The Man Without A Plan

Barack Obama is a man without a plan.  When you are young, they often tell you to “fake it until you make it”, but Barack Obama is taking this to ridiculous extremes.  Barack Obama has absolutely no idea what he is doing when it comes to the economy, and yet he continues to give speeches in which he declares that he is the man for the job.  The State of the Union speech the other night was just abysmal.  The federal government is spending way too much money, and yet Barack Obama is proposing even more government spending.  Entrepreneurs and small businesses are being taxed into oblivion and yet Barack Obama is proposing even higher taxes.  Our economy is being strangled to death by crippling regulations, and yet Barack Obama is proposing a vast array of new regulations.  Barack Obama always gives a nice speech, but it has become appallingly evident that he is totally out of ideas.  So our country will continue to drift aimlessly along without a direction and without a plan until the next financial tsunami comes along and makes things even worse.

And the American people are starting to clue in to the fact that Obama does not have a plan and does not have anything new to say.  Just check out how the audiences for his State of the Union addresses have declined each year….

2009: 52.3 million

2010: 48 million

2011: 42.8 million

2012: 37.8 million

His ratings are falling almost as fast as the ratings for American Idol are.

It is amazing how Barack Obama can use so many words to say so very little.

He always tickles our ears but then he never delivers the goods.  Toward the beginning of his speech the other night, he made the following statement….

“Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last—an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values”

Well, that sounds pretty good.  Except for the fact that everything he has done for the past 3 years has been the exact opposite of that.

It is almost as if he woke up that morning and decided that he would try the whole “do the opposite” thing once made famous by George Costanza on Seinfeld.

Obama says that our employment situation is getting better, but that is not really true.  The only way that the federal government can claim that there is an 8.5 percent unemployment rate is because they have decided that millions of Americans that have been unemployed for a long time should not be considered “part of the workforce” any longer.

If the number of Americans that were considered to be part of the workforce was the same today as it was back in 2007, the “official” unemployment rate put out by the U.S. government would be up to approximately 11 percent.

Sadly, the number of Americans that are dependent on the government continues to soar even higher.

Since Barack Obama took office, the number of Americans on food stamps has actually increased by 14 million.

Things have not gotten better for average Americans.

They have gotten worse.

In fact, 10 million more Americans have fallen below the poverty line since 2006.  And in 2010, more Americans fell into poverty than ever before.

A lot of people out there are really hurting, and the American people deserve some real answers.

But instead, Obama was saying stuff like this the other night….

“I intend to fight obstruction with action, and I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place”

Oh really?

What is Obama actually doing about the things that caused the last financial crisis?

The “financial reform” bill was a complete and total joke.  Obama has been shamefully soft on the big Wall Street banks that caused the last crisis.

Today, the “too big to fail” banks are larger than ever.  The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.

So now they are more of a danger to the financial system than ever.

And not a single Wall Street executive has gone to jail for what they did during the last financial crisis.

Thanks Obama.

But of course Obama was never going to seriously go after Wall Street.

After all, they are the ones that fund his campaigns.

Most Americans don’t realize this, but 3 of the top 7 donors to Obama’s campaign in 2008 were “too big to fail” banks.

And the Obama administration has been absolutely packed with ex-Wall Street bankers.  Last year, Michael Brenner wrote the following about the composition of the Obama administration….

Wall Street’s takeover of the Obama administration is now complete. The mega-banks and their corporate allies control every economic policy position of consequence. Mr. Obama has moved rapidly since the November debacle to install business people where it counts most. Mr.William Daley from JP Morgan Chase as White House Chief of Staff. Mr. Gene Sperling from the Goldman Sachs payroll to be director of the National Economic Council. Eileen Rominger from Goldman Sachs named director of the SEC’s Investment Management division. Even the National Security Advisor, Thomas Donilon, was executive vice president for law and policy at the disgraced Fannie Mae after serving as a corporate lobbyist with O’Melveny & Roberts. The keystone of the business friendly team was put in place on Friday. General Electric Chairman and CEO Jeffrey Immelt will serve as chair of the president’s Council on Jobs and Competitiveness.

During his State of the Union address, Obama also promised to bring manufacturing jobs back to America….

“Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs”

That sounds great, except for the fact that Obama has been doing everything he can to get more American jobs shipped out of the country.

The Obama administration has been aggressively pushing new “free trade” agreements with Panama, South Korea and Colombia.  The Obama administration has also made the Trans-Pacific Partnership (“the NAFTA of the Pacific“) an extremely high priority.

And of course we have all seen how wonderfully the first NAFTA worked out.

Our “free trade” policies have been an absolute nightmare for the American worker.

During 2010, an average of 23 manufacturing facilities a day shut down in the United States.  Overall, more than 56,000 manufacturing facilities in the United States have shut down since 2001.

We are bleeding jobs at a pace that is hard to believe.

Amazingly, the United States has lost an average of 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.

Yet Obama promises more of the same and that is  supposed to help?

During his speech, Obama correctly noted that many foreign manufacturers are heavily subsidized….

“It’s not fair when foreign manufacturers have a leg up on ours, only because they’re heavily subsidized”

So are we going to deeply penalize those that have been cheating?

Are we going to warn them that we will stop trading with them unless they stop?

Of course not.

Obama is going to do next to nothing to stop what China and other predatory nations are doing to us.

Today, the United States spends approximately 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States, and the U.S. trade deficit with China in 2010 was 27 times larger than it was back in 1990.

But the Obama administration doesn’t seem to care much about these things.

In fact, just check out what U.S. Trade Representative Ron Kirk told Tim Robertson of the Huffington Post about the Obama administration’s attitude toward keeping manufacturing jobs in America….

Let’s increase our competitiveness… the reality is about half of our imports, our trade deficit is because of how much oil [we import], so you take that out of the equation, you look at what percentage of it are things that frankly, we don’t want to make in America, you know, cheaper products, low-skill jobs that frankly college kids that are graduating from, you know, UC Cal and Hastings [don’t want], but what we do want is to capture those next generation jobs and build on our investments in our young people, our education infrastructure.

Oh, but Obama now says that he is going to toughen up on trade….

“I’m announcing the creation of a Trade Enforcement Unit that will be charged with investigating unfair trading practices in countries like China. There will be more inspections”

Oh boy – “inspections” – yeah, that is really going to have the Chinese shaking in their boots.

Meanwhile, the Chinese just keep hitting us with new tariffs.  According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States will now cost about $85,000 in China thanks to these new tariffs.

So is Obama going to hit China with tough new tariffs in return?

Of course not.

Meanwhile, our economy continues to bleed businesses and jobs.  According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades if current trends continue.

But if you listen to Obama, he makes it seem like many of our industries are in better shape than ever….

“We bet on American ingenuity, and tonight the American auto industry is back.”

Yes, the American auto industry is no longer on the brink of bankruptcy, but it is not “back”.  Just consider the following stats….

*In 1970, General Motors had about a 60 percent share of the U.S. automobile market.  Today, that figure is down to about 20 percent.

*Back in 2000, about 17 million new automobiles were sold in the United States.  During 2011, less than 13 million new automobiles were sold in the United States.

*Japan builds more cars than anyone else on the globe.  Japan now manufactures about 5 million more automobiles than the United States does.

*Since Alan Mulally became CEO of Ford, the company has reduced its North American workforce by nearly half.

*In the year 2000, the U.S. auto industry employed more than 1.3 million Americans.  Today, the U.S. auto industry employs about 698,000 people.

Obama bailed out the auto industry, and they responded by sending even more of our jobs overseas.

During his speech, Obama declared that there will be no more bailouts….

“No bailouts, no handouts, and no copouts.”

That is kind of funny because Obama is basically the all-time champion of handing out bailouts.

If Barack Obama and John McCain had not aggressively pushed for the Wall Street bailouts back in 2008, they never would have happened.

And once Obama became president, there was a seemingly endless parade of bailouts and “stimulus packages”.

So what do you honestly think he will do when the next financial crisis happens?  Do you think he would actually be able to resist the temptation for more bailouts?

Obama also says that he wants to spend more money on training for American workers….

“Join me in a national commitment to train two million Americans with skills that will lead directly to a job.”

But the American people already have enough training.  There are tons of college-educated Americans that are among the ranks of the unemployed right now.

