Let’s take a step back and recognize the breadth and width of the Obama administration’s assault on the US economy.
We tend to divide ourselves along economic lines, upper, middle and lower or working class. It’s clear that Barack Obama has a plan for all three levels.
If you’re a top earner, in his mind you’ve “made enough money” and should pay more in taxes. That’s his plan for the wealthy: Pay more taxes.
This will take some money out of investments and companies and send it to the government. Some jobs will be either lost or aborted.
For the middle class, Barack Obama offers the dishonestly named Affordable Care Act, aka ObamaCare. By 2016, ObamaCare will force millions of Americans either to buy health insurance or pay a fine. He sold the law as a cost reducer, but estimates reveal that many Americans will see their premiums rise steeply, some by as much as 85%. Many American families will be paying $20,000 per year for health insurance. Most middle class families will not be able to afford this.
For those entering the job market and at the lower end of income, Obama is now pushing a hike in the minimum wage. This, he says, will give millions of Americans a “living wage.”
The minimum wage =!= a “living wage.” The minimum wage is supposed to be for entry level jobs, and as a worker progresses, they should expect raises commensurate with their job performance and the health of the company they work for. Hiking the minimum wage by fiat, as Obama intends to do, will certainly help some number of workers, but at the price of killing many jobs and raising the overall barrier to entry for younger and entry level workers. Employers faced with the decision to take on a 14-year-old at $9 an hour will think twice if their business is at all marginal or the kid lacks experience.
At the same time, the employer is faced with ObamaCare’s 30-hour benefit cutoff — ObamaCare mandates that employers provide health benefits to all workers who work 30 hours per week or more. So many employers will make the rational decision to cut their workers to less than 30 hours to avoid ObamaCare.
They will lay some off, because of the minimum wage hike.
They will lay some more off, because of the tax hikes that are hitting those who happen to fall into Obama’s “you’ve made enough money” brackets.
Obama’s energy policies are contributing to high fuel prices, which drag the economy even more.
If this continues, and it will, it’s hard to see how we avoid a full-blown depression. Assuming we’re not already heading for one.
By the way, if you’re thinking about obtaining any new education to crosstrain into another career, the cost of higher ed has only gone up about 400% in the past few years.
All of these deliberate policies work together like the body of an anaconda, strangling the economy across the throat, the midsection and the legs.
Obama just happens to have targeted one of the few government spending sectors that actually contributes positively to the economy and to technology, while keeping our nation secure, too: the sequestration.
None of this is happening by accident. It’s too deliberate, too systematic.
After looking at all this, two words come to mind: Cloward-Piven.