Monday, November 19, 2012

IT'S 1937 ALL OVER AGAIN: The Ongoing Obama Depression Will Continue Until Further Notice

When George Santayana said, "Those who cannot learn from history are doomed to repeat it," he was describing ideologues like Barack Obama.

How else can one explain his desire to replay the Great Depression? Based upon Obama's policies, we're replaying the year 1937, just months after FDR's reelection to a second term. In short, FDR's incessant interference with the private sector and his commitment to the socialist-progressive principles of Stuart Chase turned out to be abject failures.

But Obama is replaying FDR's failed strategies to a tee.

...According to the BLS, real weekly earnings adjusted for inflation for Q3 2012 are the same as Q4 2007. Even worse, seasonally adjusted real weekly earnings for full time workers, all occupations, are at similar levels to the mid 1980's.

Overall, weekly earnings dropped -0.2% in October and since October 2010 have fallen by -1.8%. The above graph means 50% of workers are earning less than $332 per week in real purchasing power, accounting for inflation since 1982-194. Not adjusted for inflation, the median weekly earnings for all occupations was $765 in Q3 2012. Now think about rents of $1500+ a month in many cities and how 50% of all earners are making less than $765 per week, before taxes...

...[Above] is the real hourly wage, or adjusted for inflation since 1980. Again we see in terms of real dollars, workers aren't really getting ahead...

If Obama truly cared about "the middle class", he'd abandon his destructive policies that are literally crushing American families.

Individual taxes must be lowered, especially in the highest brackets, because business owners need the funds to hire more workers. Corporate taxes must be slashed and "double jeopardy" foreign profits taxes eliminated to attract money to our shores. The vast regulatory bureaucracy must be scaled back. And the out-of-control labor unions need to be brought to heel.

And government must spend less. Much, much less.

But the president won't change his disastrous progressive course and will instead continue on the road to economic misery. He is an ideologue who believes he has a "mandate" (51-49, mind you) to continue the Depression that will forever bear his name.

Update: Historian Amity Shlaes agrees: "2013 Looks a Lot Like 1937 in Four Fearsome Ways."

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