Socialism was once a dirty word in America. If a politician was branded a "socialist," the scarlet label spelled disgrace and defeat. Today in the Democratic Party presidential primary an avowed proponent of socialism has risen in the polls as his views have received increasing popular support.
How far has capitalism fallen out of favor? In the recent Democratic Party presidential debate, no candidate rushed to defend capitalism, including Hillary Clinton, whose tepid support for free enterprise seemed at odds with the views of most in the audience.
The Gallup polling firm has shed some light on the rise of socialism in a 2010 report. The results of its opinion research showed that 53 percent of Democrats have a positive image of socialism. By comparison, only 17 percent of Republicans hold a flattering view of socialism.
Among all Americans, about one-third (36%) have a positive impression of socialism. What the research makes clear is that socialism has found a home in the Democratic Party. It helps explain the improbable candidacy of unabashed socialist Bernie Sanders.
A more recent Gallup poll, conducted in June, found that 47 percent of Americans would consider voting for a socialist candidate for president. Democrats (52%) were more favorable toward a socialist campaigner than independents (49%) and Republicans (26%).
This may be shocking news to many Americans who associate socialism with Communist China or the former Soviet Union or Fidel Castro's Cuban regime. Do Americans really want a society controlled by a totalitarian government that dictates economic winners and losers?
The answer to that question can be found in the Gallup research. In the firm's poll, 86 percent of Americans favorably rated the term "free enterprise," including a majority of Democrats. Yet in the minds of many economists, capitalism and free enterprise are synonymous.
A 2014 report by the Pew Research Center on Global Attitudes and Trends found that Americans are more likely than their counterparts in other industrialized countries to believe their own efforts will determine success. That is another one of the hallmarks of a capitalist society.
This suggests the term "capitalism" has become anathema for many Americans. Democrats, especially the party's liberal wing, have demonized capitalism for years. Their propaganda campaign has been abetted by the media's portrayal of the current system as patently unfair and corrupt.
The steady drumbeat of disinformation has included false narratives about capitalism. The economic system has exacerbated income inequality, increased poverty, gutted the middle class, fueled job losses and made health care unaffordable. Capitalism is now a four-letter word: e-v-i-l.
All society's problems cannot be laid at the feet of capitalism. Capitalism does not guarantee equal outcomes in life. No economic system does, not even the socialism preached by Mr. Sanders. Yet Democrats keep insisting income equality demands equal prosperity.
Capitalism allows each person the right to their property, to invest as they see fit, to work for the benefit of themselves or their family, to buy and sell goods and services with little or no interference from the government. This economic freedom unleashes the God-given potential of each individual.
Under capitalism, Americans have grown more prosperous. More people own homes. Ingenuity is rewarded. Democracy is strengthened. Billions of dollars are spent each year on safety nets for those less fortunate. America has led the way in innovation and the reduction of poverty.
For all this evidence of success, there is little public recognition of why America enjoys such abundance. The education system no longer celebrates capitalism. You can find weighty tomes written by college professors bemoaning the human misery caused by capitalism.
Where are capitalism's defenders today? Business leaders should be at the forefront of extolling the virtues of a system that benefits job creation, investment, entrepreneurship and growth. But most cower, scared the political correctness crowd will attack anyone who touts capitalism.
Americans are allowing their economic model to be trashed without a peep. Too many people take free enterprise for granted and assume it will always be the nation's economic engine. However, a socialist president could change the current model in ways that would bring lasting economic ruin.
Rise up Americans. Once capitalism disappears, it will be too late for its proponents to recapture the prosperity that our nation has enjoyed. Raise your voices in support of capitalism, the economic system that is responsible for America's greatness.
Monday, October 26, 2015
Monday, October 19, 2015
How To Cut the Federal Budget By Billions
Liberals usually dredge up images of starving children, the bedraggled homeless and the penniless elderly to justify fatter federal budgets. More government spending is the remedy for every social injustice. They mock advocates of fiscal responsibility, branding them heartless monsters.
In the mind of a liberal, Washington's budgets cannot be trimmed. There is no waste, no fraud, no inefficiency, no pork in the budget. Every penny in spending can be justified. Liberals never let the facts become an obstacle to their quest to spend, spend, spend.
No one can contest the fact the liberals, often with the support of wishy washy conservatives, have won the battle of the budget most years. The result has been record-busting spending. Just consider what has happened in the last 28 years.
In 1987, the federal budget burst through the $1 trillion ceiling for the first time. Since then, it has tripled to $3.8 trillion for the current 2015 fiscal year. That is nearly $300 billion more than the previous year. Next year's budget will likely be the first one to crack $4 trillion.
Those budget increases have been built on the backs of higher levels of debt. In President Obama's first four years in office, budget deficits surpassed $1 trillion annually for the first time in U.S. history. During this spending binge, America's debt has mushroomed to $18 trillion.
For most of the 20th century, federal government spending was about three per cent of the country's economic output or Gross Domestic Product (GDP). But today your government's spending amounts to more than 20 percent of the GDP.
As the federal government has gobbled up taxpayer funds, it has become more unwieldy, inefficient and susceptible to fraud. If you need evidence, look no further than the annual U.S. government audit released this month by Gene L. Dodaro, comptroller general of the United States.
In a report that attracted scant media coverage, Dodaro said the government's own records documented that various federal agencies doled out improper payments totaling $124.7 billion in 2014. That represents a $19 billion hike from the previous fiscal year, suggesting fraud is rampant.
