Posts Tagged ‘Economy’

IT’S TIME TO END THE CREDIT CARD SPENDING AND PAY THE BILLS

December 7, 2016

For just shy of eight years now the United States has been economically hindered by the distorted interpretation of economist John Maynard Keynes’ twentieth century economic theory. Application of Keynesian economics extended the Great Depression longer than necessary as it has for the recent recession.

Classic economic theory suggests that world and national economies experience rises and falls. Periods of stagnation can be moderated with reasoned spending and by controlling variable expenses. Keynesian economic theory, on the other hand, advocates that increased government spending in times of downturn spurs the economy resulting in shorter downswings. The flawed theory doesn’t work in a personal or household situation and it most certainly doesn’t work for individual states or nations. In fact, the larger the entity and economic platform the more incongruent the premise becomes.

Take the economic basis to the personal level for a moment. If you’re out of work, out of savings and your unemployment ends, your only legal choices are to live off your credit cards or borrow from friends and family to pay your bills. When you begin borrowing to continue spending more than you can repay, this is called deficit spending. Increasing that spending is simply beyond foolish. To continue this path without obtaining gainful employment or other legitimate income sources, severely limits your choices. When debt increases and money shuffling through borrowing and making minimum payments is no longer an option, selling your assets and bankruptcy become reality.

Governments have opportunities that individuals do not. They can print more money to cover their debt. You cannot. However, when the government prints more money, each one of your dollars, each one of your pennies is worth less. Therefore. it costs you proportionately more for groceries, clothing, gasoline, heating and cooling…everything. They can take more of your money in the form of taxes, levies, tolls, etc. You, on the other hand, have to make do with less or borrow more without concern for repayment.

For eight years now we have had a government that spends without concern for repaying the lenders. Congress is complicit, if not primarily responsible for repressing economic growth by allowing this to happen. Each bill passed with government spending appropriations only stagnates growth, indebts each American and prevents GDP increases.

It’s time to free the reins and allow the private sector to flourish. It shouldn’t matter if those at the top also benefit. Let them elevate their status as long as the rest of us increase ours!

Let’s treat the national economy as if it were a for-profit business we care about. Let’s stop the useless spending on studies to justify more spending. Let’s stop the deficit spending and begin reducing the debt. Let’s make government (agencies and departments, teachers, public works employees and everybody receiving taxpayer funded paychecks) accountable for performance. Let’s make public wages and salaries merit based.  Let’s downsize (or rightsize) the government and allow those non-critical employees an opportunity to contribute to the economy in the private sector rather than burdening it.

LET’S MAKE AMERICA GREAT AGAIN!

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THE RECOVERING ECONOMY

January 19, 2016

Raising the minimum wage is a prime example of how our economy is in recovery and beginning to flourish. NOT!

One prime example that the left loves to sling crap at is WalMart. Last year WalMart announced that they would be raising wages for those employees paid at the federal (or state in some cases) minimum wage. These are the most needy and in many cases the least skilled of all employees in any industry.

The new minimum wage announced was $9.00, or $1.25 per hour above the federal minimum. By February of this year, 2016, the proposed wage is to be $10.00 per hour. Well…that is for the people who are still employed. According to the current schedule, the retail giant is closing 269 outlets globally on or by January 28. Approximately 150 of which are in the U.S.

With a per store average employment force of about 60 FTE (full-time equivalent) positions, that means a considerable bump to the touted 5% unemployment rate. Many of each store’s positions are part time meaning somewhere between 9,000 and 13,000 U.S. workers from Alaska to Puerto Rico will be idled.

Though WalMart executives claim the move is to “sharpen their portfolio”, it is truly so that they can remain afloat in the economic recovery that Obama lauds. In the fourth quarter of last year, Starbucks also closed 23 La Boulange locations along with two manufacturing facilities. That put a few people out of work, too. Kmart, Sears and JCPenney are following suit by closing locations or folding the businesses completely.  Yeah, we’re rolling now!

