THE SAPIENT SPARROW: conservatism for commoners

"What has always made the State a hell on earth has been precisely that man has tried to make it his heaven."–Holderlin

BEWARE THE IDES OF APRIL: PERSONAL INCOME DROPPING LIKE A STONE

Certainly, all of us remember that during the 2008 Presidential Campaign, Mr. Obama said the following in a September 2008 speech on the economy in Green Bay, Wisconsin:

“American families, since George Bush has been in office, have seen average family incomes go down $2,000.”

Since then, he has made similar remarks, especially when his economic policies are called into question.  We in the “real world” have felt that this statistic could not possibly be true.  For example, after the election of Barak Obama, my husband’s salary was cut by 5%.  A year into the Obama Administration, he is unemployed.  Our story mirrors many others.  Now, however, there is more than anecdotal information that refutes Mr. Obama’s claim.  Read what the Commerce Department’s Bureau of Economic Analysis has concluded.  It really is more than a feeling that we were being lied to.

Unfortunately, this year, 2010, may be as good as it gets for a while in terms of holding onto whatever personal income we are able to earn.  Economist Art Laffer opined on “Fox and Friends” this morning that the economic up-tick in terms of the stock market, corporate profits and a stronger dollar may simply be a phenomenon of an economy that knows that higher taxes and more regulations are coming in 2011.  Therefore, wealth is being generated and accumulated now in anticipation of what 2011 may hold.  It makes me shudder to think, as we and others barely hold on now, what all this will mean if Mr. Laffer is correct, (he usually is), and the economy once again nose-dives next year into a “double-dip” recession.

“Pay me now, or pay me later”, the saying goes.  Everyone has figured out that paying now is going to be less expensive than later.  But unless something dramatically changes one thing is definite—we will all eventually pay dearly.

REMEMBER IN NOVEMBER!

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