Obama's policies are not helping America
Nov. 11, 2013 at 5:11 a.m.
Editor, the Advocate:
The main reason middle income earners have declined and lower incomes remain in a poverty state can be attributed to President Obama and his socialist policies.
Even after five years, our economy is operating barely above a recession level. Our national growth rate is less than 2 percent, and the national debt is more than $17 trillion. The only thing keeping our nation from slipping back into a recession is the Federal Reserve's policy of infusing $85 billion of new money per month into the economy. The Reserve's policy keeps interest rates at historic lows but has potential future financial consequences. The worst mistake holding back economic recovery is Obama's Affordable Health Care Act. It has caused chaos in the health and business world. Also, it was underfunded with an expected long-term cost to be in the trillions.
Obama will not admit his economic policies are failing but rather gives an upbeat report of economic recovery. He claims his policies have reduced unemployment, but he doesn't admit millions are no longer on the government's unemployment rolls and are not counted. He states that the business world is producing improved profit margins and that the stock market is surging. What he is not admitting is how businesses overcame an ongoing weak economy. They laid off thousands of employees, reduced inventories, reduced dividends in some cases, delayed capital expansion plans, reduced many jobs to part-time employment, etc. Also, investors did not flock to the stock market because of Obama's economic policies but rather as a result of the Federal Reserve's policy as discussed above.
In the future, Obama will continue overspending and pay no attention to the national debt. He won't agree to significant cuts in welfare costs nor to reducing government size. His next endeavor will be to obtain an immigration reform law and then try and pass cap and trade legislation. All these actions plus the health care law and domestic programs will require large increases in revenue. This means more tax increases, more borrowed money and more newly printed money from the Federal Reserve.
Allen J. Novosad, Edna