The Gallup numbers reflect a more accurate overall picture of the dismal econo0my that President Obama continues to plunge us into.
For the federal government, the data they gather to reach the unemployment rate only includes those who are collecting unemployment. It does not include those who are still unemployed but have exhausted their 99 weeks of extended unemployment insurance benefits. It also doesn’t account for those who have decided to not file for unemployment but have taken part-time jobs as a means to survive until they can find full-time jobs.
In total, the Gallup poll reflects a more realistic picture of the current job market and it is a dismal one.
Between the number of those who are actually unemployed and the number of those who have accepted part-time jobs to survive, it is easy to see that are economy is going nowhere. This 18.3% rate of underemployment signals 18.3%, nearly a quarter of the American population which is not practicing traditional spending habits and purchasing their normal share of goods and services. This lack of purchasing power only perpetuates the vicious cycle of “un” and “under” employment.
With fewer people making purchases and fewer people making as many purchases as they use to, demand remains low and as demand remains low, so does productivity. Low productivity means fewer jobs and less purchasing power, all of which feeds into this vicious depressing economic cycle.
President Obama’s answer has been to allow to go up, increase the amount of spending on federal entitlement programs and throw hundred of billions of dollars into temporary government projects that do not bring a return on the dollar and only offer a small number of jobs that are temporary.
The Obama economic stimulus plan is no longer even the Band-Aid that it once was in 2009. In 2010 that Band-Aid has been sweated off through the exertion of continued unemployment and the continued lack of productivity.
Since April of this year, the underemployment rate has dropped from a high of 20.4% but since then it has leveled off at 18.3% where it remains today.
Clearly, federal spending programs are not the way to go. The only thing attempts to spend our way into prosperity are doing is exacerbate our explosive national deficit and dangerously high debt.
It’s time we admit that trying to stimulate the economy with deficit spending is not smart. It’s liberal lunacy.
The federal government must accept the fact that the only truly sustainable economic recovery that we can strive for, is one that is based on the free markets and the economic freedom of our fellow Americans. Once we remove the shackles of federal taxation and spending can we unleash the entrepreneurial spirit that has always made this nation great. With such entrepreneurial spirit, businesses are made and grown, and jobs are created and filled.
Until we accept this fact, both the real unemployment and even the fake unemployment will remain in the upper double digits.
I for one have long ago accepted the fact that deficit spending is not the answer to stimulating the economy. Yjay is why I satand by the following economic recovery initiatives that I have proposed:
— Set Constitutional Expenditure Limits so that we can only spend so much and Congress can’t keep on raising that spending limit.
—– Ends Pork Barrel Spending & The Practice of Legislative Riders with a legislative topical compliance rule that ensures that no riders or amendments can be tacked onto legislation or spending bills that are not germane to those riders and amendments.
— Enact Congressional Salary Adjustments and Reforms that first repeal the recent 2.8% pay increases of Congress and also repeal the legislative mechanism that automatically grants Congress such pay raises in the future.
— Call for a 10 % reduction in Congressional salaries
— Pass legislation that link elected officials salaries to the economy that they manipulate into either growth or contraction. This measure will reduce or increase their salaries by a percentage linked to the national unemployment, inflation and GDP rates. If the economy that Congress manipulates is tanking, so will their salaries. If it improves, so too will the level of pay that Congress receives. Part of these congressional salary adjustments and reforms will also link their raising of taxes or creation of new ones to their salaries. Salaries will be reduced by 2 percent for every percentage of increases they adopt
— Propose A Flat Tax
If a flat tax does not get passed, I will propose the following tax cut package:
— Seek an across the board income tax cut
— Seek an end to the death tax
— Fight for a reduction in capital gain taxes by 50%
— Increase the per child tax credit
— Adopt an exemption up to but not to exceed the greater of 10% of gross annual income or 25% of the annual median income, applied to College Savings Accounts, Individual Retirement Accounts (IRA), Money Market Accounts and Certificates of Deposits.
— Exempt Social Security benefits from taxation.
— Adopt a complete 100% exemption for spouses of military personnel deployed in a theatre of battle to be effective from the time of deployment to the end of the calendar year after deployment ends Require a 2/3 majority for passage of any tax increases
Together, all these steps and their alternatives will:
A.)- Bring the federal government under control in both its size and scope
B.)-Control federal spending and taxation policies
C.)-Put more money back into the pockets of the people who will in turn use that money for savings and for the type of spending that can unleash the entrepreneurial spirit that is the true engine of our economy…..the free market.