President Barack Obama boards Air Force One en route to Israel Tuesday (Photo courtesy: U.S. Ambassador to Israel Dan Shapiro via Facebook)
Our government-run public education system is very bad. So bad that generations of Americans educated in public schools don’t understand economics. They don't understand how Obama's policies damage the economy, kill jobs, and destroy their children's future. So I’m going to educate the masses with very simple examples that even a 6th grader can understand.
Let’s compare America to your household. That makes it very simple and easy to understand.
Let’s say you make $50,000 per year…and you owe $250,000 in credit card and consumer debt. You’re in deep trouble, right? One way or another, you are headed for bankruptcy court in the future.
Then you receive a credit line in the mail for $250,000. Are you rich? Of course not. That new credit line or credit card is not “income.” It’s more debt- a loan to be paid back at high interest rates. You didn’t just gain $250,000. You just added $250,000 to your debt. You still make $50,000, but instead of owing $250,000 in debt, you now owe $500,000. You think you're "saved." Actually you're twice as broke as before. Insanity.
That’s exactly what Obama is doing to the U.S. economy. He added $6 trillion in debt in only four years to “save” us from a terrible economy. Well he didn’t save anyone. He just put all of us into much deeper debt. This debt will destroy the lives of our children and grandchildren. And the economy isn’t even better. It’s in shambles. If interest rates go up in the future, the entire U.S. economy will be destroyed by the debt.
But there is one part of the economy thriving- the stock market. That keeps going up because Obama has guaranteed the richest fat cats on Wall Street profits by the billions- from you! Obama is stealing $85 billion per month from the taxpayers…mostly the middle class…to buy bonds that no one else wants…and to buy mortgages that no one else wants…which automatically makes the stock market go up. That $85 billion per month that the Fed is printing goes straight to the bottom line of the biggest companies publicly traded on Wall Street.
Sounds great until you realize those trillions of dollars printed by the Fed to make the stock market go up…so Obama can act like the economy is getting better…are not riches…they are debt. They are loans that need to be paid back by you, your children, and grandchildren. Insanity.
Even worse, can you imagine if the $250,000 credit line that came in the mail to "save" you, was issued by YOU? That’s exactly what’s happening under Obama. We are so broke, so indebted, so insolvent, that no one wants to buy our bonds anymore. That’s why the United States, Europe and Japan buy 60% to 90% of their own bonds. Do you understand what this means? That’s like you being so broke, so in debt, that you loan yourself the money to pay the bills you can’t afford.
Can you imagine if you owned a bank and gave yourself a $250,000 loan that no one else would give you, because you are unqualified to handle more debt. You’d be destroying your own future, plus your own bank. You didn’t “save” yourself, or your bank. You killed two birds with one loan! Insanity.
How about Obama’s claim that he “saved” the auto industry. Once again it’s a combination of pure fraud and pure delusion. He didn’t actually “save” anyone. He just grabbed about $100 billion from the taxpayers- that’s YOU- to redistribute to auto unions…so their members could continue to get their obscene unsustainable pensions…and then kickback a hundred million dollars or so to Obama’s Presidential campaign. It’s called “pay for play.” It’s fraud and someone should go to prison.
And of course we now know that the loss to taxpayers is at least $25 billion and maybe much more. So who did Obama “save?” I could save any industry in the country by stealing $25 billion from taxpayers and handing it to that industry. But the reality is…you’re out $25 billion folks. That’s more debt for your kids. They’ll be paying the interest on that debt decades from now…and they didn’t even get a lousy car out of the deal! Insanity.
What if your creditors agreed to a deal to restructure your debt. And they offered you the following deal- you owe us $250,000, and you can’t pay it back, so we’ll raise it to $350,000 and we’ll all agree that things look better! Well that’s “the fiscal cliff” deal folks. To solve a debt crisis, we added $4 trillion to the spending and debt, and the President and Congress declared it a victory. Insanity.
What if things got so bad that you finally agreed to cut spending to save your personal economy. So you cut $10 per week to try to repay your $250,000 debt. Well that’s the sequester folks. We cut a measly $80 billion out of a $3.5 trillion budget, with over $16 trillion in debt. We accomplished nothing. Insanity.
What if you were out of work for 2 years…and you got so discouraged that you decided to stop looking for a job and spend the rest of your life living off food stamps and disability. But because you’re not looking for a job anymore, you no longer consider yourself unemployed. That’s exactly how Obama can claim the unemployment rate is "improving." Insanity.
Finally, here’s the most bizarre example of all. You are broke. Out of money. You can’t pay your bills. You still owe $250,000. Collection agencies are calling day and night. But you love the Muslim Brotherhood of Egypt so much, you still write them a check for $25,000. That’s what Obama just did with your taxpayer money. Insanity.
I hope it’s all clear now. Obama's economic policies can best be described as a combination of debt, fraud, insanity, and delusion. Even a 6th grader can see that.
Wayne Allyn Root is a Capitalist Evangelist, serial entrepreneur, and Libertarian-conservative media commentator. He is a former Libertarian vice presidential nominee. He serves as Executive Vice Chairman of the Conservative Caucus in Washington DC. Wayne's latest book is out on April 15, 2013: The Ultimate Obama Survival Guide: How to Survive, Thrive and Prosper During Obamageddon.