Sometimes I wonder if I’m guilty of this too. You have your point of view, and you stick to it regardless of all evidence to the contrary. I like to think my opinions are based upon observation, but so does everybody else. Who’s wrong?
Bernake admits he’s stumped. After all the spending and increased regulation he and his democratic allies in Congress and the White House have accomplished, the economy is still rotten. Still! According to an AP report:
Fed Chairman Ben Bernanke told reporters Wednesday that the central bank had been caught off guard by recent signs of deterioration in the economy. And he said the troubles could continue into next year.
“We don’t have a precise read on why this slower pace of growth is persisting,” Bernanke said. He said the weak housing market and problems in the banking system might be “more persistent than we thought.”
It seems obvious to me that we’re repeating the mistakes of the 1930s. More government spending is just resulting in less money in the hands of people who actually produce things and create jobs. Sure, the government is creating jobs: for itself. But for the most part, those aren’t jobs that actually add value. If anything, the bulk of them clot up the economy even more with burdensome regulation.
Brain trusts like Bernake and Barney Frank don’t get that someone has to pay for those government jobs. The money has to come from a citizen who’s actually earning and producing. And it’s getting harder to earn and produce.
A March 2011 report, found that 35% of wages and salaries came from various wellfare programs (yes, including social security). Add to that the approximately 8% of the workforce that is employed by the government. So that means over 40% of Americans get their paycheck from the other 60% which is earning with a productive job. I.e., my paycheck has to support me and some shmuck I don’t know — it’s not quite 50/50, but it’s getting there.
Economic “growth” implies something is being produced. Nearly half of us aren’t producing, and the remainder are being burdened with their care, making it hard for the productive class to invest in activities that do produce. I haven’t contributed to my IRA or invested in any stock since… Obama’s election.
WHY IS THIS SUCH A FREAKING MYSTERY?