those who think that Obama grows government will eventually figure out that Republicans promised laser-like focus on jobs, jobs, jobs was about doing the opposite, and here’s a simple way to see it. https://twitter.com/streicher187/status/242937046296055808/photo/1 Also, note that Reagan raised taxes, more than once, did real tax reform, and did revenue sharing transfers to keep states govts. from laying off and extending the recession. The effect is right there in the graph, so Reagan did the opposite of what he said when he said that government is the problem. Today’s Republicans are hiking unemployment by not making sure states’ layoffs are reduced, the opposite of what both Bush and Reagan did. And today’s Republicans are doing it because they are supported by multi-nationals and those with their $$, both avoiding taxes and not invested in our economy except to skim it some more, as long as they can get away with it. Crony capitalism.

    The whole austerity meme has been disproved in Europe and England (and our own great depression in 1937). The only way we’ll turn into a Greece is if we keep voting in the current crop of Republican leaders. It’s a scam that Rove, Ailes, and the Republican leadership has been pushing to starve the beast (government), so you can say it doesn’t work, then justify starving it some more, just so the biggest corporations can keep paying effectively zero taxes and do what they want for short term profits, using deregulation to give us more bubbles and busts, which always helps the lobbyist-equipped few, not you. Mellon pulled the same thing in 1936 and 1937, and it’s no surprise that the new generation of robber barons wants to pull the same thing again, because privitizing prisons, schools, military, etc., may well wring some more profits out of the USA taxpayers, before the next bust.

    If enough voters don’t figure it out in 2012 and vote out Republicans, it’ll happen next time around, because trickle down always leads recessions and depressions. Eventually, recessions and depressions lead voters demanding reform that includes more taxes and regulation (like Reagan actually did, not what he said). We’ll get so screwed by the Republicans, if they can keep up this game through 2012, that people will eventually throw them out, then re-instate the next generation equivalent of Glass-Steagall, government regulations,etc. It will be a lot more painful for most voters if we don’t stop Republicans this year, because they’ll cause a real depression if they keep this stuff up, and you’ll eventually vote them out, after enough more foreclosures, unemployment, underemployment, crumbling infrastructure, and preventable deaths. Of course the biggest Republican donors are multi-nationals or have their $$ offshore, so they won’t care that we’ll have to clean up, from their next bust, too.

    More and more people are seeing that the Republicans just want right-to-work states to lower wages, grannies thrown out of nursing homes to avoid paying the taxes for Medicare and Medicaid (mostly used for elderly and nursing homes, not the lazy Republicans talk about, btw). And their Keynesian military spending (more than the military says that they need) will benefit their next-gen Halliburton friends, along with privatizing government functions, just to skim off more of your taxpayer dollars. Crony capitalism.

    8. and 9. Republicans are not offering any plans that add up to growing the economy, decreasing our debt, or lowering unemployment – well, more precisely, the plans they are offering have already been debunked by history, over and over again. That cutting regulations meme isn’t about giving voters freedom, it’s to let extractive corporations, already with their highest profits ever, continue to evade taxes and continue to evade external costs. That kind of freedom doesn’t do anything good for regular voters, workers, and citizens – it’s crony capitalism. And it will push us into depression. Just listen to Clinton’s speech, and start thinking about your own self-interests, not the admittedly hot culture wars. Just don’t let Republicans pretend their focus on culture war issues only, is for any other reason than to distract from their lack of economic plans that add up to economic growth and jobs. They represent their true constituents, like big donors and Norquist, and will only suck this economy and the average citizen dry.

    1. You know, Krugman’s a joke, right? He’s been schooled in debates by his counterparts who subscribe to the Austrian view, with regularity. Using him to support your point is almost laughable. A trade economist masquerading as a macroeconomist is kind’ve sad.

      It’s true the Republicans have blocked jobs bills, but their own jobs bills haven’t gotten far, either. There is tremendous political inertia taking place, on both sides. What’s really important to remember, however, is that the ‘stimulus’ didn’t work, so it’s logical to assume a ‘jobs bill’ won’t work, either. I’m willing to opt for this view – even if a ‘jobs bill’ did pass, there is no assuredness (indeed, there is tremendous doubt) that it would do anything meaningful, outside of increasing the debt.

      And you’re right – correlation is not causation. Yet you utilize correlation to support all your points. Circular logic much?

  22. Thug from Chicago (barry hussein obama) is the liar, corrupt destroyer-IN-Chief. The UNLIKABLE President-In-Name-Only is continuing to “fundamentally transform America”.

