Did you know that we buy nearly five times as much stuff from the Chinese as they buy from us? According to government numbers that were just released, we imported 44.9 billion dollars worth of stuff from China in September but we only exported 9.3 billion dollars worth of stuff to them. And this is not happening because our economy is so much larger than China’s. In fact, the IMF says that China now has the largest economy on the entire planet on a purchasing power basis. No, the truth is that this is happening because our economy is broken. Every month, we consume far more wealth than we produce. Because the outflow of money is far greater than the inflow, we have to go to major exporting nations and beg them to lend our dollars back to us so that we can pay our bills. Meanwhile, the quality of the jobs in this country continues to go down and our formerly great manufacturing cities are rotting and decaying. We are committing national economic suicide, and most Americans don’t seem to care.
Barack Obama is constantly hyping a “manufacturing resurgence” in America, but the numbers don’t lie. In September, our manufactured goods trade deficit with the rest of the world soared to a new all-time record high of 69.16 billion dollars. For the year, we are nearly 12 percent ahead of last year’s record pace.
When we buy far more things than we sell, we get poorer as a nation.
How do you think that we ever got into a position of owing China more than a trillion dollars?
We just kept buying far more from them than they bought from us, and their money just kept piling up. Now it has gotten to the point where our politicians literally beg them to lend our money back to us. They are the head and we are the tail.
And we did this to ourselves.
Once upon a time, the United States was the greatest manufacturing powerhouse that the world had ever seen. But now China manufactures more stuff than us and China also accounts for more total global trade (imports plus exports) than us.
This should never have happened. Several decades ago, the Chinese economy was a complete joke. But decades of incredibly foolish decisions by our politicians have resulted in the loss of tens of thousands of manufacturing facilities, millions of good paying jobs and the destruction of vast stretches of our economic infrastructure.
During the same time frame, gleaming new manufacturing facilities have gone up all over China.
China is literally wiping the floor with us on the global economic stage and most Americans don’t even understand what is happening. Here is more on the trade deficit numbers that were just released from the RealityChek Blog…
>The China goods deficit of $35.56 billion blew past the old mark of $30.86 billion, set in July, by 15.23 percent. The new deficit also represented a 17.77 percent increase over the August level of $30.20 billion.
>U.S. goods exports to the still strongly growing Chinese economy fell on month in September from $9.63 billion to $9.33 billion (3.12 percent). U.S. merchandise imports from China jumped by 12.70 percent over August levels, from $39.83 billion to $44.89 billion – itself an all-time high.
>The U.S. goods deficit with China this year is now so far running 5.62 percent ahead of 2014’s record pace.
>The longstanding U.S. manufacturing trade shortfall shot up from $59.10 billion in August to $69.16 billion in September. This 17.02 percent jump resulted in a beat of the old record of $67.33 billion, also set in July, by 2.72 percent.
And it isn’t just cheap plastic trinkets that China is selling to us.
In fact, their number one export to us is computer equipment.
Meanwhile, one of our main exports to them is “scrap and trash”.
For much more on how China is absolutely dominating us, please see my previous article entitled “Not Just The Largest Economy – Here Are 26 Other Ways China Has Surpassed America“.
Sadly, there are a couple of factors that will probably make our trade deficit with the rest of the world even worse in the months ahead.
Number one, the currency war that I wrote about earlier this week will probably push the U.S. dollar even higher against the yen and the euro.
You might think that a rising dollar sounds good, but the truth is that it will make our exports less competitive in the global marketplace.
Nations such as Japan devalue their currencies so that they can sell more stuff to us. But that hurts our own domestic industries. And when our own domestic industries suffer, that means less jobs for American workers.
Secondly, the collapse in the price of oil could have very serious implications for the shale oil industry.
In recent years, the shale oil revolution has caused local economic booms in states such as Texas and North Dakota. But shale oil tends to be quite expensive to extract. As I write this, the price of U.S. oil has fallen to about 77 dollars a barrel. If it stays at that level or keeps going down, shale oil production in the United States will slow down dramatically.
In other words, a lot of these shale oil “boom towns” could go “bust” very rapidly.
If that happens, the amount of oil that we import will rise substantially and that will add to our overall trade deficit.
But of course the biggest factor fueling our trade deficit is that the vast majority of Americans simply do not care that we are committing national economic suicide.
When we buy products made in America, we support American businesses and American workers.
