Major Portions of GDP Coming Under Federal Control

In July of 2009, a University of Arizona economist, Professor William Boyes, stated that the federal government owns or controls 30 percent of private wealth in America.

MoneyGrab

The Fed Wants Control of America's Economic Engine


Boyes said his calculations were rather simple in nature not even worthy of a Nobel Prize.

I simply added up how much of GDP [gross domestic product] was govt run or govt controlled. I gave an approximation that is pretty conservative. I suspect the actual number is more like 40%; if health care goes through then it will rise to over 50%.

The Washington Times pointed to Boyes’s calculations in their story about the Fed’s takeover of GM, citing the government’s growing role in controlling private wealth.

William Boyes, an economics professor at the W.P. Carey School of Business at Arizona State University, estimates that the government now owns or controls businesses that generate about one-third of U.S. economic activity. — Washington Times

A Money Grab

Government’s control of the nation’s economy stems from its intervention into the operations of GM, government-assisted bankruptcy reorganization of Chrysler LLC, the assumption of partial ownership of Citigroup and Bank of America, the seizure of mortgage industry’s Fannie Mae and Freddie Mac and insurance giant American International Group Inc.

Boyes sums it up when he says,

“the government now owns or controls businesses that generate about one-third of U.S. economic activity.”

The ever-expanding government take-over of the private sector under the guise of crisis is stunning. To quell the fears of impending socialism, The White House frequently states it wishes it didn’t have to do what it did, and that it is acting to save the economy from total collapse.

Regardless of Obama’s true intent, one thing remains clear: the economy of the nation has been changed – almost overnight.

Mr. Boyes notes:

“I didn’t think I would ever see the United States move to a primarily government-controlled economy, and its happened in just a few months.”

On November 1, 2009, Limbaugh appeared on Fox News Sunday, hosted by Chris Wallace, where he stated that the Obama administration is intentionally destroying the private sector thorough their economic plans.

“I believe that the economy is under siege…. Anybody with any economic literary would not do one thing that this administration’s done … They’re destroying it and I have to think that it may be on purpose. ” — Rush Limbaugh

Nancy Pelosi’s Affordable Health Care for America Act

House speaker, Nancy Pelosi (D-CA) on Thursday unveiled HR-3962, the Affordable Health Care for America Act.

As Boyes states, when HR-3962 or some variant is signed into law, it could bring government control of the GDP to well over 50 percent. If Representative Michele Bachmann (R-MN) is correct in stating health care could account for 18 percent of the economy’s cash flow, this figure could rise to 58 percent.

Marc Goldwein, an economist with the New America Foundation says,

“What percent of GDP is made up of government spending is a different question from what government spending equals as a percent of GDP.”

When government “transfers” money — such as through Social Security — it is shifting money around rather than spending it directly. As Goldwein states,

“This can have real and large effects on GDP, but it does not directly impact GDP, since tax and transfer policies simply take money that one person could be using for consumption or investment and give it to another person to use for consumption or investment,”

Move over Chavez, you’ve got company

While Iraq has begun the transition from a command economy under Hussein to a free market economy and with Iran currently in the middle of privatizing it’s companies, the United States has, by all accounts, a mixed economy having a variety of public and government control. Said another way, it’s a mixture of capitalism and socialism.

TRINIDAD-AMERICAS-SUMMIT-CHAVEZ-OBAMA
The economy of Venezuela is a mixed economy based in large part on petroleum.

A mixed economy is an economic ideal supported by social democrats as a compromise between socialism and free-market capitalism. It strays from the ideals of either the free market, or various planned economies, and “mix” with elements of each other.

Social Democracy: A socialist movement that advocates a mixed economy of private and public ownership combined with a welfare state.

Private sector ownership of production, transportation, agriculture, communications and other segments of industry exists along side with government’s tax-funded, subsidized, or state-owned factories such as GM and Chrysler, infrastructure, and services such as AIG as well as government-granted monopolies.

The system includes involuntary spending and investments such as transfer payments and other cash benefits such as welfare for the poor, social security, government subsidies to business and mandatory insurance such as HR-3962.

