After eight long, bitter years under Obama, will things go better for entrepreneurs and small businesses now that Donald Trump is in the White House? Once upon a time, America was the best place in the world for those that wanted to work for themselves. Our free market capitalist system created an environment in which entrepreneurs and small businesses greatly thrived, but today they are being absolutely eviscerated by the control freak bureaucrats that dominate our political system. Year after year, leftist politicians just keep piling on more rules, more regulations, more red tape and more taxes. As a result, the number of self-employed Americans is now lower than it was in 1990…
In April 1990, 8.7 million Americans were self-employed, but today only 8.4 million Americans are self-employed.
Of course our population has grown much, much larger since that time. In 1990, there were 249 million people living in the United States, but today there are 321 million people living in this country.
What this means is that the percentage of the population that is self-employed is way down.
In fact, one study found that the percentage of Americans that are self-employed fell by more than 20 percent between 1991 and 2010.
And if you go back even farther, the numbers are even more depressing. It may be hard to believe, but the percentage of “new entrepreneurs and business owners” declined by a staggering 53 percent between 1977 and 2010.
Sometimes I like to watch a television show called Shark Tank, and on that show they make it seem like entrepreneurship in America is thriving.
But the exact opposite is actually the case. In a previous article, I discussed how the number of new businesses being created in the United States has been steadily falling over the years. According to economist Tim Kane, the number of startup jobs per one thousand Americans has been declining for several consecutive presidential administrations…
Bush Sr.: 11.3
Bush Jr.: 10.8
So why is this happening?
As I mentioned at the top of this article, self-employed Americans are being absolutely strangled by oppressive rules, regulations and taxes.
To illustrate this point, I would like to share with you some quotes from an open letter that was authored by a small business owner named Don Chernoff…
#1 I work for myself and have to pay my own medical expenses. Before the “affordable care act” I was paying about $200 per month for a high deductible policy. It was far from perfect but it got so much worse under the “Affordable” care act.
I now pay over $400 a month, my deductible went from $5,000 to over $6,000 and my out of pocket costs for care have skyrocketed.
#2 I have to spend dozens of hours and thousands of dollars for a tax accountant each spring to prepare my taxes because I cannot possibly understand how to do it myself, and I have a master’s degree in engineering.
#3 Many years ago when I quit a perfectly good job to start my own small business, I was shocked to learn that I had to pay both my share and what had been my employer’s share of Social Security.
#4 Between state, federal and local taxes you’ve probably paid 50% or more of your income in taxes, but that’s not enough for politicians.
If you’ve been lucky enough to have created a business you can sell, now you’ll get to enjoy paying another tax on the capital gain from the sale.
This is another reason why we need a conservative revolution in Washington. We should demand that our members of Congress lower tax rates dramatically, completely eliminate the self-employment tax, greatly simplify the tax code and get rid of as many regulations on small business owners as possible.
In fact, if it was up to me I would abolish a number of federal agencies completely.
What we are doing right now is not working. Small businesses have traditionally been one of the main engines of economic growth in this country, but thanks to the left they are unable to play that role at the moment.
It isn’t an accident that over the last ten years the U.S. economy has grown at exactly the same rate as it did during the 1930s.
If we want our economy to be great again, we need to go back and start doing the things that made it great in the first place. If we continue to suffocate our economy, we will continue to get the same results.
And with each passing day, we get more signs that the economy is heading into another major downturn. For instance, we just learned that Sears is closing 30 more stores on top of the 150 that had already been announced…
Sears Holdings, which wasn’t shy when it announced at the start of the year that it is closing 150 underperforming stores, has quietly added at least 30 more to the list.
Another 12 Sears stores and 18 Kmarts are among the locations that are closing, from Carson, Calif., to Hialeah, Fla., with most scheduled to shut their doors in July, based on calls to the stores, malls and confirmation in local media.
At the start of the year, the retailer pinpointed the 150 stores it said it would close. But it declined this week to provide a list of additional locations that are slated to shut since then, saying that it update store counts each quarter.
In addition, we just learned that new home sales in April were 11.4 percent lower than they were in March…
If you’re surprised by the collapse in new home sales in April, then you’re not paying attention.
The 11.4% MoM plunge in new home sales in April was 5 standard deviations below expectations and the biggest since March 2015.
Yes, the stock market is holding up for the moment, but for most Americans the “real economy” just continues to deteriorate. Just because we are at the end of a giant financial bubble does not mean that everything is going to be okay.
The numbers that I brought up in this article are just another example of our long-term economic decline. In a healthy economy, entrepreneurs and small businesses would be thriving. But instead, they are being systematically strangled out of existence by a political system that is wildly out of control.
It would be a grave mistake to understate the amount of damage that has been done to the U.S. economy over the past eight years. In this article, I am going to share some economic numbers with you that are extremely sobering. Anyone that takes a cold, hard, honest look at the numbers should be able to see that our economy is in terrible shape. Unfortunately, the way that we see things is often clouded by our political views. Up until the election, Democrats were far more likely then Republicans to believe that the economy was improving, but now that is in the process of completely reversing. According to Gallup, only 16 percent of Republicans believed that the economy was getting better before the election, but that number has suddenly jumped to 49 percent after Trump’s election victory. And the percentage of Democrats that believe that the economy is getting better fell from 61 percent to 46 percent after the election. Here are some additional details from Gallup…
After Trump won last week’s election, Republicans and Republican-leaning independents now have a much more optimistic view of the U.S. economy’s outlook than they did before the election. Just 16% of Republicans said the economy was getting better in the week before the election, while 81% said it was getting worse. Since the election, 49% say it is getting better and 44% worse.
