Friday, November 6, 2009

People are surprised by this?

The US economy now has a jobless rate of 10.2%. Bad as that is, and it is bad, what is worse is that there are some, according to the article, who apparently "surprised" by this turn in events. All I have to ask is this: You're joking right? You're surprised? You're surprised that a government administration which is waging all out war on capitalism behind the scenes with pork-laden "stimulus" packages which are perks for everything under the sun except for real assistance to the economy, a "cap and tax" bill which does nothing to stem climate change (which is a natural phenomenon, but that is an argument for another time) but tax individuals and family more and reward Wall Street investment firms (held by Democratic partisans)who will sell the "carbon credits" to make them richer, try to pass a health care bill which, though it won't take effect until 2013, will pass immediate tax hikes and see insurance premiums be raised, declare that the commerce department's endorsement of the free market system as misguided, will raise taxes, actually didn't work? You're surprised?!

The White House will point out that things are getting better. Recently, they've pointed to two things: first, the increase in GDP of 3.5% and second, the millions of jobs the've created and/or saved. Both are bogus. Though it is possible to have a recovery from recession without job creation (and it is rare) the increase in GDP is mainly the result of the government injecting money into the economy for people to buy new cars under the "Cash for Clunkers" deal. People spent money, yes, but this only benefitted ONE industry (in what is clearly Obama preferring unions) and it ended up costing taxpayers $24,000 per car bought. Some people got a good deal, I am sure, but it cost the taxpayers even more. The "Cash for Clunkers" program maybe saw an increase in consumer spending (GDP is determined by government spending, consumer spending and investment growth, which is abbreviated CIG) and also government spending. But it was nothing more than drinking an energy drink. Sure, it gets you going but what happens after a few hours? You crash. You are tired and can't do anything. You go from a state of hyperactivity (thanks to the sugar) to a state of lethargy. "Cash for Clunkers" did the exact same thing. We're back to lethargy now. Also note that consumer spending in other retail industries continued to fall. Of course, this was unexpected to. This was not and is never real stimulus.

Here is an analogy. Let's say I wanted to help window repairmen get back to work so what I do is get a bunch of rocks and start throwing them at windows of homes and businesses because then the owners of said businesses and homes will have to call the repairmen to fix the broken windows. That's not stimulus. That is necessity. Stimulus is achieved by supply and demand. When you increase the demand on something and the supply is short (especially in these economic times), the price for fixing them will go up. What will happen is that the people who are forced to fix the windows will need to do it for a more costly price and thus will have less income for other things. But we stimulated the window repair industry, right? So, that's good. Stimulus of only one sector of the economy is a caffeine or sugar high that wears off pretty soon.

The second sign of recovery offered by the white house is that all these jobs were created or saved. First of all, the press have bought into this ridiculous notion that there is an economic statistic for a "saved" job. There is NONE. And there has been none. It is a phony number. It is a lie. Obama is lieing. Is it really that hard to understand?

The fact of the matter is that there is no incentivizing going on. The Obama administration is waging war against capitalism. Jobs are not going to be created because there is no incentive to do so. Adding more jobs, especially with possible forthcoming fees and taxes (payroll taxes, health care mandates) is in no business owner's interest right now. Either the administration fails to understand this, which makes them stupid or this is very deliberate, which I believe.

Why do I believe this? Because Obama and his cadres believe that the only ones who should be rich are themselves. They belive it is their god-given right to be rich and no one else should be allowed to penetrate that echelon. They want to create a society of dependence where everyone else waits in line for food while they shop at stores which are well supplied. I think this happened before in history somewhere. Oh yeah, the Soviet Union!

If you were a communist party official or someone of importance, you were given permission to shop at stores which were well stocked with necessities while the rest was rationed out to people who would stand in long lines, often, for days. So much for that equality and egalitarianism which could only be accomplished there.

The unemployment number will continue to rise. As a result people will become despearte and despondent and reliant on others to help them out. Charities used to be able to do this, but even they are now under increasing burdens to provide services they once could. Why? Because we are so overtaxed now so that the government is the only one to provide these services. The government is eliminating the competition in the charity industry! Would someone please show me where in the Constitution that the government is entrusted with the power to dispense charity? It's not there and it shouldn't be. That is our responsibility as good citizens, as good people without coercion from the powers that be.

People will become more dependant on the government and, as a result, we will hear and see more scenes like this. If it weren't so sad, I'd be laughing. I'd better make an appointment to stand in line for my "Obama money."

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