Location: Pantego, Texas, United States

Tuesday, October 06, 2009

I see a lot written about the income gap in America between the rich and the poor. Democrats are quite concerned about the gap, and propose to close the gap through taxation. I read a report this week that said the gap has gotten worse this year because of high unemployment. Despite what is often cited, the income gap is even larger in Europe than it is in the US. I suspect that is because of the persistently high unemployment in Europe. I think the US is entering an era in which we will have systemic unemployment above 10%. Today the official unemployment rate is just under 10%, but there are indications that the true rate is much higher. The recently increased minimum wage pushed teenagers unemployment up. The carbon cap and trade legislation currently being debated in Congress, if passed, will result in huge job losses in the US as entire industries are forced to leave the country. Ross Perot's "sucking sound of jobs leaving the country" will finally be realized. Rich people will not be much affected by higher gasoline prices, utility prices, food prices, automobile prices, etc. but the poor will. They will lose their jobs to overseas companies, and everything will cost them more. The US will no longer be the economic powerhouse of the world. This is according to Obama's plan. He views himslf as the one to oversee the graceful decline of the United States.


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