Allen West’s Weekly Update “America Has Crossed The ‘Red Line” on @Next_GenTV @PJTV

America Has Crossed The ‘Red Line’
It’s a millstone of debt, not a milestone to celebrate

AW NGTV

Greetings to all Americans, and here we are for another installment of the Next Generation weekly update.

We launched our “Next Generation Today” programming this week. Our pilot episode will give you a taste of the great content to come as we develop the show. Please watch it and share your feedback. Let us know what you like and what else you want to see in the future. Michelle, John and I appreciate your comments. Please keep them coming.

We also updated the Next Generation Data Card, which we encourage you to download here. We will update this card monthly to give you a quick snapshot of several key economic indicators.

Economic perspective from the CBO

Speaking of our economy, the nonpartisan Congressional Budget Office released yet another alarming report this week. CBO’s forecast for America is bleak, as the office analyzed our growing debt and its relationship to our gross domestic product. America now finds herself with a greater debt than GDP. In other words, we owe more than we produce.Economists will tell you the figurative “red line” that marks excessive debt is around 90 percent of debt to GDP. We have eclipsed that threshold.

Even more alarming is that if we add our unfunded liabilities – the mandatory spending for programs such as Medicare, Medicaid and Social Security – we have far exceeded the threshold. And that was the crux of the CBO report – that we must reform mandatory spending programs and get them under control.

The CBO also found that 7 million to 8 million Americans could lose their employer-based healthcare benefits thanks to the president’s plan. Remember, the law was touted in 2010 as only costing American taxpayers $940 billion. CBO later revised that cost to $1.1 trillion and just this week revised the cost to $1.3 trillion over the next 10 years.

I suppose it was as then-House Speaker Nancy Pelosi stated: “We have to pass the bill so that you can find out what is in it.”

TO CONTINUE THE REST OF THE WEEKLY NEWSLETTER CLICK HERE: NEXT GENERATION TV

Allen West “Our economy is shrinking and yet we’re still being fed a story that things are getting better”

RepWest

by Allen West via Facebook

This week the President dissolved his jobs council (which only met once in 2012) while another 169k people disappeared from the workforce. The “official” unemployment rate is 7.9% but there are now 89 million Americans no longer in the workforce. Black unemployment is 13.8%, it’s 9.7% for Hispanics and 23.4% for teens. Real unemployment (based on U6) is over 14%. Our economy is shrinking and yet we’re still being fed a story that things are getting better- only if you measure it by how many people are dependent on the government, I suppose.

 

Allen West Joins PJ Media’s Next Generation TV as Director of Programming

Hello,

First, I want to thank you for your continuing support. I enjoyed my time serving as a member of the 112th Congress. However, those who think losing a congressional race defines me and ends my service to my country fail to realize what drives my patriotism and passion for America.

NGTV

I know many of you have been wondering what I would do next. Today, I’m excited to announce that I have joined PJ Media, LLC as their Director of Next Generation Programming. I will lead the effort to develop new programming that examines the issues of the day through the lens of the next generation, while at the same time encouraging all Americans to stand up for our nation’s collective future. As part of our new venture, I will write a free, weekly newsletter. You can check out the first edition of my newsletter below, and please sign up for it to stay informed on our work to preserve the American dream for future generations.

My parents kept the promise of America alive for me. Now it’s time for me to keep the promise of a better life alive for my children’s generation and their children’s generation. I hope you will join me in standing up for America’s future.

Visit www.NextGeneration.TV today to learn more, and be sure to sign up for my free, weekly newsletter.

Steadfast and Loyal,

Allen B. West

NGTV Weekly Update

AW NGTV

Standing Up For Our Future

Greetings to all Americans, and welcome to the Next Generation weekly update.

I am so thrilled that PJ Media offered me the opportunity to lead their new, mission-critical programming that zeros in on the future for America’s next generation. Using many forms of media such as Internet TV, social media, live events, outreach programs and newsletters like this one, we will examine the challenges facing our nation through the eyes of young Americans while encouraging all Americans to stand up for our nation’s future. All of the new programming we are developing will be rolling out in February and March on NextGeneration.TV. And I’ll keep you up to date on our work to preserve the American dream for future generations right here in this newsletter every week.

You may be wondering why am I taking on this mission.

