The best way to prolong a recession and stifle the economy is by continually raising taxes. Unfortunately, this self-destructive policy has been Obama’s disastrous domestic policy ever since taking office. Under Obama’s recent proposal, taxes would rise from 17.6 percent of Gross Domestic Product in 2014 to 19.2 percent in 2024. During the ten years from 2015 to 2024, federal taxation would average 18.7 percent GDP. The Congressional Budget Office (CBO) said this would be the highest level of sustained taxation ever imposed on the American people. And you all thought Jimmy Carter was a disaster.
Plus, under Obama’s budget proposal, according to the CBO, the budget will never balance. But over the next ten years, the federal government would add $7.183 trillion to its debt held by the public. And in my opinion, that is a conservative number that does not account for the trillions of dollars of mounting debt accrues from Obamacare.
The problem now in America is that he job market has stagnated considerably under Obama. With full-time work hard to find, workers have built temping into a de facto career, minus vacation, sick days or insurance. The assignments might be temporary — a few months here, a year there — but labor economists warn that companies’ growing hunger for a workforce they can switch on and off could do permanent damage to these workers’ career trajectories and retirement plans. In March, the temp industry added 28,500 jobs. As these numbers grow on a monthly basis and as more people are just simply giving up looking for work because the jobs aren’t there, America’s full time labor force dwindles by the day. Plus, as incentives to stay home and live under the government dole continue their insurmountable rise under Obama, there is no longer incentive to look for work for many people.
A recent story I came across I think nicely sums up the current state of the American work force. For seven years through 2012, the number of Californians aged 50 to 64 who live in their parents’ homes swelled 67.6% to about 194,000, according to the UCLA Center for Health Policy Research and the Insight Center for Community Economic Development. The jump is almost exclusively the result of financial hardship caused by the recession rather than for other reasons, such as the need to care for aging parents, said Steven P. Wallace, a UCLA professor of public health who crunched the data. Plus, the number of Americans 55 and older who have been out of work for a year or more was 617,000 at the end of December, a fivefold jump from the end of 2007 when the recession hit, according to the Bureau of Labor Statistics.
Any economist can realize that these numbers and trends all stink and are hazardous to a solvent American economy. Plus, if you think the national unemployment numbers disagree with my statements or is an accurate barometer of the health of our economy, you are sorely wrong. These numbers reflect only those who are actively seeking work. Most have simply given up or settled on part time employment—both of which artificially pads the unemployment numbers.
America is heading in the wrong direction, and if we don’t do anything now, the consequences will be dire.