When we buy products made overseas, we hurt American businesses, we kill American jobs and we make ourselves poorer as a nation.
Of course there is nothing wrong with buying a foreign-made product once in a while. But this holiday season, most people will fill their shopping carts to the brim with foreign-made goods without even thinking twice about it.
The next time that you go into a huge retail establishment such as Wal-Mart, start picking up products and look to see where they were made.
I think that you will be shocked at how few of them are actually made inside the United States.
When are Americans going to get sick and tired of making China wealthier at our expense?
We are willing participants in the destruction of the U.S. economy, and yet only a small minority of people seem to care.
What is it going to take for people to finally wake up?
Barack Obama and the Federal Reserve are lying to you. The “economic recovery” that we all keep hearing about is mostly just a mirage. The percentage of Americans that are employed has barely budged since the depths of the last recession, the labor force participation rate is at a 36 year low, the overall rate of homeownership is the lowest that it has been in nearly 20 years and approximately 49 percent of all Americans are financially dependent on the government at this point. In a recent article, I shared 12 charts that clearly demonstrate the permanent damage that has been done to our economy over the last decade. The response to that article was very strong. Many people were quite upset to learn that they were not being told the truth by our politicians and by the mainstream media. Sadly, the vast majority of Americans still have absolutely no idea what is being done to our economy. For those out there that still believe that we are doing “just fine”, here are 19 more facts about the messed up state of the U.S. economy…
#1 After accounting for inflation, median household income in the United States is 8 percent lower than it was when the last recession started in 2007.
#2 The number of part-time workers in America has increased by 54 percent since the last recession began in December 2007. Meanwhile, the number of full-time jobs has dropped by more than a million over that same time period.
#3 More than 7 million Americans that are currently working part-time jobs would actually like to have full-time jobs.
#4 The jobs gained during this “recovery” pay an average of 23 percent less than the jobs that were lost during the last recession.
#5 The number of unemployed workers that have completely given up looking for work is twice as high now as it was when the last recession began in December 2007.
#6 When the last recession began, about 17 percent of all unemployed workers had been out of work for six months or longer. Today, that number sits at just above 34 percent.
#7 Due to a lack of decent jobs, half of all college graduates are still relying on their parents financially when they are two years out of school.
#8 According to a new method of calculating poverty devised by the U.S. Census Bureau, the state of California currently has a poverty rate of 23.4 percent.
#9 According to the New York Times, the “typical American household” is now worth 36 percent less than it was worth a decade ago.
#10 In 2007, the average household in the top 5 percent had 16.5 times as much wealth as the average household overall. But now the average household in the top 5 percent has 24 times as much wealth as the average household overall.
#11 In an absolutely stunning development, the rate of small business ownership in the United States has plunged to an all-time low.
#12 Subprime loans now make up 31 percent of all auto loans in America. Didn’t that end up really badly when the housing industry tried the same thing?
#13 The average cost of producing a barrel of shale oil in the United States is approximately 85 dollars. Now that the price of oil is starting to slip under that number, the “shale boom” in America could turn into a bust very rapidly.
#14 On a purchasing power basis, China now actually has a larger economy than the United States does.
#15 It is hard to believe, but there are 49 million people that are dealing with food insecurity in America today.
#16 There are six banks in the United States that pretty much everyone agrees fit into the “too big to fail” category. Five of them have more than 40 trillion dollars of exposure to derivatives.
#17 The 113 top earning employees at the Federal Reserve headquarters in Washington D.C. make an average of $246,506 a year. It turns out that ruining the U.S. economy is a very lucrative profession.
#18 We are told that the federal deficit is under control, but the truth is that the U.S. national debt increased by more than a trillion dollars during fiscal year 2014.
#19 An astounding 40 million dollars has been spent just on vacations for Barack Obama and his family. Perhaps he figures that if we are going down as a nation anyway, he might as well enjoy the ride.
If our economy truly was “recovering”, there would be lots of good paying middle class jobs available.
But that is not the case at all.
I know so many people in their prime working years that spend day after day searching for a job. Most of them never seem to get anywhere. It isn’t because they don’t have anything to offer. It is just that the labor market is absolutely saturated with qualified job seekers.
For example, USA Today recently shared the story of 42-year-old Alex Gomez…
“I’ve had to seriously downgrade my living situation,” said Alex Gomez, a 42-year-old with a master’s degree in entrepreneurship. Gomez lost his last full-time job in 2009 and has been looking for work since a short-term contract position ended in 2012.