Earlier this month, my family and I traveled to Phoenix, Ariz., to attend the 2013 BCS Fiesta Bowl. It was truly great to be in such a festive atmosphere, and even see some old friends.

However, as I watched the opening kickoff, I got that deep feeling in the pit of my stomach that it would be a long evening for the K-State Wildcat Nation. So my mind started to drift and analyze what was before me.

I looked over at my two daughters, dressed in K-State purple, and thought about my first college bowl game. I considered the cost today to attend a BCS bowl game, and thought about how the college-bowl experience will be something that will be harder for future generations to afford.

Is our dollar losing such value that ticket prices may become untenable for our next generation? I remember as a kid working hard doing errands and chores for neighbors, like washing cars and cutting grass, to earn the money to go see a game.

This is just one example of traditional American experiences we must stand up for in order to preserve the American dream for future generations.

We find ourselves dealing with incredibly pressing concerns about our fiscal security. We are on track for our fifth year of a deficit larger than $1 Trillion, and no one seems to want to tackle the issue of federal government spending, which is currently near 25 percent of our gross domestic product (GDP).

Instead, hardworking Americans, like those who want to take their kids to ball games, saw a two percent decrease in their take-home pay, and are faced with eight new taxes associated with the Affordable Care Act.

We are embroiled in a seminal decision about American individual liberty and freedom. I am making a stand because I want Americans to have greater opportunities, and that should be our promise to the Next Generation. Will you join me?

Steadfast and Loyal,

Allen B. West

Next Generation Today 
hosted by Allen West
Launches Monday, February, 4, 2013.
Check back often for special previews and discussions.

Rep. Allen West’s Weekly Wrap and Highlights of the Week

Dear Patriot-

Greetings to our Constituents, fellow Floridians, and all Americans. It is time for our weekly update.

My wife, Angela, and I bid farewell this week to two constituents who were very dear friends. One was a highly accomplished businessman and stalwart conservative, Larry Day. May God bless you Larry, and may God bless your wife Sharon. We will miss you.

Our other dearly departed friend was Mrs. Greta Sussman, an American patriot. Greta was so warm and kind to Angela and our daughters, especially when she invited our family to her home for Friday Shabbat dinner.  It was very special. To her husband and former Mayor of Hillsboro Beach, Chuck, I want to say that Angela and I will always be here for you and your lovely family.

Americans like Larry Day and Greta Sussman are why I serve this great nation. They are indicative of that unique American exceptionalism and indomitable spirit that never surrenders.  As we go forward as a nation, it is that indomitable spirit that will guide us back to the greatness that we know is achievable. An integral subset of that indomitable spirit is our American entrepreneurial drive, which has fueled our free market and enterprise system and given birth to unprecedented economic growth, innovation, ingenuity, and investment.

Still, today’s report of a 2.0 percent GDP growth for the third quarter, is not reflective of what rugged individual industrialists can achieve. Our previous second quarter GDP growth was initially reported as 1.8 percent only to be downgraded to 1.3 percent. My concern is that this number will receive the same revision in mid-November.

The almost $1 trillion stimulus promised a GDP projection of 4.5 percent right now, as well as unemployment of only 5.8 percent. One disturbing aspect of today’s report is that the key driver of private sector job creation, real nonresidential fixed investment, declined for the first time since the first quarter of 2011. Real nonresidential fixed investment remains 7.2 percent lower than it was when the recession began in the fourth quarter of 2007. Also, the tiny 0.72 percentage point of today’s reported 2.0 percent annualized growth rate was the result of higher Federal Government consumption and investment. We all know the Federal Government is currently spending about 25 percent of our GDP  with estimates from the Obama Administration’s Fiscal Year 2013 budget projecting it to grow to nearly 32 percent.

Today’s report cements America’s current recovery in last place among post-World War II recoveries lasting more than a year.  Since the recession ended in June 2009, real GDP has increased a total of 7.2 percent.  The average total increase in real GDP over the comparable 13 quarters in the other recoveries was 16.8 percent.  In the strong President Ronald Reagan recovery of the 1980’s, real GDP increased a total of 19.6 percent.   In comparison, President Reagan had the economy humming at 7.1 percent GDP growth at the same period of time in his presidential term.  If the economy had grown at the average pace of the other post-World War II recoveries, real GDP would be $1.2 trillion higher (based on 2005 dollars).  A Reagan-style recovery would have produced an economy with $1.6 trillion more than the current recovery (again, based on 2005 dollars).

