Why Romney Lost the 2012 Election

by Richard H. Frank

Five months following the 2012 Presidential election and the defeat of Mitt Romney by Barack Obama the pundits  from both parties have attempted to spin their message and place the blame on everything from one candidate having no message to the other having a superior ground game for getting out the vote.  There is an element of truth in every theory presented but I believe the real reason resides in the changing demographics in America experienced over the past 50 years.  The demographics not so much in terms of ethnic origin, race or economic status but the demographic of an individual’s collective life experience.

As our nation prepared to celebrate the Bicentennial in 1976, I had the occasion to view a video entitled “What You Are is Where You Were When” created by  and featuring Dr. Morris Massey, then an Associate Dean and Professor of Marketing at the University of Colorado at Boulder.

My first impression as I viewed the video was that I was watching a fast-talking used car salesman that resembled a flim-flam man or carnival Barker.  As I listened however, it become apparent that he had a lot of valuable information to convey in a relatively short span of time limited by the video itself.

His message was all about values  The values every human being possesses, where they were first introduced, what life forces imprinted them upon us and how they became part of our belief system.

According to Dr. Massey there are three major periods in each person’s life during which values are developed:

  1. The Imprint Period, up to age seven, when we are like sponges absorbing everything around us, accepting much as true, especially when it comes from our parents.
  2. The Modeling Period, between the ages of eight and thirteen where we tend to copy others, often our parents.  We may be impressed by religion or teachers.  Often times outside influences may take precedent over the values of our parents.
  3. The Socialization Period, between 13 and 21 when peer pressures largely influence our behavior and often are in conflict with values previously introduced by parents and teachers.  Other influences include media, and in today’s rapidly changing technology the largely uninformed social media.

If Dr. Massey’s theories are correct the country has been bombarded with secular-based values over the past 50 years, many of which are in direct opposition to those of people born in the first half of the 20th Century.  For example:

  • The distortion of our Constitution with regard to the separation of church and state (words which cannot be found in the document as written by the Founding Fathers.)
  • The role of the Federal Government taking precedent and usurping the power of the state – disregard of the Enumerated Powers within the Constitution.
  • Expansion of the welfare state to include redistribution of wealth, not through voluntary, charitable institutions or individuals, but by the fiat of Government.
  • A disregard for human life by advocates of abortion and a practice in this Country that makes the Holocaust pale due to the wanton disregard for the life of the unborn through millions of abortions performed in this Country.

Take a look at what has occurred in our public institutions of learning beginning in the 1960s.  Religion has been removed from the classroom and the very mention of God is no longer tolerated.  Music celebrating any form of religion is no longer included in the secular curriculum taught in our schools and holidays acknowledged for centuries under the law are now renamed for political correctness.

So how have we as a nation allowed all this change in our values to occur since the Declaration of Independence was written in 1776?  According to Dr. Massey any change in values must be preceded by a “Significant Emotional Event.”

Looking back over the past 100 years it is easy to mark the most “significant emotion events” and see how they impacted the value system of Americans living at that moment in time.

  • 1914 World War I and a call to America to protect and defend the principles upon which this Country was founded.  The significant event came with the sinking of the Lusitania Passenger Liner by the German “U” boats and the loss of American life.
  • 1929’s Black Friday crash of the stock market leading to the Great Depression.  Millions of Americans were out of work and lost their homes.  This significant event imprinted the value for  hard work and property on millions of Americans living through the Depression.
  • December 7, 1941 and the Japanese attack upon Pearl Harbor once again awakened the patriotic values of America to return to its core values and defend the world against Imperial Japan and facism in Europe.
  • November 22, 1963 President John F. Kennedy was assassinated in Dallas, Texas and shook the nation to its very foundation.  Politically, our Government leaders embarked upon social justice programs such as the  Great Society,  the War on Poverty and others that nurtured a growing segment of society addicted to entitlements which cannot be sustained.
  • September 11, 2001, the terrorist attack on the World Trade Center and the Pentagon shook America awake and focused the threat of Muslim extremists directly on our security here in the homeland.
  • November, 2008 the election of Barack Obama, the first Black President in this nation’s history that campaigned against many of the values that made our Country the most free, most prosperous nation in the history of the world.  His promise was to “fundamentally change America” through his actions for social justice to correct in his words “a fundamentally flawed U. S. Constitution.”  The significant emotion to elect a black man regardless of his lack of credentials and experience to hold the office, and the fear of being judged as being racist, overrode logic and common sense of the electorate.
  • November, 2012 Barack Obama is reelected with a campaign based solely upon the premise that he could not fix all the economic problems created by  George Bush in a mere 4 years and that General Motors was alive and Bin Laden was dead.

