Obama Dragging Economy Toward a Great Depression

Thursday, 02 Jun 2011 07:47 AM

By Wayne Allyn Root

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I predicted doom if Barack Obama was elected. Sadly the results are far worse than imagined. The economy is in shambles. America is staring at economic Armageddon.

Even me, the eternal optimist is scared at what the future holds. We are the Titanic, headed straight for the iceberg.

I am a successful small businessman and a patriot who loves America and always sees its greatness. I am also an optimistic, positive thinker who always sees the glass half full.
barack obama, great depression, fdr, 1929, socialism
Barack Obama


But not this time.

America has always been a land of boom and bust. It’s just part of business cycle. But Obama and his socialist cabal have channeled Hoover and FDR, who turned an ordinary bust into The Great Depression with a toxic strategy of more government, more spending, more debt, more rules and regulations strangling business, higher minimum wages, more power to unions, more entitlements, higher taxes, more printing of money by Fed, and trade tariffs.

The question this time: Is Obama doing it because he understands nothing about business? Or, does he understand exactly what he's doing?

Is Obama's goal to overwhelm the system, incite crisis, sow doubt about capitalism, and force the citizens to beg for government to save them, thereby opening the door to socialism?

Is Obama's plan to redistribute the wealth, and at the same time, to bankrupt the people with wealth and power, thereby crippling his political opposition?

Does it really matter?

Here's where the story gets downright frightening. This time the results are going to be dramatically worse than 1929. This time we are facing the worst depression ever.

Why? Because The Great Depression had NONE of problems and obligations we are now facing:
  • In 1929 America was not $100 trillion in debt and unfunded liabilities.
  • In 1929, most of our states were not bankrupt, insolvent and dependent on the federal government to survive.
  • In 1929, we had far fewer government employees living off taxpayers. Today 1 out of 5 federal employees earn over $100,000. California lifeguards and Las Vegas firemen earn $200,000. Over 70,000 federal employees earn more than the governors of their states. Government employees retire at age 50 with $100,000 pensions for life. The postal service, without competition, loses $8 billion annually. Protected by their unions and the politicians they elect, government employees are bankrupting America. Even FDR said he could not imagine allowing public employees to unionize.
  • In 1929, Social Security, Medicare, and Medicaid didn’t exist. The federal government had no such obligations threatening to consume the entire federal budget within a few years.
  • In 1929, there was no such thing as welfare, food stamps, aid to dependent children, or English as a second language programs. American’s didn’t consider it the responsibility of government to pay for breakfast and lunch for school students — let alone illegal immigrants.
  • In 1929, we didn’t have millions of illegal immigrants and their children collecting billions of dollars in entitlements from U.S. taxpayers. Legal immigrants wanted only to work. My grandparents from Russia and Germany received no government benefits. They worked day and night to provide for their family and become American citizens. It was sink or swim.
  • In 1929, we had 150 million citizens with a strong work ethic — all motivated to earn the American dream for their children and grandchildren. Americans were hungry in 1929. Today the hungry, motivated citizens and entrepreneurs are in China and India.
  • In 1929, we had an education system that was the envy of the world. Today our public schools are in shambles. We spend the most in the world, and get among the worst results. The difference today? Teachers unions are in charge, instead of parents.

Our students graduate with few skills, qualified only for low paying manufacturing jobs that no longer exist — they've been shipped to China and India.

In those days we had a cash economy, so most businesses paid little or no taxes. Sales and FICA taxes didn’t exist. Today the combined local, state, property, gas, sales, FICA and federal taxes are the highest burden in history. This stifles entrepreneurship and hinders the financial risk-taking necessary to create jobs and get out of a Great Depression.

Disaster looms.

There is no easy way out. The economy is crumbling. The more government gets involved, the worse it gets.

The solution is simple: Cut government, cut spending, cut entitlements, cut taxes, stop the wars, end the Fed, term limit politicians, and back the dollar with a gold standard. Or, like so many other great empires of history, America may never recover from this Greatest of All Depressions that Obama is driving us directly toward.

Wayne Allyn Root is a former libertarian vice presidential nominee. He now serves as chairman of the Libertarian National Congressional Committee. He is the best-selling author of "The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts." His website: ROOTforAmerica.com

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