As the stock market tanks and oil becomes unworthy of extraction, you can listen to the politicians or open your eyes to the truth and adjust your finances and your lives accordingly. Good luck making the right choice!

Obama’s remaking of America has been very good for the super wealthy. They have flourished. The rest of us…eh, not so much.

BOLSTERING THE ECONOMY

January 30, 2015

The Obama administration is now allowing Mexican consulates in the United States to issue birth certificates to Mexican nationals living here illegally. Just walk up to your local consulate and have a birth certificate printed with whatever information you state. Want to be Jose today? Fine! If Jose gets in trouble, you can always become Jesus or Manuel. Just go to a different consulate and give new information to the typist.

Why is this being done, you may ask. Is it to express good will between the countries?  No. It is being done to buttress the Obama amnesty program. It is being done to allow more people access to your tax dollar give-aways. It is being done so that more people can have all the benefits of U.S. citizens.  It is being done for global wealth redistribution.  It is being done to make your savings account worthless. It is being done in the name of fundamental transformation. And, it is being done to destroy all that America stands for and has offered the world for the past 227 years since the U.S. Constitution was ratified.

You might hear from the mainstream media that it is a good thing and that it will allow more law breakers newcomers access to employment. They present it as if there is too much work and not enough workers and that illiterate (in both English and Spanish) laborers drawing minimum wage, EIC and Welfare will actually help the economy grow.

What is difficult to find in any of the MSM pro-Obama articles are the facts. Here are just a couple. According to Judicial Watch, the majority of households across the country benefitting from publicly-funded welfare programs are headed by immigrants, both legal and illegal. Buried deep in an article by CBSLA.com, can be found the statement “Mexican migrant workers, many who live in the United States, sent home $21.6 billion to their families in 2013, according to the country’s central bank”.

So I just have to ask, “What country’s economy is being helped by the new policies”? and “Who will continue to loan us money to finance the world economies”? 

Just wait until the consulates for Honduras, Guatamala, El Salvador, Cuba, China, Russia, Syria and Iran begin issuing birth certificates for people claiming to be their former citizens.

 

THE ECONOMY IS BOOMING

September 3, 2014

Wow! I keep hearing how the economy is improving. Even though there are fewer people working, the unemployment rate is down. The media tells me that during the second quarter of this year, we experienced a 4.2% upswing. Perhaps you felt it. The Obama boosters proudly laud that we emerged from the recession five years ago. I’m glad we’re doing so much better.

I’m still troubled with the mundane back stage events that are not so loudly bellowed. The total number of people seeking employment is down. That sounds good on the surface and seems to be a great talking point for the left. The fact that there are more people happy to be on government assistance rather than seeking employment doesn’t bother them, but it does me.

The BLS manipulated figures show that the national average for the unemployed is 6.2%. Knowing that over a third of the potential workforce is sitting idle, I have a hard time accepting this propaganda.

Meanwhile, as the economy booms, credit card companies recently began offering “no interest” for up to 18 months once again. I’m certain that this move is at the behest of the Obama financial planners. It has the smell of Cloward and Piven.

My experience with the financial industry tells me that the business is not made up of benevolent enterprises. They are there to make a profit, often without regard for their customers.

Perhaps this is the one sector that is experiencing stagnant growth and it will look good for a while if people spend more and create more personal debt. Stagnant growth would definitely cause them to nudge consumers into using the cards more frequently without paying an immediate penalty for unpaid balances. The program design is to get consumers hooked on buying, making minimum required payments and accruing a balance. That balance, of course, must be paid in full at the end of the term or 22.99% interest kicks in.

Though consumer purchases may go up for now, expect a severe downturn right about or shortly after the 2016 elections. This program presents a problem not unlike the deferred interest mortgage loans of the turn of the 21st century. Chris and Barney felt everyone should be able to take advantage of the appreciating housing market by owning a home, whether they could afford one or not. They coerced the financial institutions and lenders to lower qualifications borrowers and allow it to happen.

