The Obama Administration and the Democrats' Cold War with the American Taxpayer.

The Obama administration and the democrat party have increased government spending to the tune of bankrupting the entire nation. You will be hard pressed to find an economist who believes that the government's current rate of spending is sustainable. This style and sort of spending has happened before and with dire consequences. This spending took place in the Soviet Union.

The Soviet Union was considered by some to be the best example of a Marxist society, many leftists adored it. Ronald Reagan had a much different view of the Soviet Union. Reagan viewed the Soviet Union as not only a threat to the U.S., but a threat to freedom around the world. Reagan essentially caused the bankruptcy of the Soviet Union through the world's largest arms race, The Cold War. Many economic events took place during the Cold War which lead to the eventual collapse of the soviet union, but there was no denying the Reagan's foreign policy had a large roll in the collapse.

We are seeing a similar tactic used today. The difference is, this tactic is being used against the U.S. taxpayer, by its own government! Combine increased spending in nearly all areas of government while trying to expand government; the Obama administration and the democrats in power have racked up a bill the likes of which the world has never seen. The majority of the spending is said to be necessary to get the economy moving again. However there is absolutely no explanation as to how the government is going to foot the bill for the increased spending.

The increased spending has lead to much unrest in the financial markets. People are reluctant to invest, because as the government spends more money, the value of the dollar declines. The threat of increased regulations also scare investors. The result is less foreign investment (in U.S. based stocks) and further weakening the dollar.

Every industry in which the government has inserted itself has suffered a loss of capital. Government cannot create wealth. Government can only redistribute wealth. For this reason government run industries are never profitable. Public transportation is a good example, Amtrak, the U.S. Postal Service, Fannie Mae, Freddie Mac. All of these government enterprises are black holes for tax payer dollars. The most important note when it comes to government enterprises; government enterprises do not add to GDP.

The government is inserting itself into the health care industry. The health care industry comprises roughly 1/6th of the U.S. GDP. This puts the government in control of the largest single sector of the economy. Given the history of government insertion in industry; one can only conclude that there will be a major reduction in capital as far as the health care industry is concerned. This will result in a massive reduction of the overall U.S. economy and decreased GDP.

All of the proposed (and current) spending and huge resulting loss of capital is said to be a good thing? Obama is saying that this can all be done without tax increases. Meanwhile his own officials will not say, on the record, that there will be no tax increases.

The truth is that there will be a huge tax increase on everyone in the United States. That is the only way to pay for all of the programs that have been instated. As the GDP shrinks; so does the base from which the majority of taxes are taken. Obama and the democrats are waging a cold war on the American tax payer.

By combining the effects of increased spending, massive capital reductions, and a shrinking GDP; Obama and the democrats are going to spend the United States into bankruptcy. Unless of course there is a massive tax increase.

The U.S. government is currently building the worlds largest house of cards. When it falls the U.S. taxpayer is going to have to pick it up.


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