The Government Mess

People who are advocates of what is transpiring now are going to be really disappointed. When they realize how misled they really were, all hell is going to break loose. Obama (and others) stand up each day professing the virtues of government intervention. Sadly, this is a path to failure. Everywhere we look, government fails. Yet some still hold the notion that it is going to change.

Is there anyone with any common sense who believe the rhetoric we are served? Many of the programs instilled during the last great "economic crisis (the Great Depression) are now coming back to haunt us. Take Social Security as an example. It is completely broke. The CBO is now estimating that there is only a $3 billion surplus left in that program. This is a radical difference from the $80+ billion estimated a year ago. (Read article here)

Once again the political establishment screwed things up. For decades, the greedy politicians raided this program to fund their out of control spending. They took the dollars set aside for our elderly and use it for their own selfish ends. Now, we are at the point that this Ponzi scheme is blowing up. There is no more money to fund it.

The article makes a valid point about the changing in times since FDR created this program. With only a 3 to 1 worker to retiree ratio, there is not enough money coming in. It is that simple. Bernie Madoff understood this the last few years. Guaranteed returns become impossible to meet after enough time when you consistently have to raise money. This is what Social Security is now facing.

Our government is worthless. The people in it are not only inept, but mostly corrupt. Each of them deserves a cell next to good Ole Bernie. He screwed many out of their futures and the U.S. Government is doing the same thing. Everyone over the age of 50 is going to quickly realize they were lied to by all those talking heads in Washington. Right now, President Obama is the head liar in charge. Remember this article the next time you see him promising how government is going to fix the problem.

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Should the government even be doing bailouts?

This was the question that Dr. Robert Higgs of the California based Independent Institute wrote. In an article, he accurately portrayed how the Founding Fathers intended the federal government to be limited in scope. He challenged anyone to find where the Feds are authorized by the Constitution to fund "global warming research, urban mass transit, food stamps, unemployment insurance, Medicaid or countless other items". Obviously, there is nothing in the Constitution that remotely resembles this authority.

So where did it all come from? As you can guess, a lot of it transpired during the Great Depression. FDR is the greatest abuser of power in the history of the American Presidency. Like Obama is trying to do, he used a catastrophe to expand his power base. He even went so far as to try to intimidate the Supreme Court into siding with him. And, this is the person who's model we are now following.

Why do I bring all this up? Simply, because the decisions of the Obama administration are going to put us into another Great Depression. History is now showing that FDR's policies actually made things worse. Stimulus was something that he started and it prolonged the Great Depression. Every recession before it was quickly reversed because the government did not get involved. In 1893, there was a depression which was turned without stimulus. Also, 1920-21 had a major recession which quickly reversed itself. Again, there was no stimulus.

So, what do our fearless leaders in Washington do? Pass a spending bill that will eventually cause high inflation and will do little to fix the economic problem. The best course of action when it comes to government is no action.

(If you want to read this article it was found in the Feb. 10, 2009 edition of Investor's Business Daily)

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The First Hit On Business

The country is going to a socialized system. We are going to see the largest expansion of the role of government that we have ever seen. Over the next 2 years (at a minimum), the power hungry socialists in Congress are going to make great strides in taking control of different sectors. This is bad news for business and, in turn, the economy.

Obama is intent on spending his way out of this recession. Well, that is not going to happen. What is more likely is that the laws passed by Congress will send us into a deep recession. Yesterday saw the passing of the first piece of legislature which will ensure this end.

The Lily Ledbetter Fair Pay Act was passed in the House. (See here) This bill exoands the recourse that people have to take against companies they feel treated them unfairly. At the core is "equal pay for equal work". It is a noble effort however one that only favors the trial attorneys; a favorite supporter of the existing Congress. Nevertheless, this opens the door for frivolous lawsuits. Companies are going to spend valuable resources (time and money) defending themselves from such charges.

What is troubling is the act dictates that companies prove they acted appropriately and pay equal wages. This goes against the premise of our judicial system where one is innocent until proven guilty. Under our belief system, it is up to the plaintiff to prove he/she was mistreated. Not anymore. Now, with the socialization of this country, we are going to see that concept reversed. And, your elected leaders are driving the train.

How does this affect the average business? I will say that most will never see a lawsuit as a result of this act. However, the ones that do will spend sums of money on defense rather than expansion of business. Where this does come into play is when you consider the restraints already place on business, especially small business. There is too much regulation as it stands now. We are going to see more constraints put upon these entities until they die. I believe this is the mindset of those in power. This will guarantee they will keep the power.

The "Corrupt Moron From Chicago-elect" states that we will spend our way out of this. That very statement proves how out of touch he really is. Congress, along with his backing, is going to create an environment that is so unfriendly to business. Get ready for a long road ahead. You have your elected leaders to thank for that.

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