Therefore, if one is to believe that Dr. Massey is correct, and I do, what will the next “significant emotional event” be that awakes America and returns us to our senses?

Possibly without real fiscal reform the collapse of the dollar which would throw this Country into the worst depression ever witnessed in modern history.  Continued deficient spending and growth of the Federal Government to support social justice at the expense of the free market and eventually individual freedom. Or perhaps another event might be millions of people protesting in the street in America because their handouts no longer can be sustained.   Simply put “there is no such thing as a free lunch.”  When the Government runs out of other people’s money to spend we will become Greece and that’s when the real revolution will begin.  God Help the United States of America should we ever reach that time.

The Conditioning of America!

By: Richard H. Frank

Barack Obama’s 2008 campaign pledge to “fundamentally change America” has been launched and implemented little by little over the past 3 1/2 years. His administration’s initiatives to achieve “fundamental change” have been marked by a three-pronged assault upon the free enterprise system and our Constitution itself. The coordinated attack starts with onerous legislative efforts, which usually fail, followed by pushing the proposed objective through executive and or administrative fiat. If either of these approaches raise the ire of Congress , or the electorate, the administration turns to the Justice Department to challenge and intimidate those that oppose their initiatives.

The liberal progressives are tenacious in pursuit of their socialist ideology. They have persisted in pushing their agenda for nearly 100 years and with the election of Barack Obama have virtually brought this nation to its knees as a result of the accumulated burden of unfunded entitlements, out of control spending and a national debt on the fast track to $20 trillion over the next four years. A debt that outstrips GDP and burdens our children for generations to come.

Achieving energy independence is a prime example of how the liberals condition the population to accept “fundamental change” and their agenda. The Obama administration stands directly in the path of the free market initiatives to develop our own natural resources through exploration and development on Federally-controlled lands and offshore paying homage to the special interests that support their agenda. New sources of fossil fuel and environmentally-safe technology for extracting these resources are demagogued as unproven and a threat to the environment. As a result the increasing demand for oil world-wide increases the price of crude and sends gasoline prices soaring along with every commodity requiring transport to the market place. The Obama administration contends that there is little they can do to impact oil prices and that lifting restrictions and increasing permits will take too long to impact the world market. This is the same story we have heard for the past 30 years when, if we had acted, we would not be faced with a looming crisis for future supply at a price dictated by supply and demand as opposed to that determined by the far east oil cartel.

Until the price of a gallon of gasoline approaches $5.00 and the electorate rebels against the government inaction and their outright obstruction to increasing domestic supply the administration resorts to short-term actions like releasing oil from the strategic reserve as a means to manipulate prices just enough to cause the price to drop just below $4.00 per gallon. In the interim the President condemns big oil for raping the public and making obscene profits when the truth is big oil makes about 8 cents for every gallon of gasoline sold while the Federal government makes 26 cents, more than three times that of the oil companies.

This shell game orchestrated by the Obama administration is intended to condition the public to accepting $3.50 per gallon as the new normal and forget that just 3 1/2 years ago we paid only $1.80 per gallon in 2009 when Obama took office. Over time just as a trainer does with his dog, the public is conditioned to gladly accept the 100% increase as a good thing.