For the record, the government classifies "improper payments" as fraudulent spending. However, not all of these payments are the result of fraud. Some improper payments are a by-product of lax government controls, non-existent safeguards or administrative bungling.
Over the years, the situation has grown worse. Since fiscal year 2003, improper payments have cumulatively totaled almost $1 trillion. That contributes to the growth in government spending that no politician or government official ever mentions. It is Washington's dirty little secret.
In 2014, the largest share of over payments occurred in three programs: Medicare, Medicaid and the Earned Income Tax Credit. Those plans accounted for 75 percent of the estimate of improper payments, according to a recent Government Accountability Office (GAO) report.
One of the most popular frauds is the earned income tax credit claimed by those filing with the Internal Revenue Service. The government handed out $17.7 billion in improper payments to taxpayers for this credit last year. It accounted for 14.2 percent of the total improper payments.
During 2014, Medicare financed health services for about 54 million elderly and disabled persons at a cost of $603 billion. Nearly 10 percent of that amount ($60 billion) was labeled improper spending. Most but not all of those payments can be attributed to fraudulent claims paid to Medicare providers.
The waste wasn't just confined to entitlements. Improper payments during last year were found in 22 government agencies and across 124 federal programs. That is the definition of pervasive waste. The government-wide payment error rate increased form four percent to 4.5 percent in 2014.
Error rates were even higher for some popular government programs. For example, the school breakfast program recorded 25.6 percent of its expenditures as improper payments. The Farm Security and Rural Investment Act had a 23.1 percent fraudulent payment rate, reports the GAO.
No private or public corporation could operate with those error rates. But the federal government gets away with it because elected representatives do not hold them accountable. The bureaucracy thumbs its noses at scrutiny because mismanagement won't get you fired.
That's why Dodaro is not optimistic about the federal government addressing this critical issue. In his report, he wrote that "the federal government is unable to determine the full extent to which improper payments occur and reasonably assure that appropriate actions are taken."
This disclosure should sound alarm bells in the halls of Congress. But sadly it won't. Washington has become jaded to the waste, fraud and bureaucratic bungling. That is an indictment of the cozy inside the Beltway cabal that talks austerity but always votes for more spending.
Until Congress gets serious about budget reform, the situation will never improve. Spending will continue unabated. Wake up Americans. Start demanding a zero increase in spending until the bureaucrats clean up their act.
In the mind of a liberal, Washington's budgets cannot be trimmed. There is no waste, no fraud, no inefficiency, no pork in the budget. Every penny in spending can be justified. Liberals never let the facts become an obstacle to their quest to spend, spend, spend.
No one can contest the fact the liberals, often with the support of wishy washy conservatives, have won the battle of the budget most years. The result has been record-busting spending. Just consider what has happened in the last 28 years.
In 1987, the federal budget burst through the $1 trillion ceiling for the first time. Since then, it has tripled to $3.8 trillion for the current 2015 fiscal year. That is nearly $300 billion more than the previous year. Next year's budget will likely be the first one to crack $4 trillion.
Those budget increases have been built on the backs of higher levels of debt. In President Obama's first four years in office, budget deficits surpassed $1 trillion annually for the first time in U.S. history. During this spending binge, America's debt has mushroomed to $18 trillion.
For most of the 20th century, federal government spending was about three per cent of the country's economic output or Gross Domestic Product (GDP). But today your government's spending amounts to more than 20 percent of the GDP.
As the federal government has gobbled up taxpayer funds, it has become more unwieldy, inefficient and susceptible to fraud. If you need evidence, look no further than the annual U.S. government audit released this month by Gene L. Dodaro, comptroller general of the United States.
In a report that attracted scant media coverage, Dodaro said the government's own records documented that various federal agencies doled out improper payments totaling $124.7 billion in 2014. That represents a $19 billion hike from the previous fiscal year, suggesting fraud is rampant.
For the record, the government classifies "improper payments" as fraudulent spending. However, not all of these payments are the result of fraud. Some improper payments are a by-product of lax government controls, non-existent safeguards or administrative bungling.
Over the years, the situation has grown worse. Since fiscal year 2003, improper payments have cumulatively totaled almost $1 trillion. That contributes to the growth in government spending that no politician or government official ever mentions. It is Washington's dirty little secret.
In 2014, the largest share of over payments occurred in three programs: Medicare, Medicaid and the Earned Income Tax Credit. Those plans accounted for 75 percent of the estimate of improper payments, according to a recent Government Accountability Office (GAO) report.
One of the most popular frauds is the earned income tax credit claimed by those filing with the Internal Revenue Service. The government handed out $17.7 billion in improper payments to taxpayers for this credit last year. It accounted for 14.2 percent of the total improper payments.
During 2014, Medicare financed health services for about 54 million elderly and disabled persons at a cost of $603 billion. Nearly 10 percent of that amount ($60 billion) was labeled improper spending. Most but not all of those payments can be attributed to fraudulent claims paid to Medicare providers.
The waste wasn't just confined to entitlements. Improper payments during last year were found in 22 government agencies and across 124 federal programs. That is the definition of pervasive waste. The government-wide payment error rate increased form four percent to 4.5 percent in 2014.
Error rates were even higher for some popular government programs. For example, the school breakfast program recorded 25.6 percent of its expenditures as improper payments. The Farm Security and Rural Investment Act had a 23.1 percent fraudulent payment rate, reports the GAO.