Gomez’s home was foreclosed on, so the Tampa resident lives with three roommates in a college neighborhood. He drained his 401(k) trying to save his house, and he has around $150,000 in student loans. His mother is tapping her 401(k) to pay his rent. Gomez subsists on that and about $200 a month in food stamps.
“I have been applying and looking for pretty much anything at this stage,” he said. Although he’s looking for work in engineering or data management, “I applied to a supermarket as a deli clerk because I used to be a deli clerk as a teenager,” he said. He was told he was overqualified and turned down.
Does Alex Gomez have gifts and abilities to share with our society?
Of course he does.
So why can’t he find a job?
It is because we have a broken economy.
We are in the midst of a long-term economic decline and the system simply does not work properly anymore.
And thanks to decades of very foolish decisions, this is only the start of our problems.
Things are only going to get worse from here.
Most people that discuss the “economic collapse” focus on what is coming in the future. And without a doubt, we are on the verge of some incredibly hard times. But what often gets neglected is the immense permanent damage that has been done to the U.S. economy by the long-term economic collapse that we are already experiencing. In this article I am going to share with you 12 economic charts that show that we are in much, much worse shape than we were five or ten years ago. The long-term problems that are eating away at the foundations of our economy like cancer have not been fixed. In fact, many of them continue to get even worse year after year. But because unprecedented levels of government debt and reckless money printing by the Federal Reserve have bought us a very short window of relative stability, most Americans don’t seem too concerned about our long-term problems. They seem to have faith that our “leaders” will be able to find a way to muddle through whatever challenges are ahead. Hopefully this article will be a wake up call. The last major wave of the economic collapse did a colossal amount of damage to our economic foundations, and now the next major wave of the economic collapse is rapidly approaching.
The mainstream media is constantly telling us about the “employment recovery” that is happening in the United States, but the truth is that it is just an illusion. As the chart below demonstrates, just prior to the last recession about 63 percent of all working age Americans had a job. During the last wave of the economic collapse, that number dropped to below 59 percent and stayed there for a very long time. In the past few months we have finally seen the employment-population ratio tick back up to 59 percent, but we are still far, far below where we used to be. To call the tiny little bump at the end of this chart a “recovery” is really an insult to our intelligence…
#2 The Labor Force Participation Rate
The percentage of Americans that are either employed or currently looking for a job started to fall during the last recession and it has not stopped falling since then. The labor force participation rate has now fallen to a 36 year low, and this is a sign of a very, very sick economy…
#3 The Inactivity Rate For Men In Their Prime Years
Some blame the decline in the labor force participation rate on the aging of our population. But it isn’t just elderly people that are dropping out of the labor force. In fact, the inactivity rate for men in their prime working years (25 to 54) continues to rise and is now at the highest level that has ever been recorded…
#4 Manufacturing Employees
Once upon a time in America, anyone that was reliable and willing to work hard could easily find a manufacturing job somewhere. But we have stood by and allowed millions upon millions of good paying manufacturing jobs to be shipped out of the country, and now many of our formerly great manufacturing cities have been transformed into ghost towns. Over the past few years, there has been a slight “recovery”, but we are still well below where we were at just previous to the last recession…
#5 Our Current Account Balance
As a nation, we buy far more from the rest of the world than they buy from us. In other words, we perpetually consume far more wealth than we produce. This is a recipe for national economic suicide. Our current account balance soared to obscene levels just prior to the last recession, and now we have almost gotten back to those levels…
#6 Existing Home Sales
Our economy has never fully recovered from the housing crash of 2007-2008. As you can see from the chart below, the number of existing home sales is still far below the level that we hit back in 2006. At this point we are just getting back to the level we were at in 2000, but our population today is far larger than it was back then…
#7 New Home Sales
Things are even more dramatic when you look at new home sales. This is an industry that have been absolutely emasculated. The number of new home sales in the United States is just a little more than half of what it was back in 2000, and it isn’t even worth comparing to what we experienced during the peak of 2006.
