June 17, 2011
Marie Lozito is a Registered Nurse, Licensed Massage Therapist, wife, mother, grandmother and life-long conservative. She wrote a text on medical massage and taught at New York College of Health Professions.
Interested in, and observing politics since 1960, she
ran for elected office in 2010.
An Economic Recovery?
The previous month's good jobs report was a result of the massive McDonalds hiring in April (half
of the jobs created). This month's job report of the 54,000 jobs created is much more in line with the dismal “economic recovery” we are having in America.
Every economy has booms and busts – it's a cycle that naturally occurs. In America, because of our economic freedoms and entrepreneurship, the recessions historically resolve in 10 to 16 months. The outstanding exception to this was the Great Depression. President Franklin D. Roosevelt and the Federal government intervened in the economy in ways that caused the depression to last over a decade. Recessions since then have been treated differently - until now.
Obama and the Democrats in Congress opted to intervene in the economy in Keynesian ways. As a result of these actions, the economy has not recovered for over 41 months and the country has been put on the brink of bankruptcy. (The illogical and detrimental Keynesian economics had previously failed and had been left for dead for about 30 years until our 'brilliant' and liberal leaders revived it in response to this recession.)
As the Wall Street Journal reports, “At this stage in the Reagan expansion, after a comparably deep 1981-82 recession, the economy was growing by 7% a year and the jobless rate was plunging. This time the economy is growing by less than 2%, and we still have 6.8 million fewer jobs than when the recession began in late 2007.” The Reagan reaction to the recession was to lower taxes, lower government regulations on businesses and encourage businesses to grow and expand. The growth and benefit from these actions lasted until about 2000.
The current approach, Obamanomics, wants more regulation, more taxes, more Federal control. Current law has the Bush tax cuts expiring in 2013, the same year the Obamacare tax increases go into effect. These job killing tax policies will result in large tax increases. Wage earners, small businesses (the economic motor that drives our economy) and investors (If you have a retirement plan, you are an investor.) will all suffer major tax increases - income tax rates jump by nearly 20%, the capital gains tax rate increases by nearly 60%, the total tax rate on corporate dividends increase by nearly three times, the Medicare payroll tax rate increases by 62%, and the death tax rises from the grave at a 55% rate, a top federal tax rate of 44.8% on wage income, all the tax increases on capital income, on the way up to a 62% top federal tax rate. Yet President Obama continues to propose still more tax increases on small businesses, job creators, and investors.
These aren't the only economy destroying policies of Obama and the Democrats in Congress. The EPA's cap and trade tax policy is another trillion dollar plus cost burden on the economy. This will only raise energy prices higher and higher through to 2013, squelching the economy still further. The EPA regulations are only a part of President Obama's reregulation burden on the economy. The cost of regulations are estimated to be rapidly rising towards $2 trillion, or over $8,000 per employee, in annual costs even before EPA's horrific cap and trade really begins. With another 4,225 federal regulations already in the pipeline, and the new regulatory burdens from Obama and the Dodd-Frank financial regulation bill still to come, how high will that burden be by 2013?
Even if Congress belatedly starts to act responsibly about our current debt level and annual Federal deficit, we still have the negative effects of Obamanomics, increased regulations and the devaluation of the dollar to deal with in order to prevent the economic crash that appears to be coming. (Devaluation is caused by the Federal Reserve printing paper money with no precious metal, i.e. gold or silver, to back it up.)
After watching so much irresponsible behavior by both Republicans and Democrats in Washington DC for so many years, I have to admit I find it hard to even hope that America can avoid the significant serious economic problems that are barreling down the road toward us.
Can the conservatives currently in Congress force the Federal government to deal with the needed spending cuts? Will enough conservatives be elected in 2012 that some (hopefully all) of the damaging laws and regulations can be removed before they do all the damage they will do if left in place? Will the American people continue to wake up and realize the grave danger America is in? Will the politicians and the people have the courage to do what needs to be done?
It is said that freedom is never more than one generation away from being lost. Political freedom is closely interrelated with economic freedom. The right to ownership of property is essential to economic freedom. Economic freedom is essential to the pursuit of happiness, a God given right recognized in our Declaration of Independence. The current economic course of America is one that will destroy our economic freedom.
Thomas Jefferson warned, “To preserve independence ... we must not let our rulers load us with perpetual debt. We must make our election between economy and Liberty, or profusion and servitude. ... The fore horse of this frightful team is public debt. Taxation follows that, and in its turn wretchedness and
James Madison declared,
“Having never been a proselyte to the doctrine, that public debts are public benefits ... I consider them, on the contrary, as evils which ought to be removed as fast as honor and justice will
Others of our Founding Fathers expressed similar beliefs about debt. I believe we already know how they felt about taxation and government control from afar.
“The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to
Indeed, our government has been, and is, abusing us through the irresponsible economic actions it has been taking. As Lincoln said,
“America will never be destroyed from outside. If we falter and lose our freedoms, it will be because we destroyed
The excessive level of public debt and over-control of the centralized government can indeed destroy America as we know it.
“If ever a time should come, when vain and aspiring men shall possess the highest seats in Government, our country will stand in need of its experienced patriots to prevent its
- Samuel Adams.
I hope and pray that there are enough patriots who understand the threat to our country that disaster can be prevented. The election in 2012 will make all the difference in the world.