The U.S. was the world’s number one economy prior to World War II, but it took off big-time after the war and there has not been a day of my long life in which we were not number one—until now.
The International Monetary Fund recently released its calculations regarding the world’s economy and concluded that China is the number one economy, producing $17.6 trillion in terms of goods and services, as compared with the U.S. producing $17.4 trillion. It’s not an overwhelming gap, but it is a warning that our economy is going in the wrong direction and has been before and since the financial crisis of 2008.
Writing in Market Watch, Brett Arends, put it succinctly. “As recently as 2000, we produced nearly three times as much as the Chinese.”
As discomforting as the IMF news is, the worst news has been significantly under-reported in the nation’s media. The U.S. is now $18 TRILLION in debt.
In February of 2014, CNS News reported that “The debt of the U.S. government has increased $6,666 trillion since President Barack Obama took office on January 20, 2009, according to the latest numbers released by the Treasury Department.”
President Obama has been responsible for more debt over the course of his two terms to date than all previous U.S. Presidents in the first 227 years combined.
Writing in the Daily Caller, Tracy Miller, an associate professor at Grove City College, noted that “Over the first five years of Obama’s presidency, the U.S. economy grew more slowly than during any five-year period since just after the end of World War II, averaging less than 1.3 percent per year. If we leave out the sharp recession of 1945-46 following World War II, Obama looks even worse, ranking dead last among all Presidents since 1932.”
Why was this man reelected in 2012? One is inclined to find common ground with ObamaCare “architect”, Jonathan Gruber, who called voters “stupid.”
I prefer to believe, however, that the voters have been subjected to a non-stop campaign in the national media to get the first black American elected President and then to ignore some truly horrible facts about his two terms in office thus far.
The voters are not stupid, but they have been deliberately misled by the careful exclusion of news about the actual state of the economy.
Reality caught up with Obama in the two midterm elections of 2012 and 2014. The voters shifted power in Congress to the Republican Party. In the most recent midterms thirteen of the Senators who had voted for ObamaCare were defeated.
As December began, CNS News reported that “The labor force participation rate remained at a 36-year low of 62.8 percent in November, according to the Bureau of Labor Statistics.”
The BLS measures the percentage of “non-institutional population” in the labor force, those 16 years or older who were not in the military or working in a governmental job, i.e. the private sector. In September, the rate was the lowest since February 1978!
To put this in perspective, by November, the number of beneficiaries on the Supplemental Nutrition Assistance Program—food stamps—had topped 46,000,000 for 36 straight months according to data released by the Department of Agriculture. The Census Bureau reports that there are 115,048,000 households in the nation as of August 2014. That means the number of households on food stamps equaled 19.75% of all the households in the nation; one out of five. Those on this program outnumber the entire populations of nations such as Poland or Argentina.
It doesn’t stop there. On December 3 CNS News reported “The total number of people in the United States now receiving federal disability benefits hit a record 10,982,920 in November, up from the previous record set in May, according to newly released data from the Social Security Administration.”
How bad is the U.S. economy? In August, CNS News’ Terence P. Jeffrey reported that “109,631,000 Americans lived in households that received benefits from one or more federally funded ‘means-tested programs’—also known as welfare—as of the fourth quarter of 2012.” The data came from the Census Bureau. That was the same year Obama was reelected and it represented 35.4% of the entire U.S. population at the time. By the end of 2012, it had increased to 49.5%!
Means-tested government programs include Social Security, Medicare, railroad retirement, unemployed compensation, worker’s compensation, Veteran’s compensation and Veteran’s educational assistance. The largest of these programs are Social Security and Medicare.
Why does the U.S. have an $18 TRILLION dollar debt?
Consider that, in fiscal year 2013, the federal government paid out more than $2 TRILLION in benefits and entitlements according to data from the Bureau of the Fiscal Services’ Monthly Treasury Statement. You don’t have to be a mathematician to conclude that, if more Americans were working, there would be less need for many of the benefits programs and the largest among them would be more financially sound.
News of new jobs is always welcome, but it hides the deeper problem of too many unemployed and while Congress continues to debate what to do about Obama’s effort to give work permits to illegal aliens and protect them from deportation, the Center for Immigration Studies announced in June that “Since the year 2000 all of the net increase in the number of working-age (16 to 65) people holding a job has gone to immigrants (legal and illegal).” Should the U.S. make five million or more illegal aliens eligible to compete for jobs with its native-born and naturalized population?
The U.S. must pay billions in interest on its debt. The failure of Congress to address the need to reform the tax code, reduce the deluge of regulations negatively affecting the business and industrial sector, and get control over spending has dug the nation a very deep and dangerous hole.
Statistics can be daunting, but we all can feel that something is terribly wrong with the economy despite the news about a vigorous Wall Street. The fact remains that Main Street is in trouble. The nation requires an economy in which new businesses are created and existing ones can afford to expand. That is not happening.
That is why we are Number Two.
© Alan Caruba, 2014