A bigger economy would mean more job creation and higher federal revenues. If the economy had grown at the average pace of the other recoveries, and revenues had returned to a Fiscal Year 2007 level relative to GDP, the budget deficit would have been reduced by more than half. In other words, we would currently have a budget deficit of only $230 billion, rather than $1.1 trillion. Sadly enough, the debt is taking the opposite growth path, which is why we have an upside-down debt to GDP ratio.

Lastly, we continue to learn more about the incident in Benghazi, yet we hear no response or explanation from President Barack Obama. I remember the University of North Carolina basketball team, under Coach Dean Smith, used a tactic called, “four corners.” It was a stall tactic implemented, particularly in the second half, since there was no shot clock to run down the clock.

It is evident by his appearances on those really tough media outlets like Inside Edition, Daily Show, Late Night, Tonight Show, and MTV that President Obama, a basketball enthusiast, learned about using the four corners. But there’s one difference.  The President’s team has no lead on the scoreboard, and the American people have the ball. The only question is, will they slam dunk?

Steadfast and Loyal,

Highlights of the Week:

– Monday, 22 Oct; visited Thermal Concepts Company in Davie which develops high capacity commercial HVAC systems to discuss tax and regulatory policy effects on small business growth, hat tip to Larry Maurer; visited The Learning Experience, at their headquarters in Boca Raton, hat tip to Richard and Michael Weissman for hosting us to discuss their concerns with business growth and expansion.

– Tuesday, 23 Oct; visited Viesel Fuel in Stuart at the request of President/CEO Stu Lamb, an amazing company which takes used cooking and vegetable oils and converts into a diesel additive and ships out to refineries. Photoshere. Stu is a former US Air Force test pilot who saw a need because of high gas prices for his vehicle fleet and through ingenuity and innovation, built a new business; addressed the residents at the Miles Grant Golf community in Port Salerno at a luncheon focusing on the Greatest Senior generation and the legacy which we must pass on to the next generation. We discussed their concerns on tax, healthcare, and MEDICARE/Social Security; visited an inner city after-school program led by Travis Pitts of Pitts Enterprises Inc. in West Palm Beach. I spent about an hour with young kids discussing their hopes, dreams, and the importance of education and reading.

– Wednesday, 24 Oct; addressed the Florida Bankers Association at their quarterly luncheon at the Kravis Center in West Palm Beach. We focused on the looming fiscal cliff, monetary policy, and the unintended circumstances of the Dodd-Frank Financial Reform legislation on small community banks; toured the Workforce Solutions center in Port St. Lucie to understand how they are attacking the high unemployment situation in the Treasure Coast region, I focused on veterans services. I also visited the Army and Marine Corps recruiters who are located adjacent to the facility- photo here; visited the Aegis Communications call center located next to Workforce Solutions where they have just hired 300 local residents, hat tip to Paula in HR. Photos here.

– Saturday, 27 Oct; plans to visit the traveling Vietnam War Wall in Martin County, my older Brother fought in Vietnam with Charlie Co, 1/26th Marine Regiment; will attend the Ft Pierce Gun Show to meet fellow gun owners and American Patriots; and drop by the Port St Lucie Fall Fest as we prepare for Halloween; finally rounding off the day in boots and jeans for the Indiantown Rodeo.

– Sunday, 28 Oct; will run my first half-marathon of the season, Oceanside Physical Therapy Halloween Half-Marathon in Jensen Beach.  I am going to need physical therapy afterwards!  Will speak at Truth Church in Ft Pierce and pray to God to ease my pain after running 13.1 miles; will attend the 10th Anniversary celebration of the Port St. Lucie Shooting Center, come by and shoot some rounds with me!

Congressman Allen West – Legislative Low Down and Weekly Wrap Up 6/3/12

Dear Patriot,

Greetings to our Constituents, fellow Floridians, and all Americans.  It is time again for my weekly update report to you all, marking the end of another month.

With the end of another month, we have just received another monthly jobs report.

It has never been more evident that President Barack Obama’s policies have failed you, my fellow Americans.  He has taken a situation that was bad and made it catastrophically worse.