Conversely, Democrats and Democratic-leaning independents’ confidence in the economy plummeted after the election. Before the election, 61% of Democrats said the economy was getting better and 35% worse. Now, Democrats are evenly divided, with 46% saying it is getting better and 47% saying it is getting worse.
The truth, of course, is that the result of the election did not somehow magically alter the outlook for the U.S. economy.
We still have a giant mess on our hands, and the following are 11 very depressing economic realities that Donald Trump will inherit from Barack Obama…
#1 Nearly 7 out of every 10 Americans have less than $1,000 in savings. That means that about two-thirds of the country is essentially living paycheck to paycheck at this moment.
#2 Reuters is reporting that U.S. mall investors are poised to lose “billions” of dollars as the “retail apocalypse” in this nation deepens.
#3 Credit card delinquencies have hit the highest level that we have seen since 2012.
#4 Approximately 35 percent of all Americans have a debt that is at least 180 days past due.
#5 The rate of homeownership has fallen for eight years in a row and is now hovering near a 50 year low.
#6 The total number of government employees now outnumbers the total number of manufacturing employees in this country by almost 10 million.
#7 The number of homeless people in New York City (where Donald Trump is from) has hit a brand new record high.
#8 About 20 percent of all young adults are currently living with their parents.
#9 Total household debt in the United States has now reached a grand total of 12.3 trillion dollars.
#10 The total amount of corporate debt in the U.S. has nearly doubled since the end of 2007.
#11 When Barack Obama entered the White House, the U.S. government was 10.6 trillion dollars in debt. Today, the U.S. national debt is currently sitting at a staggering total of $19,842,173,949,869.58.
Despite nearly doubling the national debt during his eight years in the White House, Barack Obama is going to be the only president in United States history to never have a single year when U.S. GDP grew by at least three percent.
So will Donald Trump waltz in and suddenly turn everything around?
Just like when George W. Bush was elected, there is a lot of optimism about the future right now among Republicans.
And in 2017, Republicans are going to have control of the Senate and the House in addition to being in control of the White House.
But does that mean that they will actually get anything done?
For a moment, let’s review what didn’t happen the last time the Republicans were in this position. The following is an extended excerpt from an article by author Devvy Kidd…
The Republicans had control of both houses of Congress part of the time during Bush, Jr.’s two terms. Did they lock down our borders? NO.
Did they pass legislation to stop ALL funding for illegals which would self-deport millions of liars, cheats and thieves? NO. (READ, please: How to Self-Deport Millions of Illegals)
Did they stop trillions in unconstitutional spending? NO.
Did they get rid of any of Clinton’s unconstitutional Executive Orders? One or two but otherwise let Comrade Bill Clinton crap in our faces.
Did they get rid of one unconstitutional cabinet like HHS, Department of Education and EPA? NO.
Did they stop the unconstitutional foreign aid? NO.
Did they stop unconstitutional spending for Planned Parenthood? NO. Congress just continues to use borrowed money to spend more debt.
Did they stop unconstitutional spending for the gigantic hoax called global warming or climate change? NO. Trump: The Left Just Lost The War On Climate Change
Did Bush, Jr., get us out of all the destructive trade treaties killing American jobs? NO.
Did they crack down on visas bringing in tens of thousands of foreign workers when American workers who want to work are left in the unemployment line? NO.
Did they stop more and more federal regulations strangling America’s businesses? NO.
Did they impeach one single activist judge destroying our freedom and liberty? NO.
A Republican controlled Congress with a Republican in the White House and they did virtually NOTHING to restore America to a constitutional republic and constitutional spending.
So will things be any different under a Trump administration?
We shall see.
There will be tremendous pressure to maintain the status quo in many instances, because the process of fixing things would undoubtedly make conditions worse in the short-term.
A great example of this is the national debt. As I discussed yesterday, the only reason why we are able to enjoy such a massively inflated standard of living in this country is because we have been able to borrow trillions upon trillions of dollars from the rest of the world at ultra-low interest rates.
If the federal government started spending only the money that it brought in through taxes, our ridiculous debt-fueled standard of living would begin collapsing immediately.
We consume far more wealth than we produce, and the only way that we are able to do this is by borrowing insane amounts of money.
Either Donald Trump will continue to borrow money recklessly, or we will go into a major league economic downturn.
It really is that simple.
But when our politicians borrow money, they are literally destroying the future of this country. So the choice is pain in the short-term or greater pain in the long-term.
There is a way out, and that would involve shutting down the Federal Reserve and going to a completely debt-free form of money, but that is a topic for another article.
And unfortunately that is not something that is even on Donald Trump’s radar at this point.
No matter who won the election, the next president was going to be faced with some very harsh economic realities.
There are many out there that have faith that Donald Trump can pull off an unprecedented economic miracle, but there are others that are deeply skeptical.
Let us hope for the best, but let us also keep preparing for the worst.
We continue to get more evidence that the U.S. economy has entered a major downturn. Just last week, I wrote about how U.S. GDP growth numbers have been declining for three quarters in a row, and previously I wrote about how corporate defaults have surged to their highest level since the last financial crisis. Well, now we are getting some very depressing numbers from the rail industry. As you will see below, U.S. rail traffic was down more than 11 percent from a year ago in April. That is an absolutely catastrophic number, and the U.S. rail industry is feeling an enormous amount of pain right now. This also tells us that “the real economy” is really slowing down, because less stuff is being shipped by rail all over the nation.
