Massive federal spending and Federal Reserve manipulation of the money supply have created a false sense of economic stability in an economy that continues to labor under an enormous tax and regulatory burden that severely impedes the ability of small and medium size businesses (the engines of employment and innovation) to sustain and enhance economic growth. A true indicator of the dire state of the American economy is the workforce participation rate. As of August 2014, 38.2% of Americans 16 or older who are not in the military and are not institutionalized were not in the work force. That figure is staggering. In other words, 92,270,000 Americans who could be working are not. Many of those are on federal assistance. The current work force participation rate is the lowest it has been since 1978, a year reflective of Jimmy Carter’s wretched economic legacy. It is no coincidence that the figure of those who are receiving some form of federal assistance is roughly equal to the percentage of those not in the workforce. The overlap is substantial. It is a sober reality of the current regime that those who are still working must support through taxation a roughly equal number of folks who are not. That condition cannot continue indefinitely. The nation can either maintain its tax and regulatory policies, in which case the figure of those who have dropped out of the work force will continue to rise (resulting in a predictable collapse of the economy and the government), or the nation can dramatically pare back taxes and regulation, in which case economic growth will return and those now out of the work force will become employed in ever greater numbers.
Posted on: Tue, 07 Oct 2014 00:51:41 +0000
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