Then we have “Obamacare” sold to America by liberals in Washington in support of the President as the panacea that would provide “affordable” health insurance to every American. For over two years Nancy Pelosi, Harry Reid and Barack Obama preached the following rhetoric until many Americans believed them.

  • If you like your current health care plan and doctor you can keep them.
  • The average family will save $2500.00 per year in premiums under Obamacare.
  • Obamacare will not increase the deficit – not by a single dime.
  • The Affordable Health Care Law mandate is Constitutional under provisions of the commerce clause.

The first three statements above have been proven to be untrue and we will soon hear from the Supreme Court if the fourth is in fact Constitutional or not.

Three and one half years after Obama and his administration assumed power the standard of living for many Americans has deteriorated. We are told that the new norm for the middle class will include limited opportunity for jobs and sustained unemployment levels of 8% or higher. Higher taxes will be required for all income levels to support expanded entitlement programs with food stamps alone growing to include in excess of  50 million families.

For those senior citizens living on a fixed income the prospect for the future appears bleak. The inflationary impact from energy prices coupled with the necessary rationing of health care under Obamacare are the first harbingers of the “fundamental” changes yet to come. The conditioning process for the elderly includes loss of equity in their homes and the value of their pensions earned over all their working years. Expendable income vanishes rapidly for this segment of American society more quickly than for any other.

The conditioning process will proceed even faster should Obama be reelected until the standard of living we experienced in the 20th century will just be a fading memory. The “fundamental Change” Obama seeks is to achieve a social democracy where we are dependant upon government for survival. Statism fosters such dependency on government for subsistence. When that dependency can no longer be supported through taxation of the free enterprise system those conditioned to rely upon the so-called entitlements eventually turn upon their benefactor, the state, and rebel. We are witness to this in Greece and many other European social democracies.

Generations yet unborn will not know how this nation was conditioned to give up freedom and self-reliance in the name of fairness and turned America into a nation of mediocrity from the vibrant , exceptional free society experienced in the past.

Those of us that have experienced the blessings of freedom embodied in our Declaration of Independence and our Constitution must stand firm against “fundamental change’ in America and return to the conservative values and principles that made America the greatest nation on the face of the earth.

Obama’s State of the Union Speech More Appropriate for February 2 (Groundhog Day)!

by Richard H. Frank

Prior to the President’s address to a joint session to Congress and the Nation on the State of the Union, I reviewed my blog following last year’s speech entitled “Reality vs. Campaign Rhetoric.”

I fear, as in the movie ‘Groundhog Day” we are destined to relive his speech over and over again until he gets it right or until the electorate gets it right and votes Obama out of office.

The true measure of the “State of the Union” is outlined in last year’s blog and if anything has changed since then, the change has been for the worse.  I expect the Obama speechwriters labored tirelessly to find some undistorted facts for him to claim as his accomplishments.  Obama lives in a different universe than does the rest of America.  Unfortunately, Congress shares much of that same universe as Obama and is willing to accept the myths he spreads as accomplishments.  Half truths are obvious throughout his 65-minute performance to convince America that he deserves 4 more years as President.  Consider these statements compared to the facts:

