Northern Illinois Patriots

Remember the jingle “Look for the union label” that denoted pride in workmanship and organization. There has been a steady drop in the number of voices singing that song. The long, slow decline in the number of American workers belonging to labor unions accelerated sharply last year, according to data reported on Wednesday, sending the unionization rate to its lowest level in a century. The number of public sector union employees now exceeds the number of private sector union members.

According to the Bureau of Labor Statistics, the total number of union members fell by 400,000 last year even though the nation’s overall employment rose by 2.4 million nationwide last year. The percentage of union workers fell to 11.3 percent, from 11.8 percent in 2011. This represents the lowest level since 1912 when it was 11.1%. Strong arm tactics and intimidation has in some areas stopped the bleeding but as the number of “right to work” states increases a further reduction in private sector unions is inevitable.

The fact is: unionization means fewer people making more money. While President Obama likes to proclaim that he saved GM and Chrysler, what he really saved was union pensions and benefits with billions in bailout money. Had the automakers gone through the normal bankruptcy procedures, they would have survived but there would have been a dramatic reduction in union wages and benefits.

The cost of union wages and benefits makes them non-competitive in many segments of the private sector. They continue to thrive in the public sector where there is no competition and campaign contributions through union dues insure the election of union friendly politicians. Government stimulus helped to temporarily save teacher union jobs but the use of tax dollars to save the teacher’s unions is unsustainable. The loss in Wisconsin alone after pension reforms was 48,000 union members.       

When our economy was robust companies thought little about the effect that union wages and benefits would have on the bottom line and union members were happy to reap the benefits. But, with a stagnant economy, burdensome regulations, and an increasing number of states with right to work laws, the paradigm has changed. Unless unions recognize the need to alter unreasonable demands for wages and benefits, we may have a difficult time finding one when we Look for the Union Label.

 The Republican buzzword for surrender is “compromise”. John Boehner once stated, “Sometimes it’s hard to do the right thing.” Republicans seem resigned to raising taxes to avoid the “fiscal cliff” and reduce the budget deficit.

Good never compromises with bad, right never compromises with wrong, and justice never compromises with injustice. But, in a nation that has lost its moral compass, what was once crystal clear no longer sees the light of day.

Did Jesus compromise when faced with crucifixion? Did Christians compromise when facing persecution? Did Patton or McArthur compromise when facing the enemy? Would a parent compromise when it comes to the safety and security of their family?

We have become a nation that no longer recognizes a moral standard or a power greater than our government. We have corrupted our media, our family values, our Judeo Christian roots, our Constitution, the rule of law, the Separation of Powers, the sanctity of marriage, and our civility.

Our values and our spirit distinguish us from other living creatures. We have sold our souls to the devils to satisfy our thirst for power and material things. If we do not have our honor and our dignity we have nothing of value. Do we want to be remembered as a people of unshakeable principles or a people of pitiable Compromise?

 Barack Obama supporters celebrated his reelection into the wee hours of the morning. Drunk with the power of big government there will be the consequences of an economic hangover. Elections have consequences and consequences there will be.

In just four short years our President has amassed $6 trillion in new debt, saddled us with trillion dollar deficits as far as the eye can see, printed worthless money at a record pace, expanded government, and drastically increased spending.

Even if the President succeeds in punishing the “evil rich”, the maximum increased revenues will total no more than $70 billion dollars. This pales in comparison to a projected budget deficit of $1.2 trillion. How is taxing the job creators going to create more jobs? Where exactly will the additional revenues come from: the middle class of course? With 20 new taxes on all income levels in Obamacare, massive new taxes are coming to the middle class.

The fact is: there is no plan to decrease spending. At best, there will only be a decrease in the proposed levels of increased spending, namely, a continuing increase in government spending. Companies and corporations have already begun laying off employees or decreasing the maximum number of hours they may work, eliminating the possibility of participating in company health insurance plans.

As government continues to grow the private sector will continue to contract. Since 1947, 32% of our economy has been transferred from the private sector to our government. As the government presses continue to print money at a frenetic pace, hyperinflation is just around the corner. We will seen energy prices skyrocket as coal and oil production are strangled by onerous regulations.

High unemployment, stagnant economic growth, and a depressed housing market will become the new norm. The President is hell bent on destroying the goose that lays the golden egg. As you reduce corporate profits you decrease corporate taxes, thereby reducing government revenues. Every tax or regulation on businesses and corporations is ultimately a tax on consumers. As Liberals have ushered in another four years of economic calamity, Let the Pain Begin.