What the American people need are jobs.

Unfortunately, jobs are leaving this country at an unprecedented pace.

Back in the year 2000, more than 20 percent of all jobs in America were manufacturing jobs.  Today, about 5 percent of all jobs in America are manufacturing jobs.

Not only that, but our incomes are also going down.  Because U.S. workers now have to compete for jobs with workers that make slave labor wages on the other side of the globe, pay in this country continues to decline.

A recent White House reported entitled “Investing in America: Building an Economy That Lasts” actually bragged that our trade policies have driven wages in America down.  The following chart is from that report….

The Obama administration has been very good for the largest corporations.

For the rest of us, not so much.

But Obama now says that he wants America to be a place that encourages entrepreneurs and small businesses to thrive….

“It means we should support everyone who’s willing to work; and every risk-taker and entrepreneur who aspires to become the next Steve Jobs.”

Unfortunately, the reality is that the federal government is strangling entrepreneurs and small businesses to death with taxes and crippling regulations.

According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006.  Today, that number has shrunk to 14.5 million.

That is not a good trend.

And right now small businesses are extremely hesitant to bring on new workers.

One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers in the coming year.

So obviously what the Obama administration is doing is not working.

During his speech, Obama also spoke of developing our own energy resources….

“A future where we are in control of our own energy, and our security and prosperity aren’t so tied to unstable parts of the world.”

Hopefully most of those watching laughed when they heard this, because this had to have been a joke.

America is absolutely swimming in oil and natural gas, and yet the Obama administration has blocked the development of those resources at every turn.

Instead, Obama has been very busy trying to push green energy companies on us, but they have had a nasty habit of going bankrupt.

During his speech, Obama also spoke of the need for “comprehensive immigration reform”.

But apparently Obama’s idea of “immigration reform” is to grant “backdoor amnesty” to the vast majority of the illegal immigrants in the United States and to continue to leave our borders completely wide open.

The consequences of such a policy are very serious.  As I wrote about the other day, there are now 1.4 million gang members living inside the United States, and that number has risen by an astounding 40 percent since 2009.

The last thing we need is more “immigration reform” from Barack Obama.

Of course the “class warfare” part was the centerpiece of Obama’s speech the other night.

Referring to it as the “defining issue of our time”, Obama said that now is the time to hit the wealthy with higher taxes….

“We can either settle for a country where a shrinking number of people do really well, while a growing number of Americans barely get by. Or we can restore an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules.”

This is going to be what Barack Obama is going to base his entire 2012 campaign on.  He is going to try to tap into the economic frustrations of the poor and the middle class and he is going to try to get them to blame the rich and the “party of the rich” (the Republicans).

But taxing the rich is not going to solve our problems.  If Bill Gates donated his entire fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.

The truth is that the ultra-wealthy are always several steps ahead of the U.S. government.  The global elite are hiding 18 trillion dollars in offshore banks, and they are absolute experts at avoiding taxes.

No, the people that always get hit when taxes are raised are small business owners that try to do things “by the book” and middle class families that are barely scraping by.

What we need to do is to get rid of the income tax system entirely.  It is deeply corrupt and it is full of thousands of loopholes.

Trust me, I know.  I used to study this stuff.

But Obama seems to think that taxing the rich is the solution to all of our problems….

“We don’t begrudge financial success in this country. We admire it. When Americans talk about folks like me paying my fair share of taxes, it’s not because they envy the rich. It’s because they understand that when I get tax breaks I don’t need and the country can’t afford, it either adds to the deficit, or somebody else has to make up the difference – like a senior on a fixed income; or a student trying to get through school; or a family trying to make ends meet. That’s not right. Americans know it’s not right. They know that this generation’s success is only possible because past generations felt a responsibility to each other, and to their country’s future, and they know our way of life will only endure if we feel that same sense of shared responsibility. That’s how we’ll reduce our deficit.”

Oh really?

If we just accept Obama’s plan the deficit will be fixed?

That worked out so well during his first term.  During the first three years of the Obama administration, the U.S. government accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.

The truth is that Obama does not plan to fix anything.  Barack Obama’s proposed 2012 budget projects that the national debt will rise to 26 trillion dollars a decade from now.  And his budget numbers are ridiculously optimistic.