  • Three million jobs have been created over the past 22 months.  According to the Administration’s own labor statistics, 1.7 million jobs have been lost over the same period since he was sworn into office.
  • His Administration saved the auto industry and GM is once again the world’s #1 producer of automobiles.  The truth remains that last year GM sold an estimated 9 million vehicles worldwide, a number that includes sales of manufacturers in which GM holds minority investments such as in China.  Volkswagan and Toyoto would be the first to challenge Obama’s claim as holding the sales title should their numbers include figures from Scania and truck makers like Man.  As for Toyota, their 2011 sales haven’t been reported for the full year and their estimate is that sales will be down by 7.9 million units as a result of the natural disasters and tsunami experienced in Japan and Thailand.  Should  Toyoto include Wuling sales they will outperform the new GM. As with the employment figures in the U.S., if the numbers don’t support your position, just change the base until they do.
  • “What’s happening in  Detroit can happen elsewhere!”  May God forbid this will come to pass.  Detroit has been transformed into a ghetto as the result of liberal, Progressive, Democrat Government over four decades.  This once proud city with a population making it the 4th largest in the nation in the past has degraded into a wasteland and now occupies 18th position in the nation.  The intercity population has fallen to under 800,000 and is surrounded by decay and a failing infrastructure, and vacant buildings and home line the city’s neighborhoods and provide a magnet for crime.  This area has a 28% unemployment rate under Obama.  Once known as the “Motor City” and the “Capital of Democracy”, it acquired the title of “Murder City” in the 1980s and has continued its rapid degradation since then.  If Detroit provides Obama’s vision for this nation, something is radically wrong with our President’s vision.
  • “Oil production in  America is the highest it has been in 8 years.”  I recall reading an article indicating this increase amounts to less than 2 million barrels a day.   The existing capacity to produce is somewhere between 10 to 20 million barrels per day if it were not for the onerous Government Regulations stifling production.

His statement that he has directed Defense Secretary Leon Panetta to purchase eco biofuel for the Navy once again provides a subsidy to an industry that cannot compete in the free market environment.  Official estimates are that this biodiesel will cost the American taxpayers up to 38% more than diesel fuel derived from crude oil.

Since our President has virtually no record of accomplishment to base his campaign for reelection upon, he must resort to tactics that attack Congress, demonize his Republican opponents and avoid at all costs a debate on “Obamacare.”

His tactics were evident with his every utterance last night:

  • His subtle accusation that Congress is not doings its job in comparison to our military completing its mission in Iraq and Afghanistan shifts the blame to others for his lack of leadership.
  • Stating that every American must do and pay their fair share and play by the same rules is pure class warfare and anti-capitalism.
  • His statement that over the past decade, the rich have benefitted and the poor have suffered due to a tax structure having rates that favor the rich is a distortion of the truth and blatantly false.  An individual having $1 million earnings from investment pays tax at a rate of 15% or $150,000 on those capital gains.  This is over and above the original 25-36% they paid on their investment when taxed as wages.  That amounted to between $250,000 and  $360,000 paid in taxes on those investment dollars.  When Obama compares the total $400,000 to $510,000 paid n investment income to Warren Buffet’s secretary paying 28% on $50,000 income, or $5600, the distortion becomes ridiculous and not worthy of our President.
  • Following his pledge to open 75% of Federal lands and offshore regions for energy production, he qualified the promise by stating he would not walk away from his promise of clean energy and development fo safe energy.  He avoided any mention of the Keystone XL pipeline in his remarks and took refuge behind the “BP horizon” incident in the Gulf of Mexico.
  • In one breath he advocated smaller Government and less regulation when in the next he advocated appointment by executive fiat three new agencies composed of a “trade enforcement unit,” “executive order to remove red tape for infrastructure projects ” and creation of a special unit in the Justice Department to investigate financial crime, sounds  like growing the Government and more regulation to me.
  • His call for “comprehensive immigration reform” came against a statement that our southern borders are safer and more secure than ever.  A claim heavily disputed by Arizona, Texas and New Mexico.  Although not mentioned by name, his proposed reform smacked with elements of the “Dream Act” or amnesty for the children of illegals presently here in America.

The only positive to be found following the President’s address was the focus groups composed of Republicans, Democrats and Independents are no longer swallowing Obama’s rhetoric.

During the 2010 mid-term election “We the People” made our voices heard loud and clear.  Returning to the principles embodied in the Declaration of Independence and the limits of government defined in our Constitution is imperative in this Republic is to survive while individual freedom to prosper is the opportunity provided for every American.

When two-thirds of Americans believe this country is on the “wrong course” under the Obama Administration, it is their duty in the upcoming 2012 election to change course by removing that Administration and replace it with individuals dedicated to protect and defend the Constitution of the United States of America.

