Dismal Politicians Doing Dismal Science

We have often pointed out, and proven, that the current set of Washington politicians are pretty ignorant when it comes to economics, economic policy, and economic strategy. The current tepid economic recovery we are living through is just the latest example. Despite spending over $800 billion on a failed economic stimulus program, despite living through an energy revolution that reduced overall energy costs in the country, and despite the fact that the Federal Reserve printed up several trillion dollars and flooded the market with those dollars, the Washington political class engineered the worst economic recovery in decades.

Just how bad has this recovery been and what does it mean for our future economic fortunes is the subject of our discussion today. We are going to look at the situation from three perspectives:

• Recent economic failures.
• Current economic weaknesses.
• Future economic disasters.

Recent economic failures:

Despite the economic tailwinds discussed above, recent economic failures engineered by Washington politicians include:

• Four consecutive years of TRILLION annual deficits.
• Another two years that would have been record setting deficits in non-Obama years.
• Monthly spending deficits that in some cases were higher than annual deficits of every previous Presidential administration.
• An economic stimulus plan that stimulated nothing.
• A labor participation rate that has not been this low for about four decades.
• Record setting long term unemployment.
• Annual GDP performance that never approached the long term historical annual GDP growth rate.
• Continually dropping average household annual income despite the recession being over for years.
• Minimal wage growth.

This is what the economic-ignorant Washington politicians have given us recently.

Current economic weaknesses

Apparently we are not going to see any great economic breakthroughs from these Washington politicians soon, basing this prediction on the recent comments of Federal Reserve Chairwoman Janice Yeller:

• At the latest Federal Reserve meeting, it was decided to not raise interest rates since the country’s economy is still too weak, six years after the recession ended.
• At the same meeting, the Fed decided to substantially downgrade its current view of economic growth, reducing its current view of 2.3 - 2.7% annual growth, a prediction it made just two months ago, to 1.8 - 2.0% this year.
• If this lower prediction is true, it will represent the lowest annual economic growth rate since 2011.
• They also issued a less optimistic view on unemployment, raising its year end view from 5.0% to 5.2%.

Thus, the Washington’s political class has not only screwed up economic performance in the recent past, their current output and results have also not been that great. Tepid growth, worse unemployment, and a Fed that is still reluctant to raise interest rates because the economy….stinks….still.

Future economic disasters

What has the economic ignorance and missteps of Washington’s politicians done for the future economic prospects of the country? According to a recent Washington Examiner article that reviewed the latest economic analyses from the Congressional Budget Office (CBO), we are not looking good going forward either, thanks to the economic policies and strategies of today’s politicians:

• The latest CBO annual Long Term Budget Outlook is not optimistic about our long term financial health. 
• Compared to last year’s Outlook, the CBO forecasts lower economic growth, less payroll tax revenue and lower interest rates over the coming decades. 
• Taken together, these will initially mean a higher budget deficit, but projections eventually lead to a slightly lower one.
• Federal government annual budget deficits are expected to get larger and larger over time:

• Obviously, if the annual budget deficits are growing, the overall national debt level is going to go very high:

• In less than 25 years, the size of the national debt will equal the size of the entire economy, something not seen since World War II. 
• According to the Examiner article, “These levels of debt are unprecedented in peacetime. By the 2070s, federal debt held by the public will be double the level seen today.”
• As our population ages, a lot of the debt will be driven by the reality that Americans are getting older on average:

• Thus, to have any chance of getting the debt burden under control before it crushes the country, Washington politicians will have to put forth a lot of courage to reform and downsize the budget trend of Social Security and Medicare.
• Today, Social Security and Medicare take up 41 cents of every Federal dollar spent, besides interest. Fifty years from now that will rise almost 50% to 58 cents.

Thus, the failed economic and political decisions of today’s politicians have screwed up our recent past economic results, have put us in an economic stall today, and have put us on a path of insolvency going forward. That is why as soon as possible we need to implement two steps from our book, “Love My Country, Loathe My Government:”

1. Step 36 would require any Washington politician and officeholder to take and pass a course on economic theory and strategies before being allowed to participate or vote on any legislation that is remotely connected to the economy of the country.
2. Step 39 would impose term limits on all Washington politicians, “one and done.” Because really, how much worse could it get if we replaced our current politicians, those that have been in office for ten, twenty or thirty years, those that have created this economic mess, with new people that would at least have a chance of putting forth economic common sense and economic programs that grow, not stifle, the country’s economic potential.

They call economics the dismal science. What is really bad is that we have dismal politicians trying to execute the dismal science and that is just….dismal.

Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:

www.loathemygovernment.com

It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.

Please visit the following sites for freedom:

Term Limits Now: http://www.howmuchworsecoulditget.com
http://www.reason.com
http://www.cato.org
http://www.bankruptingamerica.org
http://www.conventionofstates.com
http://www.youtube.com/watch?v=08j0sYUOb5w