“Immediately after I become President, I will confront this economic crisis head-on by taking all necessary steps to ease the credit crisis, help hardworking families, and restore growth and prosperity.”—Barack Obama, November 7th, 2008.
60.35 percent. That’s the percent of the total economy the federal, state and local governments will control — either through direct ownership or indirect regulatory nationalization — should Barack Obama get all that he wants.
If one combines the Bureau of Economic Analysis’ estimated 2009 Gross Domestic Product of $14.256 trillion with the remainder of the 2010 federal budget excluded from that estimate, the total economy equals $16.942 trillion.
Of that, government will control $10.225 trillion under the Obama regime, leaving just $6.717 trillion in the hands of the private sector, or 39.65 percent. This inherent structural deficit is unsustainable, and will leave it to the minority to sustain the majority.
Except that’s impossible.
And yet, that’s exactly what the Obama Administration is proposing to do, under the careful guise of government interventionism. The above estimates assumes the following not-so-far-fetched events: 1) the federal government retains control of GM and Chrysler (with their combined current 26 percent of U.S. market share); 2) the Waxman-Markey energy cap and tax is enacted; 3) Fannie Mae and Freddie Mac are retained by the government; 4) ObamaCare withstands efforts to repeal it or find it unconstitutional; 5) the government takeover of the financial system is enacted; and 6) governments at all levels do nothing to cut spending.
These are not such unreasonable assumptions.
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