Green EyeShade Blog - No Optimism In June
The National Federation of Independent Business (NFIB) has just released its Small Business Economic Trends Report for this month, and small business optimism continues to decline. Probably not shocking news given the current economic climate and the rising unemployment rate. However, the NFIB’s analysis of the cause behind this serious downturn is worth noting.
NFIB chief economist Bill Dunkelberg laid the blame for today’s jobless numbers squarely on the Obama Administration’s misguided regulations, proliferated by ObamaCare and Dodd-Frank, and record breaking deficit spending of late. Explaining that the White House has failed to bring any relief to the negative trend, Dunkelberg said, “The failure to understand why small business owners are not hiring or investing has resulted in a set of policies that have not been very effective, and Main Street is suffering. The icing on the cake: the growing debt, large deficits, threats of higher taxes, regulations being spewed out by state and local administrations, and the uncertainty of the new health care law—is it any wonder that optimism is down?”
Today’s 9.1% unemployment rate is well above the 6.7% rate Democrats promised by now if their stimulus plan passed. The stimulus failed, the President’s takeover of healthcare and the private sector has caused economic ruin, and our climbing debt and deficit has destroyed jobs and is now threatening America’s future. The data reflected in NFIB report may not be surprising, but it needs to be taken seriously. The canaries are starting to grow quiet.
Debt By Comparison - Green Eyeshade Blog
U.S. debt held by the public is projected to reach $10.9 trillion by the end of this year – or approximately 72% of GDP. Not since World War II has this nation seen a debt-to-GDP ratio this high and, due to misguided public policy decisions, unemployment remains high and economic drivers stagnant. Note, too, that approximately 47% of our public debt is held by foreigners. We are no longer approaching a crisis, the crisis is here. As an illustration, membership to the European Union requires that a nation’s debt not exceed 60% of GDP. Much has been made of the collapse of Greece and looming bankruptcy of other European countries, and rightfully so. However, given the warning signs coming from across the Atlantic, it seems worth noting that we couldn’t even qualify for EU membership.
Fiscal Year 2010: CBO Records Unsustainable Debt
Another year, another trillion dollars in debt…or so it appears this Congress goes. The Congressional Budget Office (CBO) has just released a FY2010 analysis pegging the federal budget deficit for the past year at $1.291 trillion. According to the CBO report, federal spending in 2010 accounted for 23.6% of the entire economy. If you know your American history, you’ll know that adding that 23.6% to last year’s 25.4% records the highest spending levels in our nation’s history, with the exception of World War II.
Review the CBO report here.
If we do not quickly reverse the current course of frenzied overspending and pass spending cuts across the board, our debt will soon carry this nation over the cliff. This report is a clear indication of the self inflicted threat we now face. The last two fiscal years have marked record shattering deficit spending in Washington by a majority in Congress that increased spending rates to unsustainable levels. Worse, if acted upon, the President’s budget proposal would only serve to double our national debt. If we continue to spend at current levels, we will leave future generations with permanent trillion dollar deficits.
The federal government's fiscal year ends this Thursday, and instead of considering legislation to reduce and restrain spending, Congress is scrambling to pass a Continuing Resolution (CR) to most likely extend the current levels of bloated, out-of-control, federal spending. This is the epitome of tone deaf leadership. In the last two weeks, the House has found a way to add $5 billion in new spending, and yet, we cannot get as much as a debate on spending cuts or limits.
It's Not PrettyMany of you know, I am a member of the Joint Economic Committee, a bicameral committee in Congress. Recently, the Republican staff released a chart detailing the organization of America’s new health care system based only on the law. And it isn’t pretty.
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