    Romney/Ryan 2012!

  23. The only way the public gets information is through the MSM and that is controlled via the White House, other news sources like America Free Press are hardly known by the public. The Huff’er Post is a joke that many love but these people vote and that’s the scary part. The GOP base better get their head out of the sand they buried in 2008.

  24. California the Golden state, Obama and the Democrats model for American future, is fast becoming the poster child for an bankrupt third world State!

    An unholy alliance of Socialist Democrat politicians, Unions, Left wing loony,s and Illegal Aliens supporters are feasting like hogs at the trough of tax payers paid benefits while taxing & regulating business and the tax paying public into poverty.

    The corruption and pandering of Left Wing Democrat Politicians to their constituency of Unions, Illegal Aliens and open border supporters, are driving business and citizens to other states & countries, while leaving the parasites, welfare leeches and Hollywood perverts in an increasing bankrupt, crime ridden, dysfunctional state!

    For years California has ignored economics 101 and imported Criminals, Uneducated, fast breeding Parasites, and poverty from Mexico, which increased Medical, Welfare, Crime, Prison, etc. & adding a estimated 22 billion per year to Calif. State expense to support the invading horde of Illegal Aliens while exporting business and educated tax payers.

    Like all Socialist countries the results have been a astronomical increase in social welfare, schooling, prison cost etc. and a lowing of Living standards, Heath care, Education standards, Tax receipts & finally Bankruptcy.

    The policies of Comrade Obama and Wash. DC Democrats are intent on following Calif. policies and Pro-Illegal Aliens, Pro-Unions and Anti-tax paying citizens and are endorsing the same socialist process of rewarding the Corrupt, Stupid, Foolish, Lazy, Greedy & Criminal while punishing the responsible, honest, law abiding citizens of American.

    Failure to abide by our Constitution against invasion & enforce our Immigration laws and constraints on wages and benefits for public employees will result in turning the Golden State into MexiCalif and the end of the Calif. Dream and the beginning of the MexiCalif. Nightmare!

    Amnesty & Citizenship as a reward for their invasion of the USA, with chain immigration will result in the rest of the USA turned into a Spanish speaking third world cesspool and follow California into a polluted, over populated, Spanish speaking, third world Slum of Crime, Corruption, Poverty, Cruelly & Misery modeled on Mexico!

    This will result in a population depending on Welfare and the Democrat party, thus assuring the lock on power for the Socialist Democrat party of the United States of Mexico!

    1. @BlackSaint

      Nothing to add, but kudos to your post. California is dying under a perfect storm of political cowardice.

  25. month by month U6 unemployment rate (i.e. includes discouraged and underemployed workers as simply unemployed)….starting in October 2009 up until August 2012….

    17.2 – 17.1 – 17.1 – 16.7 – 16.9 – 17.0 – 16.6 – 16.5 – 16.5 – 16.6 – 16.9 – 16.8 – 16.9 – 16.6 – 16.1 – 15.9 – 15.7 – 15.9 – 15.8 – 16.2 – 16.1 – 16.2 – 16.4 – 16.0 – 15.6 – 15.2 – 15.1 – 14.9 – 14.5 – 14.5 – 14.8 – 14.9 – 15.0 – 14.7

    http://portalseven.com/employment/unemployment_rate_u6.jsp

    how is that “the wrong way”?

    1. because it needs to be closer to 8%-10%. or there needs to be a belief that we will get there.

      do you believe that’s the case? its certainly not priced into the market, if you will. so you would be the exception if you really think its true

      lastly…as time wears on the folks that are currently in u-6 are losing skills and experience every day that goes by. and its going to make it harder for them to land the next job. its awful, makes me sick to think about it.

    2. Let me get this straight. There are fewer people working now than when Obama took office. Participation in the workforce is lower than in 60 or 70 years. The population has grown in 3.5 years. And you’re trying to use a private web site’s statistics to tell us we’re headed in the right direction? You need to do better than that.

    3. 2.5% decrease in unemployment is great. Spending over $800,000,000,000.00 to get that 2.5% decrease is a major failure.

      1. Feb 94: 11.4%U6
        Feb 01: 7.4%U6
        Feb 09: 15.1%U6
        Aug 12: 14.7%U6

        Clinton inherited an 11.4%U6 in his first full month as pres, and lowered down to 7.4%U6 for Dubya’s first full month as pres. Dubya managed to double that and hand Obama a 15.1%U6 (and falling) in Obama’s first full month as pres. And despite the biggest economic disaster in modern history, and despite republican state givernments slashing government jobs by massive amounts, Obama has managed to lower the U6 rate since his first full month (and lower it even more in the private sector).