No private or public corporation could operate with those error rates. But the federal government gets away with it because elected representatives do not hold them accountable. The bureaucracy thumbs its noses at scrutiny because mismanagement won't get you fired.
That's why Dodaro is not optimistic about the federal government addressing this critical issue. In his report, he wrote that "the federal government is unable to determine the full extent to which improper payments occur and reasonably assure that appropriate actions are taken."
This disclosure should sound alarm bells in the halls of Congress. But sadly it won't. Washington has become jaded to the waste, fraud and bureaucratic bungling. That is an indictment of the cozy inside the Beltway cabal that talks austerity but always votes for more spending.
Until Congress gets serious about budget reform, the situation will never improve. Spending will continue unabated. Wake up Americans. Start demanding a zero increase in spending until the bureaucrats clean up their act.
Monday, October 5, 2015
America's Crisis of Corruption
America has a corruption epidemic. From the White House to the state house to the school house, it exists at every level of government. This breach of public trust helps explain why Americans are fed up with the culture of corruption fostered by Washington's establishment political class.
In a recent survey by the polling firm Gallup, three out of four Americans (75%) said they were convinced that corruption in their government is pervasive. This is a watershed figure and eclipses the 66 percent who felt the same way in 2009 when President Obama took office.
Other research has found that 60 percent of Americans believe that corruption has increased in the last two years. Only 10 percent think the level of dishonesty has decreased. Those polled included a representative sample of Americans from all income, political and ethnic groups.
Perhaps, there are some Americans who think this is more about perception than reality. But a cursory glance through the FBI's public corruption files confirms the widespread impropriety that has touched every branch of government. Here is a sample of headlines from the files:
Former Texas Judge Sentenced on Racketeering Charges. Indiana City Councilman Sentenced for Failure to File Tax Returns. Former Congressman and Wife Convicted of campaign fraud. Ex-law Enforcement Officials Sentenced on Conspiracy, Tax and Money Laundering Charges.
The list of dishonesty extends for pages and pages. New Jersey School Administrator Sentenced for Bribery. Pennsylvania State Senator Convicted of Mail Fraud and Tax Charges. Former Wichita City Clerk Sentenced for Embezzling Funds. DEA Agents Charged With Stealing $1 Million in Currency.
The White House has not been immune from the disease of dishonesty. Controversies have included the the IRS targeting of conservative groups, the Justice Department's collection of phone data on reporters, Secret Service agents hiring of prostitutes and the Veterans Administration scandal.
The crookedness has created a stench that no amount of political stump speeches will erase. Every day brings a new headline and a new arrest warrant. It is a never ending march of corruption that taints American democracy and turns off voters who view every office holder as amoral.
Indiana University and City University in Hong Kong documented the level of corruption in a 2014 landmark study. Their research uncovered more than 25,000 convictions for violations of federal anti-corruption laws by U.S. government employees and officials in a 32-year period ending in 2008.
The research, which appeared in Public Administration Review, concluded that reducing corruption in government would help restrain spending for many states struggling to balance their budget. In other words, government dishonesty ends up costing taxpayers more money.
Politicians and government employees aren't the only culpable individuals.
Transparency International, a global coalition against corruption, surveyed Americans and found that a surprising seven percent admitted paying a bribe to a government official in the last 12 months. In the study, Americans named political parties as the most corrupt institutions in the country.
This is not a Democrat or Republican issue. Corruption has seeped into both parties and throughout the government bureaucracy they have constructed. Too many politicians and government workers view kickbacks, bribes, misconduct and fraud as just part of the benefits that go with the office.
Sadly, the future portends the specter of more not less corruption in government. Today there is at least one sitting congressman who has evaded payment of federal taxes. A long-term senator has been charged with accepting bribes, yet still occupies a seat in the nation's legislative chamber.
The current political class looks the other way while its members commit all sorts of iniquities. They wink and nod and pretend to care. But they don't enforce their own rules. No wonder the public mood is to throw out all the bums, even the "good" ones.
Washington, state legislatures, cities and schools need to start policing their elected officials. There should be zero tolerance for any infraction of the code of conduct. Prosecutions need to more vigorous. Jail terms need to be stiffened. The guilty should not be allowed to ever hold office.
Americans are demanding more of their government and elected officials. They have every right to do so. Honesty, integrity and morality are not suggestions for the governing elite. Those characteristics are what should be required to occupy any office of public trust.
In a recent survey by the polling firm Gallup, three out of four Americans (75%) said they were convinced that corruption in their government is pervasive. This is a watershed figure and eclipses the 66 percent who felt the same way in 2009 when President Obama took office.
Other research has found that 60 percent of Americans believe that corruption has increased in the last two years. Only 10 percent think the level of dishonesty has decreased. Those polled included a representative sample of Americans from all income, political and ethnic groups.
Perhaps, there are some Americans who think this is more about perception than reality. But a cursory glance through the FBI's public corruption files confirms the widespread impropriety that has touched every branch of government. Here is a sample of headlines from the files:
Former Texas Judge Sentenced on Racketeering Charges. Indiana City Councilman Sentenced for Failure to File Tax Returns. Former Congressman and Wife Convicted of campaign fraud. Ex-law Enforcement Officials Sentenced on Conspiracy, Tax and Money Laundering Charges.
