New economic data coming in for the month of May is flying in the face of all the Republicans and conservatives who believe that tax breaks create jobs. The manufacturing sector is showing signs of extreme slow down which coincides with the dwindling effect of the 2009 stimulus.
According to the Wall Street Journal, May’s ISM report just added to the weak economic news we have heard in the last few months. It turns out that the United States manufacturing sector has just experienced its 10th biggest drop since 1948. This is compounded by the data showing that consumer confidence and consumer spending is also down.
At what point will the American middle class realize that the Republicans do not have and never had a strong economic plan? The GOP has been repeating the same talking points over and over again for 30+ years. Aside for the social issues of gay marriage and abortion, the Republican Party offers absolutely nothing of substance for people in the middle class to grab hold of.
Republicans have told the American people that the reason why their paychecks are lower is because taxes are too high on business. The excuse is that if taxes are too high, the corporations cannot afford to pay a good wage. That is an outright lie, but many in the rust belt and south continually buy this bologna.
The conservatives have transformed our economy from an industrial force into a service economy. In a service based economy money is simply moved around, there is no added value. For example, a landscaper cuts your lawn and you pay him 20 dollars, he then hires someone to clean his pool and transfer a percentage of your 20 dollars to the pool cleaner. There is no added value. In manufacturing, a blacksmith takes raw iron ore and molds it into something useful, like a cast iron frying pan. Through his labor he added value to a piece of raw material. So the raw piece of iron he may have bought for 20 dollars is now worth 30 dollars in the form of a frying pan. This is how manufacturing adds value to the economy.
Republicans have had their time in control. Republicans have held the office of the Presidency for 20 of the last 31 years. What will it take for middle class America to wake up and realize that the Republicans have been a one trick pony for over a generation?
America is headed into a double dip recession by the end of 2011 after implementing Republican tax cuts that they deemed necessary to jump start the economy. Remember that the negotiation was the Bush tax cuts extension for unemployment extensions. It looks like America is in for a rough ride going into the 2012 election cycle and the GOP will do everything in their power to blame this economy on President Obama. We cannot allow their lies to be met without opposition.