Distortion of Reality

by Richard H. Frank

Over the past nine months the American public has been force-fed a steady diet of political rhetoric as we  rapidly approach the 2012 General Election.  Cable news and networks desperate to fill 24 hours of broadcast air time call upon a never-ending legion of pundits to predict the outcome of votes in the primary election race to pick candidates for the respective political parties.  Should you believe the pundits, the process would be all over with the results from Iowa and New Hampshire.  The reality is that these votes and caucus results choose less than 2% of he delegates needed to establish a candidate.

Today, the talking heads are quick to state that no candidate for the Republican nomination has caught fire with the electorate and assumed a commanding lead to secure the nomination.  Somehow, they have lost perspective that eight individuals were seeking the nomination as recently as last week.  Under these circumstances simple math would indicate that any candidate receiving 12.5% of the vote or more should be considered a serious contender.

The news media however, with their liberal bias has skewed the debates away from addressing the issues facing our nation and purposely structured their questions to foster attacks by one nominee upon the other.  The underlying purpose of their distortions is to tilt the momentum away from whomever the Republican nominee eventually emerges toward the re-election of Barack Obama.  Their bias is plain to see, not only in questioning of candidates during the debates but in the post-debate analysis by carefully selected pundits.

Fortunately, for Republicans and independents, the field of prospective candidates for the Republican nomination will be pared down significantly following the Florida primary.  That is when media distortion and bias will be evident for all to see, especially as they “position” each GOP frontrunner as wanting to kill the benefits given to senior citizens, a huge voting block of that state. If you think the primary race has been ugly, just wait until a Republican candidate has to go up against Barack Obama.

The media distortions will kick into high gear as the media places Obama on a pedestal for his “achievements” in foreign policy, his leadership as Commander-in-Chief and his accomplishments in fostering economic recovery, all of which are distortions of reality.  One only needs to look around to know the truth about Obama’s socialist policies.  Unemployment and under-employment about 25%, foreclosures accelerating at a rate to reach 6 million or more, 47 million American families receiving food stamps; inflation creeping upward to decimate our middle-income families and senior citizens, and  a national debt of 16 trillion.

These are the realities given to us by Barack Obama and his administration.  I for one do not believe this Nation and our Republic can withstand four more years of Barack Obama and his administration’s policies.

Keep these realities in front of you as you endure the continuing media onslaught of distortions over the coming eleven months  before the November, 2012 General Election.

 

America Cannot Afford Another Four Years of Barack Obama!

by Richard H.  Frank

It is now 18 months prior to the 2012 Presidential election and already paranoid politicians and the liberal media are in full campaign mode.  The most paranoid individual, in my opinion, is our neophyte President, Barack Obama, whose double-talk is evident in every speech he delivers.  The blame game is in hyper-drive as Obama attempts to divert the realities of his failed policies to the worn-out campaign rhetoric of distortion and outright lies about the opposition.  His call for civility and transparency without vilifying individuals or organizations is laughable when in the next breath he reverts to using these exact tactics.

Somehow, the media and Democrats seem to believe that Barack Obama has proven his leadership ability to America through the assassination of Osama bin Laden.  Eventually, the truth will be known and show that in the face of the evidence provided by the CIA and military intelligence, Obama was forced to give the go-ahead to the plan conceived, not by him, but by the military, or be shown as the indecisive individual he has shown himself to be in the past.

President Obama and  his administration have a major problem to deal with in the upcoming 2012 election.  That problem is their dismal record of driving America rapidly into bankrutcy and the eventual collapse of the dollar.  Their failures are evidenced by the disasterous results from stimulus sending, corporate bailouts, increases in the deficit and policies that have prolonged the recession which now has all the signs of entering a double dip with new claims for unemployment exceeding 1.0 million last month.

