A Simple Infographic to Understand the Choice in 2016... More Barack Obama or a Return to Reagan

One of the most difficult games to play in politics is the notion of what might have been… How might things have been different had JFK not been shot? How might have things have been different had Al Gore won in 2000? How might things have been different had Mitt Romney or John McCain not run inept campaigns against Barack Obama?

We’ll never know what the outcomes might have been because there really is no way to objectively measure that when it comes to policy. Would JFK have scaled up Vietnam the way LBJ did or, if he did, would the Camelot mystique have protected him from the vilification that LBJ endured? Had Al Gore been in office on September 11th would we have invaded Iraq as he was on record believing Saddam had WMDs? We can speculate, but we can’t know.

We can however play the game that compares real data between presidents. And now might be a good time for that given we’ve got a presidential election coming.  On the one side are candidates seeking to maintain and further the liberal "successes" of Barack Obama, while on the other are a plethora of candidates seeking to harness the spirit of Ronald Reagan, inspired by his less is more approach to government.

And of course the press provides little actionable information when it comes to whose policies really were / are superior.  Witness their crowing about the unemployment rate hitting a seven year low without explaining (or understanding for that matter) the cause, which is certainly not a strong economy, but rather because people are exiting the workforce at a rate not seen since the 1970's.

Given that, I've created a simple infographic that just might help. (Click here for a larger image and here to download a high res version)  It looks eight measures that shed light on whether a future that furthers the ideas of Obama or Reagan might a better choice.  Unlike notions of what might have been, it compares actual outcomes on those eight measures during the first six years of each administration.  From inflation to the LFPR to food stamps, hopefully this handy infographic will help make the decision as to who to pull the lever for in 2016 just a little bit easier.

The Cult of Barack Obama - Eight Questions to Help Identify Members

I’ve never quite gotten the cult of Che Guevara. Colleges across the country are crisscrossed with students wearing Che tee shirts and dorm rooms are decorated with Che posters. Sometimes if you ask the student wearing a Che shirt about him you’ll get a leftist screed worthy of Matt Damon’s bar scene in Good Will Hunting. They’ll talk about his “affinity for the poor”, that he was a doctor, and the fact that he fought against the American Imperialists and “Capitalist octopuses” who were abusing and exploiting the population of South America. Most of the time however they will simply say nonsensical things like “he fought for the oppressed” or he was a “man of the people”.

What you’ll rarely hear them tell you about, though, is Che the Communist, Che the murderer, Che the narcisist, or Che the sadist. You won’t hear them tell you about the thousands of innocent Cubans who were killed arbitrarily at Che’s direction, or by Che’s own hand. They won’t tell you about the economic morass his revolution brought to Cuba. They won’t tell you about the chaos he left in his wake.

Most people wearing Che shirts or sleeping under Che posters know nothing about Che Guevara but they know that he was larger than life and somehow being associated with him makes them cool.

Such is the nature of a cult. Cherry picking facts and ignoring those that damage the image of their idol. In the case of the cult of Che, it’s a pretty innocuous cult. Other than facilitating a hookup that one might regret in the morning or inciting a fisticuff on the student union, there’s not much of an impact on the wider world.

If only we could say the same about the cult of Barack Obama. His cult shares many of the characteristics of the Che cult: The posters. The tee shirts. The celebrity. Mostly though, the cult of Barack Obama shares the characteristic of its adherents knowing practically nothing about their deity. Ask Obama supporters why they like Obama and you’ll get things like “He is for the people” “He supports women’s rights”, “He fixed the healthcare system” or maybe “He got Bin Laden”. All of those points, like most about Obama, are either meaningless or simply wrong.

Being for the people or supporting women’s rights may make for a good sound bite, but they mean nothing in the debate over public policy. Does lowering taxes so that all citizens can take more of their money home count as being for the people? Does promoting a woman’s right to protect herself with a weapon count as supporting women’s rights? And as for Obama getting Bin Laden, a Facebook post recently summed that up nicely: Crediting Obama with killing Bin Laden is like crediting Nixon with landing on the moon.