This current jobs report marks the 40th consecutive month of eight percent or higher unemployment, the longest sustained period of such unemployment since the Great Depression, and the worst economic recovery in United States history.

Despite assuring Americans that his plans of growing government and raising taxes will help the economy, the President’s policies result in just the opposite as the unemployment rate continues to increase, now at 8.2 percent, and families continue to struggle.

The economy picked up only 69,000 jobs in May, well below even the lowest expectations.  Actually, if the U6 computation for unemployment is used (which includes the unemployed, underemployed, and discouraged job seekers) the rate is closer to 14.5 percent.

President Obama continues to disappoint the American people without any real solutions for how to turn this country around.  Instead, he ignores the dismal reality facing most families.  It is simply unacceptable.

The United States House of Representatives has sent more than 30 jobs-related pieces of legislation to the United States Senate, which continues to sit on Democrat Senate Majority Leader Harry Reid’s desk.  These bills are based upon policies which will enable job creators to get Americans back to work.  However, instead of signing them, the Democrats and this Administration continue to play politics with Americans’ lives.

The President has a clear vision for this country, but unfortunately it includes job-killing overregulation, increased taxes, and a healthcare plan that has already had devastating effects on the economy, before it has even been fully implemented.

Americans deserve a response from President Obama on this very somber jobs report. They deserve a response that does not point the finger or blame, but takes responsibility for the three and a half years of failed economic policies. President Obama has been in office, flying around the country and the world, without anything to show for it in the way of improving American lives or building confidence in this economy.

Any way you look at it, we are suffering though the weakest recovery since the Great Depression. The following figures demonstrate—regardless of what the unemployment rate might be—that the President’s agenda is detrimental for the economy as a whole and especially for the nation’s most vulnerable citizens.

  •  Job Growth Slowest Among Post-War Recoveries: According to data from the Minneapolis Federal Reserve, after the same amount of time following a recession, the average job growth in the past 10 recoveries was 6.9 percent. Under President Obama, jobs have grown by just 1.9 percent.
  • GDP Growth Revised Down, Trending Down: On May 31 the Bureau Of Economic Analysis announced that the economy grew at a 1.9 percent pace in the first quarter of this year, slower than the 2.2 percent rate initially reported. GDP growth in the first quarter of 2012 was down from the 3 percent growth in fourth quarter of 2011. On an annualized basis, GDP growth in 2011 was 1.7 percent, down from 3 percent in 2010.
  • 1 in 2 People are Now Poor or Low-Income: According to a December Census Bureau report, nearly half of all Americans are now classified as poor or low-income as a result of the Obama Economy. The 97.3 million Americans who fall into the low-income category combined with the 49.1 million who fall below the poverty line now equal 146.4 million people or 48 percent of the United States population.
  • Record Number of Americans on Food Stamps: The number of Americans receiving food stamps as of February 2012 was 46.3 million. Today, 15 percent of Americans receive food stamps, an increase of 44 percent since President Obama took office.
  • Half of Recent College Graduates Are Jobless: More than 50 percent of recent college graduates are unemployed. About 1.5 million, or 53.6 percent, of bachelor’s degree-holders under the age of 25 last year were jobless or underemployed.
  • Ease of Starting a Business in the United States fell from 4th to 13th: According to the World Bank’s Doing Business 2012 report, the United States now ranks 13th in the world in the ease of starting a new business and has been steadily declining since President Obama took office. In 2011, the United States was 8th. In 2009, the United States was ranked 6th. It was 4th in 2008 and 3rd in 2007.
  • Economic Growth Lagging Far Behind Historic Recoveries: In an economic failure unprecedented in postwar America, the Bureau of Economic Analysis statistics for the first quarter of 2012 show that 18 quarters after the start of the recession, this recovery has still not matched its pre-recession real per capita GDP level. On average, America’s postwar economy has recovered all lost real per capita income by the 6th quarter after the recession’s start—about a year and a half—while this recovery has still not recovered after 18 quarters—over 4 years.
  • The American People Know that the President’s Policies are Making the Economy Worse: According to a May 21 NBC/WSJ poll, only 33 percent of respondents believe the economy will get better in the next year, down five points from April and seven points from March. In addition, approval of President Obama’s handling of the economy stands at 43 percent, down two points from last month, his worst showing on this question since December. And just a third of respondents (33 percent) think the nation is headed in the right direction. In a May Washington Post poll, 83 percent of those in the poll rated the state of the economy as “poor” or “not so good,” a much higher portion of negative views than at any other time in the 10 years preceding the recession.
  • Total Employment Still Down: While the unemployment rate has fallen in recent months, the actual number of people in the United States with a job has decreased by 322,000 since President Obama took office.
  • Percentage of Working Americans at a 30-Year Low: The labor force participation rate, which measures the percentage of able Americans working or looking for work, was at a 32-year low of 63.6 percent in April. Much of the recent decline in the unemployment rate can be attributed to the historic drop in labor force participation as more and more American give up on finding a job.
  • Youth Unemployment Worst since the Great Depression: The unemployment rate among youth job seekers between the ages of 16 and 19 was 24.9 percent in April. Youth unemployment has been above 23 percent for 34 months, the longest streak since the Great Depression.