Not that our tax system does not need reform.

If we are going to have an income tax system (which we should not), then it should at least be fair.

There is no way in the world that General Electric and Mitt Romney should pay a lower tax rate than you and I do.

In a previous article, I noted some of the big corporations that have made enormous profits and yet have paid less than zero in taxes in recent years….

What U.S. corporations are able to get away with is absolutely amazing.

The following figures come directly out of a report by Citizens for Tax Justice.  These are combined figures for the tax years 2008, 2009 and 2010.

During those three years, all of the corporations below made a lot of money.  Yet all of them paid net taxes that were below zero for those three years combined.

How is that possible?  Well, it turns out that instead of paying in taxes to the federal government, they were actually getting money back.

So for these corporations, their rate of taxation was actually below zero.

If you have not seen these before, you are going to have a hard time believing some of these statistics…..

*Honeywell*

Profits: $4.9 billion

Taxes: -$34 million

*Fed Ex*

Profits: $3 billion

Taxes: -$23 million

*Wells Fargo*

Profits: $49.37 billion

Taxes: -$681 million

*Boeing*

Profits: $9.7 billion

Taxes: -$178 million

*Verizon*

Profits: $32.5 billion

Taxes: -$951 million

*Dupont*

Profits: $2.1 billion

Taxes -$72 million

*American Electric Power*

Profits: $5.89 billion

Taxes -$545 million

*General Electric*

Profits: $7.7 billion

Taxes: -$4.7 billion

Are you starting to get the picture?

Hopefully we can all agree that there is something seriously wrong with those numbers.

But fixing holes in the tax system is one thing – blaming America’s economic ills on the wealthy is another.

During his speech, Obama made the following statement….

“You can call this class warfare all you want”

And yes, we will hear the term “class warfare” over and over again for the rest of 2012.

Obama actually believes that “blaming the 1%” can get him sent back to the White House again.

But that isn’t going to solve any of our problems.

Instead, we should be focusing on the root causes of our economic problems.

I would love to see a president get up during a State of the Union address and declare that we need to shut down the Federal Reserve.

Since the Federal Reserve was created in 1913, the U.S. dollar has lost over 95 percent of its purchasing power.

Since the Federal Reserve was created in 1913, the U.S. national debt has gotten more than 5000 times larger.

Thanks to the debt-based Federal Reserve system, we are going into debt at a pace that is unlike anything the world has ever seen.

Right now, the federal government is stealing 150 million dollars an hour from our children and our grandchildren.

But Barack Obama loves the Federal Reserve.

In fact, he actually nominated Ben Bernanke for a second term as Federal Reserve Chairman even though Bernanke has a track record of incompetence that is legendary.

So no, nobody should be applauding Barack Obama for his absolutely abysmal speech the other night.

He is a man without a plan and he has been an absolute disaster for America.

The One Percent: Gigantic Government + Gigantic Corporations = Massive Wealth Inequality In America

Today, there are protests all over America that are targeting “the one percent” and all of the wealth and power that they have accumulated.  Unfortunately, many of the solutions that these protesters are advocating simply will not work and will not lead to less wealth inequality.  To understand this, you have to understand how we got to this point.  Over the past several decades, our federal government has exploded in size and our large corporations have exploded in size.  In fact, we have seen this pattern happen pretty much all over the world.  Governments and corporations all over the globe are getting much bigger.  Whenever you have very, very large concentrations of money and power like that, it is going to lead to massive wealth inequality.  The Occupy Wall Street protesters would like to frame this debate as “socialism vs. capitalism”, but the truth is that wherever you find big government you will almost always find big corporations, and wherever you find big corporations you will almost always find big government.  Sure, they spar once in a while, but the reality is that big government and big corporations work in tandem most of the time.  Sometimes big government has the upper hand and sometimes big corporations have the upper hand, but they are both collectivist institutions.  Wherever you find collectivism in the world, you will find an elite that receives most of the benefits while the rest of the population suffers.  In the United States today, our gigantic government is thriving and our gigantic corporations are thriving and the middle class is rapidly shrinking.  The solution to this is not to replace one form of collectivism with another form of collectivism.  Rather, what we need is to go back to what our founding fathers intended.  They were extremely suspicious of large concentrations of wealth and power, and they intended for us to live in a capitalist system where individuals and small businesses had the freedom to compete and thrive.