        Why the heck would anyone want to return to (and double down on) the tax-cuts-for-the-rich and deregulate-industries policies of the republicans? It’s proven to make things worse, not better.

        1. First off, it’s an assumption on your part that W’s policies created the 2008 situation. Even if I were to ‘give’ you that, it’s still a massive assumption. I’d argue that the Fed’s easy money policies had far more to do with the situation than any fiscal policy. Though I’d agree with you that the debt situation increased dramatically and that was not good. HOWEVER, you then have to admit Obama’s debt situation is worse than Bush’s (on a per year basis), and that cannot be good, either.
          Secondly, the ‘stimulus’ was supposed to lower those figures to single digits. It did not (no surprise here), and it wound up costing us far more than the jobs it created were worth – hardly a value.
          Finally, the U-6 counts only a portion of the workforce which has stopped participating, not all of those who have stopped participating (such as my good friend who has been out 3 years and is simply done looking). The fact remains this calculation is falling, as well, because people are discouraged and not even taking part in the job search anymore. When you look at the number of families on food stamps (up significantly), and the lowest labor participation rate in many years, you cannot avoid accepting the fact that 14.7% may seem good, but isn’t. It takes a true believer in the magical qualities of increased government intervention to make a case that 14.7% is ‘good’.

          Make the case, play the game. But you know, deep down, that you’re incorrect.

          1. I think it’s nothing less than insane that you would look at those numbers and want to return to the same policies as the previous republican administration – and even double down on them.

            The “job creators” got the biggest tax breaks they have ever received….and yet, they created no more jobs, but in fact ended up DOUBLING unemployment. Meanwhile, the middle class bore the entire brunt of the collapse, while the “job creators” literally were more profitable than they’ve ever been before.

            It is nothing more than burying your head in the sand and ignoring reality in favour of ideology. We have the numbers to make comparisons, and the track record of republican policies of tax breaks for “job creators” and deregulation is abysmal in terms of both job creation, and in terms of economic growth.

            It’s not rocket science – all it takes is looking at the history books, instead of ignoring them.

  26. First, please see Tom Woods on the 1920-21 Great Depression and how we got out of it.

    Second, please read Economics in One Lesson as to why stimulus won’t work. I will give my spin to that lesson.

    Imagine a bakery with nice big glass windows. Imagine the baker has so much business he wants to expand and hire 2 new permanent workers.

    He takes a risk and raises his deductible to save money to buy the space in the building next to him. He has almost saved as much money as ne needs for the purchase.

    Vandals destory his windows. Now he has to replace them with the money he saved because of his deductible.

    His saved money stimulates that window guy one time. The window guy stimulates the glass guy with a little less of that money. Etc. In the end, all of the one time stimulus was equal to the savings of the baker.

    What was lost was the employment of 2 full time employees in the future bakery.

    Understanding that tells you why stimulus won’t and can’t work. It is why you can hire a teacher for 1 year and then have to let him go.

    The next valuable lesson is that wealth is created by production. It is destroyed by government because in general it is not used to create future continual production.

    A report in the 50’s said that for every $1 you give the Govt. to do something, only 25 cents goes there. The rest is overhead, waste, fraud, and corruption. Anyone seeing a lot of corruption lately? Solyndra, and a host of others?

    1. I am a Republican, but electing Mitt Romney will be disastrous for the economy.

      Capitalism is driven by the simple supply and demand equation, if there is no demand any supply of things will not be sold. If things are not being sold, no more things will be produced. Demand must always be there first. People can have a want or demand for things, but if they do not have money or credit to buy these things, in economic terms, there is no demand.

      Mitt Romney will implement a budget which cuts taxes predominately for the “investor class” (aka the rich), while reducing government spending by cutting programs. Since money knows no nationality, most of the tax cut the rich receive will be invested in emerging market countries, where it will get the greatest return, or deposited in the secret bank accounts of “offshore tax havens”, or hidden away in gold. This is particularly true in difficult economic times. This money will not circulate through the American economy, create demand, and help the economy grow.