The President’s position is that he and his Administration did not realize how bad the situation was when they assumed office, that his campaign promises such as reducing the deficit by half during his first two years and keeping unemployment no higher than 8% could not be achieved.  The truth is that America elected Obama to the highest Office in the land, an individual with zero experience at running anything, based on his rhetoric of hope and change and fundamentally changing America and the world.

Only now are “We the People” beginning to feel the impact of Obamacare and are coming to the realization of the distortions and outright lies told to America about the legislation.  I can only pray to God that our Supreme Court finds this disastrous piece of legislation Unconstitutional before it can be implemented further.

Obama’s latest target is once again to focus upon “big oil” and its enormous profits.  His latest attack is to remove any subsidies given to oil companies while demanding subsidies for solar and wind energy development.  If subsidies for oil are eliminated then so should those for solar, wind and electric vehicle development also be eliminated.  This will not happen as solar, wind and electric vehicles cannot compete economically with petroleum-generated energy.

When Government endeavors to pick winners and losers in the economy they alter the competitive playing field in favor of their ideological preferences through subsidies.  Unfortunately, the American Consumer pays the price for Government’s ideological preferences as opposed to free market principles of supply and demand.

Consider the impact curtailment and regulation of domestic oil production has had on the price per gallon of gasoline we pay at the pump over the past 25 years.

Dom.Production

Nominal Avg

Inflation Adj.

M/Barrels/Day

Price/Gallon

Pr@2010 Dollars

1986

8.75

$1.00

$1.70

1988

8

$0.98

$1.70

1990

7.5

$1.10

$1.80

1992

7

$1.08

$1.70

1994

6.6

$1.10

$1.60

1996

6.5

$1.20

$1.60

1998

5.9

$1.10

$1.40

2000

5.8

$1.45

$1.80

2002

5.75

$1.40

$1.60

2004

5.5

$1.80

$2.50

2006

5.1

$3.00

$3.25

2008

5

$3.15

$3.00

2010

5.5

$3.00

$3.00

May-11

5.5

$3.98

$3.98

Between 1986 and 2008 domestic oil production in the U.S. dropped by 43% and we saw a corresponding increase in the cost per gallon of 215%.  Critics of increased domestic production say the increase is primarily due to inflation and Mideast oil cartel manipulation of the price per barrel produced to meet worldwide demand.  They fail to acknowledge that energy prices have a dramatic influence upon inflation as well as Government’s recent move to monetize our debt by the massive printing of dollars that reduces the purchasing power of every American.

If we accept the argument of those that oppose domestic oil production but had just maintained the 1986 level of production, the price at the pump today would be $1.70/gallon, not $3.98.  Instead, we have wasted 25 years and cost our economy trillions of dollars transferred to the Mideast and lost millions of new jobs for Americans in the process.

Yet we see His Majesty Barack Obama while in Brazil pledging financial support to Brazil’s oil development industry and pledging the U.S. as a customer to their economy instead of pursuing domestic development at home.

One final point to be made about Obama’s vilifying big oil.  In 2003 there were 28 energy producers operating in the United States.  These firms had operating income of $828 billion dollars and paid Federal taxes of approximately $38 billion. The total capital employed by these firms was much larger – $638 billion which translates to a return on capital of 12.8%.  The average annual return on equity between 1973 and 2003 was 12.6% for fossil fuel companies and 13.1% for the S&P industrials.  In either event the oil producing companies’ return has historically been less than S&P companies due to the huge development costs for exploration and eventual production.  Let us also not forget that big oil accounts for 9.2 million jobs that contribute to our economy and the Federal revenue stream.

The opposition to Barack Obama and the liberal Democrats in Congress need to learn the facts and confront the lies of the Administration headon over the coming 18 months.  The barrage of half-truths and lies being gathered and edited into sound bites and talking points will not stand the test of the facts.

