Heritage: Another Recession Is Imminent

Photo credit: Ed Yourdon
We are facing the largest tax increase in history—Taxmageddon, scheduled to take effect January 1—and what experts are calling a “fiscal cliff” of sharp and unforgiving budget changes that will send the country spiraling downward. Congress and the President have the power to prevent this, and when the August congressional recess is over, that is exactly what they should do.
In its new report, the CBO said that if Congress does not act, it’s not economic growth we should be worried about, because the economy will actually shrink next year. It will shrink by 0.5 percent, and the unemployment rate will spike to 9.1 percent. As Heritage’s J.D. Foster explains: “Forget percentages—what does this mean in actual jobs lost if President Obama and Congress fail to act? It means roughly 1.6 million more Americans will be out of work—on top of the 12.8 million who already want to work but can’t find jobs.”
Preventing Taxmageddon and the fiscal cliff are necessary just to keep the economy from taking a nosedive. The status quo isn’t attractive, but Congress certainly shouldn’t make things worse. If Congress moves to prevent the nosedive, the CBO projects that the economy will grow only slightly next year, at an anemic 1.7 percent, and the unemployment rate will remain stuck around 8 percent.
Why? The CBO report makes it clear: Our spending problem continues, and it’s driven mainly by the three major entitlements: Medicare, Medicaid, and Social Security. Spending on these programs will outpace tax revenue over the next decade.
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In an unexpected ruling handed down today by Circuit Court Judge Allan Sharrett, the judge dismissed the government’s case against Brandon Raub, the Marine who was arrested by local police and FBI agents, detained in a psychiatric ward and forced to undergo psychological evaluations based solely on the controversial nature of lines from song lyrics, political messages and virtual card games which he posted to his private Facebook page. Judge Sharrett dismissed the petition for involuntary commitment on the grounds that the petition “is so devoid of any factual allegations that it could not be reasonably expected to give rise to a case or controversy.” Raub is expected to be released immediately.
As the guest editor of iVillage, Michelle Obama has been sharing fitness and lifestyle tips over the past week.
Individuals suffering from gender identity issues will no longer be required to undergo psychological evaluation in order to qualify for a pilot’s license, the Federal Aviation Administration (FAA) has decided. The change, reported the UK’s MailOnline news site, came after a “transgender” individual identifying himself as Tamsyn Waterhouse (pictured, from YouTube video) campaigned to have the long-time safety policy dropped. Waterhouse, who lives in San Francisco, “learned to fly as a child under her [sic] father’s supervision and gained her private pilot’s license in 2003 at the age of 23,” reported the news site. “But when the 32-year-old attempted to get her medical certificate renewed after finishing grad school in 2009, the Federal Aviation Administration made it near-impossible for her.”
From the, “you never hear about that from the media” file – Those “Evil, Rich People” that Democrats are always wailing about are actually – Democrats.
In what analysts say is another indication that the economy will get worse in the not-too-distant future, recent filings by billionaire financier George Soros show he dumped virtually all his holdings in major financial companies like JP Morgan, Goldman Sachs, and Citigroup. His multi-billion-dollar U.S. fund also loaded up on gold, with the portfolio now holding more than $130 million worth of the precious metal.
A Lubbock County, Texas, judge is asking for a tax increase to hire deputies for the inevitable civil war he believes would follow President Obama’s re-election.
Glenn Beck interviewed retired General Boykin, who was at the Family Research Council at the time of the shooting this past week, about what he saw. Although there is a practical media black out on this, it’s fairly clear that the shooter intended a mass murder. Each of the 15 Chick-fil-A bags were apparently intended to be dropped next to each victim:
There have been 2,527 Department of Homeland Security (DHS) employees and co-conspirators convicted of corruption and other criminal misconduct since 2004, according to a federal auditor. Charles Edwards, the acting inspector general (IG) at DHS, made that revelation in written testimony prepared for an Aug. 1 hearing held by the House Oversight and Government Reform Subcommittee on Government Organization, Efficiency, and Financial Management.