by Patrice Hill at Newsmax.com
The so-called “Great Recession” has left Americans depending on the government dole like never before.
Without record levels of welfare, unemployment and other government benefits as well as tax cuts last year, the income of U.S. households would have plunged by an astonishing $723 billion — more than four times the record $167 billion drop reported last month by the Commerce Department.
Moreover, for the first time since the Great Depression, Americans took more aid from the government than they paid in taxes.
The figures show the devastating results of the massive job losses last year and indicate that the economic recovery that began last summer is tenuous and has a long way to go before many Americans resume life as normal, analysts said.
Economic growth typically depends on consumer spending, which is fed by wages, rents, interest and other forms of income. But the tentative revival of consumer spending in the second half of last year appears to have been fed largely by an extraordinary flood of government spending, as growth in other kinds of income has disappeared.
“Governmental support was critical in keeping the economy, particularly consumer spending, from completely collapsing during the crisis,” said Harm Bandholz, an economist at Unicredit Markets. He said he is concerned that so much of the economic rebound is a result of government spending rather than a revival of private income and jobs. That situation is unsustainable, he said, because the government has had to borrow massively to prop up the economy and cannot continue that binge for long.
from Yahoo! News
WASHINGTON – An independent senator counted on by Democrats in the health care debate showed signs of wavering Sunday when he urged President Barack Obama to postpone many of his initiatives because of the economic downturn.
“I’m afraid we’ve got to think about putting a lot of that off until the economy’s out of recession,” said Connecticut Sen. Joe Lieberman. “There’s no reason we have to do it all now, but we do have to get started. And I think the place to start is cost health delivery reform and insurance market reforms.”
The Senate requires 60 votes to overcome a filibuster and advance a measure to an up-or-down vote. Senators from both parties said that Democrats might use a voting tactic to overcome GOP opposition, abandoning the White House’s goal of bipartisan support for its chief domestic priority.
House Democrats finally released their version of Obamacare a couple of days ago–all 1,018 pages of it. Cost estimates I’ve seen range from $1 trillion to $1.5 trillion with huge taxes to be imposed on businesses to attempt to pay for the monstrous program. It’s bad enough they either don’t care or don’t get the fact that raising taxes in the midst of the worst recession in decades is a bad idea, but it gets worse when you see what we’ll get for our $1 trillion plus investment.
Republicans in the House were thoughtful enough to create the following diagram based on the Democrats’ plan. It shows just how complicated navigation of such a system will be.
Now, I thought it would be a good idea to contrast this with the current system. Because I’ve paid for my own health insurance for years now. I don’t get it through my employer because it’s cheaper for me to buy an individual plan. How do I afford it you ask? I prioritize. We have one 27 inch television in the house that I paid ~$400 for. I buy used cars and pay cash for them–no car payments, only need liability insurance. I mow my own lawn and basically do just about anything I can for myself instead of hiring it done. It’s all about priorities. I’ve known too many people who have bass boats, brand new cars, and 4 wheelers, but can’t afford health insurance. Yeah right. Priorities.
Anyway, here’s a look at the current system I deal with when I buy my own health insurance.
I don’t want to navigate the labyrinth and red tape to be created by Obama’s plan. Do you?
Last month, the unemployment rate climbed higher than the Not-So-Omniscient Obama promised it would if Congress rammed through HIS stimulus package. He predicted unemployment would go no higher than 8% if the stimulus passed, 9% if it didn’t. Last month it reached 9.4% and this month it climbed again to 9.5%.
Understand, it’s worse than the Obama administration ever predicted it would be if the “stimulus” didn’t pass. It’s not a great leap to infer his stimulus plan actually made things worse than they would have been had it not passed! Below is the graph the administration put out to sell its “stimulus” plan, overlaid with the actual data for the last few months.
So much for salvation at the hands of our Socialist President.
John Allison III
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Early last month, LM Glasfiber in Little Rock announced it would cut more than 20% of it’s workforce because it doesn’t have enough orders. In this day and age, that doesn’t sound quite remarkable does it? But…
The plant makes windmill blades. You know, those giant windmills that produce clean energy that were going to sprout from the ground like spring daisies if the stimulus bill passed. These are green jobs being lost–the very jobs Obama announced would be created by HIS economic package.
June 8, 2009
Windmill blade maker LM Glasfiber said Monday it will lay off about 80 workers at its Port of Little Rock plant…
After the layoffs, about 300 people will remain on Glasfiber’s payroll…
Perhaps our President’s mathematical magicians will spin this as Obama saving 300 jobs.
So we’re losing green jobs, and non-green jobs, even though Congress has bowed and given the community organizer virtually everything he’s asked for, everything that he insisted would turn our economy around and result in millions and millions of green jobs. Where are they Mr. President?
How long will worshippers of the Obamessiah go on believing his nonsense? His supposed stimulus is a failure on all fronts.
Update–Check out this post on ARRA News Service that has John Boehner’s new video that features bloodhounds searching for the millions of jobs Obama’s stimulus was promised to create or save.
John Allison III
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And surprisingly, they keep coming from liberal California universities.
If you recall, the other day Michelle Malkin shook the dust off a 2005 UCLA study that found FDR’s massive economic recovery plan, The New Deal, actually prolonged The Great Depression. Still, Obama disregards such science and claims economists “from across the spectrum” agree that massive government spending is the only thing that can revive this economy.
Okay, well maybe he just thinks the conclusions reached in that study were wrong. Perhaps if there were others proving his plan (for which we’ve seen virtually no details, but he keeps assuring us it exists) wrong, maybe then he’d wake up and see the fallacy of his thinking.
Well, here’s a post on The American Thinker describing two studies, one from UC Berkeley and the other from UC San Diego, that conclude tax cuts produce more than twice the growth in GDP than government “stimulus” spending.
So we have three studies conducted by liberal universities in the solid blue state of California all concluding that a conservative approach to stimulus–primarily tax cuts–is more than twice as effective in accomplishing its goal than is a liberal approach–namely government spending.
History and economics tell us Obama’s strategy won’t work, but he’s charging ahead. Promising trillion dollar deficits (yes that’s $1,000,000,000,000) for the foreseeable future, but saying the alternative is really bad. His own economists have stated their predictions for growth can’t be trusted, but “The Smooth Talker from Chicago/Hawaii/Kenya/????” is dead set on pursuing this perilous path.
I’m afraid we’re in for a long, hard ride.
Once again Obama is setting the stage for taking a bad economy, making it worse, and claiming success.
We start this new year in the midst of an economic crisis unlike any we have seen in our lifetime. We learned yesterday that in the past month alone, we lost more than half a million jobs a total of nearly 2.6 million in the year