The Obama Administration and the media can attempt to spin these facts however they wish, but the facts themselves don’t lie. Every day, more and more Americans are waking up to the truth.

Steadfast and Loyal,

Legislative Update:

– Intelligence Authorization — On Thursday, the House of Representatives approved H.R. 5743, the Intelligence Authorization Act of Fiscal Year 2013, by a vote of 386-28, I VOTED YES.  The bill would authorize the intelligence activities of the United States government for Fiscal Year 2013.  This bill would fund the requirements of the men and women of the Intelligence Community (military and civilian), many of whom directly support the war zones or are engaged in other dangerous operations to keep Americans safe.  These activities are intended to enhance national security, support and assist the Armed Forces, and facilitate United States foreign policy.  This is the principal source of funding for the Office of the Director of National Intelligence and provides resources for the coordination of programs, budget oversight, and management of the intelligence agencies.  On an unclassified basis, the Congressional Budget Office (CBO) estimates that spending subject to appropriations under section 103 of the bill would cost $525 million over the Fiscal Year 2013-2017 period, in addition to the authorization of $514 million in direct spending to the Central Intelligence Agency Retirement and Disability System (CIARDS).
– MilCon/VA Appropriations — Also on Thursday, the House of Representatives approved H.R. 5854, the Military Construction and Veterans Affairs and Related Agencies Appropriations Act of 2013, by a vote of 407-12, I VOTED YES.  The bill would provide a total of $71.7 billion in non-emergency, discretionary budget authority for Military Construction and Veterans Affairs in Fiscal Year 2013, which is the same as the Fiscal Year 2012 level. The bill would provide $10.6 billion for military construction projects, a decrease of $2.4 billion below last year’s level and $573 million below the President’s request. Funding for Department of Veterans Affairs (VA) programs in Fiscal Year 2013 would include $60.7 billion in discretionary funding which is $2.3 billion above last year. In addition, the legislation would provide $54.5 billion in advance appropriations for VA medical accounts in Fiscal Year 2014. Including $74.6 billion in mandatory spending, which does not count against the subcommittee’s allocation, the bill would provide a total of $146.3 billion in budget authority for Military Construction and Veterans Affairs funding in Fiscal Year 2013. H.R. 5854 would contribute to an overall level of discretionary budget authority of $1.028 trillion for Fiscal Year 2013 as contained in H. Con. Res. 112, the Concurrent Resolution on the Budget for Fiscal Year 2013.

Next Week:

 Energy and Water Appropriations (continuing consideration) —  The House of Representatives will continue consideration of H.R. 5325, the Energy and Water Appropriations Act for Fiscal Year 2013.  The bill would provide a total of $32.09 billion in non-emergency, discretionary budget authority for the agencies and programs funded through the Energy and Water Development Appropriations bill. Budget authority in the bill would be a reduction of $965 million or 3 percent below the spending level requested by the President for Fiscal Year 2013 and $87 million or 0.3 percent above the Fiscal Year 2012 funding level. H.R. 5325 would contribute to an overall level of discretionary budget authority of $1.028 trillion for Fiscal Year 2013 as contained in H. Con. Res. 112, the Concurrent Resolution on the Budget for Fiscal Year 2013.