And even those things they get right on the surface, they get wrong. They will say that unemployment is lower under Barack Obama, which it is, 6.2% today vs. 7.6%. That is true on the surface, but only because 11 million Americans have given up looking for work since Obama became president. Those people are not counted in the unemployment rate. Had they been counted the unemployment rate would be over 10% rather than 6.2%. They say he implemented Obamacare. This too is true on its face, but it’s a fundamental lie. Obamacare as it was signed into law has never been implemented. Obama has unlawfully given subsidies to tens of millions of people in conflict with the explicit language of the law. He has unconstitutionally given waivers and delays to tens of thousands of employers employing tens of millions of people so that the pain the law imposes won’t be felt until it’s politically expedient… for him. So, in reality, Obamacare as written has not been implemented, but Americans are nonetheless saddled with a dysfunctional system that has cost jobs and caused many people to lose their doctors, face higher costs and in some cases lose their insurance altogether. 

And the list goes on… The disconnect between reality and the fantasyland members of the cult live in is stark. But how do you know if a friend or loved one is a member of the Cult of Barack Obama? Well, like a mirror used to uncover a vampire, here are eight questions that might help you find out. (And remember, all of this is after Obama borrowed $5 trillion and the FED pumped almost $4 trillion into the economy.)

1) Is American household income higher today than it was when Barack Obama took office? No. Lower, by $2,500.

2) Are more Americans working today than there were when Barack Obama took office? Nominally yes. 146 million vs. 142 million, but as the population has grown by 13 million, a lower percentage of the population is actually working, 45.6% vs. 46.3%

3) Are there fewer Americans living in poverty today than there were when Barack Obama took office? No.  More are. 44 million in 2009 – 14.3% of the population vs. 48 million today, 15% of the population.

4) Are there more or fewer Americans on food stamps today than there were when Barack Obama took office? More. 47 million vs. 34 million.

5) Has the percentage of Americans with health insurance increased since Obamacare passed? No. 83.4% vs. 84.0%.

6) How does Barack Obama’s progressive recovery compare to Ronald Reagan’s free market recovery? Not well: 5.8% total growth over his first 5 years vs. 17.7% for Reagan’s.

7) Is Iraq better off or worse off today than it was when Barack Obama took office? Far worse.

8) Is the world a more stable or friendly place today than it was when Barack Obama took office? Iraq, Syria, Egypt, Libya, Ukraine, Russia, China, Japan, South Korea, North Korea, Venezuela, Honduras…  Not so much.

If, after going through these questions and answers your friend still supports Barack Obama, they are likely part of the cult. Just to be sure however, ask them why they still support him. If they give you logical, cogent reasons for doing so then maybe they’re just confused and there may be some hope for recovery after all. For the rest it might be time Google "intervention".

Unfortunately, while today Che’s cult is largely harmless, Barack’s has wrought a disaster on the American people and the world beyond. Like the objects in the mirror that are larger than they appear, we can only hope that the cult of Obama fizzles soon after he leaves office as the magnitude of his ineptness and his failures becomes clear.

Random Observations on Government

Ronald Reagan was the most conservative president in the last 75 years. Despite interest rates of 20% when he took office, during the first 5 years of his presidency the economy grew by a total of 17.7%. Barack Obama is the most progressive president in American history. Despite interest rates close to zero throughout his terms, during the first 5 years of his presidency the economy grew by a total of 5.8%... and it's getting worse, shrinking at an annual rate of 2.9% in the first quarter of 2014!

