The Other Giant Sucking Sound

We have had the Ross Perot "giant sucking sound" warning come true.  Our manufacturing has moved to Mexico, the Pacific Rim, and China.  The U.S. economy has been transformed into one reliant upon service and entertainment.  These sectors are heavily dependent on disposable income in the hands of the consumer.

In the recent past, spikes in gas prices have taken a bite out of the economic activity in these sectors.  Fifty dollars more in gas per month out of the consumer's pocket has manifested itself in lower retail sales and durable good orders.  Consumer confidence dipped.  This has been met with Federal Reserve easing in an effort to smooth every ripple and tap down every blip in the once free market.

What then of sharply higher health insurance costs resulting from ObamaCare?  No longer are we diddling with a mere $50 or $100 more a month in unforeseen fuel costs, but rather hundreds of dollars a month mandated by confiscatory insurance premiums.  Here is the new sucking sound.  Money once going into the service and entertainment economy now will be directed to health insurance.  It is the law.  The citizen consumer will feel it, and the economy will suffer.

Restaurants, hotels, vacation venues, new car sales, durable goods, retail sales, and other indicators of economic activity will likely decline.  The Federal Reserve will pump, attempting to counter the numbers with loose money.  Much in the same way the Fed has attempted to maximize employment as the federal government relaxes rules on food stamps, disability, and other "safety nets," which all serve to placate the idle, the Fed will spill money to offset the dire economic impacts of ObamaCare.

Cloward and Piven would be envious of this arrangement.  Legislation passed to cause the economy to contract followed up by a Federal Reserve still thinking that loose money will save the day.  The dollar is in sharp decline, the debt is mounting, and the people in Washington attempt to implement, the most burdensome, confiscatory, and penal act on the citizen-consumer ever imagined.

We must end this parade of pseudo-intellects from fancy universities who arrive with groomed auras, sparkling imagery, and a pocket full of theories.  Needed are experts who understand economic realities and abide by the Constitution.