The economy appears to be slowing with a drop in manufacturing activity and an increase in jobless claims, according to the Investors Business Daily. Why is this happening? Probably because the government housing incentives have expired, no more cash for clunkers, Tarp and other stimulus programs instituted by the Democratic Congress are not working, at least not yet.
Meanwhile, the Democrats are proposing various tax increase ideas such as "tax guns to the max", the value added tax (VAT), and probably planning basic income tax increases that will cut peoples pay checks.
Business is not stupid. They see the decrease in sales that is happening (because of joblessness), and they know that things will only get worse because of the continued government spend and tax policies, as well as new financial regulations that will decrease capital available for investment. Businesses will start laying off people again, cutting inventories, and cutting back new investments. They will hoard cash and slow down manufacturing as protective measures to survive the coming slowdown and the new financial regulations.
In the meantime, the government will continue to grow, creating new agencies to expand their control of citizens and business activity, implementing the liberal-progressive agenda. This situation will continue and probably get worse until voters wake up and vote these people out of government. Call and write your congressman now and tell him how you feel about what is happening in Washington!
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