The list of dishonesty extends for pages and pages. New Jersey School Administrator Sentenced for Bribery. Pennsylvania State Senator Convicted of Mail Fraud and Tax Charges. Former Wichita City Clerk Sentenced for Embezzling Funds. DEA Agents Charged With Stealing $1 Million in Currency.
The White House has not been immune from the disease of dishonesty. Controversies have included the the IRS targeting of conservative groups, the Justice Department's collection of phone data on reporters, Secret Service agents hiring of prostitutes and the Veterans Administration scandal.
The crookedness has created a stench that no amount of political stump speeches will erase. Every day brings a new headline and a new arrest warrant. It is a never ending march of corruption that taints American democracy and turns off voters who view every office holder as amoral.
Indiana University and City University in Hong Kong documented the level of corruption in a 2014 landmark study. Their research uncovered more than 25,000 convictions for violations of federal anti-corruption laws by U.S. government employees and officials in a 32-year period ending in 2008.
The research, which appeared in Public Administration Review, concluded that reducing corruption in government would help restrain spending for many states struggling to balance their budget. In other words, government dishonesty ends up costing taxpayers more money.
Politicians and government employees aren't the only culpable individuals.
Transparency International, a global coalition against corruption, surveyed Americans and found that a surprising seven percent admitted paying a bribe to a government official in the last 12 months. In the study, Americans named political parties as the most corrupt institutions in the country.
This is not a Democrat or Republican issue. Corruption has seeped into both parties and throughout the government bureaucracy they have constructed. Too many politicians and government workers view kickbacks, bribes, misconduct and fraud as just part of the benefits that go with the office.
Sadly, the future portends the specter of more not less corruption in government. Today there is at least one sitting congressman who has evaded payment of federal taxes. A long-term senator has been charged with accepting bribes, yet still occupies a seat in the nation's legislative chamber.
The current political class looks the other way while its members commit all sorts of iniquities. They wink and nod and pretend to care. But they don't enforce their own rules. No wonder the public mood is to throw out all the bums, even the "good" ones.
Washington, state legislatures, cities and schools need to start policing their elected officials. There should be zero tolerance for any infraction of the code of conduct. Prosecutions need to more vigorous. Jail terms need to be stiffened. The guilty should not be allowed to ever hold office.
Americans are demanding more of their government and elected officials. They have every right to do so. Honesty, integrity and morality are not suggestions for the governing elite. Those characteristics are what should be required to occupy any office of public trust.
Monday, September 28, 2015
The Truth About the Refugee Crisis
The images seeping out of Europe have painted a shocking picture of the growing refugee crisis. Photographs of a dead Syrian toddler have touched millions. Pictures of swarms of desperate people crowding train stations and emaciated children sleeping on sidewalks have shaken the world.
Amid these heart-breaking news portraits, little has been written to document the scale of the torrent of humanity invading Europe. Facts, often elusive in the throes of a crisis, are beginning to come to light and the numbers paint a far different picture than the provocative television and media reports.
Most of the wave of people flooding Europe are not from Syria and the majority are not refugees. According to the latest European Union statistics, of the 213,000 people who fled to Europe from April through June only 44,000 (or one of every five) are from Syria.
The United Nations estimates that four million Syrians have departed their country and are now abroad. Many have landed in neighboring countries, such as Jordan, Lebanon and Turkey. Migrants from other countries have taken advantage of the situation to join the wave invading Europe.
Immigrants from Afghanistan, Albania, Eritrea, Iraq, Pakistan, Somalia and Kosovo are escaping their countries in unison with the refugees. Numbers are hard to come by, but Frontex estimates more than half a million immigrants have arrived in Europe, tagging along with the refugees.
Frontex is the European Union agency that deals with immigration issues, including human trafficking and illegal migrants.
The total number of requests for asylum in the 28-member European Union currently stands at 592,000. And the applications are mushrooming each day. Add to that more than 500,000 migrants illegally crossing European borders and you have an crisis of epic proportions.
This tide of humanity has swamped the resources of European countries. Bankrupt Greece has watched as 181,488 refugees have rushed into the country. Some nations, such as Austria, have erected border controls to stem the onrush before their nation collapses in chaos.
Meanwhile, in the United States, the Obama Administration keeps upping the ante on how many refugees the country will accept. On September 11, The White House promised to welcome 10,000 Syrian refugees. Ten days later, Secretary of State John Kerry raised the number to 185,000.
Under Kerry's plan, the country would take in 85,000 Syrian refugees next year and 100,000 in 2017 after President Obama leaves office. Some in the world community, including Pope Francis, have urged the United States to fling open its borders and grant asylum to thousands more.
The jaundiced propaganda is aimed at casting America as a closed society with no compassion for displaced refugees. Like so many prejudiced judgments, it is unequivocally false.
Statistics issued by The World Bank show there were 263,662 refugees residing in the U.S. in 2013, the latest year for which figures are available. That number far exceeds refugees in developed countries, including the United Kingdom, Mexico, Japan, India and Russia.
In 2013, American rolled out the red carpet for 69,909 refugees. Of that number, 25,199 were granted asylum, Homeland Security figures show. Refugee admissions to the U.S. have been growing steadily since 2002, debunking the notion America has not done enough.
About 27 percent of the refugees who received U.S. asylum migrated from Iraq. Other countries sending refugees in large numbers included Bhutan and Burma. Asylum requests from Syrians last year accounted for less than one percent of the total.