At the very moment in time when crime in the United States is at record lows, local police departments are morphing into paramilitary armies. How many times have you heard of someone buying a brand new toy and letting it sit in the closet? Probably not that often…

Barack Obama’s never been a big fan of American Exceptionalism or hegemony, despite the fact that American leadership has ushered two generations of relative peace after two world wars in the first 40 years of the 20th century. He is however a big fan of international consensus and cooperation. The UN is a good example of just such cooperation. They are the ones who brought us a UN Human Rights Council featuring such freedom loving states as Russia, China, Saudi Arabia and Cuba. Barack Obama likes that non-US centric model so much that he has decided the United States will relinquish its management of the Internet traffic cop organization, ICANN (Internet Corporation for Assigned Names and Numbers). So now such liberty stalwarts as China, Venezuela and Iran will have just as much to say about the freedom of the Internet as the United States does. That should work out well.

Despite mounting proof that NOAA and other organizations manipulated data to further the myth of global warming… despite record cold temperatures and ice packs in the Great Lakes, Barack Obama believes “Climate Change” (AKA “Global Warming”) is as great a threat to national security as is terrorism.

Why is it that over the last 5 years GDP has grown by 6% yet the stock market is up by over 120%. Could it have anything to do with Big Government?

There are over 3,000 counties in the United States. Why are 7 of the 10 richest located adjacent to Washington, DC? No, that couldn’t have anything to do with Big Government.

The bad news: In 2014 there are 127,000 fewer native born Americans working than there were in 2000, despite that group growing by 17 million people. The good news: Since 2000 there have been approximately 5.7 million jobs created in the United States. The worse news: According to the Center for Immigration Studies, all of that 5.7 million net job growth has gone to immigrants – legal and illegal – leaving a total of 58 million working age native born Americans without work.

After years of practically non existent border enforcement, and his administration signaling to millions of poor that if they can just get to the United States they just might be able to stay, Barack Obama blames Republicans for the tens of thousands of unaccompanied children who are flooding across America’s southern border. Constitution be damned, he’s going to use executive action to solve America’s immigration problem. Regardless of the rhetoric, the outcome of Obama’s unilateral action will likely be amnesty for millions of illegal immigrants who will soon thereafter be converted into Democrat voters.

Despite crystal clear evidence that ethanol is worse for the environment than gasoline… Despite the fact that prices for everything from beef to plastic and everything in between are rising because so much farmland is dedicated to ethanol corn production… Despite the fact that ethanol significantly raises the price of gasoline… Congress just passed another Farm Bill that will provide tens of billions of dollars to maintain the ethanol cabal.

Congress’s approval ratings are at historic lows, in the single digits, yet somehow American voters regularly return over of 90% of their Congressmen and Senators to Washington.

Despite the fantasy that progressive policies are good for the poor, in the end they are bad for everyone, except those in government and the friends of those in government. If you’re riding the Wall Street gravy train then you love big government. If you’re a big business who uses government to limit competition and pad your bottom line, you love big government. If you’re a government employee with practically lifetime employment, 50% higher salaries than your private sector counterparts and the power of life or death over businesses, you love big government.

If however you are an entrepreneur seeking to start a business and create jobs, you are oppressed by big government. If however you are an unskilled youth seeking to get your first job, your opportunities are limited by big government. If however you a simple wage earner who wonders where the rest of your check went, big government exploits you.

None of this is rocket science, nor is there anything here particularly surprising. Nonetheless, Americans continue to vote for big government progressives in both parties and wonder why things never seem to get any better. The question is not whether this unsustainable and suffocating government system will end, but when. The more important question is, will the entity we know as the United States survive intact or will it devolve into anarchy and chaos and become just another ghost of a failed state on history’s chronicle of mankind’s evolution? If people with no sense of liberty, no appreciation for small government and no allegiance to the the Constitution keep getting elected, the outlook doesn't look good.

Memento: The story of liberals who can't seem to learn from reality...