The record provides the evidence as to why we cannot afford to re-elect Barack Obama and the liberal Progressives in Congress and America should be forewarned that Barack Obama will do everything in his power to smooth talk, persuade, and “charm” his way into office and we must remain vigilant and continue to educate the uneducated about this man’s lack of qualifications for the Office.

The Failed Policies of the Past

by Richard H. Frank

How many times over the past 3 years, beginning with the 2008 Presidential campaign, throughout the first two years of Obama’s Administration, have we heard that “We cannot return to the failed policies of the past?”  Well, just what are those failed policies and where and when did they begin?  For the most part these policies have their beginning with our Founding Fathers enumerating their beliefs in our Declaration of Independence which state “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, among these are life, liberty and the pursuit of happiness.”

Two hundred and five years later our 40th President, Ronald Reagan, expressed his economic principles as having their roots deeply planted based on freedom, individual responsibility and the power of our free enterprise system to create and sustain America as the beacon of freedom and prosperity for the rest of the world to emulate.

Contrary to the Democratic view of Reagan’s policies as having been a monumental failure, the Joint Economic Committee reported in April 2000 that Reagan’s record included sweeping economic reforms, deep across-the-board tax cuts, market deregulation and sound monetary policies to contain inflation.  The results were the largest economic boom in American history and the creation of an estimated 35 million jobs.

If, indeed, these policies of the past were failures how do the Democrats, Nancy Pelosi, Harry Reid and Barack Obama explain the following facts as reported by the Joint Committee of the House and Senate for the 106th Congress?


1983-90 1991-99 Total Period
Real GDP Expansion Expansion
Total Growth 35.70% 33.00% 80.90%
Av.Annual Growth 4.10% 3.30% 3.60%
Real GDP/Person
Total Growth 26.70% 22.40% 54.20%
Av Annual Growth 3.20% 2.30% 2.60%
Real Consumption/Person
Total Growth 26.80% 24.10% 56.90%
Av Annual Growth 3.20% 2.50% 2.70%
Industrial Production
Total Growth 28.90% 38.70% 78.90%
Employment
Total Growth 19.9 M 16.4 M 35.0 M
Dow Jones Ind.Average
Average Annual Growth 14.50% 16.10% 15.00%

Today the Democrats assert that tax cuts initiated by the Reagan Administration and compounded by the Bush Administration in 2001 have drained the U.S. Treasury.  Let’s look at the facts and reality of the situation.

  • Total Federal revenues doubled from approximately $517 billion in 1980 to more than $1 trillion in 1990.  This amounted to a 28% increase in revenue in constant inflation-adjusted dollars for the period.
  • As a percent of GDP Federal revenues declined slightly from 18.9% in 1980 to 18% in 1990.
  • Individual taxes climbed from $244 billion in 1980 to $467 billion in 1990.  A 25% increase in inflation-adjusted dollars while lowering the marginal tax rate for individuals.

So what is the real failure of these policies of the past?  Looking at the facts it certainly could not be attributed to the lack of growth and the resultant increase in revenues to the Federal Government.  Therefore, something else must account for the current economic and fiscal difficulties we find our country in today.

The real culprit lies within Congressional spending.  If you provided an additional dollar to our Federal Government, rest assured Congress would find a way to spend $1.50 on some social crisis, real or imaginary.  Let us look at the record the facts for the ten-year period between 1980 and 1990.

  • Federal spending grew from $591 billion in 1980 to $1.25 trillion in 1990.  This is an increase of 35.8% in constant inflation-adjusted dollars.
  • As a percent of GDP Federal expenditures grew slightly from 21.6% in 1980 to 21.8% n 1990.  Congress loves to cite percentages when it suits their purposes to aid their extravagant, out-of-control spending binges.
  • Contrary to popular belief, inflation-adjusted defense spending increased by 50% from 1980 and 1989.  It was curtailed at the end of the cold war and fell by 15% from 1989 to 1993.
  • However, means-tested entitlements, excluding Social Security or Medicare, rose by over 102% between 1980 and 1993 and continued to rise ever since.