The largest flow ever recorded of refugees to America followed the passage of the landmark Displaced Persons Act of 1948. After Congress approved the measure, the U.S. opened its doors to 400,000 Eastern European refugees. No country has even come close to that kind of refugee intake.
For centuries, America has been a sanctuary for refugees. It is part of the country's DNA to receive with open arms those fleeing from oppression. To suggest otherwise, is to ignore history and to deny the American experience.
Amid these heart-breaking news portraits, little has been written to document the scale of the torrent of humanity invading Europe. Facts, often elusive in the throes of a crisis, are beginning to come to light and the numbers paint a far different picture than the provocative television and media reports.
Most of the wave of people flooding Europe are not from Syria and the majority are not refugees. According to the latest European Union statistics, of the 213,000 people who fled to Europe from April through June only 44,000 (or one of every five) are from Syria.
The United Nations estimates that four million Syrians have departed their country and are now abroad. Many have landed in neighboring countries, such as Jordan, Lebanon and Turkey. Migrants from other countries have taken advantage of the situation to join the wave invading Europe.
Immigrants from Afghanistan, Albania, Eritrea, Iraq, Pakistan, Somalia and Kosovo are escaping their countries in unison with the refugees. Numbers are hard to come by, but Frontex estimates more than half a million immigrants have arrived in Europe, tagging along with the refugees.
Frontex is the European Union agency that deals with immigration issues, including human trafficking and illegal migrants.
The total number of requests for asylum in the 28-member European Union currently stands at 592,000. And the applications are mushrooming each day. Add to that more than 500,000 migrants illegally crossing European borders and you have an crisis of epic proportions.
This tide of humanity has swamped the resources of European countries. Bankrupt Greece has watched as 181,488 refugees have rushed into the country. Some nations, such as Austria, have erected border controls to stem the onrush before their nation collapses in chaos.
Meanwhile, in the United States, the Obama Administration keeps upping the ante on how many refugees the country will accept. On September 11, The White House promised to welcome 10,000 Syrian refugees. Ten days later, Secretary of State John Kerry raised the number to 185,000.
Under Kerry's plan, the country would take in 85,000 Syrian refugees next year and 100,000 in 2017 after President Obama leaves office. Some in the world community, including Pope Francis, have urged the United States to fling open its borders and grant asylum to thousands more.
The jaundiced propaganda is aimed at casting America as a closed society with no compassion for displaced refugees. Like so many prejudiced judgments, it is unequivocally false.
Statistics issued by The World Bank show there were 263,662 refugees residing in the U.S. in 2013, the latest year for which figures are available. That number far exceeds refugees in developed countries, including the United Kingdom, Mexico, Japan, India and Russia.
In 2013, American rolled out the red carpet for 69,909 refugees. Of that number, 25,199 were granted asylum, Homeland Security figures show. Refugee admissions to the U.S. have been growing steadily since 2002, debunking the notion America has not done enough.
About 27 percent of the refugees who received U.S. asylum migrated from Iraq. Other countries sending refugees in large numbers included Bhutan and Burma. Asylum requests from Syrians last year accounted for less than one percent of the total.
The largest flow ever recorded of refugees to America followed the passage of the landmark Displaced Persons Act of 1948. After Congress approved the measure, the U.S. opened its doors to 400,000 Eastern European refugees. No country has even come close to that kind of refugee intake.
For centuries, America has been a sanctuary for refugees. It is part of the country's DNA to receive with open arms those fleeing from oppression. To suggest otherwise, is to ignore history and to deny the American experience.
Monday, September 21, 2015
It's the Economy, Stupid
American voters historically care most about pocketbook issues. Foreign policy, immigration, nuclear treaties, the federal budget and even government debt, while important, are tucked away in the backseat. That political lesson seems to be wasted on presidential candidates this season.
Yet polls show that Americans overwhelmingly believe Mr. Obama's policies have failed to revive the country's economy. In the latest Gallup survey, exactly one-half of Americans think the economy is getting worse. Despite the evidence, no candidate has tackled voters' concern about the economy.
America's economy, as measured by the Gross Domestic Product (GDP), has limped along since the 2008 recession. The GDP is one of the primary indicators used to measure the health of world economies. It represents the total dollar value of all goods and services the country produces.
The world's largest economy has not reached three percent annual GDP growth during Obama's tenure. Since 1948, U.S. economic growth has averaged 3.23 percent annually. A three percent growth rate is one sign of a flourishing economy.
The world's largest economy has not reached three percent annual GDP growth during Obama's tenure. Since 1948, U.S. economic growth has averaged 3.23 percent annually. A three percent growth rate is one sign of a flourishing economy.
In six recoveries from past recessions the American economy averaged 3.97 percent growth after 23 quarters. The average annual growth rate for the Obama economy is 2.24 percent, stamping it as the weakest recovery in U.S. history. That fact has been buried by the mainstream media.
The highest annual GDP growth achieved under Obama was 2.5 percent in 2010, according to figures published by The World Bank. Last year's growth was 2.4 percent. This tortoise-like expansion has been recorded despite the federal government borrowing more than $7 trillion in the last six years.
How bad is America's economic track record? Here is a partial list of nations that beat U.S. GDP growth last year: Algeria, Kenya, Bangladesh, Guyana, Burundi, Honduras, Mongolia, Mali, Nepal and Bahrain. Not exactly a who's who of world economic heavyweights.