If you’ve never seen the movie Memento, I would highly recommend it… The main character, Leonard, is suffering from anterograde amnesia – the inability to create new memories – the result of a violent attack. Unable to create new memories, Leonard uses tattoos and notes to help him find the person he believes is responsible for the last thing he does remember, his wife’s murder. Throughout the movie we see Leonard writing himself notes and getting new tattoos to help him take the next step in his pursuit of the culprit. By the end of the movie Leonard finds and kills “John G” the man he believes is responsible for his wife’s murder. Or at least he thinks he has, and something we discover he’s apparently done before. At the end of the movie the viewer discovers that despite Leonard’s “system” there really is no correlation between his actions and reality. Even those memories he can recall are suspect. In a nutshell, Leonard is lost in a world where reality simply doesn’t exist. Friends and foes are interchangeable and he knows what he knows only because he reads it in his own handwriting. Actions have no consequences because lessons are never learned.

One has to wonder, is to exist in such a world really living? Think about all of the things you know, from when you first learned the fact that a hissing radiator is probably hot to the realization that not everything everyone tells you is true, most of us never stop learning. It’s how we grow, it’s how we discover what works in the world – and what doesn’t – in the pursuit of solving problems, finding pleasure and virtually everything in between. Without learning we don’t grow and are destined to face an endless cycle of reliving the same exact problems day after day.

Such is the world that liberals have created for themselves… and increasingly have imprisoned the rest of us in. They seem to be unable to make new memories. They seem to be stuck in a universe where reality is disconnected from what actually goes on in the world and they believe what they believe only because they read it in their own handwriting… or in this case the typed letters of the New York Times or the spoken word on MSNBC. Reality simply doesn’t intrude on their universe.

From the trope that throwing money is the solution to America’s education mess to the mantra that more government regulation is the solution to all problems, liberals never seem to learn. One can only look at the performance of American schools and know that money and performance do not move in tandem. What liberals don’t learn is what actually works and what doesn’t. The examples are legion. From the fact that tax cuts actually spur economic growth to the folly that massive government spending can spur an economy to the notion that “You can keep your health insurance”, liberals fail to look at what is going on right in front of them. Or maybe fail to look is the wrong characterization… maybe fail to recognize is more accurate. It’s like when you look at one of those optical illusions with the old lady and the young girl. Depending on what you focus on, you see something different. Liberals look at the economic juggernaut of Ronald Reagan and focus on his tax cuts “for the rich” yet somehow fail to see that 15 million private sector jobs were created under his watch and GDP was booming. That’s 15 million families with a paycheck rather than depending on the government for support and hundreds of billions of dollars in American’s pockets. Conversely they laud Barack Obama because of his concern for the poor and minorities while his policies have resulted in record levels of poverty and massive numbers of people simply leaving the workforce because they can’t find jobs, with minorities hit the hardest.

One has to wonder how is it that liberals consistently fail to learn from the stark failures that are in front of them and have been recurring for decades. Whether it’s the collapse of urban America under generations of Democrat rule to the inverse relationship between government regulation and economic growth, one has to wonder if, perhaps there is not some widespread mental problem there. One can certainly choose to support economic policies that put “fairness” above economic growth, but to proffer the notion that higher taxes, increased government spending and more regulation is good for the economic well being of the nation is to simply ignore the history of the last 40 years. To have watched as government regulation of the housing industry brought the meltdown of the economy and then somehow choose to double down on that very regulation suggests that a portion of America’s liberal’s brains have simply atrophied to the point where they simply no longer process the learning of new material. They find themselves stuck reading the same notes they wrote to themselves decades ago such as “fairness”, “more government regulation”, “higher taxes” and of course the ubiquitous target of everything liberal: “the evil capitalists”. Like Leonard in Mememto, who blindly follows his notes and ends up killing an uncounted number of John Gs, liberals in America follow their notes (or teleprompters) and kill jobs, opportunity, prosperity and perhaps eventually the American Dream itself. One can only hope that at some point they misplace the notes and forget where they’ve put them.

Could Obamacare be the Coup de grâce for Battered Liberal Syndrome?

