The News media and some writers here at Active Rain are cautiously optimistic that the economy will turn around in the coming year and economic indicators will improve. This is not another article about sunshine and free lunches.
I suggest the current political and economic climate has not changed. The production of the lame duck Congress in the past month is a demonstration that the Obama Administration and their agenda is alive and well in spite of the mid-term elections.
Let there be no illusions here. The 2010 Election cycle was not an endorsement at the national level of the Republican Party policies - it was, in my view, an indication that much of the electorate is opposed to the big government, tax and spend liberal policies of the Obama Administration and the Congressional leadership. The national debt is being seen as what it represents - the indefensible shifting of debt from our economic policy blunders and profligate spending to future generations. And the last month of the 111th Congress tacks another trillion dollars to the deficit. The house of cards is close to collapse.
But recognize that the major legislative accomplishments of the Obama Administration were significant payoffs to the overwhelming;y supportive union organizations in the country. The unions now enjoy considerably enhanced power and these organizations are anti-business.
The recent snow emergency in New York City is a demonstration of the willingness of the unions to act in a manner contrary to the public interest. Michelle Malkin reports in her recent article (Big Labor's Snowmageddon Snit Fit) that the unions conducted an intentional slow down during snow removal which may have led to significant costs for the city in overtime payments and injury and death to its residents.
The impact of the pension and deferred compensation plans of the public employees unions are now being seen for the dangers they represent. And the news media sit in amazement as the calculations of the unfunded pension liabilities in the public sector are disclosed. These plans which offered significantly better benefits to public employees than comparable plans in the private sector must now be paid or dishonored by state and municipal government bankruptcies. The coming impact of these unfunded agreements is soon to be felt by the economy at large.
The administration has signaled their willingness to seek to continue their agenda by agency regulations to carry out their plans that they could not pass in Congress (even with the significant Democrat majorities if the last four years). The FCC has moved into uncharted waters with Internet Neutrality rulemaking. The EPA continues to implement much of the Cap and Trade agenda through rules issued from the agency. The Department of the Interior continues to obstruct efforts to develop our domestic energy resources (and the President's ban on drilling in the Gulf of Mexico) increasing our dependence on unreliable foreign sources of oil and raising the costs of energy and gasoline. These and other administrative moves are detailed by David Limbaugh in his recent article (The Administration's Administrative Tyranny Marches On) The rising gas prices will impact every one of us but the administration continues to focus on an anti-business agenda.
The government funded end of life counselling (death panels) was too controversial to pass in the Obamacare legislation - but it has been quietly included in hundreds of new Medicare rules and regulations. Charles Krauthammer warns of increased government regulations in his recent Washington Post Article. He notes that the Interior Secretary has recently adopted the authority to designate lands to be included under government control - formerly a Congressional prerogative.
Entitlement payments continue to proliferate as if we had the money to pay for them - and the bills are coming due soon. Power is being abused at the Federal level at the expense of State Sovereignty and individual freedom. Economic inflation is being denied by the government by leaving food and energy sectors our of the formulas used to compute inflation. But the increasing pressure on prices is obvious to anyone at the grocery story or gas station. The Fed program of monetizing the debt by purchase of government bonds with funny money is clearly inflationary by definition. Government control over large segments of the economy is increasing in violation of the Constitution and the traditional American Values which have made this nation exceptional. Intellectual dishonesty and outright corruption in government are now a clear and present danger to our nation. President Obama's slide to the center in December is for public consumption only and is intended to enhance his re-election prospects. His administration remains dedicated to his leftist agenda. And the stealth moves by the regulatory agencies are the "plan B" course of action saved up for the dark times when there is no longer control of Congress.
I recognize I am citing conservative authors above - but read the linked articles and process the information without the bias (theirs or yours). We all have a right to our own opinions but not to our own facts. The storm clouds are already here. The results of the policies we are following are already clearly visible in other societies around the world.
Did I mention, Happy New Year to you all.
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