While the U.S. economy resembles a 100-pound weakling, China's growth has out muscled the rest of the world. It has been increasing GDP by 7 percent or more since 2010. For all the talk about a slowdown in China's economy, it still expanded 7.4 percent last year.
America's economic malaise has hit wage earners where it hurts most. Inflation-adjusted wage growth has been almost flat, according to the Economic Policy Institute. Average hourly earnings for private sector jobs have risen $3.52 since 2008. That's about 50-cents per hour annually.
The percentage of Americans in the labor force is at a 38-year low of 62.6 percent. It was 65.7 percent when President Obama arrived in the Oval Office. Americans are fleeing the work force at an alarming pace, partly because of the retirements of the Baby Boomer generation.
Another factor behind the decline is the rip tide of Americans signing up for Social Security disability insurance. The number of disability applications more than doubled between 2000 and 2010. As a result, there are nearly 9 million Americans now receiving disability benefits from the government.
Not helping matters, the number of part-time workers has soared to 18.1 percent of the labor force. Many of them want full-time jobs but cannot find one. In a recent paper, the Federal Reserve of Chicago found a strong link between slow wage growth and the uptick in part-time workers.
From his perch in the White House, President Obama spins all this ugly economic news as Republican chatter. He brags that he personally saved America from a second Great Depression. Unemployment has nosedived below 6 percent, he crows to reinforce his egotistical boast.
However, low unemployment usually means higher wages because of the demand for new workers. Hasn't happened. It nearly always results in more economic activity as consumers increase spending. Hasn't happened. Full-time payrolls should be swelling. Hasn't happened.
Mr. Obama's legacy will be a flaccid economy that never achieved lift-off despite massive spending and record debt. The next president must be prepared to jump start the American growth engine. It would be encouraging for voters to hear candidates airing ideas on their plans for economic revival.
Another factor behind the decline is the rip tide of Americans signing up for Social Security disability insurance. The number of disability applications more than doubled between 2000 and 2010. As a result, there are nearly 9 million Americans now receiving disability benefits from the government.
Not helping matters, the number of part-time workers has soared to 18.1 percent of the labor force. Many of them want full-time jobs but cannot find one. In a recent paper, the Federal Reserve of Chicago found a strong link between slow wage growth and the uptick in part-time workers.
From his perch in the White House, President Obama spins all this ugly economic news as Republican chatter. He brags that he personally saved America from a second Great Depression. Unemployment has nosedived below 6 percent, he crows to reinforce his egotistical boast.
However, low unemployment usually means higher wages because of the demand for new workers. Hasn't happened. It nearly always results in more economic activity as consumers increase spending. Hasn't happened. Full-time payrolls should be swelling. Hasn't happened.
Mr. Obama's legacy will be a flaccid economy that never achieved lift-off despite massive spending and record debt. The next president must be prepared to jump start the American growth engine. It would be encouraging for voters to hear candidates airing ideas on their plans for economic revival.
Monday, September 14, 2015
How Educators Are Failing America
An estimated 2.8 million newly-minted college graduates have a framed certificate but little else. Universities are churning out students who are woefully unprepared for today's job market. The situation has created a crisis that threatens to undermine the nation's economic growth.
A number of surveys, including a recent one by the Gallup polling organization, underscore the disconnect between the skills required by today's businesses and the academic preparation offered by most of the nation's 4,700 community colleges and four-year universities
In the Gallup study, only 11 percent of business leaders strongly agreed that graduates had the necessary skills and competencies to succeed in the workplace. Employers are not interested in theoretical learning. They want proof of a graduate's ability to execute required skills.
In today's workplace, computers and robots have replaced the mundane tasks once performed by low and mid-level employees. Jobs today require critical thinking, problem-solving, the ability to work in teams, and technological competency. These skills are seriously lacking in many graduates.
This is not a new phenomenon. For decades, businesses have been trying to convince academia to change course. But colleges may be the most stubborn, hide-bound of all institutions. Rapid change undermines their propensity for incremental advances.
For example, a survey conducted by Inside Higher Ed with Gallup showed 96 percent of academic officers thought their schools were doing a good job of preparing students for the future. These leaders obviously are not spending much time asking business people about their job requirements.
Frankly, they don't care. Their mushy academic goal is molding young minds. Businesses and the economy have very specific requirements. Virtually every job at American business firms, large and small, is changing at the fastest rate ever. Colleges are not keeping up with the pace of innovation.
Technology is creating new jobs, but destroying old ones along the way. Jobs for administrative assistants and secretaries are nearly extinct. Data entry clerks are dinosaurs. IT positions, once the golden goose, are being automated and outsourced. Even agricultural work is computer-driven.
As the economy undergoes titanic shifts, companies require workers who are life-long learners equipped to deal with ambiguity and nonstop change. Unfortunately, one of the downsides created by this economic metamorphosis is a shrinkage in businesses' investment in human capital.
Consider in 1979 General Motors, then the world's largest car company, had a payroll of 853,000 people. Today four of the world's high-tech behemoths, Facebook, Amazon, Apple and Goggle, employ fewer than 150,000 workers combined. And these firms are all recruiting talent outside the U.S.
Colleges are cheating today's generation by not recognizing the need for more grads with mathematics, statistics, engineering and computer science training. They are not producing graduates
armed with interpersonal characteristics, problem-solving skills or oral communications talent.
Instead, universities are rushing to add courses in Gender Inquiry, Diversity Training and African-American Studies. Meanwhile, students are paying more and getting less relevant educations. Students and graduates have racked up $1.2 trillion in debt underwritten by American taxpayers.