 The current administration likes to point to the recovery of the stock market as a sure sign of economic recovery. They want us to ignore $6 trillion in new debt, perpetual trillion dollar deficits, chronic unemployment, disastrous housing market, devalued market, soaring energy prices, and rising inflation. 

The stock market has risen for two primary reasons: trillions in printed worthless money to buy up bad debt and near zero interest rates that offer no return on savings, CD’s, or money market funds. The stock market is the only potential source of a reasonable return on investments. Corporate earnings have risen because they have cut costs, namely employees, to achieve profitability. Jobs lost will never come back.

Federal Reserve Chairman Bernanke has decided to double down on failed Keynesian economics and continue to print more worthless paper money. He is committing $40 billion per month to purchase mortgage backed securities for an indefinite period of time in an attempt to keep interest rates low. People and businesses will not borrow money just because it is available.

While Bernanke claims it is a non-political decision there is no doubt it will help President Obama at least in the short term. What this action will do for sure is devalue the dollar and fuel inflation. There is irrefutable evidence that both are occurring. Liberals are doggedly persistent in their belief government intervention will spur our economy.

The fact that Bernanke is implementing QE3 is an admission that TARP, the Stimulus, the Omnibus Bill, QE1 and QE2 were not successful. The trillions spent thus far have been flushed down the proverbial toilet. If pervious plans and trillions in previous spending has not worked what would make him believe that more spending will now work. President Obama, his administration, and Chairman Bernanke, devoid private sector experience and common sense and out of ideas, have decided that the only way to put us on the road to prosperity is to print More Monopoly Money.

 What do European countries and the United States have in common: a Socialist form of government, devalued currency, high unemployment, scant economic growth, a downgraded credit rating, bloated bureaucracies, out-of-control entitlement spending and government pensions, a shrinking private sector, burdensome regulations, onerous taxes, and class warfare?

Europe is an economic catastrophe and appears unwilling to admit that Socialism and Keynesian economics have led them into a financial abyss. As Margaret Thatcher said, “The problem with Socialism is that eventually you run out of other peoples’ money.” As the number of people living off the government dole increases and the number of people available to support them decreases a tipping point is reached and their economies come to a screeching halt.

But President Obama, the self-proclaimed “smartest man in the world”, believes that problem is not the system; the people running the system are the problem. Rather than learn form the mistakes of other nations, President Obama is doubling down on failure. Rather than learn from history he is determined to repeat it.

The mark of any good manager or leader is the ability to objectively self-evaluate their performance and make the adjustments necessary to achieve their primary goals. But President Obama, a man with no economic, financial, or management experience and a penchant for ignoring the advice of others, lacks the background necessary to right our sinking ship.

But European countries have found a loyal follower and have taken heart. After all, Misery Loves Company.

 In what can best be described as bizarre there seems to be a sense of pride in the announcement that as many as 6.6 million young adults stay on or get on their parents' health plans in the first year and a half after the law was signed. This news comes after a previous announcement that 50% of college graduates are either unemployed or underemployed and that 85% have moved back in with their parents. Add to this the sharp increase in food stamp recipients, the number of long term unemployed, and the continuing dismal jobs numbers the future of our young adults does not seem all that rosy.

It is the goal and hope of every parent to raise their children in a manner that allows them to become responsible, successful, and independent individuals. It has been historically embarrassing for parent to admit that their child was unable or unwilling to leave the parent’s home, get a job, and live on their own.

But we live in a time when government assumes the role of surrogate parent, providing cradle to grave entitlement programs. It may seem counterintuitive but our government solicits and encourages individuals to become dependent on them for resources that responsible individuals could and should provide for themselves. The reason is very simple: dependency translates into votes for the provider.

And indeed, voting records show conclusively that people dependent on the government for their survival vote for those candidates that provide those entitlements. Our public schools, better known as government indoctrination mills, foster the idea that our government is the solution to all of their problems and perceived entitlements are unlimited.

The dream that most parents had of their children one day leaving the nest may go the way of the dinosaur. Like Archie, Edith, Michael, and Gloria, in the popular comedy series, we may see a revival of the sitcom, “All in the Family.”

 In a rare departure from spouting the administration’s company message, Federal Reserve Chairman Ben Bernanke, testified before Congress and warned about a fiscal cliff that our nation faces if the Bush tax cuts are allowed to expire and automatic spending cuts are initiated January 1.

He warned that if the tax cuts and spending cuts are implemented it will slow job growth and weaken an already fragile economy. Our economy would probably contract and lead to a recession. The fiscal hit could be as large as $720 billion dollars. Businesses have put expansion plans on hold, fearing the worst. The implementation of the Health Care Reform Bill also weighs heavily on business uncertainty.

