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The Great Stealth Depression Continues: Is It Time For A Return To Normalcy…Again?

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After the economically devastating policies of Democrat Progressive President Woodrow Wilson the American people welcomely ushered in Republican Conservative Warren Harding, and then Calvin Coolidge, that brought about “the Roaring Twenties”.  Harding and Coolidge both saw that it was not the government that was the engine of America’s prosperity, but a motivated and inspired American people and private industry.  They greatly reduced taxes across the board and government regulations on businesses.

The one thing that can be said of history is that though we may not like what it tells us, but it’s always going to tell the truth.obama smug

Fast forward to today when we bear witness to a president of the United States stating that his focus for his second term will be on income inequality, i.e., more taking from those based on their ability to give to those based on their need.  He also has boastfully stated that if the elected representatives of the people of the United States don’t go along with his vision of transforming legislatively the nation, he’ll just create laws by pen-Executive Orders.  Really?!

What has been totally absent from any of Mr. Obama’s economic policies since his ascension into the seat of the presidency is a focus on true policies that would actually create a roaring economy that awakens the dormant energies of the American private sector and ignite the people’s innate drive to succeed independent of government handouts.

As he makes announcements to further depress the nation economically and increase government dependency, reports come out that the nation only created approximately 74,000 jobs…for the whole year of 2013!.  This is the lowest in 3 yrs. In November The Blaze.com reported the labor participation rate was at the lowest since 1978, at less than 63%.  It reported that, “The U-6 unemployment rate, considered a broader measure of actual unemployment in the U.S., increased to 13.8 percent, up from 13.6 percent.”  Yet, Mr. O continues on with his crusade of fundamentally transforming this nation into his utopian vision unabashed, and publicly unchallenged either by the Elite Media or the National Republican Party Elites.

Not only is Mr. O seemingly unphased regarding the serious crisis that the nation is in economically, but the Media is eerily quiet on the motivations of Obama and the tragic consequences that lie ahead for the nation due to his policies. So Obama continues his purposeful obfuscation of the true economic crisis that currently befalls the nation, for today and the foreseeable future.  More importantly, the Establishment Media refuses to report on the connection between the crippled state of the economy and Mr. Obama’s regurgitated economic policies that have not ever produced a robust or dominant economy in the history of not just our country, but the world.  After some 50 years and over 20 Trillion of U.S Taxpayer Dollars in the so-called War on Poverty it has shown to have been an utter, though very predictable, failure, as reported by the Heritage Foundation. 

Even though poll after poll since before his anointment shows that the economy and jobs are the most important issues for Americans, Mr. O persists in diverting energy and attention to issues that can only add to the nation’s suffering, such as giving preferential treatment and status to illegal immigrants, increasing regulations on businesses, increasing taxes on citizens, and generally expanding the government into areas for which it was not created to enter.  But for him to do otherwise would be too much like right for the nation.

The evidence of the tragic effects of his stealth depression is apparent, yet goes mostly unspoken:

·         Youth unemployment is at 16.3 percent — one of the highest levels since World War II

·          U.S. enduring the longest period of high unemployment since the Great Depression

·         The number of able-bodied adults on food stamps nearly doubled under Obama’s policies.

·         13 million more Americans receive Food Stamps than prior to Obama.

·         Under the reign on the U.S’s first true African-American President the labor participation for Black Americans has sunk 0.3 percentage points to 60.2 percent -the lowest rate since December of 1977. How’s that for gratitude, eh?.

·         The United States has dropped to #12 in the 2014 Worlds Ranking of Economic Freedom, Hong Kong and Singapore tops the list.  Let that marinate on your minds for a second.  So much for the land of the FREE.

And the biggest tax increase in the history of the nation,Obamacare, hasn’t been fully implemented. This isn’t gonna be good folks!.

So, the next time you hear a politician or anyone talk about our “economic recovery” , ask where is the foundation for this recovery?  How can you have an economic recovery when we have a record number of citizens unemployed, under-employed,  and unemployable?  How can there be an economic recovery when the family unit and morality is in disarray?  And how can you have an economic recovery when the government is taking so much of the economy’s wealth and resources, and restricts so much its citizens freedoms?  As my mom used to say, “there’s something in the milk that just ain’t clean.”

History has shown us that America’s exceptionalism is best exhibited when the people are less burdened by the weight of government. Evidence the economic booms under Lincoln, Harding/Coolidge, Kennedy, & Reagan.  So too the history of the world tells us that a government-dominated economy never spawns  prosperity for its people.  Evidence the fact the though America is younger and smaller than Europe and Asia, we have out produced them economically, have created and inspired more millionaires, and have grown to be the destination of more citizens of the world then all of them combined.  Not to mention we have defeated them on the battle field .  And as for the issue of the government making people “equal”, U.S Supreme Court Justice Clarence Thomas may have said it best when he said, “Government cannot make us equal; it can only recognize, respect, and protect us as equal before the law.” The proper role of government has always been known as stated by President Lincoln, “[the government] is to do for the community of people [you and I], whatever they need to have done, but can not do, at all, or can not, so well do, for themselves-in their separate, and individual capacities.  In all that the people can individually do as well for themselves, government ought not to interfere.  