One of the economic commentators that I have really come to respect is Wolf Richter of WolfStreet.com. He has a really sharp eye for what is really going on in the economy and in the financial world, and I find myself quoting him more and more as time goes by. If you have not checked out his site yet, I very much encourage you to do so.
On Wednesday, he posted a very alarming article about what is happening to our rail industry. The kinds of numbers that we have been seeing recently are the kinds of numbers that we would expect if an economic depression was starting. The following is an excerpt from that article…
Total US rail traffic in April plunged 11.8% from a year ago, the Association of American Railroads reported today. Carloads of bulk commodities such as coal, oil, grains, and chemicals plummeted 16.1% to 944,339 units.
The coal industry is in a horrible condition and cannot compete with US natural gas at current prices. Coal-fired power plants are being retired. Demand for steam coal is plunging. Major US coal miners – even the largest one – are now bankrupt. So in April, carloads of coal plummeted 40% from the already beaten-down levels a year ago.
Because rail traffic is down so dramatically, many operators have large numbers of engines that are just sitting around collecting dust. In his article, Wolf Richter shared photographs from Google Earth that show some of the 292 Union Pacific engines that are sitting in the middle of the Arizona desert doing absolutely nothing. The following is one of those photographs…
As Wolf Richter pointed out, it costs a lot of money for these engines to just sit there doing nothing…
These engines are expensive pieces of equipment. When they just sit there, not pulling trains, they become “overcapacity,” and they get very expensive. Then there are engineers and other personnel who suddenly become unproductive. Some of them have already been laid off or are getting laid off.
All over the world, similar numbers are coming in. For example, the Baltic Dry Index fell 30 more points on Wednesday after falling 21 on Tuesday. Global trade is really, really slowing down during the early portion of 2016. What this means on a practical level is that a lot less stuff is being bought, sold and shipped around the planet.
It is becoming increasingly difficult for authorities to deny that a new global recession has begun, and at this moment we are only in the very early chapters of this new crisis.
Another thing that I watch very closely is the velocity of money. When an economy is healthy, people feel pretty good about things and money tends to circulate fairly rapidly. For example, I may buy something from you, then you may buy something from someone else, etc.
But when times get tough, people tend to hold on to their money more tightly, and that is why the velocity of money goes down when recessions hit. In the chart below, the shaded areas represent recessions, and you can see that the velocity of money has declined during every single recession in the post-World War II era…
During the last recession, the velocity of money declined precipitously, and that makes perfect sense. But then a funny thing happened. There was a slight bump up once the recession was over, but then it turned down again and it has kept going down ever since.
In fact, the velocity of money has now dropped to an all-time low. The velocity of M2 just recently dipped below 1.5 for the first time ever.
This is not a sign of an “economic recovery”. What this tells us is that our economy is very, very sick.
And we can see evidence of this sickness all around us. For instance, the Los Angeles Times is reporting that homelessness in Los Angeles increased by 11 percent last year, and this marked the fourth year in a row that homelessness in the city has increased…
Homelessness rose 11% in the city of Los Angeles and 5.7% in the county last year despite an intensive federal push that slashed the county ranks of homeless veterans by nearly a third, according to a report released Wednesday.
The increase marks the fourth consecutive year of rising homelessness in L.A., as local officials struggle to identify funding for billion-dollar plans they approved to solve the nation’s most intractable homeless problem.
Let us also not forget that about half the country is basically flat broke at this point.
Just recently, the Federal Reserve found that 47 percent of all Americans could not pay an unexpected $400 emergency room bill without selling something or borrowing the money from somewhere.
With numbers such as these being reported, how in the world can anyone possibly claim that the U.S. economy is in good shape?
It boggles the mind, and yet there are people out there that would actually have you believe that everything is just fine.
The current occupant of the White House is one of them.
With each passing month, the real economy is getting even worse. We may not have slipped into a full-blown economic depression just yet, but it is coming.
For now, let us be thankful for whatever remains of our debt-fueled prosperity, because we don’t deserve the massively inflated standard of living that we have been enjoying.
We have been consuming far more than we produce for decades, but it won’t last for much longer. And when those days are gone for good, we will mourn them bitterly.
Ten years ago, a major Hollywood film entitled “Idiocracy” was released, and it was an excellent metaphor for what would happen to America over the course of the next decade. In the movie, an “average American” wakes up 500 years in the future only to discover that he is the most intelligent person by far in the “dumbed down” society that he suddenly finds himself in. Sadly, I truly believe that if people of average intellect from the 1950s and 1960s were transported to 2016, they would likely be considered mental giants compared to the rest of us. We have a country where criminals are being paid $1000 a month not to shoot people, and the highest paid public employee in more than half the states is a football coach. Hardly anyone takes time to read a book anymore, and yet the average American spends 302 minutes a day watching television. 75 percent of our young adults cannot find Israel on a map of the Middle East, but they sure know how to find smut on the Internet. It may be hard to believe, but there are more than 4 million adult websites on the Internet today, and they get more traffic than Netflix, Amazon and Twitter combined.
What in the world has happened to us? How is it possible that we have become so stupid? According to a brand new report that was recently released, almost 10 percent of our college graduates believe that Judge Judy is on the Supreme Court…
The American Council of Trustees and Alumni publishes occasional reports on what college students know.
