with help from China.
So the suffering American economy and its workers are facing four grave threats simultaneously.
First, U.S. industrial policies by the radical Democrats have imposed terrible burdens on the U.S. economy that are making it more and more inefficient through high non-competitive labor costs, carbon regulation, artificially high energy costs, and numerous government mandates.
Here is a summary of recent aspects of our industrial policy as proffered by the ruling Democratic Party:
●Huge and ineffective stimulus expenditures
●A 3.0-trillion-dollar increase in our national debt in two years
●Unemployment at 9.6%
●A job-killing moratorium on drilling for oil in the Gulf of Mexico and Alaska
●Adoption of a tax on energy use called Cap and Trade
●The EPA aggressively regulating emissions resulting from the combustion of carbon fuels
●The EPA working to regulate fluids used in the production of abundant shale-sourced natural gas
●Elimination of the secret ballot (card check) in proposed unionization to increase union power and high-cost labor in our economy
●Imposition of costly health mandates on small businesses
●Increasing domestic taxes on business earnings made and taxed in foreign countries
This list is sufficiently comprehensive for anyone to get the picture, especially if he or she is in business.
Second, industrial policies by the Chinese government to permanently suppress their labor costs to subsidize the growth of their manufacturing sector have resulted in an ongoing disadvantage for the American manufacturing sector.
Third, the fiscal policies of the radical Democrats have resulted in massive deficit spending which has the U.S. national debt to over $13 trillion from over $10 trillion in just two years. And there is the certainty of more deficit spending to come as long as they control government. They haven’t even passed a budget for the current fiscal year. All of this spending will eventually put tremendous upward pressure on interest rates. You only have to review the economic history of the period of the late 1970s and early 1980s, when rates on U.S. Treasury Securities peaked at over 15%. Rates anywhere near this zone will crush the economy because of the much greater proportion of government debt to GDP that exists today as opposed to the earlier period.
Finally, policies of the Chinese government that transfer the appreciation of the yuan into purchases of more U.S. government debt gives them the capability to hold America hostage to any and all of their policies. (Source: American Thinker)
A very insightful and straightforward explanation of what has happen to Industrial America thanks to the actions and policies of both the Chinese and the Obama administration with a Democrat Congress. So go to the source and read the whole thing.
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- A better way (economist.com)
- “Economic Treason” & the Confiscation of America (redstate.com)
- Instead of governing, Democrats send in the clowns (seattletimes.nwsource.com)