Here’s what the president says: “Yes, foreign policy matters. Social issues matter. But more than anything else, this election presents a choice between two fundamentally different visions of how to create strong, sustained growth.” So, is the economy the biggest issue of this campaign? More…
One cartoon says it all … More…
By Tom Quiner
Demographics, innovation, and capital fuel the economy.
In other words, you need a growing population to avoid stagnation.
You need entrepreneurial energy to create the new products and inventions that not only make our lives better, but that create jobs and wealth.
And you need capital to fund entrepreneurial dynamism.
What happens if you don’t have these three elements? Europe happens.
The Euro area’s GDP hasn’t grown more than one percent in a year since 2008, as you can see in the chart prepared below by http://www.TradingEconomics.com:
For a society’s population to grow, the average woman has to bear 2.1 children. This is called the replacement birth rate (RBR). If the rate dips below 1.5, a country’s population will be reduced by more than half in seven years or less. Every single nation in Europe has a replacement birth rate less than 2.1. Every one of them. Europe is dying demographically.
As you can see in the chart below, a dozen nations in Europe have RBR below 1.5. They are dying even faster.
What does this have to do with America?
We are on a course that follows Europe’s. Our RBR is right at 2.1, replacement level, and thirty-five states, including Iowa, have dipped below replacement levels.
As in Europe, our population has been artificially deflated through aggressive expansion of abortion as a method of birth control. To quantify it, the size of our economy has been reduced by 54 million potential consumers since 1973 when Roe v Wade became the law of the land.
The average economic output per person in the U.S. is about $42,000 according to the Bureau of Economic Analysis. If those Americans had been allowed to live, their collective contribution to the U.S. economy today would be about $2.26 Trillion. Per year.
These lost Americans would have paid about $64 Billion in property taxes to their respective states to help fund education. Per year.
They would have contributed another $202 Billion in income taxes to our country to help fund our expansive, and expanding, network of social entitlements. Per year.
These lost Americans would have offered something else to us, something absolutely vital: innovation.
Innovation is driven by the young. Creativity peaks by the age of thirty-five. In a society like the U.S. that once revered entrepreneurs, and nourished it with favorable tax policies, creativity and innovation were allowed to explode with the associated job growth and national wealth that always accompanies it.
In the new America where Life is viewed as a disease, and the productive (aka “the rich”) are publicly derided as the bad guys, we’ve lost our vitality.
GDP growth is stagnant, falling more in line with Europe’s.
Job creation is a trickle.
We need people.
People aren’t bad as one political philosophy maintains. People are the source of our economic greatness.
Innovation isn’t bad, it is good. We need more of it. We need more youth.
And we need more capital, which can be quickly freed up with lower corporate income and capital gains tax rates.
We have made an economic Choice to diminish America’s prosperity by choosing death over life.
By Tom Quiner
The media correctly focuses on the unemployment rate, which has remained high since the economic downturn four years ago. Obamanomics hasn’t been able to mitigate the job carnage. The unemployment rate was 7.8% when Mr. Obama was sworn in, and came in at 8.3% last month.
Mr. Obama is touting the progress in recent months which has seen the rate drop from 9% a year ago to today’s still high rate.
The unemployment rate doesn’t count people who have given up finding a job and have simply dropped out of the job market. When those folks are counted, some economists suggest the real unemployment rate is closer to 15% to 20%.
There is another way to size up the difficult economic situation we’re in, and that is the employment rate, or in other words, the percentage of Americans in the workforce. The chart above clearly reveals the erosion since Mr. Obama’s medicine was administered to the U.S. economy.
Let us recap the medicine:
√ The $1.2 Trillion Stimulus (not billion, that’s Trillion with a capital “T”)
√ Cash for clunkers
√ Dodd-Frank Wall Street Reform and Consumer Protection Act
The good news is the recession ended. The bad news: it’s a jobless recovery. Oh, and our credit was downgraded, which costs the taxpayers more interest on the national debt.
Contrast the limpid recovery under Obamanomics compared to the robust one under Reaganomics (see previous post: “Is Obamanomics better than Reaganomics?”).
Mr. Obama needs to wake up. His way doesn’t work.
Simply look at the chart above.
By Tom Quiner
Do you know where that quote is from, that President Obama is the “biggest wet blanket to progress and job creation in my lifetime?”
It comes from a wealthy and powerful Democrat, Steve Wynn, the famous Las Vegas developer.
I’m in Las Vegas. As I look around this town, I see Mr. Wynn’s properties everywhere. His newest, the Wynn, is spectacular. Although I’m no fan of Vegas, I acknowledge that Steve Wynn knows how to create jobs.
Now he tells us job creation will not happen until Barack Obama, the man he supported for president, has been replaced by a Republican.
Mr. Wynn’s assessment of Obamanomics is worth reading in its entirety:
“Well, here’s our problem. There are a host of opportunities for expansion in Las Vegas, a host of opportunities to create tens of thousands of jobs in Las Vegas. I know that I could do 10,000 more myself and according to the Chamber of Commerce and the Visitors Convention Bureau, if we hired 10,000 employees, it would create another 20,000 additional jobs for a grand total of 30,000.
I believe in Las Vegas. I think its best days are ahead of it. But I’m afraid to do anything in the current political environment in the United States. You watch television and see what’s going on, on this debt ceiling issue. And what I consider to be a total lack of leadership from the President and nothing’s going to get fixed until the President himself steps up and wrangles both parties in Congress.
But everybody is so political, so focused on holding their job for the next year that the discussion in Washington is nauseating. And I’m saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime.
And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right. A President that seems — that keeps using that word redistribution.
Well, my customers and the companies that provide the vitality for the hospitality and restaurant industry, in the United States of America, they are frightened of this administration. And it makes you slow down and not invest your money.
Everybody complains about how much money is on the side in America. You bet. And until we change the tempo and the conversation from Washington, it’s not going to change. And those of us who have business opportunities and the capital to do it are going to sit in fear of the President.
And a lot of people don’t want to say that. They’ll say, “Oh God, don’t be attacking Obama.” Well, this is Obama’s deal, and it’s Obama that’s responsible for this fear in America. The guy keeps making speeches about redistribution, and maybe we ought to do something to businesses that don’t invest or holding too much money. We haven’t heard that kind of talk except from pure socialists.
Everybody’s afraid of the government, and there’s no need to soft peddling it, it’s the truth. It is the truth. And that’s true of Democratic businessman and Republican businessman, and I am a Democratic businessman and I support Harry Reid. I support Democrats and Republicans. And I’m telling you that the business community in this company is frightened to death of the weird political philosophy of the President of the United States. And until he’s gone, everybody’s going to be sitting on their thumbs.”