Most people, including some very prominent economists are not thinking under the right conditions when coming to the conclusion that government must continue to spend to solve the current state of affairs. That it is the lack of enough spending, as occurred during the 1st Great Depression and as we are experiencing now, that was and is the reason why a real recovery didn’t occur. That is an erroneous conclusion as you will read below.

Seldom does government ever create “sustainable” employment and it is the lack of self sustaining regenerative income and employment, that if we could promote such enterprise, it would create the necessary recovery so badly needed to eliminate our unemployment problems.  The minute funding is eliminated from 99% of all government programs currently in existence, the program must literally be shut down, as they cannot ever come close to sustaining themselves. They generally don’t produce anything people want and in effect, are just an expense against real income that comes from organizations that do produce regenerative and sustainable income, robbing them of the needed money to maintain their sustainability.   

We need to create jobs in those industries where we do not have to have taxation or deficit spending to provide the necessary funding for their survival. With over 114 different taxes and a multitude of regulatory requirements, it has placed such economic burdens on the small and medium business owners, who as we all know are the heart of America, that many have not been able to maintain solvency.  We cannot all live off the military industrial complex and other government contractors and expect to have prosperity for the majority.  We can’t just continue to keep producing more and more military hardware when we already have way too much.        

The problem is that what we really need to do is drastically cut government spending and taxation to stimulate small and medium business to once again take the necessary risks to invest and start businesses that would provide the sustainable jobs. However the political will just isn’t there as there is  a large group of people who as well off under the current state of affairs. Our taxes and deficit spending are going to unnecessary government expenses that will never create sustainable jobs and those people who are on the receiving end of the money, many being quite wealthy, don’t really seen to give a damn about the majority.  

In economic terms, we are in what is today is called a period of stagflation.  We have over taxed and overregulated ourselves into a stagnant economy while at the same time running up a huge bureaucracy and deficits so large that we now fear default if we don’t keep raising the debt limits.  This however is causing price inflation most importantly in food, energy and healthcare as many commodity prices continue to soar.  The housing problems is a whole another can a worms, however it is tied to the same government overspending, lack of sustainable employment, high unemployment and inflation. 

With over 770,000 Federal Employees making more than their respective Governors in the States in which they reside in and the massive redistribution of wealth that is ending up in the wealthy class, to say that cutting spending will cause higher unemployment rates is erroneous if we properly cut unnecessary programs, government waste, pork projects and salaries of overpaid bureaucrats and government authorities.  

Obama pledged in his campaign, a promise yet to be kept, to allow 5 days from when he received a Bill before he would sign it, to allow the necessary scrutiny by the majority.  Let’s first hope that the so-called Super Congress and then the President finally do what is in the best interest of the majority.