As our government moves for greater control of America’s economic engine, the next phase of evolution brings it into a planned economy or directed economy in which the central government makes all decisions on the production and consumption of goods and services. Looking back to The White House’s decision to force the resignation of Rick Wagner, the longtime head of General Motors, then forcing Chrysler to accept a merger with Italy’s Fiat and determining which of GM’s products are to continue while killing other lines (Buick no longer exists) one could reasonably think we are indeed heading in that direction. It’s a question of how far the administration cares to take it.

Maxine Water’s Desire to Nationalize Domestic Oil

While we witness Obama’s reconstruction of America’s insurance and manufacturing base, we can look back with a wary eye on Representative Maxine Waters, D-California, and to her comment of May 2008, when she communicates to Shell Oil president John Hofmeister her desire to nationalize America’s oil companies.
MaxineWaters2
Waters was challenging the president of Shell Oil, John Hofmeister, to guarantee the prices consumers pay will go down if the oil companies are allowed to drill wherever they want off of U.S. shores. Hofmeister replied: “I can guarantee to the American people, because of the inaction of the United States Congress, ever-increasing prices unless the demand comes down.” The Shell exec said paying $5 at the pump “will look like a very low price in the years to come if we are prohibited from finding new reserves, new opportunities to increase supplies.” Waters responded, in part, “And guess what this liberal would be all about. This liberal will be about socializing … uh, um. …” (The congresswoman paused and sputtered to collect her thoughts obviously searching for the term “nationalize”) “Would be about, basically, taking over, and the government running all of your companies. …” The oil executives responded by saying they’ve seen this before, in Hugo Chavez’s Venezuela.

Taking lessons learned by watching our government give money to failing industry and force policies upon them, the sincerity of Maxine Waters demands serious attention. Once viewed as unlikely if not impossible, the gas in the tank of my new government designed car could come from soon-to-be nationalized oil companies (overseen by Maxine Waters?).

It wasn’t too long ago when California wanted to pass a bill to outlaw the color black for cars, essentially governing the color of every automobile sold in the state.

Attacks from the Left upon Free Speech and News Outlets

On February 4, 2009, Senator Debbie Stabenow (Democrat of Michigan) told radio host and World Net Daily columnist Bill Press, when asked whether it was time to bring back the Doctrine, “I think it’s absolutely time to pass a standard. Now, whether it’s called the Fairness Standard, whether it’s called something else – I absolutely think it’s time to be bringing accountability to the airwaves.” When Press asked if she would seek Senate hearings on such accountability in 2009, she replied, “I have already had some discussions with colleagues and, you know, I feel like that’s gonna happen. Yep.”

TheObamacrats

My friends, we live in the greatest nation in the history of the world. I hope you’ll join me as we try to change it. – Barack Obama


On the evening of April 14, 2009, University of North Carolina – Chapel Hill police released pepper spray and threatened to use a Taser on student protesters when a crowd disrupted a speech by former Colorado congressman Tom Tancredo opposing in-state tuition benefits to unauthorized immigrants.

Hundreds of protesters converged on Bingham Hall, shouting profanities and accusations of racism while Tancredo and the student who introduced him tried to speak. Minutes into the speech, a protester pounded a window of the classroom until the glass shattered, prompting Tancredo to flee and campus police to shut down the event.

Tancredo was brought to campus by a UNC chapter of Youth for Western Civilization, a national organization of students who oppose mass immigration, multiculturalism and affirmative action.
ExtremistsInCharge
The past October, several top White House advisers have gone out of their way to appear on other channels to criticize Fox News’ coverage of the administration, dismiss the network as the mouthpiece of the Republican Party and urge other news organizations not to treat Fox News as a legitimate news station.

On October 20, 2009, Press Secretary Robert Gibbs said White House officials

“render (that) opinion based on some their coverage and the fairness of that coverage.”

But asked how Fox News was different from other news organizations, Gibbs mentioned the channel’s 5 p.m. and 9 p.m. shows, in an explicit reference to “Beck” and “Hannity” — even though those two shows represent opinion programming.

Informed that those hours are for opinion programming, Gibbs said:

“That is our opinion.”

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