So, here we go: Into the next four years. It will be, as I read elsewhere, a four year stress test of liberal government. Those who voted for Obama are going to discover what it means to get what they want.
Obamacare will go into effect, and as a result, millions working nearly full time will be reduced in hours to half time. They didn’t have employer provided health insurance before and they won’t now. They will, however, be required to get coverage. Many will be forced to take a second part time job; if one can be found. Many more will be forced on to government assistance beginning a life of government dependency.
The national debt will continue to rise and the Fed, left with no other options, will continue to monetize the debt by quantitative easing; printing money. The result will be rising inflation. When the government monetizes its debt, it prints money to pay its creditors. That, of course, reduces the value of savings and paychecks. It is essentially a transfer of value from citizens to pay public debt. Inflation taxes people with no income at all. Inflation taxes the poor at at a greater level than the wealthy who can purchase hard assets to avoid it. Inflation is the most insidious, regressive tax ever employed in America. It will be a heavy burden on those who supported this president.
Economic uncertainty will grow. Businesses will become very conservative as they wait for rule making for Obamacare and other federal programs. Investments will be stalled. Business plans put on hold. Hiring frozen. The economy will remain destabilized.
When government provides a stable environment over a long-term planning period it instills the confidence investors and entrepreneurs. The result is economic growth, wealth creation and job creation. The opposite is also true. A government that destabilizes the business environment by making constant changes, imposing thousands of new regulations, experiments with economic policy and demands transformative change chills investment, stunts growth and stymies job creation. The Obama Administration is a textbook study in economic destabilization and the result will likely be a slide back into recession. People still working will soon be lining up for the dole.
Complex and costly new regulations, skyrocketing prices, a chilled business environment, tight money and growing joblessness. Maybe, just maybe, at the end of the next four years of horror, people will, once again, look to policies promoting free markets and free minds for America.
We will be ready to retrain them.