#8 The Monetary Base
In a desperate attempt to get the economy going again, the Federal Reserve has been wildly printing money. It has been so reckless that it is hard to put it into words. When I look at this chart, the phrase “Weimar Republic” comes to mind…
#9 Food Inflation
Thankfully, much of the money that the Federal Reserve has been injecting into the system has not made it into the real economy. But enough of it has gotten into the system to force food prices significantly higher. For example, my wife went to the store today and paid just a shade under 10 bucks for just four pieces of chicken. And as you can see from the chart below, food prices have been steadily going up in America for a very long time…
#10 The Velocity Of Money
One of the reasons why we have not seen even more inflation is because the velocity of money is extraordinarily low. In general, when an economy is healthy money tends to flow through the system rapidly. People are buying and selling and money changes hands frequently. But when an economy is sick, money tends to stagnate. And that is exactly what is happening in the United States right now. In fact, at this point the velocity of the M2 money stock has dropped to the lowest level ever recorded…
#11 The National Debt
As our economic fundamentals have deteriorated, our politicians have attempted to prop up our standard of living by borrowing from the future. The U.S. national debt is on pace to approximately double during the Obama years, and it increased by more than a trillion dollars in fiscal year 2014 alone. Despite assurances that “the deficit is under control”, the federal government borrows about a trillion dollars a year to fund new spending in addition to borrowing about 7 trillion dollars to pay off old debt that is coming due. What we are doing to future generations of Americans is absolutely criminal, and it is just a matter of time before this Ponzi scheme totally collapses…
#12 Total Debt
Of course it is not just the federal government that is gorging on debt. When you add up all forms of debt in our society (government, business, consumer, etc.) it comes to a grand total of more than 57 trillion dollars. This total has more than doubled since the year 2000…
If you know anyone that believes that we are in good economic shape, just show them these charts.
The numbers do not lie. Our economy is sick and it is getting sicker by the day.
And of course the next major financial crisis could strike at any time. U.S. stocks just experienced their worst week in three years, and if cases of Ebola start popping up around the country the fear that would cause could collapse our economy all by itself.
The debt-fueled prosperity that we are enjoying today is not real. We are living on the fumes of our past, and every single day our long-term problems get even worse.
Anyone with half a brain should be able to see what is coming.
Sadly, most Americans will continue to deny the truth until it is far too late.
If you are fortunate enough to have a job in America today, the phrase “just over broke” probably describes you. Yes, there are a handful of jobs that certainly pay very well, but most Americans that work for somebody else are just barely making it from month to month. More than half of all working Americans are living paycheck to paycheck, and more than half of all working Americans make less than $30,000 a year. That is an amazing statistic but it is actually true. Once upon a time, anyone that was responsible and that was willing to work hard could get a good job in America. But now those days are long gone. Instead, we live at a time when good jobs are disappearing and when the middle class is getting smaller with each passing year. In some homes, the husband and the wife are both working multiple jobs and they can still barely pay their bills. Something has gone horribly wrong, and yet our leaders just keep telling us how wonderful our economy is.
One of the biggest things that has killed jobs in this country is the fact that the U.S. economy has been steadily merged into the emerging one world economic system over the past several decades. They call it “free trade”, but they never told us that we would be merged into a single global labor pool where we would be competing directly for jobs with workers on the other side of the planet that live in nations where it is legal to pay slave labor wages.
According to Gallup, only about 1.3 billion people around the world work full-time for an employer at this point.
But overall there are more than 7 billion people.
That means that there are a whole lot of really poor, really desperate people that need to be employed.
This has been wonderful for the big corporations. They can just take jobs away from American workers and give them to people who are willing to work for less than a tenth of what an American worker would make. This has resulted in the systematic deindustrialization of the United States and horrific decline in dozens of formerly great manufacturing cities.
At the same time, we have also been losing millions of middle class jobs to technology. At this point, robots are even starting to replace warehouse workers and fast food employees. As robots become even more advanced and become even cheaper to produce, there will be less jobs available for the rest of us.
And what happens when robots can do everything better than us?
Because there are fewer middle class jobs available, the competition for the remaining jobs has become incredibly intense. In recent years, millions of Americans have been forced to take just about anything that they can get. For those Americans, “just over broke” has become “just trying to survive” as they scratch and claw their way through life.
A recent CNBC article profiled one such individual. His name is Ken Bowman, and his job at a guitar shop just barely enables him to pay his rent and feed himself…
Ken Bowman joins the line for a free lunch in the Youngstown Salvation Army canteen, just like he does every Friday.
Looking younger than his 21 years, his hair dyed jet black and wearing big, battered boots, Bowman plays heavy metal on his cell phone. He chooses a seat at the end of a table and sits hunched over his tray, his blues eyes furtively sweeping the room. The others sit in packs, regulars who’ve formed lunchtime friendships over their burnt coffee and peppered corn, discussing the jobs they once had and the government benefits they no longer get.