Years ago I was talking to an uncle who happens to be a martial arts expert. He told me a story about being in a bar when a man started beating the heck out of his girlfriend. My uncle being my uncle, he intervened and separated the two. As he’s standing there confronting the abuser, he was attacked from behind by the girlfriend…

You hear about things like this all the time, a version of what is called “Abused Woman Syndrome” where a woman is abused by a man but continues to stay with him, and as in the story above, often defend him. Often the woman’s friends and family try and convince her that he’s bad for her, but while she admits he has his flaws, she loves him and she knows things are going to get better. Conservatives in America today find themselves in a situation similar to the one my uncle did, but the difference is, it’s not battered women that we face, but rather it’s battered liberals, and the abusers are the politicians in the Democrat Party. And while the liberals continue to stay in and empower the relationship, it’s everyone in the country who gets abused.

The Democrats have been abusing the American people for decades, and we have the scars to prove it:

Education in the United States is a train wreck. We spend more than any country on the planet on education and yet we trail most of the developed world in math, science and reading scores. Not only are students not learning the basics, but more importantly they are not learning to compete in, survive in and thrive in the real, competitive world.

Prosperity and economic growth are being strangled. In the 1950’s when the Federal Register (list of federal regulations) averaged less than 10,000 pages a year the American economy grew at an average annual rate of 4.6% a year (after inflation) – at which rate it would take you 15 years to double your income. Over the last decade when the Federal Register has weighed in at 78,000 pages a year, GDP growth has shrunk to 1.5% annually – at which rate it would take you 48 years to double your income. That means that the GDP growth – read prosperity – has declined by 65% as the Federal Register has grown by 800%.

The number of people on welfare is greater than the number of working people. The workforce is at its lowest level in three decades and those among the Democrat base (women, minorities and youth) are the most adversely affected by all of these issues.

On these and a myriad of other issues the Democrats have been abusing the American people (and in particular their own base) for decades. Nonetheless, when faced with the evidence of the Democrats abuse in the form of failed policies, they always have an excuse. Republicans want to cut education or kill Grandma or destroy the environment or let companies abuse their employees, etc. etc.. And of course the Republicans hate women, workers, blacks, immigrants and basically everyone who’s not rich and white.

And now we have what is potentially the most important event ever in the sordid history of the Battered Liberal Syndrome: Obamacare. Not only was it proffered on a false premise in the first place, it has been nothing but lies since: “If you like your plan you can keep it.” “Premium reductions will save you $2,500 per year” And the lies keep coming: “It’s the fault of the insurance companies”, “You’ll come to appreciate the better plan”, and of course the obligatory “We had no idea any of these problems would crop up.”

For so many years Democrats lied about practically everything as the failures of their policies came home to roost. Because of charlatans like Ted Kennedy, Barney Frank, and Barack Obama they could deflect blame to others for their failures and come out unscathed. But with Obamacare they are facing a different scenario all together. They own it lock, stock and barrel.

They passed the legislation on their own. They wrote the regulations. They built the website. Obama wrote the exemptions. They managed the entire process from A to Z, and they lied about every piece of it all along the way, and none more so than Barack Obama himself. As such, as the entire thing melts down there is no way for them to deflect the blame. Conservatives and many Republicans have been saying for three years that Obamacare was going to be an abject failure, it was going to cost jobs, it was going to drive up healthcare costs and it was going to expose citizens to chaos as government sought to control healthcare. All of those things have come true, and more is on the way.

The failure of Obamacare doesn’t just expose the failure of one program, but rather the failure of the Democrat philosophy in general that all things can be made right and good by simply writing a piece of legislation, throwing money at a problem or by putting the government in control. The failure of Obamacare is just a most explicit version of the policies that have brought us failing schools, the mortgage collapse, green energy sinkholes and countless other failures. The difference is, the only fingerprints on this debacle are Democratic and for the first time in history their failure is being seen as theirs alone. This is partially due to the fact that even the complicit mainstream media can’t cover up a disaster of this magnitude as Americans are seeing their plans cancelled, premiums and deductibles rise, all while choices and jobs evaporate.