Our economic recovery if there is one, is a collage of phony numbers and statistics. Our real unemployment rate is closer to 11% not 8.2%. There has been a net loss of jobs since our President took office not a creation of 4 million jobs. Most of the jobs that have been created are low paying, part time, or temporary jobs with no benefits. The stock market has risen largely on a massive infusion of capital from the infamous “quantitative easing” and a Federal interest rate that brings microscopic returns on CD’s and money market funds.

The economy is growing at an anemic 1.9%, nothing to write home about. Not only have all the arrows in our President’s quiver been shot but he sold the quiver and the bow. The economy languishes while our President is focused and his reelection and fund raising. As our nation is about to go over a financial cliff our President would be better served by studying his Economics 101 Cliff Notes.

 The solution was so simple why did we not see it? France once again leads the way in solving the problem of high unemployment rates. France's new Socialist government is planning to ramp up the cost of laying off workers for companies in the coming months. Their Labour Minister said on Thursday that additional measures would be taken after data showed the jobless rate hit the highest level this century at 10 percent. He also wants more public spending for employment. Where have we heard that statement before?

President Francois Hollande came to power in a presidential runoff last month, promising to tackle soaring unemployment, which has reached the highest level since 1999. Proceeding with layoffs by employers is already tightly regulated and costly. This policy contrasts sharply with countries such as Italy and Spain that are moving to make job cuts easier.

France is also planning legislation that would force companies to sell plants they want to get rid of at market prices to avoid closures and job losses. We have seen no indication that spending cuts would be initiated to curb budget deficits, a stated requirement of the European Commission. It is unlikely that France or any of the other Socialist dominated European countries will curb entitlements and cut government spending.

The real danger for our nation is that our President and his administration are clueless and out of ideas and may be taking notes. A President already notorious for his disdain of our Constitution and his penchant for exercising the imaginary and unconstitutional “Executive Order” might just declare that private sector companies and State Government cannot layoff or fire employees. President Obama could once again address our nation and say, “Regarding any future layoffs of jobs losses: Problem Solved. “

 I, like many Americans and taxpayers sat stunned as our President gave his assessment of the status of private sector job creation. This is the manifestation of a President and an administration that is completely out of touch with the realities that people have faced since the start of the recession.

There are currently fewer people in the workforce than there was when President Obama took office. The unemployment rate of 8.2% does not reflect the true rate of unemployment. If we factor in the people that have given up looking for work the rate is closer to 11%. If we take in to account the number of unemployed or part time workers the rate is closer to 18%. The jobs that have been created are generally part time, low paying jobs without benefits. The rate of job increases does not even keep pace with new workers entering the workforce.

Over 50% of college graduates are either unemployed or underemployed and 85% have moved back in with their parents. Minorities have also seen increases in their unemployment rates.

The President’s speech at his press conference was just a preamble to primary objective, union jobs. By declaring that the private sector was healthy he could now make his case for a new stimulus package to benefit union workers, namely teachers, firemen, policemen, and construction workers. He was trying to rectify his recent mistake by of not supporting the unions in the recent recall election of Scott Walker.

Either President Obama knew the jobs market was dismal in the private sector and was making a calculated political decision or he is actually that out of touch with the world around him. It may or may not come as a shock to our President but the private sector job market is not Doing Fine.

 While our President and his Cabinet would have us believe that our unemployment rate is 8.2% an informed electorate knows better. Our rate has dropped only because millions have stopped looking for work. If we used the number of jobs in the workforce at the time President Obama took office the rate would be closer to 11%. If we consider the underemployed and people working part time that figure is closer to 18%.

Maybe the United States is doing better than Europe of maybe Europe is just more truthful about reporting their true unemployment numbers. But the Eurozone unemployment has hit a new euro-era record at 11%, with joblessness of those under 25 at 22.2%. Spain again leads the pack with its rate raising to 24.3% and for those under 25 a rate of 51.5%. Contrast those jobless numbers with Germany’s 5.4% unemployment rate.

Other than Germany, what does the United States have in common with the remaining Eurozone countries: a socialist form of government, an entitlement mentality, an inability to control spending, a penchant for borrowing money they cannot hope to repay, and a precipitous slide toward insolvency?

 Our President like most of Europe is in denial. Rather than drawing on a rich history of disastrous socialist experiments, President Obama has chosen to double down and failure. It is but another example of what happens to Birds of a Feather.