      Mitt says a tax cut will cause small business to expand, this is not true. I am considered a successful businessman. I have never made a business decision based on taxes. They never deterred me from expanding my business when I saw an opportunity to meet a demand by consumers. Taxes never took 100% of any additional income I made by expanding my business. They were just a cost of doing business like any other cost. They paid for services my business needed, such as policemen, firemen, and road maintenance. On the other hand, while I always appreciate lower taxes, they would not effect how I ran my business. If my taxes were lowered, but there was no additional demand by consumers, I would not expand my business. However, I would take a nice European vacation and see Paris or Rome, or buy a Mercedes-Benz rather then a Ford, or buy a second home on a sunny Caribbean island and open up a bank account there.

      Since Mitt promised not to increase the deficit, to pay for the tax cut, the budgets would be slashed for programs like: crop insurance for farmers, natural disaster relief, food inspection, interstate highway repair, school nutrition programs, unemployment insurance, student financial aid, food stamps, employment training, “Head Start”, etc. Cuts in federal grants to local and state governments would mean the layoff of policemen, firemen, teachers, and all government workers; needed permits and licenses would take longer to process. All these things and people consume “goods and services,” and produce the demand, which in turn will employ people to meet this demand. With the Romney budget cutbacks, demand is now lessened, so employers will also cut back and factories may close, jobs will be lost, and the unemployment rate will rise. Rather then the agonizingly slow but steady economic growth we presently have, the economy will begin to shrink, we will be in a “double dip” recession.

      1. Wow. Republican, maybe. Conservative – maybe not so much.

        First para: very simple description not of capitalism, but of supply and demand. Capitalism encompassess much more than you described such as freedom in compliance with law to produce your goods or offer your services, the ability to tweak your item or service to meet the need/want of potential buyers, the foresite to see the upcoming need without being tied in to yesterday’s good or service. See: Solyandra, Chevy Volt, mandated insurance coverage.

        When government interferes with defining capitalism through preferential loans or gifts of tax money, it debases capitalism until it is no longer capitalism. Worse, government does not spend its own money earned through labor or wealth creation, but through forcible compliance, spending money not for the public good but for the political and social bias of the spenders.

        “…most of the tax cut the rich receive will be invested in emerging market countries, where it will get the greatest return, or deposited in the secret bank accounts of “offshore tax havens”, or hidden away in gold”. False argument. Proof. The statement is that money will be invested “where it will get the greatest return” is only partially true, as you yourself indicate in the followon paragrapgh what YOU would do with your money – spend it how you like. Which is what happens when people pay less taxes overall – they have their money and decide how to spend it as they like, as opposed to giving money via politicans where they don’t wish. See Solyandra, Chevy Volt, and mandated insurance coverage.

        Accross the board tax cuts do put more money into the economy, and do benefit small and start up businesses. I also was a businessman, performing a unique service in the banking industry. When my volume grew, all my expenses grew: my personel demands increased, my taxes increased, my insurance increased – not proportionately, but at an increased percentage until it overwhelmed my profits. Increased pricing for services caused a reduction in volume since smaller competitors could still work cheap. But, every busisness is different – don’t know what business you have, but it certainly wasn’t my business, the resturant business, or the mom-and-pop grocery business – all of whom usually have the same kind of issue I had.

        You nailed it in the last paragraph, but from the wrong position and wrong political bias: the problem is not tax collections, it is spending. Spending on those programs you list, along with the Solandra’s, Volt’s, and now health mandates. Some programs you mention may have a benefit – but I gurantee you that if you went line-by-line on the last budget (what – four years ago now?) or even the last stop gap spending bill, there would be huge amounts of money spent that are not neccessary for ‘establish justice, insure domestic tranquility,
        provide for the common defense, promote the general welfare and secure the blessings of liberty to ourselves and our posterity’.

        Check it out: 1 out of 2 people in the US pay no taxes, due not to tax loopholes, but because they fall under the income threshold set by governemt. And the Fed, State, and Local governments total out about 1 employee for each additional 6 tax payers that are not employed by government. Throw in government contractors and receipients of government largesse (Solandra, Chevy Volt, mandated health care), and it drops to 5 ish. What we need is less people taking money that comes from taxes, and more private sector tax contributors.

        I could go on, but to make it simple: Its not tax collection that is a proble (except that it is way to high for a free people), but, to paraphrase – it’s the spending, stupid.

        We have no control of government; they no longer serve the citizens. You know this, as a businessman, since the guy that controls the money is the guy thats really in charge.

Comments are closed.

Sort By:

Refine Content:

Scholar

Additional Keywords:

Refine Results

or to save searches.

Open
Refine Content