Nearly 10 percent of the college graduates surveyed thought Judith Sheindlin, TV’s “Judge Judy,” is a member of the U.S. Supreme Court. Less than 20 percent of the college graduates knew the effect of the Emancipation Proclamation. More than a quarter of the college graduates did not know Franklin D. Roosevelt was president during World War II; one-third did not know he was the president who spearheaded the New Deal.
It can be tempting to laugh at numbers like these until you realize that survey after survey has come up with similar results.
Just consider what Newsweek found a few years ago…
When NEWSWEEK recently asked 1,000 U.S. citizens to take America’s official citizenship test, 29 percent couldn’t name the vice president. Seventy-three percent couldn’t correctly say why we fought the Cold War. Forty-four percent were unable to define the Bill of Rights. And 6 percent couldn’t even circle Independence Day on a calendar.
Even worse were the extremely depressing results of a study conducted a few years ago by Common Core…
*Only 43 percent of all U.S. high school students knew that the Civil War was fought some time between 1850 and 1900.
*More than a quarter of all U.S. high school students thought that Christopher Columbus made his famous voyage across the Atlantic Ocean after the year 1750.
*Approximately a third of all U.S. high school students did not know that the Bill of Rights guarantees freedom of speech and freedom of religion.
*Only 60 percent of all U.S. students knew that World War I was fought some time between 1900 and 1950.
Of course survey results can be skewed, and much hinges on how the questions are asked.
However, even studies that are scientifically conducted confirm how stupid America has become. In fact, a report from the Educational Testing Service found that Americans are falling way behind much of the rest of the industrialized world. The following comes from CBS News…
Americans born after 1980 are lagging their peers in countries ranging from Australia to Estonia, according to a new report from researchers at the Educational Testing Service (ETS). The study looked at scores for literacy and numeracy from a test called the Program for the International Assessment of Adult Competencies, which tested the abilities of people in 22 countries.
The results are sobering, with dire implications for America. It hints that students may be falling behind not only in their early educational years but at the college level. Even though more Americans between the ages of 20 to 34 are achieving higher levels of education, they’re still falling behind their cohorts in other countries. In Japan, Finland and the Netherlands, young adults with only a high school degree scored on par with American Millennials holding four-year college degrees, the report said.
Out of 22 countries that were part of the study, the Educational Testing Service found that Americans were dead last in tech proficiency, dead last in numeracy and only two countries performed worse than us when it came to literacy proficiency…
Half of American Millennials score below the minimum standard of literacy proficiency. Only two countries scored worse by that measure: Italy (60 percent) and Spain (59 percent). The results were even worse for numeracy, with almost two-thirds of American Millennials failing to meet the minimum standard for understanding and working with numbers. That placed U.S. Millennials dead last for numeracy among the study’s 22 developed countries.
So why has this happened?
Why have we become such an extremely stupid nation?
Well, at least a portion of the blame must be directed at our system of education. The following is an excerpt from an article written by reporter Mark Morford. In this article, he shared how one of his friends which had served for a very long time as a high school teacher in Oakland, California was considering moving out of the country when he retired due to the relentless “dumb-ification of the American brain”…
It’s gotten so bad that, as my friend nears retirement, he says he is very seriously considering moving out of the country so as to escape what he sees will be the surefire collapse of functioning American society in the next handful of years due to the absolutely irrefutable destruction, the shocking — and nearly hopeless — dumb-ification of the American brain. It is just that bad.
Now, you may think he’s merely a curmudgeon, a tired old teacher who stopped caring long ago. Not true. Teaching is his life. He says he loves his students, loves education and learning and watching young minds awaken. Problem is, he is seeing much less of it.
And of course things don’t get much better when it comes to our college students. In a previous article, I shared some statistics from USA Today about the rapidly declining state of college education in the United States…
-“After two years in college, 45% of students showed no significant gains in learning; after four years, 36% showed little change.”
-“Students also spent 50% less time studying compared with students a few decades ago”
-“35% of students report spending five or fewer hours per week studying alone.”
-“50% said they never took a class in a typical semester where they wrote more than 20 pages”
-“32% never took a course in a typical semester where they read more than 40 pages per week.”
I spent eight years studying at some of the finest public universities in the country, and I can tell you from personal experience that even our most challenging college courses have been pathetically dumbed down.
And at our “less than finest” public universities, the level of education can be something of a bad joke. In another previous article, I shared some examples of actual courses that have been taught at U.S. universities in recent years…
-“What If Harry Potter Is Real?”
-“Lady Gaga and the Sociology of Fame”
-“Philosophy And Star Trek”
-“Learning From YouTube”
-“How To Watch Television”
Could you imagine getting actual college credit for a course entitled “What If Harry Potter Is Real?”
This is why many of our college graduates can barely put two sentences together. They aren’t being challenged, and the quality of the education most of them are receiving is incredibly poor.
But even though they aren’t being challenged, students are taking longer to get through college than ever. Federal statistics reveal that only 36 percent of all full-time students receive a bachelor’s degree within four years, and only 77 percent of all full-time students have earned a bachelor’s degree by the end of six years.
Of course our system of education is not entirely to blame. The truth is that young Americans spend far more time consuming media than they do hitting the books, and what passes for “entertainment” these days is rapidly turning their brains to mush.