Bowman is sensitive to the stigma of accepting handouts like lunch. “[It] doesn’t mean you’re homeless or poor, people have standards but they struggle,” he said, his chin jutting out, his eyes glowering.
After paying his rent, Bowman says his job in a guitar shop leaves him with $50 a month to live on — if he can get shifts. He is one of America’s “underemployed,” a group of as many as 11 million Americans struggling to survive in society’s shadows on wages that put them below the federal poverty line.
There are millions of others out there just like Bowman. In fact, as I mentioned in a previous article, one out of every four part-time workers in America is living below the poverty line. The “working poor” is a phrase that describes a very large segment of the U.S. population today.
And the cold, hard truth of the matter is that most of the country is steadily getting poorer. According to a study recently discussed in the New York Times, the “typical American household” is now worth 36 percent less than it was worth a decade ago. That is a staggering decline in just ten years.
Meanwhile, the cost of living continues to rise. This is something that I have discussed repeatedly, but sometimes a picture can say things far better than any words can.
The photo posted below has been floating around on Twitter. It is of a McDonald’s menu from the 1960s. As you can see, prices have gone up a little bit since then…
Most people think that I am crazy when I tell them that I can remember a cup of coffee being sold for a quarter when I was young. But it is true. Over the long-term, our purchasing power has been systematically destroyed by the insane polices of the Federal Reserve.
Sadly, most Americans don’t understand any of this. They just trust that our leaders actually know what they are doing. Meanwhile, they just keep on struggling to survive in an economic system that is stacked against them.
According to one recent study, 40 percent of all households in the United States are experiencing financial stress right now and the homeownership rate for Americans under the age of 35 is at an all-time low.
In the old days, if you got your education, worked hard and did all the right things, it was just about an automatic ticket to the middle class.
Today it doesn’t work like that.
Instead, more Americans than ever are being forced to become dependent on the government. If you can believe it, Americans received more than 2 trillion dollars in benefits from the federal government last year alone.
So it astounds me whenever I hear anyone say that the economy is in “good shape”.
How can it be in “good shape” when one out of every three adults in the United States has an unpaid debt that is “in collections” and there are 49 million Americans that are dealing with food insecurity?
The truth is that we are in the midst of a long-term economic decline that is the result of decades of incredibly foolish decisions.
Until the American people start understanding what has happened to us, they are never going to demand real change that actually accomplishes something.
Today, more than 10,000 Baby Boomers will retire. This is going to happen day after day, month after month, year after year until 2030. It is the greatest demographic tsunami in the history of the United States, and we are woefully unprepared for it. We have made financial promises to the Baby Boomers worth tens of trillions of dollars that we simply are not going to be able to keep. Even if we didn’t have all of the other massive economic problems that we are currently dealing with, this retirement crisis would be enough to destroy our economy all by itself. During the first half of this century, the number of senior citizens in the United States is being projected to more than double. As a nation, we are already drowning in debt. So where in the world are we going to get the money to take care of all of these elderly people?
The Baby Boomer generation is so massive that it has fundamentally changed America with each stage that it has gone through. When the Baby Boomers were young, sales of diapers and toys absolutely skyrocketed. When they became young adults, they pioneered social changes that permanently altered our society. Much of the time, these changes were for the worse.
According to the New York Post, overall household spending peaks when we reach the age of 46. And guess what year the peak of the Baby Boom generation reached that age?…
People tend, for instance, to buy houses at about the same age — age 31 or so. Around age 53 is when people tend to buy their luxury cars — after the kids have finished college, before old age sets in. Demographics can even tell us when your household spending on potato chips is likely to peak — when the head of it is about 42.
Ultimately the size of the US economy is simply the total of what we’re all spending. Overall household spending hits a high when we’re about 46. So the peak of the Baby Boom (1961) plus 46 suggests that a high point in the US economy should be about 2007, with a long, slow decline to follow for years to come.
And according to that same article, the Congressional Budget Office is also projecting that an aging population will lead to diminished economic growth in the years ahead…
Lost in the discussion of this week’s Congressional Budget Office report (which said 2.5 million fewer Americans would be working because of Obamacare) was its prediction that aging will be a major drag on growth: “Beyond 2017,” said the report, “CBO expects that economic growth will diminish to a pace that is well below the average seen over the past several decades [due in large part to] slower growth in the labor force because of the aging of the population.”