Free-minded individuals who are able to exercise their Creator-endowed rights, without infringing on that of another, is the greatest blue print for economic prosperity.  We have 200 plus years of evidence.  It’s sad to think that if this economic devastation was done under a Conservative Republican the Media would be broadcasting daily reports of Americans suffering and the erection of a shabby towns in his name.  But, instead under this Administration we get deafening silence and complicitness regarding his actions.  The question isn’t so much if it is time to return to normalcy, but with so  many of us not knowing the truth of the nation’s critical situation and confused, disillusioned, and have become comfortable with the chains of government promised security, if the people have wearily grown to accept this as our new norm?

Remember the Twenties Mr. Obama. Yes We Can Cut Our Way To Prosperity!

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One of Mr. Obama’s favorite lines of mis-truths is that “we can not just cut our way to prosperity”, i.e. cut spending, cut taxes.  First, let’s look at this as if it was your household that was spending many times more than it was bringing in, thus causing you to be in debt.  Would you not look to cut or reduce unnecessary spending?  And then would you not also look to do activities that cost you less, i.e. reduce taxes?  Of course you would.  And in doing these things, do you think that this would bring your household’s debt down and bring your income-spending ratio more in balance?  Of course it would.  Currently the federal government is spending more than 1 Trillion Dollars annually more than it brings in. Problem!  But, Mr. O and the Democrats would have us, particularly the intellectually uninitiated amongst us, that spending Trillions more than the government brings in isn’t the problem.  So to attempt to cut spending and cut the cost of doing business or engaging in wealth-producing activities is not necessary and won’t do anything to reduce the government’s debt-income ratio. Says the Administration.  Really?

Well, history tells us a different story.  Many of us have heard of the “roaring twenties” of America.  But, why was it called that?  It was a fantastic period of economic growth in America following one of the worst depressions we ever experienced; of which many of us today know nothing about.  Thus it is called “The Forgotten Depression”.

The economic boom of the early 1920’s followed the presidency of Progressive Democrat Woodrow Wilson.  Mr. Wilson’s economic ideology was that big government is good to grow the nation in times of economic strife. This economic theory is called Keynesian Economics; named after 20th century economist John Maynard Keynes.  Now, I just want to make clear a little understood fact, the term Progressive can be applied to both Republican and Democrat.  It is an ideology that favors gradual social, political, and economic reform that is to the left of traditional political views.  The Keynesian philosophy has as its fundamental basis that private sector decisions are inefficient so the government must take control for the economy to grow and be stable. The government does this mainly by the redistribution of the wealth that it receives from taxes, and it uses a concoction of government spending, tax breaks, tax hikes, and some spending cuts in order to curb inflation. Does this sound familiar?

Wilson’s economic policies caused a tragic reaction in the economy. Federal spending in 1913 was 2.0 percent of the Gross National Product (GNP); it jumped to over 7 percent. During his Administration, non-defense spending exploded 20 times higher than what it was before his Administration. The income tax rate for the “rich” jumped from 7 percent to 73 percent to pay for all of the new spending, supposedly. By his terms end, unemployment increased to nearly 12 percent, as GNP had declined 17 percent.

But the election of Republican Warren Harding reversed the slide into the economic abyss by reversing all of the failed Keynesian policies.  He followed one simple concept, “The history of taxation shows that taxes which are inherently excessive are not paid. The high rates inevitably put pressure upon the taxpayer to withdraw his capital from productive business.”  President Coolidge, stated, “the wise and correct course to follow in taxation and all other economic legislation is not to destroy those who have already secured success but to create conditions under which every one will have a better chance to be successful.”. He reduced the top marginal normal and surtax rate from 73 percent to 58 percent [for those with incomes over $200,000] in 1922; to 50 percent by 1923; in 1924, it fell to 46 percent [for those with incomes over $500,000]; to just 25 percent [for those with incomes over $100,000] from 1925 to 1928; and then to 24 percent in 1929.  The American economy went through the roof!  The dreaded Bush tax cuts were similar in scale.  This is why it couldn’t totally be done away with.  The tax cuts are good for more than the “rich”.

The contorted notion that Mr. Obama, and of Keynesian ideologs such as Wilson, Teddy Roosevelt, Dwight Eisenhower, and FDR, is that taxing the very elements of economic wealth and production, i.e. the high income earners, big corporations, and such, will inspire the people to work harder and create more wealth. Chief Justice John Marshall stated an unrebuttable truth when he said, “Every tax imposed by government diminishes the power of the person taxed. Excessive taxation obstructs choice and entrepreneurship, which restricts freedom and prosperity for the individual taxed and the entire community.” Current history reveals to even the most passive observer that the high taxing retards economic prosperity. High tax States such as New York, Illinois, and California, as well as nations such as France and Greece are losing their income producer population massively due to their policies of high taxes and gross government spending.

The fact is that in no time in the history of the world has taking money from those who earn it has led to a nation’s economic might, less than being the economic marvel such as America.  The very idea of high taxation is intuitively repugnant not just to Americans, but human nature. That is why we love sales, discounts, and “tax free” holidays – to be able to keep more of our money in our own pockets. No one would look for where he can spend or lose more money, in his right mind.  We instinctively know when our home budget is running even slightly in the red to reduce our spending and look to pay less for things. And Mr. Obama knows this as well.  So why does he persist in this grotesquely flawed economic theory?  Simply due to the fact that we the people allow him to. The only other relevant question is will there be enough of America to reverse this tragedy after Obama is gone? Or will this nation still be run by the intellectually uninitiated?