According to a report put out by Nielsen, this is how much time the average American spends consuming media on various devices each day…
Watching live television: 4 hours, 32 minutes
Watching time-shifted television: 30 minutes
Listening to the radio: 2 hours, 44 minutes
Using a smartphone: 1 hour, 33 minutes
Using Internet on a computer: 1 hour, 6 minutes
When you add it all up, the average American spends more than 10 hours a day plugged into some form of media.
And if you allow anyone to pump “programming” into your mind for 10 hours a day, it is going to have a dramatic impact.
In the end, I truly believe that we all greatly underestimate the influence that the mainstream media has on all of us. We willingly plug into “the Matrix” for endless hours, but then somehow we still expect “to think for ourselves”.
There are very few of us that can say that we have not been exposed to thousands upon thousands of hours of conditioning. And all of that garbage can make it very, very difficult to think clearly.
It is not because of a lack of input that we have become so stupid as a society. The big problem is what we are putting into our minds.
If we continue to put garbage in, we are going to continue to get garbage out, and that is the cold, hard reality of the matter.
What is the worst possible outcome for the presidential election of 2016? Assuming that an election will actually take place, that is an easy question to answer – Hillary Rodham Clinton as the next president of the United States. She is truly evil in every sense of the word, and the implications of what four (or eight) years of Hillary would mean for our nation are almost too terrible to imagine. That is why it is so depressing watching what is happening to the Republican Party right now. The civil war in the Republican Party is ripping it to shreds, and as a result of all this warfare every plausible scenario for what will happen the rest of the way ends with Hillary Clinton winning the 2016 election.
According to the Associated Press, here is how the Republican delegate count stands as of right now…
Donald Trump: 384
Ted Cruz: 300
Marco Rubio: 151
John Kasich: 37
Ted Cruz looks like he is within shooting distance of Trump, but that is an illusion. The early part of the schedule was full of states where Cruz was expected to do well, but now the map is going to work very much against him.
At this point, the only candidate that looks like he may be able to accumulate 1,237 delegates before the convention is Trump, and that is far from guaranteed. So far, Trump has won approximately 44 percent of the delegates during the caucuses and primaries. By the time it is all said and done, he will need to have slightly more than 60 percent of all the delegates awarded during the caucuses and primaries to guarantee himself the nomination before the Republican convention. That is because there are hundreds of delegates that are not awarded during the caucuses and the primaries, and almost all of those delegates are members of the Republican establishment.
Trump can still get there by racking up large delegate totals in winner-take-all states such as California, but it will be a challenge. The entire Republican Party establishment, Fox News, Glenn Beck and a significant number of other prominent conservative voices have all declared war on Trump. In fact, there are super PACs that are going to spend tens of millions of dollars doing nothing but trying to destroy Trump.
If the Republican Party actually wanted to beat Hillary Clinton in November, they should be rallying around Trump and trying to help him, because he would definitely need a lot of help to win the general election.
According to Real Clear Politics, the latest three polls all have Trump losing to Clinton by at least 5 points. In key states such as Michigan, the numbers are quite a bit more dismal. Over the next few months, those numbers are likely to get even worse as Trump is savagely assaulted by the Republican establishment and relentlessly bombarded by tens of millions of dollars of negative attack ads. Meanwhile, Clinton is cruising along virtually unscathed.
Of course in a just world Hillary Clinton would have already been arrested and put in prison. There is no possible way that she should be running for president of the United States. Unfortunately, we live in a deeply corrupt society, and this is the way that things work.
If by some miracle he does survive to become the nominee, a significantly weakened Trump would then have to face the full power of the Clinton political machine. It is estimated that a billion dollars could be spent on the Democratic side this time around, and Trump does not have the resources to match that. Normally big Republican donors rally around the nominee, but in this case the big money is fighting like crazy to defeat Trump. In a general election matchup, it really would be David vs. Goliath, and Trump would not be Goliath.
If Donald Trump does not accumulate 1,237 delegates before the convention, then we would be headed for what is known as a “brokered convention“. The rules are very complicated, but the key thing to remember is that the delegates are only bound for the first vote. After that, they can vote for whoever they want.
And it is very important to note that the campaigns don’t pick their delegates. Becoming a delegate is a long and tedious process in most states, and most of them are party loyalists.
In the end, a “brokered convention” would almost certainly result in an establishment candidate being chosen as the nominee. Needless to say, the names “Trump” and “Cruz” would not be on that list.
Have you noticed that Mitt Romney has started to put himself out there lately? His verbal attacks on Trump have been absolutely scathing, and he told Fox News that he would not say no if he was “drafted” to become the nominee at the Republican convention…
Romney, a former Massachusetts governor and the Republicans’ 2012 presidential nominee, repeated remarks from last week, telling “Fox News Sunday” that he wouldn’t launch an eleventh-hour campaign for president. But he declined to reject being “drafted” at the GOP convention in July to be the party’s general election candidate.
“It would be absurd to say that if I were drafted I’d say no,” Romney said.
Behind the scenes, much more is going on. In fact, CNN is reporting that Romney’s team is actively working on a plan to steal the nomination from Trump at the convention…
Mitt Romney has instructed his closest advisers to explore the possibility of stopping Donald Trump at the Republican National Convention, a source close to Romney’s inner circle says.
The 2012 GOP nominee’s advisers are examining what a fight at the convention might look like and what rules might need revising.
“It sounds like the plan is to lock the convention,” said the source.
If Romney does emerge as the nominee, does anyone actually believe that he will defeat Clinton?
Of course not. Trump’s millions of supporters will be absolutely infuriated, and many of them would absolutely refuse to cast a vote for Romney in the general election.
