Obama Harms Poor While en route to AfterShock Economy
Indisputable facts prove the poor are much worse in 2013 than 2009. We can attribute this to BO economics. Prioritizing the government sector over the private sector is a sure means to stall the economy and tremendously increase debt. The only genuine way the poor can increase their wealth long term is via a strong private sector. That is the sector that creates new jobs that self sustain them and create ancillary jobs. Results include opportunities for all especially the poor. Otherwise the poor get trapped in increasing Dependency on Government. Results then include lack of motivation to apply God given skills all have to better themselves and make the world a better place via gainfully productive jobs. Reliance on Food Stamps, 99 weeks unemployment compensation, and then eventually for some SS disability is devastating to the individuals’ psyches and to the US economy.
Increasing total debt mush faster than GDP growth and much faster than our growth in Treasury revenues for already 5 years is extremely dangerous. This then accelerates our inevitable path to a severe AfterShock economy. For more on AfterShock economy, a term coined by Economist, Investor, and Author Robert Wiedemer, please click on the AfterShock Economy tab on this site. Two reviews of Wiedemer’s book detail the Afterhock economy we are headed toward given present trends. Among other economic pain, an AfterShock economy can include a $ collapse far exceeding 50% and unemployment rate well over 25%. ** A painful but eventual recovery to new economic prowess is also projected by Wiedemer …. It is not all gloom and doom but the period prior to and during especially will be tremendously hard on the poor and unskilled as entitlements will be severely limited.
In link below, Investors Business Daily (IBD) recently quantified the impact of BO policies in the poor.
Excerpt: When President Obama first ran in 2008, he claimed his economic policies would “foster economic growth from the bottom up and not just from the top down.” He said he’d put in place “an immediate rescue plan for the middle class” and would end the “tired, worn-out, trickle-down ideologies we’ve been seeing for so many years.”
But what do we have instead? Net worth increasing by 21% for people with net worth of $500,000+ but decreasing for all others 2009-2011.
Secondly per another recent IBD link below we learn about a tremendous explosion in SS disability. Today, 6.5 workers are on disability for every 100 who have a job. That’s double the ratio from two decades ago.
Excerpt: SS disability rolls continue to climb sharply, as 76,983 workers enrolled in the Social Security Disability Insurance program in April, according to new data from the Social Security Administration. More than 300,000 have joined the program so far this year. The number of workers on permanent disability is now a record 8,865,586, a net increase of one million in just three years.
Results of the above:
Is the US twice as disabled as it was 2 decades ago? Of course not. This then is direct proof that many have lost incentive to advance themselves. That is what Dependency on Government policies produce. Another outcome is increasing debt. It is the later that accelerates our inevitable path to a severe AfterShock economy.
Many poor are not able to relocate for variety of reasons. Thus, they are not able to seek work in Texas or North Dakota, two booming states. Many are living in large cities, many of which have been targets of exhaustive social welfare programs from Federal, state, and city governments. They are trapped in virtually intransigent Dependency on Government on all levels. This furthermore generates a disincentive to develop skills to progress. Now with many cities on verge of bankruptcy, per their tax and spend explosions, the city poor are especially worse. The Intellihub elaborates on unprecedented poverty growth in major cities – link below.
In conclusion the tax and spend, very Socialist leaning, private business trashing polices have taken heaviest toll on the poor. LBJ initiated his War on Poverty in the 1960s. Since then $16 Trillion has been spent with nothing positive to show.
So what can we do?
We must be optimistic and enthusiastically champion free market capitalism and individual freedoms as never before. Especially we must explain clearly how both improve the prosperity of the poor. Why? It is because if current BO economic policies continue, our economy will crash. That will lead to a historical inflection point. The US will then have to make a choice to pursue a greater command and control economy or break from crony capitalism along with its social welfare state and embrace true free market capitalism.
APRIL 30, 2013