President Barack Obama delivered the annual State of the Union address in which he called for several economic policies and reforms. According to the president, these initiatives and measures will improve the middle class and lift millions of Americans out of poverty.
Indeed, these steps may seem well-intended, but the reality is that much of these policies will do quite the opposite. The poor will become poorer, the economy will continue to weaken and the federal government’s finances will still deteriorate. With the president wanting to “help” everyone, perhaps the famous quote that should worry everyone applies, “Hi, I’m from the government and I’m here to help.”
The status quo will be maintained until the next State of the Union address when the president reiterates what he said the year prior. The special interest groups will be satisfied, the Washington elite will feel as if they aided all Americans and bureaucrats will be awarded with more work, regulations, laws and taxes to apply to businesses, individuals and organizations.
Here is an excerpt of what the president had to say Tuesday night:
“Tonight, thanks to the grit and determination of the American people, there is much progress to report. After a decade of grinding war, our brave men and women in uniform are coming home. After years of grueling recession, our businesses have created over six million new jobs. We buy more American cars than we have in five years, and less foreign oil than we have in twenty. Our housing market is healing, our stock market is rebounding, and consumers, patients, and homeowners enjoy stronger protections than ever before.”
The wars are still going on. The United States is still in a recession. American jobs are still being shipped overseas. The housing market is being artificially propped up. The stock market, compared to foreign markets, has barely recovered and, again, based on artificial means. Consumers, patients and homeowners are still being squeezed by inflation, taxes and regulations.
With that being said, here are 17 reasons President Obama’s economic policies will accelerate the collapse of the U.S. economy.
1. A $9 minimum wage will hurt small businesses and force them to reduce hours, lower staffing levels and forgo the idea of expanding or even providing employment opportunities in the future.
2. The impoverished will be dramatically hurt by such a minimum wage because the present laws prompt businesses to discriminate the poor that may not have the necessarily skills to perform such jobs.
3. Union members are the only ones to benefit from minimum wage laws. Although they may not want to admit it, union members who compete with minimum wage workers increase their earnings by as much as 40 percent. Non-union, low-skilled workers see their incomes drop because of reasons listed above.
4. Union members benefit from minimum wage hikes because it diminishes competition they face from low-skilled workers.
5. When these low-skilled workers can’t get jobs they will likely turn to government assistance and food stamps. More than 47 million Americans are on food stamps and 128 million receive money from the government.
6. The number of food stamp recipients will continue to grow until 2014. By 2020, 37 million Americans will still remain on food stamps, according to the Congressional Budget Office (CBO).
7. President Obama’s State of the Union address included arguing against spending cuts. With an overwhelming $16.5 trillion national debt and near trillion-dollar budget deficit, not making cuts will hurt the country more than it will help.
8. The sequester includes $1.2 trillion in automatic spending cuts across-the-board over a 10-year period, including military and discretionary spending. Even with the sequester, however, spending will still increase as much as $8 trillion over the next decade.
9. In order to fund all of these vast expenditures, the U.S. has to tax, borrow and inflate even more over the next four years.
10. When the president leaves office in 2016, the national debt will soar to $20.3 trillion.
11. Next year, Obamacare will be fully implemented and the road to even worse economic disaster will initiate.
12. The decade-long costs of Obamacare have been raised from $940 billion to $1.76 trillion, according to the CBO.
13. Medical plans at companies for its employees will be $63 per person in order to fund the cost of covering people with pre-existing conditions under Obamacare.
14. Access to healthcare and services will be more costly and difficult because new taxes on drug companies and medical device makers have been increased by nearly $50 billion.
15. Because the Federal Reserve sets interest rates so low, total mortgage and consumer debt levels are much higher than they were 20 to 30 years ago.
16. Total consumer debt in the U.S. has risen to $2.75 trillion. That number doesn’t look like it’ll slow down anytime soon.
17. The rising cost of prices and taxes could lead to tougher times for the average American.
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