In the end, it would be the same result – a victory for Hillary Clinton.
The next few weeks are going to be very interesting. If Trump wins Florida and Ohio, there is going to be a lot of pressure on Marco Rubio and John Kasich to get out of the race, and the path to 1,237 delegates would appear to be clear.
However, Mitt Romney could attempt to derail the Trump bandwagon by jumping in the race after March 15th. Romney’s goal would be to capture enough delegates in winner-take-all states such as California to keep Trump from getting to the magic number of 1,237. If Romney could do that, he knows that he would likely come out of a brokered convention as the nominee.
But no matter what happens on the Republican side from this point forward, it is going to take a miracle of epic proportions to keep Hillary Clinton from winning the presidency. Every plausible scenario ends with her in the White House, and that is a truly horrible thing to imagine.
Their names are familiar to all of us: Cleveland, Flint, Youngstown, Saginaw, Gary, Toledo, Reading, Akron, Flint and Buffalo were all once booming manufacturing cities that were absolutely packed with thriving middle class families. But now most of the manufacturing jobs are gone and all of those cities are just shadows of their former selves. When you drive through many of these communities, you will notice that a lot of people have a really hollow look in their eyes. Decades of slow, steady economic decline have really taken a toll, and even the architecture in these cities looks depressed. But despite all of the decay, there is still evidence that there was once something truly great about these communities. Will we be able to recapture that greatness before it is too late?
A lot of writers make economics really complicated, but the truth is that it does not have to be. For example, if you want your country to have a great economy it has got to produce wealth. And one of the primary ways to produce wealth is to make stuff. Immediately after World War II, the United States had the greatest manufacturing base the world had ever seen and we outproduced the rest of the planet combined. Great manufacturing cities sprouted up all over America and the middle class thrived. It was truly a great time to be an American.
But then we decided to start shipping in cheaper products from overseas. At first it didn’t create too much of a problem for our massive economy, but eventually the floodgates opened up and we lost tens of thousands of manufacturing facilities and millions upon millions of good paying jobs. Our labor pool was merged with the labor pool of countries such as communist China where it is legal to pay slave labor wages to manufacturing workers. Needless to say, our workers could not compete with that and our middle class started to shrink rapidly.
Today, there are many American cities that were once truly great that are now truly frightening to visit. For example, a recent CNBC article detailed the plight of Reading, Pennsylvania…
In August 2008, factory workers David and Barbara Ludwig treated themselves to new cars—David a Dodge pickup, Barbara a sporty Mazda 3. With David making $22 an hour and Barbara $19, they could easily afford the payments.
A month later, Baldwin Hardware, a unit of Stanley Black & Decker, announced layoffs at the Reading plant where they both worked. David was unemployed for 20 months before finding a janitor job that paid $10 an hour, less than half his previous wage. Barbara hung on, but she, too, lost her shipping-dock job of 26 years as Black & Decker shifted production to Mexico. Now she cleans houses for $10 an hour while looking for something permanent.
They still have the cars. The other trappings of their middle-class lifestyle? In the rear-view mirror.
I once had an aunt that lived in Reading. She is dead now, and so is most of the city. At this point, more than 40 percent of those living in Reading are impoverished and the city government is flat broke.
But similar things could also be said about the rest of the Rust Belt…
Perhaps no other region in the country has more eerie examples of urban decay than the once dominant industrial region known as the Rust Belt. Covering the Midwestern states of Illinois, Indiana, Michigan, Ohio and Pennsylvania, the region is plagued by a number of abandoned factories, houses and buildings that lay in crumbling ruins.
You can see some incredible photographs by Seph Lawless of the decay in the Rust Belt right here. The pictures are incredibly depressing, but it doesn’t take too much imagination to see that these cities were once truly impressive.
Just take Gary, Indiana for instance. It was once known as “the Magic City” because it was doing so well, but now it is a rotting, decaying hellhole. The following is from an excerpt from a Daily Mail article about Gary…
Gary, a struggling city 30 miles south of Chicago along the shores of Lake Michigan, is a prime example of the trend.
Known as the ‘Magic City’ in the roaring 1920s for its spectacular growth, Gary is still home to U.S. Steel’s largest plant, but the number of mill jobs has shrunk to 5,000 from 30,000 in the 1970s.
Gary’s population in 1960 was more than 178,000, but it disintegrated to just 79,000 by 2012.
Some one-third of its residents live in poverty and the home and business vacancy rate is about 35 percent. Gary recorded 43 murders in 2012 – three times as many per capita as nearby Chicago.
At one time, Gary was the envy of the rest of the globe.
But now very few people would ever want to willingly live there.
The following is how James Kunstler described what he saw when he traveled through Gary, Indiana…
Between the ghostly remnants of factories stood a score of small cities and neighborhoods where the immigrants settled five generations ago. A lot of it was foreclosed and shuttered. They were places of such stunning, relentless dreariness that you felt depressed just imagining how depressed the remaining denizens of these endless blocks of run-down shoebox houses must feel. Judging from the frequency of taquerias in the 1950s-vintage strip-malls, one inferred that the old Eastern European population had been lately supplanted by a new wave of Mexicans. They had inherited an infrastructure for daily life that was utterly devoid of conscious artistry when it was new, and now had the special patina of supernatural rot over it that only comes from materials not found in nature disintegrating in surprising and unexpected ways, sometimes even sublimely, like the sheen of an oil slick on water at a certain angle to the sun. There was a Chernobyl-like grandeur to it, as of the longed-for end of something enormous that hadn’t worked out well.
