Americans are finally getting it, Obama still doesn’t

By Lynne McMillan

Yesterday, the consumer savings rate jumped to a 14 year high of 5 percent. During the last half of 2008, the consumer spending rate dropped for six months straight, although raising slightly in January.

For the first time in years, consumers are actually spending less than they are making. While this may seem like an obvious concept to you and me, the disproportionate balance of consumer spending to saving is a major contributing factor to the global economic turmoil we face today.

While the American people seem to be finally understanding that in times of economic distress saving money is good, and spending beyond your means is bad, the Obama administration has so far failed to see the light and has instead chosen to use this opportunity to turn America into a socialist nation.

Within his first 43 days in office, President Obama has managed to pass the most massive government spending packages in world history.

But no matter what the democrats tell you, the spending packages and proposed budget are in no way meant to stimulate the economy, create jobs or help turn around the worst bear market in decades.

Instead, they are aimed at turning capitalist America into socialist Europe.

White House Chief of Staff Rahm Emanuel said way back in November, “You never want a serious crisis to go to waste.” At least we can now affirm he means what he says.

President Obama is taking advantage of the economic recession he inherited from George W. Bush, which, by the way, he reminds us of every chance he gets, to promote a social agenda that will do nothing but hurt the average middle class citizen in the long run, increase the national debt and hurt American businesses.

Take for instance the 4.6 percent proposed income tax increase on Americans making over $250,000. While you may think that those already making a quarter of a million dollars a year will not be harmed by paying more taxes, you are wrong. Thousands, if not millions, of small businesses owners across the country that include business income on their personal tax return will be hurt by this tax increase, and the 45 percent of U.S. workers employed by small businesses will be hurt as well.

Furthermore, the wealthiest 5 percent of the population already pay over half of all federal income taxes collected, whereas the poorest 40 percent of the population pay no federal income tax at all. If this tax increase is not further spreading the wealth around, a core principle of socialism, I don’t know what is.

But Obama has not stopped at tax and spend increases to implement our convergence to socialism. The most obvious example of “not letting a serious crisis go to waste” came last week with Obama’s announcement for education, climate change and health care reform.

The $634 billion benchmarked for universal health care almost exactly coincides with the $640 billion to be garnered from raising tax brackets. While the universal health care debate is another entire column, this $634 billion is yet another example of Obama “Change” that is coming with a hefty price tag for taxpayers and a nightmare for capitalists.

Let’s not forget, this crisis started with a (Bill Clinton, Barney Frank and Co.) government policy to make it dirt cheap for Americans to buy their own homes through quasi-government outlets like Fannie Mae and Freddie Mac.

So, what makes us think that government policy (and/or government spending) will get us out of this mess?

The American people have finally wised up, it is time for President Obama to do the same.

Lynne is a senior in business and believes government is not the answer.