Common sense tells you that with the growth in the US poverty level, our economy will continue to plummet. The poverty level has reached a new high since statistics for this category started in 1959. It has reached the new high of 15.1% of the population.
People who don’t have extra money and are struggling face an uncertain future. Poverty is related to jobs and we all know that the 8.2% jobless rate doesn’t really tell the whole truth. Until the economy starts to grow substantially, the poverty level will set records under the Obama Administration.
Unfortunately, it will get worse before it gets better. If people don’t have extra money to spend, it will dramatically impact upon companies that sell products and services. Demand will decrease resulting in cutbacks which will include people being laid off which will lead to less money being spent on goods and services. It becomes a vicious cycle.
Will more and more people unemployed, municipalities, states and the federal government will receive less in taxes which will result in cuts in services and/or more layoffs. Add to the loss of revenue the increase in expenditures for welfare, food stamps and other social services and you have debt and deficits growing for all levels of government. This situation can only be sustained for so long. Higher taxes on the rich will not solve the situation because it didn’t solve the Great Depression. There will be higher taxes for all Americans.
Also, who can afford to buy health insurance? If you are living in poverty and don’t have a job, you can’t afford the insurance or pay the penalty. Obama and the Democrats have given us a no win situation. Jobs, not health insurance, should have been the priority of the Democrats when they controlled both houses of Congress and the White House. They seem to be caught in a spend, tax mentality and don’t know how to get us out of our poor financial situation.
History will record that the Obama Administration’s economic policies increased the gap between rich and poor and sent the nation backward. Isn’t it amazing that he is running under a banner labeled “Forward” while the economy is going backwards.