Expect Worsening Unemployment And Economy Going Forward

Posted on | January 22, 2010 | No Comments

Analysis By Xelan Bonn (Jan 22, 2010) www.xelanbonn.com

Unemployment and the economy are the things of most importance to all Americans, according to a cross section of polling. Indeed, a recent Bloomberg poll found 77% of investors believe President Obama is anti-business. (1)

For his first year track record, Mr. Obama has forced the country to focus on issues that have nothing to do with curing this national economic disease, such as the environment and healthcare. Among other things, it has clearly shown the American people both his lack of understanding for the issues as well as his inexperience and inability to think and act responsibly on behalf of the nation. The issue is one of complexity, perhaps far beyond Mr. Obama’s personal ability as a leader to resolve, but certainly one that his personal ideology as a liberal-socialist would never allow him to pursue toward sound remedy. (2)

There are several confluences of underlying root problems that are now manifesting as severe unemployment, underemployment, and a worsening economy across the American landscape. They include:

1. Banking industry’s recent corruptions and failures that resulted in sucking business financial resources dry from the economy.

2. Imbalanced trade—shifting America’s assets to foreign workers through overly excessive importing to the US.

3. Greater reductions in regulations that allow transnational and national and even local corporations to more easily use foreign labor for consumption in the US (offshore, outsourcing).

4. Excessive spending (hence taxation) by the federal, state, and city governments which reduces available capital to free market enterprise.

5. Illegal immigration and criminal employment that has denied millions of medium and high paying jobs to Americans. (3)

6. And a variety of ancillary aspects, such as increasing lack of corporate ethics and responsibility, burdensome regulations and taxation for start-up businesses, and much more.

There are a few things the White House could do to rapidly repair the US economic landscape, however, they will likely not be done, as they do not fit with the president’s or the Dem Party’s (majority) predilection for socialism (e.g. anti-capitalism)—hence we should reasonably expect to see all these problems exasperated over the remaining 3 years left in the Obama administration’s term.

The cures for America’s economic insolvency will require leadership of a kind we have not seen in decades—perhaps since the Reagan Administration. They include the following:

1. Aggressive tax exemptions, grants, low interest loans and deregulation for start-up businesses to encourage and reinvigorate entrepreneurial activity that creates jobs.

2. Major policy shift and focus that deemphasizes globalism and imports and re-emphasizes producing and buying locally (within America’s borders).

3. Tax penalties that make it harder for corporations to outsource or offshore.

4. Major tax breaks for corporations that invest in educating and training new employees to encourage putting Americans back to work in higher employment fields.

5. Installing a surplus budget mandate across the board for federal, state, and city government that ensures government can no longer spend more than it takes in and is forced to pay down debts when the economy is robust (rather than increase its spending and waste on such things as interest payments).

6. Beefing up both internal and border security in regards to unlawful immigration and the use of criminal employees and the companies that hire them to make way for US citizens and lawful immigrants.

7. Removal of the Federal Reserve Bank and reinstallation of the Treasury as the financial regulator for the US economy and dollar (per the original requirements set forth under the Constitution) in order to ensure a more transparent banking and monetary system that reduces corruption and ensures sound currency and financial controls, flows, and business capital access.

8. Installing new regulations that treat transnational corporations as foreign entities, whether they are based on US soil or not, to thus ensure they are unable to influence and harm the political process and tear down such corrective measures made on behalf of all Americans (rather than in favor of the transnational’s own capitalistic needs, which are often mutually exclusive from America’s well being).

9. And an overall mindset throughout government that commits to making the middleclass strong and America the strongest economic powerhouse in the world once again.

These items are easy to list, yet incredibly difficult to put into place because few people in leadership positions are interested in the well being of America or Americans. The general rule from neutral observance of the political arena tells us that if you are in power (at any posting), you grab all you can for yourself (especially from the special interest handing out the goodies), and leave the scraps for Americans and America. This is the current poltical model but it could be changed to put America and Americans first (in reality instead of fantasy).

To improve America and get back to sound government we need to focus on two things first in order to kill the evil roots that are decaying the land: campaign finance reform, and education.

Unless we can begin electing leaders who actually are not career politicians but good and wise citizens who want to help America and Americans instead of themselves, we will never get the key system improvements needed—special interest will continue to rule America from behind the scenes.

Equally, we must get government out of the education business and place it in the hands of the private sector that has time and again proven it educates better, prepares better, and does it cheaper with less indoctrination than that of the public sector—the most corrupt and expensive system of education perhaps ever devised on Earth. If we teach our children the foundations of life and ethics from inside corrupt institutions, should we not expect to decay our moral and ethical fabric as the newer generations come forward?

Public education laws and regulations have restricted learning to the point that every student is now treated like a “special education” student—we have “dumb down” our children needlessly and only privatization of education will ever reverse this disease and return us to a sound educational system and foundation—which, in turn, will help us rebuild a nation of forthright and smart individuals who know true history and work to avoid repeating it—something very rare in today’s political environments.

Remember, it is our political environments which dictate outcomes—hence our economy and over-all well being as a nation. If we want lower unemployment, we must apply sound reasoning and common sense while simultaneously focusing on curing the roots of our national disease. Frankly, the cure just offered is far beyond the ideology of the Dem Party, and nothing special interest would ever allow to spring up inside the Republican Party, so do not hold your breath waiting for America’s salvation.

References
(1) Bloomberg on Business Wire (Jan 21, 2010)
http://finance.yahoo.com/news/US-Investors-See-Obama-as-bw-1205409126.html?x=0&.v=1

(2) The Desert Sun: Leftwing Socialism A Threat in the White House (Jan 17, 2010)
http://www.mydesert.com/article/20100117/opinion02/1170329/Left-winged-socialism-a-threat-in-the-White-House

(3) Xelan Bonn: Facts Prove Obama Against US Workers (June 16, 2009)
http://xelanbonn.com/192/facts-prove-obama-against-us-workers/

(4) Associated Press: CBO: Federal deficit projected at $1.35T
http://news.yahoo.com/s/ap/20100126/ap_on_bi_ge/us_obama_budget

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