Is it possible that Obamacare could be the Coup de grâce for Battered Liberal Syndrome? Perhaps this train wreck will be the incident that finally begins to shake battered liberals out of their blind devotion to the Democrat Party and liberalism. Maybe they will finally step back and look at the bigger picture and recognize that it’s results that count, not soft Democrat whispers of how it’s really someone else’s fault, how they’re just trying to make things better or fair and that they really care. You have to think that after years of battery at some point soft whispers and “good intentions” no longer matter and results finally do. At that point perhaps discussion will turn to the damage that invariably occurs when government seeks to control everything. Maybe 2013 is that point. Perhaps Obamacare is the catalyst… If so there might end up being a silver lining after all.

Obamacare - What good is health insurance if you lose the freedom to live your life as you choose?

One of the many reasons conservatives dislike government overreach is because government is so often wrong about so much. And what’s worse, regardless of the magnitude of the government’s failures, citizens are stuck with the consequences of those policies, in most cases forever.

This is not a new phenomenon. This has been going on for decades. Upon its establishment in 1965 the House Ways and Means Committee estimated that the cost of Medicare would rise to $12 billion by 1990. Unfortunately for American taxpayers that prediction was off by a power of nine, coming in at $110 billion. And things haven’t gotten any better since then. By 2011 Medicare costs ballooned to over $550 billion, having grown by 8.3% in a year when inflation was 3.2%.

But of course Medicare is but one example. Medicaid had a similar experience. The same House committee estimated that Medicaid’s first-year costs would be $238 million. Instead it came in more like $1 billion. It was projected to cost $9 billion by 1990 and, surprise, it came in at $67 billion. By 2011 the federal share of the program tipped the scales at $299 billion!

Tellingly, before government set its claws into healthcare it tracked very close to overall inflation. Since 1965 however, healthcare costs have increased by 2.3 times the rate of general inflation. To put that in perspective, inflation would have made something that cost $100 dollars in 1965 cost $718 dollars in 2012. That’s a pretty big jump, but if that $100 dollar item had increased at the rate of healthcare inflation since government got involved it would cost 2.3 times as much, or $1,651. At the same time, healthcare costs went from 5.1% of GDP in 1960 to approximately 18% today.

This record of financial incompetence (nevermind operational incompetence and malfeasance) could never survive for five decades in the private sector. But in government, no problem, and it’s not just healthcare. Think of Solyndra. Think of General Motors. Ethanol mandates. School lunches. The fact of the matter is, bureaucrats sitting in the otherworldly universe of Washington have a long history of making decisions about which they are unqualified and ill-informed, and more importantly, disconnected from the consequences of those decisions.

Now however we are about to embark on a journey that will make even the economic disaster of Medicare look like child’s play. Of course we’re talking about Obamacare. Although there were many warnings that Obamacare would be a disaster of epic proportions before it became law, today, less than a year from its true implementation, we are seeing the actual consequences begin to materialize.

Millions of jobs will be lost, one small company at a time. People will have a difficult time finding a full time job. Healthcare premiums will be going up. There will be a doctor shortage. Obamacare will become a regulatory anvil around the neck of American prosperity. Luckily though the Obama administration is on the job seeking to ensure that it doesn't become a "third world experience". Which, it's looking like it just might become. And to put a cherry on top, with our practically no existent GDP growth, apparently we can look forward to China overtaking the United States by 2016.

As bad as those things are, it actually gets worse. Your individual liberty is simply going to disappear. Many employees are now going to have to begin reveling to employers their weight, body fat measures, cholesterol levels and more. Pharmacy giant CVS states that all its employees will now have to either quit smoking or enroll in an addiction program by 2014. That is of course because smokers generally have higher healthcare costs than do nonsmokers, and since CVS is paying for that healthcare, they get to make the rules. Don’t like it? Then quit.