Today, Democrats tell us that we need an even bigger government and that we need to redistribute even more wealth to the poor.  But the bigger the government gets, the more poor people we seem to have.  As you will see below, the only people that seem to be thriving from big government are the bureaucrats.

Republicans tell us that we need to make life better for the big corporations.  But the reality is that the bigger our giant corporations get, the faster the middle class shrinks.  The big corporations are shipping millions of our jobs out of the country, and they are magnets for wealth and power.  If you are not aware of how overwhelmingly dominant corporations have become in our society, just read this article.

Democrats should not be defending big government, and Republicans should not be defending the abuses of the big corporations.

Whenever big government and big corporations work together there is going to be massive income inequality, and massive income inequality is not a good thing.

Yes, there are always going to be some people that do much better than others (and there is nothing wrong with that), but we should not have a system which is designed to funnel almost all of the wealth and almost all of the power to a very small minority.

In essence, this article is arguing the following….

Gigantic government = bad.

Gigantic corporations = bad.

This was the view of our founding fathers, and this is what we need to get back to.

Let’s take a look at some of the results of our current system.  Let’s start with income inequality caused by big government.

Today, the Washington D.C. region has the highest median household income in the entire nation.  According to the most recent numbers, median household income in the D.C. area is $84,523.

So what is the cause of this?

Well, it is not because Washington D.C. is a great center of industry or finance.  Rather, it is because the federal government is spending over 3 trillion dollars a year and is showering huge piles of cash on hordes of bureaucrats.

In a recent article, I noted some of the mind blowing statistics that show how bureaucrats in Washington D.C. are living the high life at our expense….

*When you total up all compensation (including health care and benefits), the average income for a federal worker in the Washington D.C. area last year was $126,369.

*In 2005, 7420 federal workers were making $150,000 or more per year.  In 2010, a whopping 82,034 federal workers were making $150,000 or more per year.  That is more than a tenfold increase in just five years.

*In 2005, the U.S. Department of Defense had just nine civilians earning $170,000 or more.  When Barack Obama took office, the U.S. Department of Defense had 214 civilians earning $170,000 or more.  In June 2010, the U.S. Department of Defense had 994 civilians earning $170,000 or more.

*Last year, federal employees “earned” approximately 447 billion dollars in total compensation.

As I have written about previously, our gigantic federal government also empowers the big corporations to continue to accumulate staggering amounts of wealth and power.  This is one reason why the big corporations contribute so much money to political campaigns.  The big corporations (and the elite that own and run them) have much more influence over the political process than we do.  They have spent decades buying politicians and getting laws passed that tilt the rules of the game radically in their favor.

This is something that our founding fathers did not want to happen.  In a 2010 article, Rick Ungar noted that there were very significant restrictions on corporations in the early days of America….

After the nation’s founding, corporations were, as they are today, the result of charters granted by the state. However, unlike today, they were limited in how long they were permitted to exist (typically 20 or 30 years), only permitted to deal in one commodity, they could not own shares in other corporations, and their property holdings were expressly limited to what they needed to accomplish their corporate business goals.

There was a lot of wisdom to that approach.  Our founding fathers knew that corporations would become giant magnets for wealth and power if they were allowed to grow unchecked.

Today, multinational corporations completely and totally dominate the global economy.  The following comes from a recent article I posted on The American Dream….

Corporations not only completely dominate the U.S. economy, they also completely dominate the global economy as well.  A newly released University of Zurich study examined more than 43,000 major multinational corporations.  The study discovered a vast web of interlocking ownerships that is controlled by a “core” of 1,318 giant corporations. But that “core” itself is controlled by a “super-entity” of 147 monolithic corporations that are very, very tightly knit.  As a recent article in NewScientist noted, these 147 corporations control approximately 40 percent of all the wealth in the entire network

These giant corporations are so dominant that it is nearly impossible to compete with them.  The number of small businesses in America is shrinking fast.

According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006.  Today, that number has shrunk to 14.5 million.

