Wednesday, June 15, 2011
"As government grows and absorbs more and more of a nation's gross domestic product in order to finance this bribery, the less capital there will be for business expansion and job as well as wealth creation."
By Steve McCann
President Obama, the fellow leftists in his administration, and the Congress, nearly none of whom have ever made a viable contribution to the Gross Domestic Product, are hell-bent on seizing complete control of the economy. They are making the same foolish and arrogant mistake Marxists and Socialists have made since the mid-1800s, and the citizens of the United States will pay an overwhelming price for their folly unless the people begin to grasp the true cost to themselves and the country.
Those, such as Barack Obama, who believe they have a manifest destiny to rule and are faithful to socialist tenets, have a predisposition to control economic and personal activity through laws, regulations, taxes, and intimidation. They attempt to maintain this power by bribing the populace with massive social spending and promises in exchange for their votes. These commitments can never be fully honored; nonetheless those in power willfully keep the general public focused on blaming others for the failures of collectivist ideology and rely on the deliberately inept economic and civic education fostered at government operated schools to keep the majority of the people confused and bewildered.
As government grows and absorbs more and more of a nation's gross domestic product in order to finance this bribery, the less capital there will be for business expansion and job as well as wealth creation. Unfortunately many Americans do not understand that as a corollary to this activity, the standard of living and wealth of all citizens will continue to decline dramatically, as it is the private sector, not government, which creates prosperity.
Few things cause the eye to glaze over more than economic statistics, particularly when discussing incomprehensible sums in the trillions of dollars. But when it comes to the employment and wealth of Americans as well as the ability of the private sector to grow, there are two statistics that the public should be aware of, and one which everyone can relate to:
1.The Gross Domestic Product (the total economic output of the economy); and
2.The Net Gross Domestic Product per Person (the GDP less the amount of government spending at all levels divided by the current population.)
The Net GDP recognizes the impact of Federal, state, and local spending.
Ideally the Net GDP should increase every year adjusted for inflation. This would be an indicator of private wealth creation, higher personal incomes, and a healthy expanding economy, as money is more readily available for job creation. Despite minor ups and downs, the overall trend in a six to eight year period should always be on the positive side and normally has been over the past twenty-five years.