* Pieces of the Keystone XL pipeline await construction in
By: Larry Walker, Jr. -
When Mr. Obama visited the padlock maker Master Lock in
"Manufacturing is coming back. Companies are starting to bring jobs back."
First of all, in my last post, War on Wealth | Obama Visits Master Lock, I pointed out that the
"The economy is getting stronger. The recovery is speeding up."
Next, according to the Bureau of Economic Analysis, GDP declined at an annual rate of (3.5%) in 2009, increased at an annual rate of 3.0% in 2010, and then slowed to an annual rate of just 1.7% in 2011 (as of 1/27/2012). So since our economy declined from an annual growth rate of 3.0% in 2010, to an annual growth rate of just 1.7% in 2011, does this mean the economy is getting stronger? Not in my book. So instead of backing Obama’s claim, that the recovery is speeding up, the facts show that the recovery is actually slowing down (see chart above).
"We’re moving in the right direction."
Are we moving in the right direction? Well, in terms of deficit spending, the government is borrowing at the highest rate of GDP since World War II, as shown in the chart (above). The national debt as a percentage of GDP has skyrocketed from 69.9% in 2008 to 104.8% in 2012, and is projected to reach 107.8% by 2014. The last time our debt-to-GDP ratio surpassed 100% was in 1945, when the federal debt climbed to 116.6% of GDP, peaking at 121.9% in 1946.
We know where the money was spent during the Second World War, but where’s the $5 trillion Obama borrowed and spent? For God’s sake, we could have cured cancer, or built a colony on the Moon with that kind of dough.
In terms of the near record debt-to-GDP ratio, coupled with the continuing loss of manufacturing jobs and the year-over-year decline in GDP, I conclude that the
"And now we have to do everything in our power to keep our foot on the gas."
Wait a minute; did Mr. Obama dare mention the word gasoline in his delusional tirade? When I first heard this, I wondered for a minute whether he really meant to say, ‘And now we have to do everything in our power to keep our boot on the neck of
According to the U.S. Energy Information Administration (EIA), gasoline prices have risen from an average price of $1.61 in the week ending December 29, 2008, to $3.52 through the week ending February 13, 2012 (see chart above).
So since gasoline prices have risen by 118.6% under the Obama Administration, perhaps we should be doing everything in our power to remove the federal government’s dead cold foot from the gas pedal. Gasoline prices are expected to rise further, to $4.50 per gallon by this summer, which may give Mr. Obama a temporary victory in his War on Wealth, but fortunately for America, his chance of re-election will simultaneously run out of gas.
To the contrary, instead of being a time to continue recklessly forward, our foot glued to the accelerator, now is the time for