President Barack Obama’s win was not only a loss for Gov. Mitt Romney, but also a loss for America. And, in turn, Romney’s loss illustrates the dire need for a revamping and restructuring of the Grand Old Party.
This election indicated that people vote with their wallets, and in this economy, they voted for welfare. With nearly 50 percent of all Americans receiving government assistance, that should come as no surprise. Of that, 35 percent receive assistance from "means-tested" programs, including food stamps, Medicaid and housing assistance.
The upcoming four years will not deviate much from the past four years, so you should expect the following from Obama’s second term:
1. Pain at the pump. Obama’s energy strategy is to loan money to green energy companies, like Solyndra, a solar cell manufacturer that went bankrupt in 2011. In addition, he refused to sign legislation approving the Keystone Pipeline, blocking an attempt to utilize natural resources at home.
2. High unemployment. Obama plans to increase taxes on Americans with income more than $250,000. Republicans argue these Americans are small-business owners, who will be discouraged from hiring if their taxes increase.
3. Big government. Obamacare is set to begin in 2014 — the U.S. healthcare industry makes up nearly 20 percent of U.S. GDP. Government spending crowds out private investment, and thereby hurts private businesses and job growth. During the past four years, companies have been sitting on $5 trillion of cash reserves, fearful of Obama’s policies and upcoming tax rates.
Several things are happening in January that, according to the Congressional Budget Office, will increase the risk of a recession during 2013. One is the upcoming “fiscal cliff.”
The Bush tax cuts are set to expire in January, 2013. And if the existing laws are left unchanged, tax increases, spending cuts, and a corresponding reduction in the budget deficit will begin in 2013.
A sudden reduction in the deficit will put us in another recession in 2013. To avoid this fiscal cliff, members of Congress must negotiate and compromise during the “lame duck” session, which occurs between now and the end of the 2012 year.
The failure of the Republican Party to win the presidency stemmed from two things: arrogance and lack of contact with many key voting blocks, including Latinos, women, Asians and African Americans. The Republicans believed they would win the White House because of the bad economy, but the Republicans failed to connect with these minority groups, while the Obama campaign was successfully able get them out to the polls, handing Obama his reelection.
Unfortunately for young people, Obama’s economic policies have proven to be bad in terms of job availability and growth. Oppressive taxes and a stagnant economy will highlight the next four years.