So we have a problem. Our population is rapidly aging, and an immense amount of economic resources is going to be required to care for them all.
Unfortunately, this is happening at a time when our economy is steadily declining.
The following are some of the hard numbers about the demographic tsunami which is now beginning to overtake us…
1. Right now, there are somewhere around 40 million senior citizens in the United States. By 2050 that number is projected to skyrocket to 89 million.
2. According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.
3. One poll discovered that 26 percent of all Americans in the 46 to 64-year-old age bracket have no personal savings whatsoever.
4. According to a survey conducted by the Employee Benefit Research Institute, “60 percent of American workers said the total value of their savings and investments is less than $25,000″.
5. 67 percent of all American workers believe that they “are a little or a lot behind schedule on saving for retirement”.
6. A study conducted by Boston College’s Center for Retirement Research found that American workers are $6.6 trillion short of what they need to retire comfortably.
7. Back in 1991, half of all American workers planned to retire before they reached the age of 65. Today, that number has declined to 23 percent.
8. According to one recent survey, 70 percent of all American workers expect to continue working once they are “retired”.
9. A poll conducted by CESI Debt Solutions found that 56 percent of American retirees still had outstanding debts when they retired.
10. A study by a law professor at the University of Michigan found that Americans that are 55 years of age or older now account for 20 percent of all bankruptcies in the United States. Back in 2001, they only accounted for 12 percent of all bankruptcies.
11. Today, only 10 percent of private companies in the U.S. provide guaranteed lifelong pensions for their employees.
12. According to Northwestern University Professor John Rauh, the total amount of unfunded pension and healthcare obligations for retirees that state and local governments across the United States have accumulated is 4.4 trillion dollars.
13. Right now, the American people spend approximately 2.8 trillion dollars on health care, and it is being projected that due to our aging population health care spending will rise to an astounding 4.5 trillion dollars in 2019.
14. Incredibly, the United States spends more on health care than China, Japan, Germany, France, the U.K., Italy, Canada, Brazil, Spain and Australia combined.
15. If the U.S. health care system was a country, it would be the 6th largest economy on the entire planet.
16. When Medicare was first established, we were told that it would cost about $12 billion a year by the time 1990 rolled around. Instead, the federal government ended up spending $110 billion on the program in 1990, and the federal government spent approximately $600 billion on the program in 2013.
17. It is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.
18. At this point, Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years. That comes to approximately $328,404 for every single household in the United States.
19. In 1945, there were 42 workers for every retiree receiving Social Security benefits. Today, that number has fallen to 2.5 workers, and if you eliminate all government workers, that leaves only 1.6 private sector workers for every retiree receiving Social Security benefits.
20. Right now, there are approximately 63 million Americans collecting Social Security benefits. By 2035, that number is projected to soar to an astounding 91 million.
21. Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years.
22. The U.S. government is facing a total of 222 trillion dollars in unfunded liabilities during the years ahead. Social Security and Medicare make up the bulk of that.
So where are we going to get the money?
That is a very good question.
The generations following the Baby Boomers are going to have to try to figure out a way to navigate this crisis. The bright future that they were supposed to have has been destroyed by our foolishness and our reckless accumulation of debt.
But do they actually deserve a “bright future”? Perhaps they deserve to spend their years slaving away to support previous generations during their golden years. Young people today tend to be extremely greedy, self-centered and lacking in compassion. They start blogs with titles such as “Selfies With Homeless People“. Here is one example from that blog…
Of course not all young people are like that. Some are shining examples of what young Americans should be.
Unfortunately, those that are on the right path are a relatively small minority.
In the end, it is our choices that define us, and ultimately America may get exactly what it deserves.
Americans have never had less economic freedom than they do right now. The 2014 Index of Economic Freedom has just been released, and it turns out that the level of economic freedom in the United States has now fallen for seven consecutive years. But of course none of us need a report or a survey to tell us that. All we have to do is open our eyes and look around. At this point our entire society is completely dominated by control freaks and bureaucrats. Our economy is literally being suffocated to death by millions of laws, rules and regulations and each year brings a fresh tsunami of red tape. As you will see below, the U.S. government issued more than 80,000 pages of brand new rules and regulations last year on top of what we already had. Even if we didn’t have all of the other monumental economic problems that we are currently facing, all of this bureaucracy alone would be enough to kill our economy.
