Federal Overreach 1960s to Present

The US Individual Income Tax top rate rose rapidly from 7% in 1913 to 70% by 1907, 80% by 1936 and 91% by 1950.  Prior to 1913, families and family owned businesses could amass wealth to fund future technology advances and operating expenses.  Most didn’t’ need bank loans and the banks didn’t like that.  After 1907, US businesses were locked in a death-spiral.  They struggled to operate for 50 years from 1907 to 1957, but began to fail in the 1960s.

By the end of the1960s, the stage was set to accelerate the US government’s war on the Private Sector through regulations and bribes called federal grants and subsidies.  Campaign finance laws had removed voters from any meaningful control over legislation.

The US Private Sector was set up originally to operate with “market-based” pricing that followed the rule of “supply and demand”.  If prices went up, consumers were free to not buy those products and services. 

Government subsidies and grants removed market pricing and caused prices to rise without consumer control.  Subsidies corrupt “market pricing” and would allow the price of subsidized products and services to become unaffordable. 

Federal subsidies for healthcare began in the 1960s with Medicare and federal subsidies for education accelerated.  A “market-based” economy requires that individual consumers pay for whatever they get.  They would have to pay off their own education and healthcare expenses themselves the same way they pay off a house or a car. 

Regulations favored Big Companies and hampered start-ups.  Inheritance taxes destroyed family farms and family owned businesses.  Big Companies controlled legislation by bribing elected officials with large campaign contributions and threats to replace them.

Unions were pervasive in the 1960s and contributed to the lack of productivity that came to a head in the 1970s.  The US auto industry became uncompetitive and US consumers found better value in foreign cars, particularly from Japan. 

Environmental problems could have been solved by holding polluters accountable for clean-up costs, but the federal government was more interested in bureaucratic control.

Financial risks could have been assigned to individuals and businesses, but federal insurance schemes were passed that would end up with federal bureaucracies like Fannie Mae, Freddy Mac and Sallie Mae holding mortgages and student loans. 

Insurance could have remained to function as a “cash-flow” device like a loan, but it was allowed to usurp consumer choice by becoming the “third-party payer” for the entire population. 

Government costs could have been restricted to critical infrastructure like roads, bridges, sewers and water, but it spread to include public transit, recreation and welfare.

In 1960, Kennedy reduced the top income tax rate to 70% and that took effect in 1964. 

In 1963, Johnson pushed the Vietnam War and the War on Poverty and paid for both by debasing the dollar.  The inflation of the 1970s was unprecedented.

In the 1970s, all prices were doubled, moms went to work. This was caused by money printing by the Federal Reserve to pay for wars, welfare and government expansion. 

Personal Computers were developed and sold by Radio Shack along with an early version of the cell phone called “The Brick”.  Union membership continued to fall in favor of “union-free” companies.

In 1977 Jimmy Carter created the Department of Energy and in 1979 he split Health Education & Welfare into Health & Human Services and the Department of Education and made Education a cabinet level department. The Office of Education was originally created in 1867 as a part of the Department of Interior.

In the 1980s, Reagan took the Whitehouse and Communist goals didn’t pass again until 1989.  In 1983 the interest rate on a home mortgage was 13%.  In 1986 taxes were reduced to restart the US economy.  The top tax rate was reduced from 70% to 50% in 1982 and again from 50% to 39% in 1987. Reagan pushed defense spending and the USSR dissolved in 1989 ending the “cold war”.  The US also supported Iraq in the Iran-Iraq War from 1980 to 1988.

By 1980, although most US manufacturing companies were failing. The US no longer made shoes, appliances and other manufactured goods were being made overseas.  

Advances in electronics allowed for the Personal Computer revolution that would boost the US economy through the 1980s and 1990s.

George HW Bush was elected in 1989 and we saw immigration double and a slew of Communist written regulations were passed by Democrats and signed by Bush I, who also signed on to UN Agenda 21, a UN Plan to take over the world, based on the global warming hoax (What an idiot!).  Bush I did conduct a successful Gulf War to extract Iraq from Kuwait in 1990, but failed to be re-elected in 1993.  

Bill Clinton took office in 1993.  Clinton pushed NAFTA to off-shored US manufacturing jobs ordered federal departments to implement UN Agenda 21. 

In the 2000, George W Bush became President, the Twin Towers were destroyed in 2001 and the “war on terror that started in 1979 began in earnest.  The war on Muslim terror grew legs and resulted in costs that increased our National Debt from $5 trillion to $10 trillion. 

In 2008, the Big Banks brought us the Financial Meltdown, Bank bail-outs and money printing.  This was caused by the Community Redevelopment Act and HUD anti-discrimination rules that forced lenders to give mortgage loans to unqualified buyers.  These loans were sold as Securities that became toxic due to foreclosures.

In 2009 Obama became President to finish destroying the US economy by implementing UN Agenda 21.  This created the 2^nd Great Depression.  He created Obamacare and doubled down on “stimulus” spending.

Obama doubled the National Debt from $10 million to $20 million and doubled federal spending from $2 trillion to $4 trillion a year. Federal overspending was 100% mal-investment. It was spent on Agenda 21 implementation, increases in foreign aid, bribes to states, unsustainable alternative energy boondoggles, total destruction of the US Military, unconstitutional federal Agenda 21 usurpation of local government control, enlarged “Police State”, federal land and water grabs, continued subservience to the UN, government, private property seizure abuse of farms, ranches, businesses and individuals, loss of freedom, loss of inalienable rights, loss of voter control, excessive immigration, 104 million working-age US citizens without jobs, continued illegal immigration, the Muslim invasion, excessive environmental regulations, failure to enforce laws, unaffordable, ineffective healthcare and education, release of dangerous criminals and unconstitutional executive orders, resulting in a totally corrupt federal government and a “dead cat” economy.

Now, after 2016, we will be rid of Obama.  The voters will decide whether or not to continue the Obama destruction under Hillary Clinton or reverse policies in order to survive with Donald Trump.  We also need to replace most of our US Senators and House Members.

The 2^nd Great Depression that began in 2008 is likely to continue for decades, unless we begin to undo the damage now. 

Norb Leahy, Dunwoody GA Tea Party Leader