Debt-ridden graduates face an appalling future. Recent data published by Forbes shows that 44 percent of colleges grads in their 20's are stuck in low-wage, dead-end jobs. The number of young people earning less than $25,000 a year has risen to the highest level since the 1990's.
America needs a world class workforce to remain the global economic leader. College and university presidents need to climb off their academic high horses and begin preparing the next generation of workers with marketable skills instead of dishing out theoretical nonsense.
Without discernible change in academia, American businesses will lose their premier position in the competitive world because of the lack of skilled workers. If that happens, this nation's colleges and universities will deserve more than a failing grade. They will cease to be relevant institutions.
A number of surveys, including a recent one by the Gallup polling organization, underscore the disconnect between the skills required by today's businesses and the academic preparation offered by most of the nation's 4,700 community colleges and four-year universities
In the Gallup study, only 11 percent of business leaders strongly agreed that graduates had the necessary skills and competencies to succeed in the workplace. Employers are not interested in theoretical learning. They want proof of a graduate's ability to execute required skills.
In today's workplace, computers and robots have replaced the mundane tasks once performed by low and mid-level employees. Jobs today require critical thinking, problem-solving, the ability to work in teams, and technological competency. These skills are seriously lacking in many graduates.
This is not a new phenomenon. For decades, businesses have been trying to convince academia to change course. But colleges may be the most stubborn, hide-bound of all institutions. Rapid change undermines their propensity for incremental advances.
For example, a survey conducted by Inside Higher Ed with Gallup showed 96 percent of academic officers thought their schools were doing a good job of preparing students for the future. These leaders obviously are not spending much time asking business people about their job requirements.
Frankly, they don't care. Their mushy academic goal is molding young minds. Businesses and the economy have very specific requirements. Virtually every job at American business firms, large and small, is changing at the fastest rate ever. Colleges are not keeping up with the pace of innovation.
Technology is creating new jobs, but destroying old ones along the way. Jobs for administrative assistants and secretaries are nearly extinct. Data entry clerks are dinosaurs. IT positions, once the golden goose, are being automated and outsourced. Even agricultural work is computer-driven.
As the economy undergoes titanic shifts, companies require workers who are life-long learners equipped to deal with ambiguity and nonstop change. Unfortunately, one of the downsides created by this economic metamorphosis is a shrinkage in businesses' investment in human capital.
Consider in 1979 General Motors, then the world's largest car company, had a payroll of 853,000 people. Today four of the world's high-tech behemoths, Facebook, Amazon, Apple and Goggle, employ fewer than 150,000 workers combined. And these firms are all recruiting talent outside the U.S.
Colleges are cheating today's generation by not recognizing the need for more grads with mathematics, statistics, engineering and computer science training. They are not producing graduates
armed with interpersonal characteristics, problem-solving skills or oral communications talent.
Instead, universities are rushing to add courses in Gender Inquiry, Diversity Training and African-American Studies. Meanwhile, students are paying more and getting less relevant educations. Students and graduates have racked up $1.2 trillion in debt underwritten by American taxpayers.
Debt-ridden graduates face an appalling future. Recent data published by Forbes shows that 44 percent of colleges grads in their 20's are stuck in low-wage, dead-end jobs. The number of young people earning less than $25,000 a year has risen to the highest level since the 1990's.
America needs a world class workforce to remain the global economic leader. College and university presidents need to climb off their academic high horses and begin preparing the next generation of workers with marketable skills instead of dishing out theoretical nonsense.
Without discernible change in academia, American businesses will lose their premier position in the competitive world because of the lack of skilled workers. If that happens, this nation's colleges and universities will deserve more than a failing grade. They will cease to be relevant institutions.
Monday, September 7, 2015
Can America Regain Its Superpower Mojo?
Of all the mistakes made by President Obama, none are more glaring than his deliberate, calculated effort to weaken the United States' position as the world's superpower. From his early days in office, the president has ridiculed American exceptionalism and surrendered the nation's global leadership.
The president's supporters who adhere to his isolationist agenda argue that Mr. Obama has restored international goodwill toward America. They claim without any proof that our allies and our enemies both like the United States better because the president has shown deference to other nations.
What should be clear to any student of foreign policy is that international peace and tranquility do not depend on chumminess. Power, stability, credibility and shared interests are the glue that keeps world order. But ultimately one country must accept the mantle of leadership on these principles.
That role naturally has fallen to the United States. President Roosevelt once penned these words, "Great power involves great responsibility." As the world's economic and military titan, America cannot shrink from the world stage. If it withdraws, the power vacuum will be filled by others.
Look what has happened since Mr. Obama's global disengagement. The Middle East is a powder keg with Iran holding the fuse. The sleeping bear Russia has reawakened with intentions of rebuilding its former Soviet empire. China is assembling a potent military, threatening stability in Asia.
Under Mr. Obama, America has become nothing more than a paper tiger. The president drew a red-line in Syria and then obliterated it. He demanded Russia stop its aggression in the Ukraine, but he backed up the threat with hollow sanctions that have failed to deter President Putin.
His nuclear deal with Iran does nothing to address the mullahs' sponsorship of terror throughout the region. Mr. Obama's actions have shown the world that America is reluctant to behave like a superpower. This sign of weaknesses has led to more instability instead of promoting peace.