Yes, every society needs a few basic rules. We would have total chaos if we did not have any laws at all. But in general, when there is more economic freedom there tends to be more economic prosperity. In fact, the greatest period of economic growth in U.S. history was during a time when the federal government was much smaller, there was no Federal Reserve and there was no income tax. Most Americans do not know this.
Those that founded this nation intended for it to be a place where freedom was maximized and government intrusion into our lives was minimized.
If they were still alive today, they would be absolutely horrified. We are literally drowning in red tape.
The photo posted below was shared by U.S. Senator Mike Lee on his Facebook page. Study it carefully…
The following is what he had to say about this photo…
“Behold my display of the 2013 Federal Register. It contains over 80,000 pages of new rules, regulations, and notices all written and passed by unelected bureaucrats. The small stack of papers on top of the display are the laws passed by elected members of Congress and signed into law by the president.”
I didn’t even see the small stack of paper at the top of the cabinet until I read his explanation. Most of the time everyone is so focused on what Congress is doing, but the truth is that the real oppression is happening behind the scenes as unelected federal bureaucrats pump out millions upon millions of useless regulations that are systematically killing our economic freedom.
On Tuesday, an article about the 2014 Index of Economic Freedom was published by the Wall Street Journal. As I mentioned above, the United States has fallen for seven years in a row…
World economic freedom has reached record levels, according to the 2014 Index of Economic Freedom, released Tuesday by the Heritage Foundation and The Wall Street Journal. But after seven straight years of decline, the U.S. has dropped out of the top 10 most economically free countries.
That same article mentioned some of the reasons why the United States is falling…
It’s not hard to see why the U.S. is losing ground. Even marginal tax rates exceeding 43% cannot finance runaway government spending, which has caused the national debt to skyrocket. The Obama administration continues to shackle entire sectors of the economy with regulation, including health care, finance and energy. The intervention impedes both personal freedom and national prosperity.
And of course the results are predictable. Our economy has been steadily declining for many years, and that decline appears to be ready to start picking up speed once again. The following is an excerpt from a recent article by Dave in Denver…
In the latest retail sales report for December, auto sales were nailed – down 1.8%. The only reason overall retail sales from November to December showed a slight “gain” that November’s number was revised lower. Electronics fell off of a cliff. The housing market is about to get crushed. Feedback I’m getting from my Seeking Alpha articles and blog posts on housing from housing market professionals all around the country tells me that the housing market hit a wall at the end of 2013, as I have been forecasting.
What he said about the housing market is definitely true. In recent months, mortgage originations have been falling like a rock. Just check out this chart.
And as I wrote about the other day, there has been absolutely no employment recovery since the end of the last recession. In fact, 1,687,000 fewer Americans have jobs today compared to exactly six years ago even though the population has grown significantly since then.
Unfortunately, these are not just “cyclical problems”. Long ago we abandoned the fundamental principles that once made our economy great, and now we are paying a tremendous price for that.
Posted below is a story that has been circulating all over the Internet for quite some time. It is a fake story. Once again, let me repeat that. This is a fake story. But I think that it does a great job of illustrating what is happening to America as we march toward full-fledged socialism…
An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.
The professor then said, “OK, we will have an experiment in this class on Obama’s plan”.. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A…. (substituting grades for dollars – something closer to home and more readily understood by all).
After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.
The second test average was a D! No one was happy. When the 3rd test rolled around, the average was an F. As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.
To their great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. Could not be any simpler than that.
But of course it would be disingenuous to pin all of the blame for this just on Obama. The truth is that our nation has continued to march toward socialism no matter who has been in the White House and no matter who has been in control of Congress. So if you want to place some of the blame on a “Bush” or a “Clinton” or a “Boehner” or a “Pelosi” please feel free.
And the American people are getting sick and tired of this one party system that has two heads. According to a recent Gallup survey, only 29 percent of all Americans consider themselves to be Democrats right now. And the news was even worse for Republicans. According to that survey, only 24 percent of all Americans consider themselves to be Republicans at this point.
A staggering 45 percent of all Americans now consider themselves to be Independents. Deep down, most Americans know that something is seriously wrong with our nation and that they are being lied to be our politicians and the mainstream media.
Unfortunately, there is very little agreement about how to fix things because Americans do not have a set of shared values that we all agree on anymore.
So what do you think? Do you believe that you know how to fix things? If so, please feel free to share your plan by posting a comment below…