– Additional Appropriations — The House of Representatives is also expected to continue consideration of Fiscal Year 2013 appropriations bills, and will likely take up the Department of Homeland Security (DHS) Appropriations bill and/or the Legislative Branch Appropriations bill. The DHS Appropriations bill would provide $39.1 billion in discretionary funding for DHS, a decrease of $484 million below last year’s level and a decrease of $393 million below the President’s request. The Legislative Branch Appropriations bill, excluding Senate-only items, would provide $3.3 billion, for the House of Representatives, the support agencies of the United States Congress, services for visitors, and United States Capitol operations and maintenance, which is $34 million below last year’s level and $190 million below the requested level.

– Preventing Obamacare tax increases — Also next week, the House of Representatives is expected to consider a package of bills to repeal the onerous 2.3% medical device excise tax (H.R. 436), to restore the ability to use tax preferred health accounts (i.e. FSAs, HRAs, HSAs, and Archer MSAs) for over-the-counter medicines without a prescription (H.R. 5842), and to allow for the payout of unused Flexible Spending Account (FSA) balances, up to $500, at the end of a plan year, as ordinary wages (H.R. 1004).

Reading Recommendation by Congressman Allen West – The Truth Cannot be debated

George Santayana stated, “Those who fail to learn from history are doomed to repeat it”, this message is quite appropriate as we review our US economic history with recessions. The truth is plain and cannot be debated. It is just a question of Americans awaking from the kool-aid induced coma and accepting that which is obvious before we go into full economic decline. – Congressman Allen West  – Good Read/Wall Street Journal:

 “The ‘Financial Recession’ Excuse”

“Faced with the failed results of his own governing strategy of tax, spend and control, the president will have no choice but to follow an election strategy of blame, vilify and divide. But come Nov. 6, American voters need only ask themselves the question Reagan asked in 1980: ‘Are you better off than you were four years ago’”

By Phil Gramm and Mike Solon

 Commerce Department data released last Friday show that four years after the recession began, real gross domestic product per person is down $1,112 while 5.8 million fewer Americans are working than when the recession started.

Never before in postwar America have either real per capita GDP or employment still been lower four years after a recession began. If in this “recovery” our economy had grown and generated jobs at the average rate achieved following the 10 previous postwar recessions, GDP per person would be $4,528 higher and 13.7 million more Americans would be working today.

Behind the startling statistics of lost income and jobs are the real and painful stories of American families falling further behind: record high poverty levels, record low teenage employment, record high long-term unemployment, shrinking birthrates, exploding welfare benefits, and a crippled middle class.

As the recovery faltered, President Obama first claimed the weakness of the recovery was due to the depth of the recession, saying that it was “going to take a while for us to get out of this. I think even I did not realize the magnitude . . . of the recession until fairly far into it.”

But, in fact, the 1981-82 recession was deeper and unemployment was higher. Moreover, the 1982 recovery was constrained by a contractionary monetary policy that pushed interest rates above 21%, a tough but necessary step to break inflation. It was also a recovery that required a painful restructuring of American businesses to become more competitive in the increasingly globalized economy. By way of comparison, our current recovery has benefited from the most expansionary monetary policy in U.S. history and a rapid return to profitability by corporate America.

Despite the significant disadvantages the economy faced in 1982, President Ronald Reagan’s policies ignited a recovery so powerful that if it were being repeated today, real per capita GDP would be $5,694 higher than it is now—an extra $22,776 for a family of four. Some 16.9 million more Americans would have jobs.

The most recent excuse for the failed recovery is that financial crises, by their very nature, result in slower, more difficult recoveries. Yet the 1981-82 recession was at least in part financially induced by inflation, record interest rates and the dislocations they generated. The high interest rates wreaked havoc on long-term lenders like S&Ls, whose net worth turned negative in mid-1982. But even if we ignore the financial roots of the 1981-82 recession, the financial crisis rationalization of the current, weak recovery does not stand up to scrutiny.

The largest economic crisis of the 20th century was the Great Depression, but the second most significant economic upheaval was the panic of 1907. It was from beginning to end a banking and financial crisis. With the failure of the Knickerbocker Trust Company, the stock market collapsed, loan supply vanished and a scramble for liquidity ensued. Banks defaulted on their obligations to redeem deposits in currency or gold.

