GDP is still growing mildly, at least using the flawed governmental numbers, which include fictitious jobs numbers because of “seasonal adjustments.” I believe that GDP growth will soon be negative.
The biggest part of the alleged job growth is the HES (health, education, social services). Obamacare has necessitated the hiring of hundreds of thousand just to find their way through this maze of regulations. And these account for some of the alleged “job growth.”
Health care spending last year was about $85 billion, the largest of all sector spending. Second was “recreational goods and vehicles” at about $45 billion. For perspective, a category like “financial services and insurance” was only about $8 billion. Yes, Obamacare is part of the part of the meek economic growth Washington brags about. The problem is that it is financed by deficit spending of the government, with money it doesn’t have.
If government can now come up with another huge tax program like Obamacare, it may prevent the official GDP numbers from nose-diving into recession or worse. How about a ‘Department of Happiness and Equality?’ The UAE has a similar Ministry.
In line with a presidential candidate’s promises, wealth might be taxed up to 90% and given to those who don’t like to work. The goal would be to have everyone equal. And that would produce “happiness.” This could be a virtually unlimited program to assure that everyone is happy…equal.
Don’t laugh. If we continue on the current path, it will happen. Look at the popularity of Bernie, a Marxist. Reportedly, he never held a full-time job for very long. He was unsuccessful most of his life, until he got into politics. That’s always the salvation for such people.
He was finally elected to the US Congress in 1990. He has been feeding at the public trough, while preaching that the wealth of one person makes another poor. In all these years in Washington, can he show one bill he introduced to implement all the things he is promising now? He had 26 years to do it!
No work, no responsibility, no risk, good pay and benefits for life. Promises are enough to get such people reelected. Fortunate for them, there are enough fools who believe those promises.
Unfortunately for the rest of us, we have to work harder and harder to make ends meet, as prices of essentials rise, as do all the taxes at different levels.
A humorous video was in the news recently, showing a woman at a Starbucks, at a table with a computer, yelling obscenities at the governor of her state, who was buying a cup of coffee. She referred to herself as “working people like me.” Well, it seemed to be during working hours, she had an expensive laptop, drinking expensive coffee. Why wasn’t she at work? Was she collecting unemployment benefits?