Once again the economic statistics are bad. Very few (115,000) jobs were created in April and 342,000 people dropped out of the labor force. Think about that. More than twice as many people dropped out of the labor force as found employment. To paraphrase Martha Stewart, that is a bad thing.
The labor force participation rate is now at a multi-decade low of 63.6%. That means that the economy is so bad that many people have just stopped looking for work. If the labor force participation rate were the same as when George W. Bush left office (65.8%), unemployment would be in the range of 11.2%.
This is the sign of an economy that is continuing to struggle.
President Obama, of course, wants more taxes, more government programs and more regulation as his response to this ongoing economic slump. Taxing those pesky rich people is the solution!
Not surprisingly, the election of a Socialist to the French Presidency has already led to speculation as to how many people will leave France for friendlier tax regimes to avoid tax increases. Closer to home, California is looking at huge holes in its budget and has already experienced an outflow of higher income people as California continues its tax onslaught against prosperity.
Here is a basic math lesson for France and California. If you raise taxes and people leave, then no matter how high the tax rate the revenues to the treasury will be zero, since any number times zero is zero. Liberals might actually be happy with tax rates over 100%! They can feel good about themselves and preen about “fairness”, but when all is said and done, 100% of zero is still zero. It’s just math as the President likes to say.
It’s not too late for us to avoid becoming France, but Obama has to be stopped at the polls. The country needs spending restraint, a lower federal deficit, lower taxes and less regulation. Then a free market will do what it always will do; create growth, prosperity and jobs.
President Obama continues to think that government spending will create growth. He could not be more wrong. What drives economic growth is private sector investment.
Do you think that the Obama administration gets it? I doubt it. As the President travels around campaigning in front of naïve college students I see the desperate demagogic gasping of a failed President who may be more at home in France. Au revoir!