But then it’s not only smokers who cost more. Fat people generally cost more than thin people. Does that mean that a company can dictate that employees must be Oreo or Doritos or Coke free by the end of the year or enroll in an addiction program? How about motorcycle riders? They are 5 times more likely to be involved in a traffic accident than are car drivers. Does that mean that companies can tell you what you what kind of vehicle you can drive? How about unmarried women having sex out of wedlock, particularly minority women, where 77% of black births and 53% of Hispanic births are to unwed mothers? Given that sick children inflict an increased financial & healthcare burden on unwed mothers than they do on married mothers, can a company demand that unmarried female employees purchase and utilize birth control? (If so, how would they ensure compliance with usage?) Sure, all of this sounds farfetched, but so too once did the idea of schools telling moms what they can put in their children’s lunchboxes, cities banning Happy Meals and soft drinks and companies actually firing employees for being smokers.

At the end of the day, Obamacare may very well be the last stake in the coffin of individual liberty and American prosperity. Think of it this way… through the tax code the government already exercises a tremendous amount of influence on your life by deciding how much of your money you can keep. It’s pretty personal, but it’s largely financial, even if it impacts much of the rest of your life. Through the EPA the government influences your life, although thankfully for most of us it’s at an arm’s length, via regulation of the companies we work for and the firms we buy from. With Obamacare that scant remaining barrier between government and individual choice will disappear. Government is indirectly harnessing employers to expand its power over every aspect of your life, including the most intimate parts of it. And you can be sure it will stay indirect for only so long. Once government mandates can decide what you can eat, how much you have to exercise, the kind of transportation you choose and how you have sex, what is left of liberty? Not much… Add to that the evisceration of the greatest economic engine the world has ever known and you wonder how long before it all comes crumbling down. Now where does one go to get insurance to protect against that?

Regulation vs. Prosperity... America goes gently into that good night

Thanks to the Founding Fathers, in 2013 the United States has built the wealthiest nation in history on free markets and the rule of law. (And thanks to their more recent successors, we’re simultaneously the poorest… but that’s another discussion.) While the Founding Fathers were remarkable for much, what is perhaps their greatest legacy is their recognition that Americans, like all men, are imperfect.

In 1787 after almost a decade of the greatly flawed Articles of Confederation, the 2nd Continental Congress was formed and would eventually produce the Constitution we have today. What was so amazing about the document was the fact that it had built into a wide variety of it limitations and strictures intended to both delineate and restrict power. The overarching idea that powered the construct of the Constitution was the fact that an unfettered government would become tyrannical. The founders understood that limited government was supposed to act only in those areas that citizens could not on their own – think national defense, courts, treaties – and, importantly, only based on the powers granted to it under the Constitution.

Fast forward to today where their work has proven itself well placed with a prodigious American prosperity been built on its foundations of free markets and the rule of law. More than any nation in history, we have benefited from the fact that virtually any American citizen or resident has had the opportunity to start a business. Sometimes they invest their money in a neighbor’s plan to start a sandwich shop and other times they roll up their sleeves and start something on their own. More than anything in the world, that freedom of opportunity has set America up for success and driven us to achieve the greatest level of wealth ever created.

Unfortunately, that freedom of opportunity is rapidly disappearing… In an effort to ameliorate every problem that might befall a citizen, the federal government has passed laws and created regulations that touch virtually every aspect of our lives. This Sisyphean exercise has not only failed, but it has laid the foundation for the undermining of the freedom and opportunity that made America the wealthiest nation in the world.

Economic growth comes largely from small businesses. 70% of all new jobs come from small businesses. Small businesses are where innovation begins. Think about it. You’re probably not surprised that the PC revolution was not driven by the behemoth IBM but rather by two upstart companies named Apple and Microsoft. You’d probably not be surprised to discover that ESPN was founded by an unemployed sportscaster rather than one of the three major networks. You’re also probably not surprised that it was Google, a company started by two college students, that figured out how to effectively harness the opportunity in online advertising while America’s mega media companies stumbled from one failed business model to the next. Big companies always start out as small ones.