This is exactly what we would expect to see under “corporatism“, but under true capitalism we would expect to see the exact opposite.

As the federal government and the big corporations continue to grow, the middle class is being wiped out.  If you doubt that the middle class is shrinking, just read this article.

Yes, there is a limited role for the federal government to play and there is a limited role for corporations to play.  But right now things are radically, radically out of balance.

This is creating a tremendous amount of income inequality in the United States.  The middle class is being systematically destroyed, and the growth of the gap between the one percent and the rest of us just continues to accelerate.

This was certainly illustrated by numbers that were recently released by the Congressional Budget Office.  The very wealthy have done extremely well over the last 30 years.  For the rest of us, things have not been so great.  The following figures come from a recent blog post by the director of the Congressional Budget Office….

CBO finds that between 1979 and 2007:

  • For the 1 percent of the population with the highest income, average real after-tax household income grew by 275 percent (see figure below).
  • For others in the 20 percent of the population with the highest income, average real after-tax household income grew by 65 percent.
  • For the 60 percent of the population in the middle of the income scale, the growth in average real after-tax household income was just under 40 percent.
  • For the 20 percent of the population with the lowest income, the growth in average real after-tax household income was about 18 percent.

Meanwhile, as a recent USA Today article noted, the middle class continues to falter in the majority of the communities around the United States….

A USA TODAY analysis of Census data found the Reno area was among 150 nationwide where the share of income going to the middle class — generally made up of households that make $20,700 to $99,900 a year — shrank from 2006 to 2010. Metro areas where the middle class’ share of income dropped outnumbered those where it grew by more than 2-to-1.

So just how well is the top one percent doing compared to the rest of us?

The following statistics should be a wake up call for all of us….

*According to the Congressional Budget Office, the top one percent is the only group that saw its share of our national income increase between 1979 and 2007.

*According to a joint House and Senate report entitled “Income Inequality and the Great Recession“, the top one percent of all income earners in the United States brought in a total of 10.0 percent of all income income in 1980, but by the time 2008 had rolled around that figure had skyrocketed to 21.0 percent.

*Between 1979 and and 2007, the average household income of the top one percent of all Americans soared from $346,600 to $1.3 million.

*In the United States today, the wealthiest one percent of all Americans have a greater net worth than the bottom 90 percent combined.

*As the “one percent” thrives, the share of the pie being enjoyed by the middle class is shrinking.  According to Heidi Shierholz, an economist with the Economic Policy Institute, about 53 percent of all income went to the middle class back in the 1970s, but today only about 46 percent of all income does.

*According to Harvard Magazine, 66% of the income growth between 2001 and 2007 went to the top one percent of all Americans.

*The wealthiest one percent of all Americans now own more than a third of all the wealth in the United States while the poorest 50 percent of all Americans collectively own just 2.5% of all the wealth in the United States.

*The wealthiest one percent of all Americans own over 50% of all the stocks and bonds.

*The top 0.01% of Americans make an average of $27,342,212.  The bottom 90% make an average of $31,244.

*This is all happening at a time when the United States as a whole is slipping.  Ten years ago, the United States was ranked number one in average wealth per adult.  In 2010, the United States fell to seventh.

*Income inequality is not just growing in the United States.  Today, the wealthiest one percent of the earth’s population controls 39% of the wealth.

There is certainly nothing wrong with being wealthy.  If you and your family work really hard and provide great value to the community around you then you should greatly benefit.

But a system that is designed to systematically drain wealth from the general population and transfer it into the hands of an ultra-wealthy elite is not what our founding fathers ever hand in mind.  At the time of our founding, England was dominated by big government (the monarchy) and by big business (the East India Company, for example).  Our founders warned us over and over about the potential abuses that can happen when very large concentrations of wealth and power are allowed to dominate a society.

Unfortunately, the Occupy Wall Street movement has it all wrong.  They recognize the overwhelming wealth and power accumulated by the one percent, but most of them are advocating even more collectivism as the answer.

Some of them even say that they want to “end capitalism” altogether.  Michael Moore says that he is not part of the one percent and that he wants to “end capitalism”, even though he has made millions upon millions of dollars from his various projects.