In Mr. Obama's mind, the absence of American involvement in foreign conflicts, such as Iraq and Afghanistan, are signs of his foreign policy success. No serious policy expert is suggesting America needs to be on war footing to fulfill its superpower role. But America cannot lead by vacillating.
The challenge facing the next president will be how to regain America's rightful position as the world's global force for good. A powerful U.S., both economically and militarily, must accept the responsibility of providing that leadership. Isolation from the world is a prescription for chaos.
Historians partly blame American isolation for World War I and World War II when the United States was reluctant to intervene before the conflicts engulfed much of the world. If America once again chooses to watch world events from the sidelines, the results will be catastrophic.
For the most part, the world's leaders expect America to be the superpower. Over the decades, the United States has both been chastised and applauded for its intervention in global affairs. But when crises arise, often contentious issues cannot be solved without the involvement of America.
That's why the U.S. cannot afford to withdraw from the world. If it does, the country will lose any ability to shape global events, including trade. A toothless America is a scary thought because it raises the chilling prospect of a world dictated by Russia, China or Iran.
The next president can regain a measure of respect by clearly articulating America's foreign policy goals and backing it up with unwavering courage. Mr. Obama's incoherent policy, characterized by his "pivot" to Asia, has produced backpedalling on issues causing leaders to question U.S. resolve.
America's new leader must redefine the nation's strategic interests in the world. Public opinion on the home front has dissuaded politicians from committing American military forces abroad. While America cannot solve all the world's problems, the nation must honor its security agreements.
America's worldwide military presence is a deterrence to war, not an invitation to escalate hostilities. That's why the next president must revive the nation's military after nearly seven years of cuts in manpower and weapons. The military ranks have been thinned to their lowest level in six decades.
America has the strength to recapture is superpower status. It won't be easy because so much ground has been squandered by Mr. Obama. America's economic and military strength can still be parlayed into a seat at the head of the world's nations, if the next president moves expeditiously.
Reclaiming superpower status is critical to the country's ability to influence events, to protect its interests and to promote peaceful resolution of global conflicts.
The president's supporters who adhere to his isolationist agenda argue that Mr. Obama has restored international goodwill toward America. They claim without any proof that our allies and our enemies both like the United States better because the president has shown deference to other nations.
What should be clear to any student of foreign policy is that international peace and tranquility do not depend on chumminess. Power, stability, credibility and shared interests are the glue that keeps world order. But ultimately one country must accept the mantle of leadership on these principles.
That role naturally has fallen to the United States. President Roosevelt once penned these words, "Great power involves great responsibility." As the world's economic and military titan, America cannot shrink from the world stage. If it withdraws, the power vacuum will be filled by others.
Look what has happened since Mr. Obama's global disengagement. The Middle East is a powder keg with Iran holding the fuse. The sleeping bear Russia has reawakened with intentions of rebuilding its former Soviet empire. China is assembling a potent military, threatening stability in Asia.
Under Mr. Obama, America has become nothing more than a paper tiger. The president drew a red-line in Syria and then obliterated it. He demanded Russia stop its aggression in the Ukraine, but he backed up the threat with hollow sanctions that have failed to deter President Putin.
His nuclear deal with Iran does nothing to address the mullahs' sponsorship of terror throughout the region. Mr. Obama's actions have shown the world that America is reluctant to behave like a superpower. This sign of weaknesses has led to more instability instead of promoting peace.
In Mr. Obama's mind, the absence of American involvement in foreign conflicts, such as Iraq and Afghanistan, are signs of his foreign policy success. No serious policy expert is suggesting America needs to be on war footing to fulfill its superpower role. But America cannot lead by vacillating.
The challenge facing the next president will be how to regain America's rightful position as the world's global force for good. A powerful U.S., both economically and militarily, must accept the responsibility of providing that leadership. Isolation from the world is a prescription for chaos.
Historians partly blame American isolation for World War I and World War II when the United States was reluctant to intervene before the conflicts engulfed much of the world. If America once again chooses to watch world events from the sidelines, the results will be catastrophic.
For the most part, the world's leaders expect America to be the superpower. Over the decades, the United States has both been chastised and applauded for its intervention in global affairs. But when crises arise, often contentious issues cannot be solved without the involvement of America.
That's why the U.S. cannot afford to withdraw from the world. If it does, the country will lose any ability to shape global events, including trade. A toothless America is a scary thought because it raises the chilling prospect of a world dictated by Russia, China or Iran.
The next president can regain a measure of respect by clearly articulating America's foreign policy goals and backing it up with unwavering courage. Mr. Obama's incoherent policy, characterized by his "pivot" to Asia, has produced backpedalling on issues causing leaders to question U.S. resolve.
America's new leader must redefine the nation's strategic interests in the world. Public opinion on the home front has dissuaded politicians from committing American military forces abroad. While America cannot solve all the world's problems, the nation must honor its security agreements.
America's worldwide military presence is a deterrence to war, not an invitation to escalate hostilities. That's why the next president must revive the nation's military after nearly seven years of cuts in manpower and weapons. The military ranks have been thinned to their lowest level in six decades.
America has the strength to recapture is superpower status. It won't be easy because so much ground has been squandered by Mr. Obama. America's economic and military strength can still be parlayed into a seat at the head of the world's nations, if the next president moves expeditiously.
Reclaiming superpower status is critical to the country's ability to influence events, to protect its interests and to promote peaceful resolution of global conflicts.
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