Critics of the Reagan economic policies argue that the Federal tax burden was shifted to lower-income groups and away from upper-income groups by adding the Social Security payroll tax to the burden.  Ronald Regan’s tax changes were in the income tax marginal rates, not the Social Security payroll tax.

Payroll tax increases were imposed by  Congress and proponents of Big Government entitlements over the past 50 years.  It is Congress and not the Reagan Economic policies that should be held accountable for the redistribution effects of Congressional spending legislation.

One again, let us review the facts.  If we include the Social Security payroll tax as argued by critics of the Reagan tax cuts:

  • Payments for the top 1% of taxpayers increased from 12.9% in 1980 to 15.4% in 1989.
  • the top 5% from 27.3% in 1980 to 30.4% in 1989.
  • The top 20% from 56.1% in 1980 to 58.6% in 1989.

Total Federal tax payments declined for four groups accounting for 80% of wage earning taxpayers:

  • The second-highest 20% went from 22.2% in 1980 to 20.8% in 1989.
  • The middle 20% went from 13.2% n 1980 to 12.5% in 1989.
  • The second lowest 20% from 6.9% in 1980 to 6.4% in 1989.
  • The lowest 10% from 1.6% in 1980 to 1.5% in 1989.

Today, and over the coming two-year Presidential campaign, Barack Obama and the Democrat machine will vilify anyone that supports the Reagan economic policies of small Government and individual freedom.  Their efforts to rewrite history will not stand the test of facts surrounding the most successful economic policy of the 20th Century.  The real threat to our economic well-being is that of Big Government intervention into our everyday lives and the nanny state mentality of the liberal progressives retaining power in our Federal Government.

During Ronald Reagan’s State of the Union Speech in 1986 he said “Government growing beyond our consent had become a lumbering giant, slamming shut the gates of opportunity, threatening to crush the very roots of our freedom… What brought America back?  The American people brought us back – with quiet courage and common sense, with undying faith in this Nation under God, the future will be ours, for the future belongs to the free.”

If the Reagan legacy is a result of “the failed policies of the past” then I say it is time to return to those policies and not those of the Big Government liberal progressive proponents.

Time For Obama’s Actions to Reflect his Words!

By: Richard H. Frank

Barack Obama’s address to the White House press corps this morning concerning the release of his birth certificate, which was a distraction (his words) to his efforts to solve America’s problems, puts him on the spot to seriously solve the nations economic ills.

So now Mister President let’s get serious (again your words) and take the initiative to address the following National issues:

  • Adopt a cohesive, comprehensive energy policy that takes the initiative against the Mideast oil cartels to manipulate oil prices. Lift the moratorium against exploration and drilling in the U.S., and issue permits currently held up in bureaucratic agencies immediately.
  • Stop vilifying any individual, political party or private organization that takes issue with your agenda. Demonizing  the Oil, Gas and Coal industries, and calling political opponents like Donald Trump a sideshow carnival barker in lieu of a debate of the issues is less than presidential.
  • Adopt a budget plan, or legislation, that assures fiscal responsibility for the future national budgets including addressing entitlements, tax reform and deficit spending.
  • Stop the use of and repeal executive orders that circumvent Congress and are not authorized under the Constitution that impose onerous regulations on “We the People” in support of any political ideology.
  • Restore the Constitutional authority guaranteed to every State under the 10th Amendment to the Constitution and limit the size and scope of the Federal Government to those powers enumerated in the Constitution.
Mr. President, these are the issues affecting the very existence of our Republic and the well-being of every American. You are now on record again as of 9:45 am, April 27, 2011 to address the above issues and get serious about their solutions.
Once again America has heard his rhetoric, but we won’t hold our breath waiting for leadership to come from our neophyte President, Barack Obama. After all he is above such detailed analysis and solutions and will just delegate the problems to one of his Czars to come up with some progressive, Marxist pipe dream to tax our way out of these problems  and  the next crisis.