Sadly, what is happening to Reading and Gary is just a preview of what is slowly happening to the entire nation as a whole.
Since 2001, the United States has lost more than 56,000 manufacturing facilities.
That is absolutely astounding.
Most of those jobs have gone overseas. That is why it seems like most of our products say “Made in China” these days. They are getting rich while our communities suffer, and then we have to beg the Chinese to lend our money back to us.
Meanwhile, we have a permanent epidemic of unemployment in this country. Back in the 1980s, over 20 percent of the jobs in the U.S. were manufacturing jobs. Today, only about 9 percent of the jobs in the U.S. are manufacturing jobs.
And an astounding number of our young men are just sitting at home instead of doing something productive. As I wrote about the other day, one out of every six men in their prime working years (25 to 54) do not have a job at this point.
Also, the percentage of working age Americans not participating in the labor force is up to 37.2 percent – a 36 year high.
Not only that, but the quality of our jobs has also steadily declined as we have lost good paying manufacturing jobs to overseas workers.
Right now, half the country makes $27,520 a year or less from their jobs.
No wonder the middle class is dying.
And of course there is so much more that could be said about this. For even more numbers about our manufacturing decline, please see my previous article entitled “Shocking Facts About The Deindustrialization Of America That Everyone Should Know“.
These problems were not created overnight, and they are not going to be solved overnight either.
But as a nation, we have got to understand that we cannot consume our way to prosperity. That is only going to result in even more debt.
Instead, we have got to make the decision to produce our way to prosperity.
In other words, we have got to start making stuff in this country again.
That may sounds “crazy” to a lot of people, but it is possible. We have just got to have the willingness to do it.
Why are so many young adults in America living with their parents? According to a stunning Gallup survey that was recently released, nearly three out of every ten adults in the United States under the age of 35 are still living at home with Mom and Dad. This closely lines up with a Pew Research Center analysis of Census data that looked at a younger sample of Americans which found that 36 percent of Americans 18 to 31 years old were still living with their parents. That was the highest level that had ever been recorded. Overall, approximately 25 million U.S. adults are currently living at home with their parents according to Time Magazine. So what is causing all of this? Well, there are certainly a lot of factors. Overwhelming student loan debt, a depressing lack of jobs and the high cost of living are all definitely playing a role. But many would argue that what we are witnessing goes far beyond temporary economic conditions. There are many that believe that we have fundamentally failed our young people and have neglected to equip them with the skills and values that they need to be successful in the real world.
More Americans than ever before seem to be living in a state of “perpetual adolescence”. As Gallup noted, one of the keys to adulthood is to be able to establish independence from your parents…
An important milestone in adulthood is establishing independence from one’s parents, including finding a job, a place to live and, for most, a spouse or partner, and starting one’s own family. However, there are potential roadblocks on the path to independence that may force young adults to live with their parents longer, including a weak job market, the high cost of living, significant college debt, and helping care for an elderly or disabled parent.
Unfortunately, it is becoming increasingly difficult for young people to become financially independent. While they are in high school, we endlessly pound into their heads the need to go to college. Then we urge them to take out whatever loans that they will need to pay for it, ensuring them that they will be able to get “good jobs” which will enable them to pay off those loans when they graduate.
Of course a very large percentage of them find that there aren’t any “good jobs” waiting for them when they graduate. But because of the crippling loans that they have accumulated, they quickly realize that they have decades of debt slavery ahead of them.
Just consider the following numbers about the growth of student loan debt in the United States…
-The total amount of student loan debt in the United States has risen to a brand new all-time record of 1.08 trillion dollars.
-Student loan debt accounted for 3.1 percent of all consumer debt in 2003. Today, it accounts for 9.4 percent of all consumer debt.
-In the third quarter of 2007, the student loan delinquency rate was 7.6 percent. Today, it is up to 11.5 percent.
This is a student loan debt bubble unlike anything that we have ever seen before, and it seems to get worse with each passing year.
So when is the bubble going to finally burst?
Meanwhile, our young adults are still really struggling to find jobs.
For those in the 18 to 29-year-old age bracket, it is getting even harder to find full-time employment. In June 2012, 47 percent of those in that entire age group had a full-time job. One year later, in June 2013, only 43.6 percent of that entire age group had a full-time job.
And in many ways, things are far tougher for those that didn’t finish college than for those that did. In fact, the unemployment rate for 27-year-old college dropouts is nearly three times as high as the unemployment rate for those that finished college.
In addition, since Barack Obama has been president close to 40 percent of all 27-year-olds have spent at least some time unemployed.
So it should be no surprise that 27-year-olds are really struggling financially. Only about one out of every five 27-year-olds owns a home at this point, and an astounding 80 percent of all 27-year-olds are in debt.
Even if a young adult is able to find a job, that does not mean that it will be enough to survive on. The quality of jobs in America continues to go downhill and so do wages.
The ratio of what men in the 18 to 29-year-old age bracket are earning compared to what the general population is earning is at an all-time low, and American families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.
No wonder so many young people are living at home. Trying to survive in the real world is not easy.
Many of those that are trying to make it on their own are really struggling to do so. Just consider the case of Kevin Burgos. He earns $10.50 an hour working as an assistant manager at a Dunkin Donuts location in Hartford, Connecticut. According to CNN, he can’t seem to make enough to support his family no matter how hard he works…
He works 35 hours each week to support his family of three young children. All told, Burgos makes about $1,800 each month.
