A new report by the Federal Reserve points to “widespread signs of deceleration” in the U.S. economy. No kidding! These signs follow what the Fed calls a “burst” of growth in the last quarter of 2009 and first quarter of 2010 triggered by President Obama’s $862 billion stimulus package. Unfortunately, the burst failed to help anybody except special interests like unions and public employees. Note the Fed’s evasive word choice: Another word for “decelerating” would be “contracting.” That’s what happens in an economy debilitated by high unemployment, government over-regulation, spiraling public debt, and whopping tax increases looming for the most productive people and businesses.
The Fed report also warned that consumers are not spending like they used to. In other words, they are instead prudently doing what Washington politicians seem incapable of doing — reducing debt instead of piling on more of it. Consumers are thus casting an overwhelming vote of “no confidence” in Washington’s ability to put the nation back on the road to prosperity in the age of Obama. When you add taxpayer bailouts of ineptly or dishonestly managed corporations and a massive expansion of health care entitlements, it becomes clear that America is at a historic crossroad. We are fast approaching a tipping point where those dependent on government largesse outnumber those taxed to pay for it.