But socialism and communism never bring equality.  Like other forms of collectivism, socialism and communism almost always bring more tyranny and they almost always funnel most of the financial rewards to a very small elite.

Others simply wish to see the U.S. government transfer more wealth from the hands of the rich to the hands of the poor.

Helping the poor is certainly a noble goal, and handouts can certainly ease suffering at least temporarily.  But handouts are never a permanent solution and they can cause large numbers of people to end up becoming completely and totally dependent on the government.

Back in 1980, government transfer payments accounted for just 11.7% of all income.  Today, government transfer payments account for 18.4% of all income.

So has the plight of the poor gotten better?

No, we now have more than 45 million Americans on food stamps, last year we had the largest increase in the number of Americans living in poverty in U.S. history and the middle class continues to shrink rapidly.

The truth is that what poor and middle class Americans really need are opportunities.  Handouts will keep people alive, but they will not give people hope and a future.

What Americans really need is an environment where they can find jobs or start small businesses.  Unfortunately, the environment for small businesses in this country is incredibly toxic and millions of our good jobs have been shipped overseas.  The big corporations have discovered that they can make even bigger profits by sending jobs to countries where it is legal to pay slave labor wages.  To say that we need big corporations because they are the ones that “create jobs” is simply not true anymore.

So now we have tens of millions of Americans that we have to take care of every single month.  There is nothing wrong with helping them survive, but giving them even more handouts is not going to permanently solve anything.

We need to have a population that is empowered to work hard, produce wealth and create a bright future for their families.

Instead, what we have is a system that greatly rewards the top one percent and that is pushing all of the rest of us toward poverty.

Gigantic government plus gigantic corporations is always going to equal massive wealth inequality.

The bigger we allow government to grow and the bigger we allow corporations to grow, the worse it is going to get.

So is any of this going to change any time soon?

Well, considering the fact that the vast majority of our politicians are in the pockets of the big corporations, I would not be getting your hopes up.

 

Sheeple: Government Handouts = 35 Percent Of U.S. Wages But For Michael Moore That Is Not Nearly Enough

The ratio of government handouts to wages and salaries in the United States is now at an all-time high.  According to TrimTabs Investment Research, government handouts have reached a level that is equivalent to 35 percent of all wages and salaries in the United States.  Considering the fact that this figure was only 21 percent back in the year 2000 and only 10 percent back in 1960 that is very frightening.  The sad truth is that today the American people are more dependent on direct government payments than they ever have been before.  What this does is that it takes formerly independent Americans and transforms them into “sheeple” and pets of the government.  Today we have tens of millions of Americans that eagerly await the crumbs that the federal government tosses them each month.  This is one reason why our national debt is exploding, but our politicians like this system because it enables them to buy votes.  Meanwhile, the federal government and the international corporations that dominate our economy have rigged the game so that power and money are becoming increasingly centralized in their hands.  As a result of the system that the “big boys” have developed, millions of small businesses across the country are being absolutely crushed, the standard of living of the middle class is gradually being destroyed and more American families slip into poverty ever single day.  What we need to do is to dramatically reduce the power of both the federal government and the big corporations so that small businesses and individuals can thrive once again, but instead “activists” such as Michael Moore are out there demanding even more taxes and even more government handouts.

Not that a “safety net” is a bad thing.  We simply are not going to allow tens of millions of Americans to starve out in our streets.  However, it has gotten to the point where the majority of American families are now dependent on the U.S. government in one form or another and that is very, very wrong.

More government handouts are never a long-term solution to anything.  Handouts do not give people dignity.  Handouts do not teach people to be independent.  Handouts do not enable people to live the “American Dream”.  Handouts are not the path to prosperity.

What the American people need are jobs and an environment where small businesses can thrive.  But instead, the federal government has allowed the big global corporations to ship millions of our jobs out of the country and the federal government continues to burden our small businesses with an endless array of new taxes and regulations.

Who is successful in America today?

It is the big boys.  Everyone else is being crushed.

This is what the founding fathers tried to warn us about.  They did not want the federal government to have much power at all, and they were deeply suspicious of large corporations.

But we have turned our backs on the principles of the founding fathers.