It did. Wanting to get all the profit they could, lenders allowed mortgagees to finance or refinance homes and elect to make payments of 1/360th of the principal plus 1% or 2% interest for two to seven years while deferring up to 5.5% to 7% interest to the loan principal.

In many cases, by the time the loans reset, the loan balance was tens of thousands of dollars more than the original loan amount, and in too many cases, more than the home was worth. Home values plummeted as the borrowers moved out in the middle of the night to live in their cars or with relatives.

Homeowners had become complacent with their spending patterns and found themselves unable to meet the new mortgage payments. People lost their homes, investment companies declared bankruptcy and the American economic structure tanked causing the recession.

Lesson learned? Not by progressive Dumbocrats!

SOME PEOPLE STILL DON’T GET IT!

April 6, 2013

Some more stories in the news this week blend together to give a bit clearer picture of what Fundamental Transformation of America really is.

On top of the list is medical care.  Obamacare is truly bringing about changes to the field of health care.  Headlines like “Projected Shortage of 45,000 Doctors by 2020” preside over stories indicating that doctors are leaving practice for more lucrative positions like teaching, consulting, or simply retiring early to play more golf.  Taxes and insurance, invasive and constraining regulations having little to do with wellness, eat away the potential for incomes commensurate with their education and skill.  The doctors will enjoy life rather than risk lawsuits for practicing in their field of expertise while accepting peanuts from the federal government in reimbursement.

Before even that happens, you will not see a “doctor” when you visit the doctor.  Instead, you will see a Nurse Practitioner.  Not to take anything away from the very noble nursing profession, but an N.P. receives roughly 25% of the licensing training and education of a General Practitioner.  Ergo, no matter how much care and concern the N.P. has for patients, he or she may miss a critical diagnosis.

Thanks again to Obamacare, as premiums go up private insurers are dropping a number of medications previously covered under part D of Medicare.  Some treatments, like chemotherapy will be limited and destined only for hospitals.  It will be on a first come, first waiting forever due to the projected personnel shortage.  The good news is that the Independent Payment Advisory Board (IPAB aka death squad) will be there to see if your treatment is truly necessary.  Age, of course, will be one critical determining factor.

On the plus side for Obamacare, abortions for ten-year-olds (parental permission not required), condoms, and cough syrup are still covered.  Arthritis?  Not a problem.  Someone is always available to help you hold the pen when making out the check to Organizing for America.

Another subject in the news for over four years now is the number of people unemployed and no longer even seeking work.  Why should they?  Welfare pays better than many under-educated and unskilled individuals could make by working entry-level or labor positions.  Liberals in government claim this is stimulating the overall economy.  Capable individuals, toiling for less compensation than their idle neighbors receive for doing nothing, continue to drop out and join the government dole.  The percentage of able-bodied people (now 36.7%) who are not even seeking gainful employment continues to rise.  Only those who still receive unemployment compensation show up on the unemployment rolls which now claim to be at only 7.6%.

Taxes continue to rise on every one of us with more on the way.  Most people think of income tax or payroll tax when they hear tax mentioned.  This is a purposeful misdirect.  The consumers (i.e. you and your family) of products,  goods, and services  ultimately pay for the taxes imposed directly on businesses or the products they create.

“Taxes must rise to pay for vital infrastructure”, the President states.  I have to ask, “Are the roads you drive any smoother than they were three hundred and seventeen tax increases and $7 trillion in spending ago?  Are there fewer potholes?”  It’s not your fault.  Remember, you didn’t build that road.

I guess the dumbing down of our children by pouring hundreds of millions of dollars into schools to socially engineer rather than educate them really has been beneficial…to career Democrat politicians.

Aren’t you proud of the change?  Soon we will be just like Italy or Greece or Cyprus

And, for those of you who may have missed the most important news cycle presented by ABC, CBS, NBC, and CNN last night – Michael Jackson is still dead.

Carry on with your ignorance.