By Micheal Masters

The reasons why the USA economy is in trouble are the reverse of the reasons why the USA economy did so well in the 90s.

The age group of highest consumption is between 40 and 55 years old.  The number of people in that age group reached its highest level in the 90s as the baby boom generation turned 40.  Those people bought large houses, furnishings, appliances, cars for their children, etc.

The number of people in that age group is lower today than in the 90s because of the low birth rates from 1970 to 1985.  Therefore, there is less demand for housing and all the other stuff needed for families …  And there are fewer younger people contributing to Social Security and Medicare than those who are receiving payments from those programs … just because the baby boomers did not have enough children to replace themselves as they retired.

It will only get worse as the current generation has even fewer children, is getting married even less, and has more children raised by single mothers.

Add this to the fact that the USA bleeds 5% of its economy to foreign countries for the purchase of oil every year and that the USA under Clinton migrated from a manufacturing economy with deep supply chains with expansive economic multiplier effects to a service economy … so we now have a perfect storm.  Less demand and consumption.  5% drain on capital.  and a service economy that cannot replace the economic multiplier of lost manufacturing.

Albert Einstein:  “you cannot expect the thinking that caused a problem to be the same thinking that will solve the problem.”

Obama and the whole liberal philosophy must go.   We need more children, more oil fields, more families, and more manufacturing.  This current government is pushing the USA in the exact opposite direction.