Monday, August 26, 2013

The Political Class Keeps Kicking The Can Down The Road--- But There Is No Road Left

Psychiatrist Patiently Listens To Obama Complain About Every American...The Onion

George Carlin once said, "Think of how stupid the average person is, and realize that half of them are stupider than that." If Carlin were still alive today, I'm confident he would be referring to many Obama supporters as well as those who continue to support the failed policies of the progressive political class.

We've all heard the complaint that the Obama administration and Congress keep kicking the can down the road. As I've mentioned on a few occasions eventually there is no road left. After five years of this administration, it's now clear there are not even any cans left to kick down the dead end road.

The national debt is now fast approaching $17 trillion. That comes out to over $148,000.00 per taxpayer. In fact, as I write each sentence on this blog, the debt increases over $100,000.

Several weeks ago, I wrote about the myth of the economic recovery. Recent economic reports continue to substantiate that charge (e.g. uptick again in first time weekly unemployment claims, orders for durable goods plunged in this last quarter, new home sales dropped sharply in July). But the economic picture is actually worse than I even suspected. This is why there is no road left:

  • It's true that the Obama administration created jobs. It's also true that 7 of 8 jobs created have been part-time jobs.
  • As I've reported on many occasions in the last several years, black and Hispanic unemployment remain at troublesome levels.
  • In addition to less people of working age employed than five years ago (approximately 59% compared to 61%), more than half of those working are making less than $30,000/year.
  • The number of discouraged workers---those who just stopped looking for work because of poor job prospects---is at about 800,000.
  • We've heard the numbers about the historic rise in poverty rates and those receiving food stamps (EBT cards). What you might not know is that the poverty rate is higher now than it was when the War on Poverty commenced in 1968. In fact, over 100 million Americans are now receiving some form of federal aid from over 80 different overlapping federal programs (friends, the population of the country today is just over 316 million). In other words, 1-3. I'm not an economist, but that ratio can't be good for any nation. Food stamps and Medicaid make up a large chunk of that number.

  • This is happening as middle class wealth decreased by 40% in the last five years, as the average price of fuel hovers at about $3.60 a gallon today (it was $1.85/gal when Obama took office), as health insurance costs have increased (ObamaCare will also levy more than $1 trillion in taxes as reported by the Congressional Budget Office and the law has put the brakes on additional hiring by businesses and local municipalities), as 1 in 2 of the nation's college graduates cannot find suitable employment, as they've taken on over $1 trillion more in student debt and as approximately 70% of Americans now live paycheck to paycheck.
  • To add fuel to these fires, the growth rate in the  nation's overall economy has been dismal.
  • Progressives have also left the economic and social landscape in tatters in most of the cities they currently run in America. Their failure in leadership has been breathtaking.
  • And in the parking lot, next to the failed progressive economic policies, we're currently witnessing a major failure in foreign policy. We're also still awaiting for someone---somebody---to be held accountable for the Benghazi, Fast and Furious and IRS scandals to name a few.
While progressive political class (which also includes many Republicans) still blames the previous administration for today's ills and ask for more time, know this: In September of 1983, Ronald Reagan, a conservative, created more jobs in that one month than the Obama administration did all last fiscal year. Reagan's largely conservative policies created the nation's long road to prosperity---a road the progressive political class has largely destroyed.