Small business is where new ideas get to play themselves out and figure out what works. This is because small companies are typically nimble, they don’t have legacy products or services they are concerned with undermining, and perhaps most importantly, owners and investors are usually very close to the action. They normally are right in the mix of where everything is happening so they can observe and react quickly to the needs of markets. Big lumbering, billion dollar companies with tens of thousands of employees and multiple levels of hierarchy rarely have the insights or quickness to see opportunities ahead.

And of course starting a business is risky. You never know if customers are going to like your product or service. Suppliers can be unyielding in their financial terms. Employees can be fickle and unreliable. Competitors abound. And of course it can be incredibly expensive. Nonetheless, some intrepid Americans do venture forth to hang out their shingle and pursue the dream of turning an idea into a flourishing business. They might get rich, but they might go broke too… but to them it’s worth the risk.

And as if it were not hard enough to find success as a small business, it’s becoming far more difficult in one respect that the entrepreneur has very little control over: Regulation.

The nearby chart shows the growth in federal regulations over the last 60 years. That growth is set against a GDP growth chart for the same period – measured by average rate of growth over the decade. The correlation is crystal clear, and painful to behold.

Each page of the Federal Register represents dozens of byzantine regulations that must be administered by millions of bureaucrats, often with draconian consequences for violations. For small businesses such regulations are nothing short of a nightmare. Not only do they have to navigate the equally challenging state and local government regulations, but they must increasingly deal with mandates crafted in Washington by bureaucrats who are professional pencil pushers with no experience in actually running a business, nevermind an awareness of the unique challenges faced by small businesses.

The Federal Register is the catalog of all federal regulations. In the 1950's it would see an average of 10,400 pages per year published.  During the decade the US economy grew at an average rate of 4.2% a year (inflation adjusted). In the 60's it would see 16,800 pages per year on average while GDP would average 4.44% growth per year. That was the last decade of treading water. By the 70's Register pages would be 48,000 per year GDP growth dropped to an average of 3.75% per year. The first decade of the new millenia there would be 77,000 pages published per year and as one might expect, the decade’s growth was an anemic 1.73% per year on average.

As regulation has increased GDP growth has decreased. That is no coincidence. Perhaps the greatest way regulation cuts growth and hinders prosperity is that it smothers small businesses and benefits large ones. Unlike big businesses, small businesses can’t generally afford lobbyists to influence legislation nor armies of lawyers and accountants to figure out how to minimize its impact. The result is less innovation, fewer jobs and at the end of the day, smaller GDP growth and less prosperity.

And if you think this discussion of the correlation between GDP and regulation is just a game of semantics, think about it this way. Take your income… How would you like to double it? At the 4.4% average annual growth rate the experienced in the 1960’s, it would take you 16 years to double it. Not quick, but not horrible. At the 1.7% rate experienced during the first decade of the 21st century, it would take you 41.6 years. And that’s not an anomaly, it’s 50 year trend. More regulation means less growth, which means less prosperity.

With the regulations spawned by Obamacare only now making their way onto the books we can expect even more slowing to come. This is not a Democrat vs. Republican issue… this is a conservative vs. liberal issue. As the liberal progressives have sought to use the force of government to create a perfect world where everyone lives in a state of bliss unencumbered by the sometimes harsh vagaries of life and protected from the consequences of choices, they have in fact destroyed the fount from which emerged the American prosperity that allowed them to focus on frivolous things in the first place. Here’s an analogy: In order to guarantee every passenger is comfortable and that a plane could never crash, liberals have loaded the plane up with so many pillows and so much safety equipment that it can’t get off of the ground in the first place. As anyone stranded on the tarmac for seven hours inside a JetBlue plane could probably tell you it doesn’t take long for dystopian conditions to begin to emerge.

Just as aerodynamics of flight can’t support a plane that can’t get off the ground, free market economics can’t drive an economy that is so constricted by regulation that it can no longer be called a free market in the first place. Welcome the America of the 21st century, where prosperity becomes but a distant memory and a once great people go gently into that good night…