United States President Barack Obama was officially sworn into office for his second term this week. With no reelection battle expected in four years, the president can enact many policies, whether they’re popular or unpopular with Congress or his constituents – he even told former Russian President Dimitri Medvedev he will be freer to do what he wants after the 2012 presidential election.
In his inauguration speech, he highlighted that his second term would focus on immigration and climate change.
Although much of his domestic and foreign policies of his first term have been quite disastrous for the U.S., his second term policies could be even worse, according to his data, opponents and economic experts.
Within his first term as president, the U.S. national debt has increased nearly $5 trillion, he has submitted four straight trillion-dollar-plus budget deficits, the (official) unemployment rate still remains sluggish, the price of gasoline has risen by 90 percent, the nation’s global economic competitiveness has declined and the entitlement wave continues to grow.
One interesting statistic: U.S. taxpayers spend more on the Obamas than British taxpayers do on the royal family. In total, Americans were forced to spend $1.4 billion on the Obamas, while Britons spent $57.8 million on royalty.
What does the president’s second term look like? Here are 23 reasons why Obama’s second term will be disastrous for the economy.
1. The national debt will rise to $20.3 trillion by the end of his second term.
2. A balanced budget is not expected within his second term.
3. The budget deficit will sink below $1 trillion but rise again above $1 trillion by the end of 2016.
4. Federal spending is expected to increase after the fiscal cliff deal.
5. By 2050, federal spending will be half of the country’s GDP.
6. The fiscal cliff deal between the Republican leadership and the president includes $620 billion in taxes with only $15 billion in cuts.
7. January’s deal will add $4 trillion to the deficit over the next 10 years, according to the Congressional Budget Office (CBO).
8. The interest on spending will be close to three-quarters of a trillion dollars each year by 2020.
9. By 2050, the budget deficit will consume 50 percent of the nation’s GDP.
10. Taxes will jump: individuals earning more than $1 million will pay an additional $122,560 in federal taxes. Those making between $500,000 and $1 million will be taxed an extra $7,000. Most wage earners will see a two percent increase in the payroll tax for Social Security.
11. About 47 million Americans are on food stamps and the CBO projects that the number will increase until 2014 and cost approximately $80 billion each year. By 2020, 37 million are expected to remain on food stamps.
12. Obamacare is scheduled to begin in 2014. Companies are already downsizing, cutting shifts, reducing staff levels and fearing the number of regulations. Businesses already spend $1.8 trillion to abide by current and future federal regulations.
13. Despite the Affordable Care Act’s intentions to decrease costs, health insurance costs have risen by 29 percent. Insurance companies across the country have increased their premiums by double-digits and the figures will still soar because of new regulations.
14. Once the proud domain of the entrepreneurial beast, the number of start-ups is at a 30-year low. With new taxes and regulations, it will continue that trend: President George H.W. Bush: 11.3; President Bill Clinton: 11.2; President George W. Bush: 10.8; President Barack Obama Obama: 7.8 (startup employment opportunity per 1,000 jobs).
15. The student loan bubble has already exceeded $1 trillion and will continue to grow as the federal government has promised to increase funding.
16. Delinquency rates for student loans have entered double-digits and the Federal Reserve Bank of New York warns it could be a growing issue, especially since it jumped by more than two percentage points in one quarter.
17. Social Security did not take in as much money as it spent in 2011, according to the CBO. It will continue this downward over the next 10 years and it’ll be insolvent by 2033.
18. The wave of unfunded liabilities and expenditures will persist in reaching new heights. It stands at $122 trillion and will jump to $200 trillion in the near future.
19. At the end of the president’s second term, China will officially become the world’s biggest economy and surpass the U.S.
20. Under this administration, Americans have lost 500,000 jobs to China each year and will increase since China will be the No. 1 economy.
21. With the Federal Reserve increasing its balance sheet to $4 trillion by the end of 2013 and more after that, inflation will be even worse by the end of the president’s second term.
22. The official inflation calculator does not include food and fuel prices, but they are soaring. This year alone, American consumers will be paying on average three to four percent more for food.
23. As more and more international currencies are gaining world reserve status, such as the Austrian dollar or the Canadian loonie, the U.S. dollar could become even more worthless than it is now by the end of 2016. Therefore, a dollar collapse is imminent.