Milton Friedman and Anna Schwartz, in their classic “A Monetary History of the United States,” found “much similarity in its early phases” between the Panic of 1907 and the Great Depression. So traumatic was the crisis that it gave rise to the National Monetary Commission and the recommendations that led to the creation of the Federal Reserve. The May panic triggered a massive recession that saw real gross national product shrink in the second half of 1907 and plummet by an extraordinary 8.2% in 1908. Yet the economy came roaring back and, in two short years, was 7% bigger than when the panic started.

It is certainly true that the economy languished in the Great Depression as it has over the past four years. But today’s malaise is similar to that of the Depression not because of the financial events that triggered the disease but because of the virtually identical and equally absurd policy prescriptions of the doctors.

Under President Franklin Roosevelt, federal spending jumped by 3.6% of GDP from 1932 to 1936, an unprecedented spending spree, as the New Deal was implemented. Under President Obama, spending exploded by 4.6% of GDP from 2008 to 2011. The federal debt by the end of 1938 was almost 150% above the 1929 level. Publicly held debt is projected to be double the 2008 level by the end of 2012. The regulatory burden mushroomed under Roosevelt, as it has under Mr. Obama.

Tax policy then and now was equally destructive. The top individual income tax rate rose from 24% to 63% to 79% during the Herbert Hoover and Roosevelt administrations. Corporate rates were increased by 36%. Under Mr. Obama, capital gains taxes are set to rise by one third, the top effective tax rate on dividends will more than triple, and the highest marginal tax rate will effectively rise by 21.4%.

Moreover, the Obama administration’s populist tirades against private business are hauntingly similar to the Roosevelt administration’s tirades. FDR’s demagoguery against “the privileged few” and “economic royalists” has evolved into Mr. Obama’s “the richest 1%” and America’s “millionaires and billionaires.”

Yet, in his signature style, Mr. Obama now claims our weak recovery is not because a Democratic Congress said yes to his policy prescriptions in 2009-10 but because a Republican House said no in 2011. The sad truth is this president sowed his policies and America is reaping the results.

Faced with the failed results of his own governing strategy of tax, spend and control, the president will have no choice but to follow an election strategy of blame, vilify and divide. But come Nov. 6, American voters need only ask themselves the question Reagan asked in 1980: “Are you better off than you were four years ago?”

Sadly, with their income reduced by thousands, the number of U.S. jobs down by millions, and the nation trillions deeper in debt, the answer will be a resounding “No.”

Mr. Gramm, a former U.S. senator from Texas, is the senior partner at U.S. Policy Metrics, where Mr. Solon, a former senior budget staffer in both houses of Congress, is also a partner.

While America Burns, Obama Campaigns – Peter Morici

by Peter Morici for Fox News 

President Obama and his supporters are portraying the failure of the Super Committee to slash the budget deficit by $1.2 trillion over ten years as endangering the already weak economic recovery. This is absolute sophistry.

A deal acceptable to Democrats would have raised taxes on the wealthy and corporations by $25 to $50 billion, annually, and cut spending, disproportionately on defense but some other programs too by $50 to $75 billion, for a total savings of about $100.

Apparently, according to liberals, raising taxes on folks they believe the government spoils—millionaires and corporations—and cutting spending they deem unnecessary—defense and other civilian programs—doesn’t reduce overall spending by consumers, businesses and government, and hence, demand and GDP. Nowhere in the textbooks or journal articles economists read, is such a proposition demonstrated. In fact, the reverse is true: Super Committee spending cuts and tax increases would have slowed growth.

In the next breath liberals argue the failure of the Super Committee to reach an acceptable compromise ensures Congress will not extend the two percentage point Social Security tax holidays beyond the end of the year, and that endangers prosperity too.

The Social Security tax holiday is a separate legislative issue and could still be enacted, but let’s suppose it is not. Had the Super Committee succeeded and the holiday consequently extended, spending would have been cut and taxes raised for some people—slashing demand—and the taxes cuts extended for others—boosting demand. Overall, the net impact on GDP is close to zero.

What is really going on is the president is going about his old tricks. The economy is not performing and unemployment remains too high—and with conditions in Europe as they are, the whole global economy may be headed for another recession in 2012.

 COMPLETE THIS ARTICLE BY CLICKING HERE: FOX NEWS