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Regulation Slows Economic Growth

June 28, 2013

The growth of federal regulations over the past six decades has cut U.S. economic growth by an average of 2 percentage points per year, according to a new study in the Journal of Economic Growth. As a result, the average American household receives about $277,000 less annually than it would have gotten in the absence of six decades of accumulated regulations — a median household income of $330,000 instead of the $53,000 we get now, says Ronald Bailey, a science correspondent for Reason Magazine.

Economists John Dawson and John Seater constructed an index of federal regulations by tracking the growth in the number of pages in the Code of Federal Regulations since 1949. The number of pages, they note, has increased six-fold from 19,335 in 1949 to 134,261 in 2005.

  • The Bureau of Economic Affairs estimates that real gross domestic product (GDP) in 1947 was $1.8 trillion in 2005 dollars.
  • The real GDP growth rate between 1949 and 2011 averaged 3.2 percent per year. Compounded over the period, that would yield a total real GDP of about $13.3 trillion in 2011; that’s the same figure the bureau gives for that year.
  • If regulation had remained fixed at 1949 levels, GDP growth would have averaged 2 percent higher annually, yielding a rate of about 5.2 percent over the period between 1949 and 2011.
  • Compounded, that yields a total GDP in 2005 dollars of approximately $43 trillion, or $49 trillion in 2011 dollars, which is in the same ballpark as the $53.9 trillion figure calculated by Dawson and Seater.

CONTINUE READING…

Record 23,116,441 households on food stamps

The number of American households on food stamps reached a new record high in March, according to new data released by the Agriculture Department.

The March numbers the USDA released Friday reveal 23,116,441 households enrolled in the Supplemental Nutrition Assistance Program (SNAP), or food stamps, each receiving an average monthly benefit of $274.30.

The number of individuals on SNAP did not break any records but remained high, with 47,727,052 people enrolled in SNAP, receiving an average monthly benefit of $132.86.

Read more: http://dailycaller.com/2013/06/09/record-23116441-households-on-food-stamps/#ixzz2YsxjLyfQ

The National Debt Crisis” by Hillsdale College

Why $16 Trillion Only Hints at the True U.S. Debt

  • We most often hear about the alarming $15.96 trillion national debt (more than 100 percent of gross domestic product (GDP)), and the 2012 budget deficit of $1.1 trillion (6.97 percent of GDP).
  • As dangerous as those numbers are, they do not begin to tell the story of the federal government’s true liabilities.
  • The actual liabilities of the federal government — including Social Security, Medicare and federal employees’ future retirement benefits — already exceed $86.8 trillion, or 550 percent of GDP.
  • For the year ending December 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion.
  • In reality, the reported budget deficit is less than one-fifth of the more accurate figure.

READ MORE HERE…

 

Obama Added More to National Debt in First 19 Months Than All Presidents from Washington Through Reagan Combined

In the first 19 months of the Obama administration, the federal debt held by the public increased by $2.5260 trillion, which is more than the cumulative total of the national debt held by the public that was amassed by all U.S. presidents from George Washington through Ronald Reagan. Continue reading…

Welfare State Grows by Nearly 19% Under Obama-to Almost $1 Trillion a Year!

(CNSNews.com) – Federal and state welfare assistance has grown almost 19 percent under President Barack Obama, according to the conservative Heritage Foundation.

All in all, there are 79 means-tested federal welfare programs, at a cost approaching $1 trillion annually, said Heritage Senior Research Fellow Robert Rector.

Continue reading…

Families’ Wealth Dives 39 Percent in 3 Years

The median U.S. household lost nearly 39 percent of its wealth from 2007 to 2010, according to a Federal Reserve report released Monday, emphasizing anew the impact of the financial crisis and the recession on ordinary Americans, says USA Today.

Middle-class families took the biggest hit to their net worth during the crunch because much of their wealth was in their homes, whose values plunged during the recession and in its aftermath, the Fed report says. Wealthier families saw a smaller drop in their incomes, but nowhere near as much impact on their net worth. Continue reading from NCPA…

How Much Does The Federal Government REALLY Owe?

  • In 2011, the federal government said it owed $10.2 trillion in public debt, accrued federal employee pension and other retirement benefits of $5.8 trillion, and other federal liabilities of $1.5 trillion, for a total of $17.5 trillion.
  • However, Social Security and Medicare benefits payable to current retirees are not included as liabilities on federal balance sheets, though these two programs currently account for over one-third of federal spending — approximately $12.8 trillion.
  • The public debt plus benefits payable to federal workers and the accrued Social Security and Medicare benefits payable to retirees total $30.3 trillion.

The $30.3 trillion, however, only accounts for accrued benefits and does not include the obligations that are expected to arise in coming years; including these obligations results in a much higher number. Indeed, in 2011, a conservative estimate of these amounts totaled $84 trillion — more than four times what the federal government admits it owes ($17.5 trillion). Read full story here…

United States Budget Dilemma

Alarming! Washington’s Dilemma!. Soaring debt and a budget Congress can’t balance.

This VIDEO explains WHY. Every person in AMERICA should watch this video!

The Moral Case for Capitalism

Capitalism has become the scapegoat for many social woes. When critics are pressed to assert their opinion, a couple of distinct charges are leveled at the economic system: it generates inequality and it threatens social solidarity by allowing individuals some priority over their communities, says James R. Otteson, chair of the Philosophy Department at Yeshiva University in New York.

However, not only are many of the claims against capitalism misleading and overly caustic, but also they fail to account for the enormous positive influence that capitalism has in the world, specifically by curtailing the growth of poverty.

Because capitalism truly came into its own as an economic model approximately 200 years ago, a comparison of modern economic indicators with those from 1800 is enlightening. Continue reading from NCPA…