The Truth Behind 5% Economic Growth

Reuters.com reported on December 23:

U.S. stocks advanced on Tuesday, as the Dow climbed above the 18,000 mark for the first time in history and the S&P 500 set a new intraday record after an unexpectedly strong report on economic growth. The gains pushed the Dow as high as 18,051.14, and the index is now up about 175 percent from a 12-year low hit on March 9, 2009. The final estimate of the U.S. gross domestic product (GDP) for the third quarter was revised up to a 5 percent annual pace, its quickest in 11 years, on stronger consumer and business spending… (end of reuters.com excerpt)

And of course we are all supposed to say, “Wonderful! Obama’s policies finally are working after our terrible recession! Happy days are here again!” To which Nikitas3.com says: Don’t be stupid, friends. There is much more to this story than these numbers let on. First and foremost, the US economy is being sharply stimulated by the falling price of gasoline and heating oil, and this is going to continue. Because now people have to spend less on fuel, and therefore can stimulate the economy with their spending and investment. The sharply falling price of natural gas and crude oil, and subsequently of gasoline and heating oil, is a result of “fracking” which is increasing domestic supplies and bringing down prices. Obama and his enviro cronies vehemently oppose “fracking”. Also, tens of thousands of the best jobs are in the oil and natural gas industries which Obama and his enviro cronies are seeking to replace with ineffective “green” energy.

On the other hand “green” energy is producing zero economic growth. It is all subsidized by the taxpayer because it is so grossly inefficient. Now consider this about the 5% growth number:

*The huge spike in increased domestic oil production from ‘fracking’ is resulting in almost $200 billion in annual savings for foreign oil that was going to overseas producers. That money now is remaining in the US and stimulating our economy.
*Most of the good jobs, strong economic growth and optimism are happening in the conservative, lower-tax, less-regulated states like Texas and Arizona.
*Good jobs are fleeing liberal states. Even Intel, the “grandfather” of the Silicon Valley computer industry, is moving many of its operations out of California because California is controlled by hard-left anti-business Democrats.
*Wealthy people are moving out of liberal New York City because of its high taxes. Many are relocating to conservative Florida which has no state income tax. When they take their wealth with them, it reduces the wealth of the city and shrinks the economic base.

Now, who is getting rich on the skyrocketing stock market? Are we all benefitting?

No. It is people who are already rich or well off, who have money to invest in the stock market. This includes the majority of rich and super-rich people in America, who are liberals. Don’t forget that the three richest men in America are Obama supporters – Bill Gates, Warren Buffett and Larry Ellison. At the same time, how many “rich Republicans” do you hear about in New York, Chicago, San Francisco and Hollywood?

Fewer and fewer. Even the wealthy suburbs today, where the prosperous upper-middle-class lives, are largely Democrat with 14 of the top 15 richest congressional districts in the US represented by far-left Democrats like Nancy Pelosi representing the ultra-chic suburbs of San Francisco.

Meanwhile, do you know who is heavily invested in the stock market, and particularly in profitable oil company stocks? Is it Tea Partiers and 2nd Amendment supporters and pro-lifers and conservative Christians?

Answer: No, it is public school teacher pension funds. Yet public school teachers in the US today are mostly Democrat leftists who rabidly support environmentalism and publicly denounce the oil companies. Meanwhile many of Nancy Pelosi’s rich Democrat constituents are also invested in the oil companies while they give huge amounts of their money to the Sierra Club.

Perhaps you remember how the media savaged president Ronald Reagan for being a “rich Republican”. Yet Reagan’s net worth at the time of his death in 2004 was $13 million. Today Democrats Bill & Hillary Clinton are worth more than $100 million and Democrat Al Gore is worth $200 million. Meanwhile “rich Republican” George W. Bush is worth $25 million.

It recently was reported that the Top 10 poorest states in the US are Mississippi, West Virginia, South Carolina, Alabama, New Mexico, Kentucky, Idaho, Arkansas, Montana and Maine. Yet these are all generally Republican states. And we are supposed to be shocked because after all Republicans are the “rich people” in America.

No friends, that is a myth propounded by Democrats and their media cronies. In fact it is the Democrat party that represents “the rich” and the wealthy upper middle class, while it is the Republican party that represents the middle class and working-class people of America. When you think of rich people you don’t generally think about Kentucky or Alabama. You think about liberal places like San Francisco, Seattle and New York.

But that 5% GDP number sure is solid! Nope. This 5% number usually comes a year or two after the end of a recession. Yet this “recession” ended officially in June 2009. So why has it taken more than 5 years for better days to get here?

It is because Obama and the Democrats are strangling the economy, along with his environmentalist friends who are doing everything in their power to stop every type of development from oil drilling to mining to “fracking” to manufacturing to timber harvesting. In ultra-liberal Great Barrington, Massachusetts it even became a heated debate when the Cumberland Farms store wanted to add two gas pumps out front. Because liberals must stick their noses into every single thing that happens in order to feel good about their self-loathing selves and to have power over other people.

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