The Great 2010 Depression
By Jim Traficant
In the mid 1990s I predicted that America would experience another depression after the turn of the century. Many laughed, especially the mainstream media in Ohio. Now, America is in denial. The White House is in denial. Congress is in denial. The Federal Reserve Board is in denial. America’s news media is in denial. There can be no mistake, no more denial. America is in a comprehensive, multi-faceted economic depression of massive proportions.
I ask you to take the time to think and ponder the elements of our economy. The only hope America has rests with the general public. Our government has lost sight, lost focus, lost the ability to confront this critical endangerment. You see, our government keeps “spinning” the news to allay the concerns of voters near election.
Let’s now hypothesize: If we remove Social Security, Medicare, Medicaid and welfare from America in 2010, our economy makes the crash of 1929 look like a fender bender.
If you think hard, what would America be economically without the government money being pumped in, you begin to recognize the imminent dangers we face.
America is robbing Peter to pay Paul. The only economic activity we are experiencing is due to an artificial infusion of government spending. Government spending utilizing borrowed money. Our government is in a free fall of no return. In fact, they are now past the point of no return.
The news proclaims corporate earnings are going up and the stock market is beginning to rally. They say this is proof that we’re “turning the corner” and our economy is coming back.
Don’t believe anything you read in the papers or see on the 24-hour news shows. For instance, although Federal Reserve Chairman Ben Shalom Bernanke keeps saying the economy is getting better, he was overheard at a congressional hearing saying that “this is the worst labor market since the Great Depression.”
Think again: America did not have a $14 trillion national debt in 1929. Today’s labor market is even more crippling than it was in 1929.
This takes me to the direction that our government is taking: The wrong direction. Our government’s strategy is to increase taxes and spend more government tax dollars. They are doing this to create jobs. It will not work. Jobs are the critical factor to any economic recovery. Ours is no different. But, there are jobs, and there are jobs. America’s jobs are being created in our public sector by our government though continuous government spending. This is bad. The debt keeps ballooning.
America needs private sector jobs, fueled by consumer demands. These jobs will not come from big companies. Most big corporations in America have made huge profits by cutting domestic jobs, getting rid of American workers and many times employing illegal workers at low wages and outsourcing jobs overseas. Those outsourced jobs are at even lower wage levels.
One recent example is our big American company, Apple. Apple employs 25,000 workers in America. However, Apple outsources much of its production to a giant Chinese company called Foxconn. Foxconn employs 1.5 million workers. That’s right, a million and a half people in China. You might get some understanding of our jobs predicament when you come to learn that 250,000 of those Foxconn employees produce products for Apple. Yes, Apple has 25,000 employees in America, and you might say 250,000 Apple employees in China.
Oh, Apple will say that they do not have 250,000 workers in China, but the truth is the volume of work that Apple outsources to Foxconn requires 250,000 Chinese laborers to provide it. Technically, I do not blame Apple. Apple, like many other American companies, has little choice in the matter.
Huge tax burdens and suffocating over-regulation have forced jobs overseas. Congress has forced jobs overseas. And, now instead of fixing the problem, Congress is about to inject the economy with more government spending, and more borrowing.
You guessed it: Beam me up! It’s the tax code, pure and simple. The suffocating, job-killing, investment-killing, tax code. The progressive income tax has sucked the life out of our economy.
This economic depression will continue until we replace this worthless, communist income tax with a flat consumption tax.
Failing to do this, America will implode, or it will break apart just like the old Soviet Union. Remember the USSR? The Union of Soviet Socialist Republics? Not anymore. Are we next? Get back at me.
James A. (Jim) Traficant, Jr. was born in Youngstown, Ohio on May 8, 1941. He received BS and MS degrees from the University of Pittsburgh. He also received an MS from Youngstown State University in 1976. From 1981-1985 he served as sheriff of Mahoning County, prior to his election to the U.S. Congress in 1984. He was re-elected by overwhelming margins every year up until 2002 when, following his conviction on trumped up corruption charges, he was expelled from the House of Representatives. Listen to Jim’s Saturday radio program from 1 p.m. to 4 p.m. Eastern Time on WTAM 1100 in Cleveland, Ohio. You can also view it on WTAM.com. Click on the web cam button.
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(Issue # 34, August 23, 2010)