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Tags: economy | politicians | invest | voters

The Economy Is Tanking While Politicians Squabble

The Economy Is Tanking While Politicians Squabble

Denis Kleinfeld By Monday, 29 February 2016 07:50 AM Current | Bio | Archive

The Democrats hate the Republicans and vice-versa. The presidential contenders hate each other.  Both sides are counting the minutes until the current president becomes a memory.

In the meantime, it is tax and spend politics as usual in Washington, D.C.,

And with this background we are told not to worry since the economy is growing.

We are supposed to accept all this because government bureaucrats have dutifully produced, as instructed, official numbers showing that things are not as bad as we think they are.

The news infotainment media industry devotedly parrots the party line of government produced statistics.  They know which side, so to speak, their bread is butter on. That the public becomes just burnt toast in the process is not relevant since the public does not generate the news — and their paycheck.

They mindlessly parrot any percentage, chart, graph put in a governmental press release. 

These releases are made intending to prove with mathematical precision that the economy is not as bad as people think it is.

However, human beings cannot be reduced to anything remotely quantifiable — much less with any specificity. This is true if for no other reason that people are predictable irrational.

An economy can be seen only in the reflection of three individual activities.

Working, savings, and investing.

That’s it.

All three are mercilessly affected, controlled, and manipulated by our elected politicians and their bureaucrats. And Wall Street.

The state of our economy reflects decades of ghastly legislation, dreadful regulation, atrocious executive orders, and crony capitalism.  Truly a kakistocracy where the worst people get in positions of power to run things.

Even when they say that the United States is in the best shape of all the major industrial powers that is little comfort. That is just another way of saying we are the best of the losers.

Why are we the best?

The United States is the largest grower of food in the world; its largest energy producer; its largest manufacturer; and it has more annual immigration that all countries of the world combined. Immigration of people who buy into the American culture is key to our economic survival.

This all occurs because the United States has a fundamental belief in personal liberty, the rule of law, and unlimited opportunities for anyone willing to work to achieve. (Only Israel has similar characteristics to any significant degree.)

The problem is that our highly politicized government doesn’t have the same beliefs — and produces nothing except more tax burdens, expense, and debt.

The government issues statistics that say the economy is growing.  That is picked up by the politicians and those in the Federal Reserve and others to prove that they are doing a good job.

If the facts were understood instead of this propaganda, none of the politicians would get re-elected, the bureaucrats fired, and Janet Yellen kicked out of the door.

All good things. What is going on?

An article in Investor’s Business Daily by Jed Graham tells us that,”The growth of federal income and employment tax with-holdings, the broadest and most timely read on the health of the job market, has been sinking at an alarming rate.” When governmental regulations strangle business and taxes drain its capital, then  it should be expected that employment suffers.

When the number of people underemployed, unemployed, or have given up looking for employment increases, that decreases or reverses the cash flow into every nook and cranny of the economy. 

Unquestionably, the United States has one of the lowest savings rates in its history.

Added to this is that companies have stagnant earnings and are cutting costs to the bone.

Except for those employed by government, pay raises and bonuses are but a memory. Lots of industries, like retail stores, are not only reducing human resources overhead but are closing outlets. 

Those who are fortunate to have a job and can put money away are not free and clear.

Congressional tax wisdom is that interest on savings accounts is a bad thing while going into debt is to be encouraged. Even if people had money to save, Fed policy makes sure they get paid nothing.

When experiencing no return on investment, tax, and inflation, it is not surprising that  people choose to just spend their money while it still has purchasing power. 

The media in the meantime salivates about the gyrations of the Dow and S&P  as if they were meaningful reflections of the economy.

They represent nothing significant except hype to promote the markets. 

All they show is result of  the  repulsive manipulation of a handful of stocks by Wall Street traders exploiting the desperation of investors seeking yield.

However, scandal after scandal in the financial industry and its regulators, and the resulting losses have dramatically affected the attitude of investors. 

Investors are justifiably as frustrated and angry about the financial markets as they are about politics. Their outrage underscores the anti-political establishment movement in the current election cycle.

In the meantime, the American economy is tanking while the politicians are squabbling, all of which can about because either some Democrat or Republican, or even worse, both thought that government is the solution to problems that the government created. 

Denis Kleinfeld is known as a strategic tax and wealth protection lawyer, widely published author and creative teacher. To read more of his articles, CLICK HERE NOW.

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The Democrats hate the Republicans and vice versa. The presidential contenders hate each other. Both sides are counting the minutes until the current President becomes a memory.
economy, politicians, invest, voters
Monday, 29 February 2016 07:50 AM
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