But his bills for basic necessities, including rent for his two-bedroom apartment, gas for his car, diapers and visits to the doctor, add up to $2,400. To cover these expenses without falling short, Burgos would need to make at least $17 per hour.
“I am always worried about what I’m going to do for tomorrow,” Burgos said.
There are millions of young people out there that are pounding their heads against the wall month after month trying to work hard and do the right thing. Sometimes they get so frustrated that they snap. Just consider the following example…
Health officials have temporarily shut down a southern West Virginia pizza restaurant after a district manager was caught on surveillance video urinating into a sink.
Local media reported that the Mingo County health department ordered the Pizza Hut in Kermit, about 85 miles southwest of Charleston, to shut down.
But as I mentioned earlier, instead of blaming young people for their failures, perhaps we need to take a good, long look at how we have raised them.
The truth is that our public schools are a joke, SAT scores are at an all-time low, and we have pushed nearly all discussion of morality, values and faith out of the public square.
No wonder most of our young people are dumb as a rock and seem to have no moral compass.
Or could it be possible that I am being too hard on them?
Please feel free to share what you think by posting a comment below…
If you know someone that believes that the U.S. economy is in great shape, just show that person the following statistics. But please don’t show these statistics to anyone that is feeling depressed or that has just lost a job – it might push such a person over the edge. The sad truth is that the U.S. economy is in the midst of a long-term decline and it is coming apart at the seams. Right now the Obama administration and the Federal Reserve are attempting to “paper over” our economic problems with massive amounts of government debt and paper currency, but in the end it is not going to work. When you analyze the numbers objectively, it leads to the inescapable conclusion that we are headed for another Great Depression. That is a very depressing thought, but there is no denying that decades of debt and incredibly bad decisions are starting to catch up with us. The economic pain that is coming is going to be absolutely mind blowing.
It would be nice if our politicians and our business leaders suddenly started making incredibly wise decisions so that we could bring the U.S. economy in for a “soft landing”, but the chance of that happening is so small that it is not even worth mentioning.
It is time for all of us to face up to the truth. In this day and age it is really easy to get caught up in the trap of feeling depressed, but once we understand exactly how bad our problems are it can be empowering because then we can start focusing on solutions.
The following are 27 depressing statistics about the U.S. economy that are almost too crazy to believe….
#1 The Obama administration projects that the federal budget deficit will be approximately $1,600,000,000,000 this year. Right now the Republicans and the Democrats are fighting tooth and nail over budget cuts. The Republicans are proposing to cut the budget deficit by 3.8%. The Democrats only want to cut it by 2.1%.
#2 The U.S. economy actually grew more between 1930 and 1940 than it did during the decade that recently ended.
#3 Over the last decade, the number of Americans without health insurance has risen from about 38 million to about 52 million.
#4 Agricultural commodities are absolutely soaring. The price of corn has more than doubled over the last 12 months. Considering the fact that corn is in literally thousands of our food products, that is a very frightening statistic.
#5 Between 1999 and 2009, real median household income in the United States declined by 5.0%.
#6 It is being estimated that total U.S. government debt will grow by 42 percent by the year 2015.
#7 According to the Pentagon, the cost of the first week of attacks on Libya was 600 million dollars.
#8 The average American now spends approximately 23 percent of his or her income on food and gas.
#9 According to the U.S. Energy Department, the average U.S. household will spend approximately $700 more on gasoline in 2011 than it did during 2010.
#10 It is being projected that for the first time ever, the OPEC nations are going to bring in over a trillion dollars from exporting oil this year. Their biggest customer is the United States.
#11 According to the Economic Policy Institute, almost 25 percent of U.S. households now have zero net worth or negative net worth. Back in 2007, that number was just 18.6 percent.
#12 China produced 19.8 percent of all the goods consumed in the world last year. The United States only produced 19.4 percent.
#13 The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.
#14 The U.S. trade deficit with China in 2010 was 27 times larger than it was back in 1990.
#15 U.S. home values have fallen an astounding 6.3 trillion dollars since the peak of the real estate market in 2005.
#16 According to RealtyTrac, one out of every 45 U.S. households was hit with a foreclosure filing in 2010.
#17 The number of homes that were actually repossessed reached the 1 million mark for the first time ever during 2010.
#18 New home sales in the United States set a brand new all-time record low in the month of February.
#19 Now home sales in the United States are now down 80% from the peak in July 2005.
#20 The financial condition of American families continues to deteriorate rapidly. In 2010, one out of every eight American families had at least one family member that was unemployed. That number was the highest it has been since the U.S. Labor Department began keeping track of that statistic back in 1994.
#21 There are now more than 6 million Americans that the government says have given up looking for work completely.
#22 According to the U.S. Bureau of Labor Statistics, the average length of unemployment in the U.S. is now an all-time record 39 weeks.
#23 Americans now owe more than $900 billion on student loans, which is also an all-time record high.
#24 Average household debt in the United States has now reached a level of 136% of average household income.
#25 According to the Federal Reserve, between 2007 and 2009 median household net worth in the United States fell by 23 percent.
#26 The Federal Reserve also says that median household debt in the United States has risen to $75,600.
#27 According to a recent article posted on the website of the American Institute of Economic Research, the purchasing power of a U.S. dollar declined from $1.00 in 1913 to 4.6 cents in 2009. Sadly, the Federal Reserve is working very hard to get rid of the little bit of purchasing power that the U.S. dollar has left.