Looming Depression?

Kevin McCullough, in an article dated September 5, 2010, noted that this week President Obama claimed that the nation saw job growth of 67,000 jobs in August. Even if this number was real it would be a pitifully tiny percent of the 14,885,000 who are both on unemployment (1 in 10 Americans) as well as those 23,768,000 who are underemployed (working but not earning enough for basic needs - 1 in 5 families).

The bigger problem for the president however is that the number is not real. The fact is the nation saw 114,000 people added to the unemployment lines in August and the net jobs lost for the month sat at 54,000. In all the "summer of recovery"--as both President Obama and Vice President Biden pronounced it--saw 238,000 more jobs disappear. Telling the nation that his plans have taken the economy in the right direction, and implying that the nation is seeing a recovery in the area of employment is either willfully dishonest, or painfully, even treacherously naive. At the rate of this "recovery" another 317,333 workers could be sitting on the sidelines before the end of the year.

Additionally we are now on track to see the single largest collection of tax increases ever proposed take the Obama economy even further into the tank. In less than 120 days President Obama's plan to add a collective 18.6% to the federal tax burden will continue the economic downward spiral into record breaking depression-era territory. And remember he repeatedly said--on the campaign trail--that he should be elected expressly to prevent the nation's economy from complete deterioration.

Instead unemployment that was growing in the transition from Bush to Obama has exploded to double what it was under Bush. Even worse this means that while 14,885,000 Americans are claiming unemployment assistance, some 23,768,000 families are presently struggling through work that they have but are unable to meet their basic needs.

And about the time we are belting out Auld Lang Syne this holiday season, President Obama will raise all five income levels of tax categories between 3-5%.

Ironically the President will be raising the rate on the category that is home to seventy-five percent of all small businesses in America by the largest increase.

None of this takes into effect the additional costs that will be incurred by taxpayers when the full implementation of President Obama's control of one-sixth of the economy through the manipulation of how we receive health care benefits kicks in. And not that it has great likelihood of passing this year, but if by some miracle it did, the Obama tax penalties that would be incurred by every citizen in the nation under the proposed "Cap & Trade" legislation would add even greater misery to the growing pile.

All of these pending tax increases will be put into effect against well more than 95% of American tax-payers.

For McCullough, all of this suggests that unless the nation changes course, the nation will experience the "Obama depression." None of us has any way of knowing whether this result occur, of course.