As more people retire and the national debt continues to approach $20 trillion, then both the demand for more social services increases and the burden on those still willing to work goes up.
On everything from subsidies for Obamacare to food stamps to Medicare and Medicaid all the way down the line, the bill keeps getting bigger, and the percentage of Americans willing and able to pay it keeps getting smaller.
No wonder America’s economic growth is declining. When the labor force participation rate declines, it’s like a vice that squeezes America’s finances. There’s also a huge difference with the fictional “Obama recovery” and Reagan’s market-based recovery.
Under President Reagan, the unemployment rate, economic growth and labor participation rates improved, while under President Obama, superficial improvements in the unemployment rate have come about at the expense of the labor force participation rate and economic growth.
In other words, the unemployment rate is almost meaningless to tell the real story: President Obama is growing the already massive welfare state, while millions of Americans are no longer providing the means to support it.
Remember when the White House said that Obamacare causing 2.5 million to leave the workforce would be a good thing because they would no longer be “trapped in a job“? Have a nice day.