What about all that stimulus spending and extra taxing we’ve done? It hasn’t done any good….zip!
National Review: According to the Bureau of Economic Analysis’s latest report, the U.S.’s gross domestic product contracted at an annualized rate of 0.1 percent in the fourth quarter of 2012. This is quite a large deceleration from the third quarter, in which it rose at a rate of 3.1 percent. This is the first time the U.S. economy has shrunk since the second quarter of 2009; we join the U.K. in having a downward tick in the fourth quarter.
This is a pretty significant miss from expectations: Various surveys of economists had predicted about 1 percent growth.
The US Economy Is A Lot Worse Than You Think – OpEd
By: Alan Caruba
January 30, 2013
Another partner in the nation’s financial woes has been the Federal Reserve, a banking cartel given the right to literally print money. The Fed recently released the fact that its holdings in U.S. government debt has increased by 257 percent since President Obama took office! Those holdings are at an all-time record of $1,696,691,000,000 at the close of business on Wednesday, January 23. The other major holder of our debt is China at $1,170,100,000.000.
It’s worth taking a few minutes to see how the policies of President Obama, whether a deliberate effort to ruin the economy or just the result a lack of understanding of how the U.S. economy works, has put the U.S. on the precipice of failure comparable to what is occurring in Europe. It is a global, as well as national problem as the central banks of the EU desperately transfer billions among themselves to stave off a catastrophe that will destroy the wealth of their citizens.
The federal government ran a deficit (the difference between what it owes and what revenues it takes in) of $292 billion for the first two months of fiscal year 2013—October and November 2012—amounting to $4.8 billion of borrowed money every day. The Congressional Budget Office reported that federal revenues rose by $30 billion—a ten percent increase over last year—but spending increased even more, going up by $87 billion (16%).
Spending on Medicare, Medicaid, and Social Security was about 7% higher–$8 billion than last year. For years, Congress has resisted reforming these “entitlement” programs and Obamacare has only exacerbated the problem. In order to fund its establishment, the Obama administration took $716 billion from the Medicare funds. The Social Security funds have been “borrowed” by Congress for years while the numbers of eligible senior citizens has steadily increased as “baby boomers” come of age.
The call for higher taxes on “millionaires and billionaires” has fallen hardest on the middle class, in reality increasing taxes on them. The reality is that the middle class taxpayer pays 25% of their income in federal income tax these days, but when you add in 13.3% in the federal Social Security and Medicare payroll taxes, it adds up to 38.3%. According to the Tax Foundation, the average state’s income tax rate on the middle class is 4.82% (not all states have an income tax in addition to the federal government.) That brings the total to $43.12% of middle class income drained off to pay taxes.
Add in all the other taxes we pay on gasoline, telephones, and other necessities, and the middle class is being tapped for half their earnings.
The Republican Party, in power in the House of Representatives, has offered legislation to bring some relief to middle class and other taxpayers. It has sent annual budgets to the Senate where they have died for the past three years.
All this has been happening during the first term of the Obama administration. In a January 25th commentary posted on AmericanThinker.com, Steve McCann noted that “As of the end of 2012, the United States has experienced the worst five-year period—which includes, as the end of the final four years, Obama’s first full term—since 1928-1932 and the start of the Great Depression.”