We should be figuring out how to get back to the America that our founding fathers originally tried to create, but instead all of the attention is being given to “activists” such as Michael Moore who are calling for even more taxes and even more government handouts.  The following video is of Michael Moore giving a speech to protesters in Madison, Wisconsin on March 5th, 2011.  His speech was entitled “America Is Not Broke”….

Yes, the “little guy” is being absolutely crushed in America today.  But for people like Michael Moore the solution is always to tax the middle class more and to pass out even more government handouts.

That isn’t going to solve anything.  Most of the ultra-wealthy have turned avoiding taxes into an art form.  A third of all the wealth in the world is now held in “offshore banks“.  Many of our largest corporations don’t pay a dime in federal taxes even as they pass out multi-million dollar bonuses to their executives.

Raising taxes in most definitely not the answer.  Those that have mastered the art of avoiding taxes will continue to do so no matter how high you raise them.

The truth is that we need to shut down the IRS and scrap the current tax system entirely.  It simply does not work.

What we need to do is to get the federal government and the big corporations under control and transfer the power back to the American people.

That is what our founding fathers intended.  They intended for the common man to be empowered  to start businesses, create wealth and pursue happiness.

But instead tens of millions of Americans have become addicted to government handouts.  When large numbers of people give up and willingly become wards of the government that is not good for society.

Unfortunately, more Americans today are dependent on the U.S. government than ever before.  Just consider the following statistics….

-According to TrimTabs Investment Research, social welfare benefits in the United States have risen by $514 billion over the past two years alone.

-As 2007 began, only about 26 million Americans were on food stamps, but today over 44 million Americans are now on food stamps.

-Over 50 million Americans are now on Medicaid.

-Back in 1965, only one out of every 50 Americans was on Medicaid.  Today, one out of every 6 American is on Medicaid.

53 million Americans received $703 billion in Social Security benefits in 2010.

-Right now the U.S. government is either writing or guaranteeing well over 90 percent of all mortgages in the United States.

-It is being projected that extended unemployment benefits will cost the federal government $34 billion over the next two years.

-30 U.S. states have borrowed a total of $41.5 billion from the federal government just so that they could continue paying out unemployment benefits during the recession.

-Entitlement programs such as Social Security and Medicare now account for 58% of all U.S. government spending.

But what else should we expect?  The federal government has been using a sledgehammer to endlessly pound away on the capacity of small businesses and individuals to create wealth and jobs and opportunities.  The business atmosphere in the United States is now so toxic that it is amazing that any small businesses have survived.

Most Americans find themselves with no other way to make a living other than to work for someone else.  But the big global corporations have discovered that they can make much larger profits by getting rid of American workers and by shipping our jobs overseas and our politicians are allowing them to get away with it.

The truth is that both political parties don’t have the answers.  Neither party seems to have any clue about how to stop millions of jobs from leaving the United States and neither party seems to have any clue about how to create a business environment inside the United States where individuals and small businesses can actually thrive.

How much longer will it be before we all finally admit that we are experiencing total system failure in this country?  Should we all just quit trying and sit on our couches waiting for the next government handout?  The truth is that there aren’t nearly enough jobs for all Americans anyway.

The middle class is dying and the establishment has us all fighting with each other.  The left and the right are busy fighting about taxes and budget cuts while the ultra-wealthy continue to enjoy massive profits and incredibly low taxes in the globalized economic system that we have allowed our politicians to create.

Yes, there are tens of millions of Americans that are deeply suffering right now and they need to be helped.

But government handouts are never a long-term solution to anything.  What we need to do is to massively reduce the power of the federal government, massively reduce the power of the big corporations and stop businesses and jobs from being shipped out of the country.  We also need to create an environment in the United States that is very favorable to small businesses.  That would give our country a chance to start creating good jobs again.

But instead, we continue to allow our politicians to destroy our economy.  We actually have 10 percent fewer middle class jobs in this country than we did just ten years ago.  The middle class is being systematically destroyed.  All of the wealth and all of the power are slowly being transferred into the hands of big government and the big corporations.

The vast majority of the rest of us are being transformed from strong, independent, prosperous Americans into dehumanized sheeple that can’t wait for the next government check to come in.

Does anyone out there actually believe that this is what our founding fathers originally intended?

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