RUSH: The US economy shrank at a rate of 2.9%. For the sake of simplicity and rounding off, I’m just gonna call it 3% for the rest of the day. Three percent contraction, shrinking. The original report way back when the first quarter number came out was a retraction of one-tenth of 1%, and they said it was because of the cold weather, that people stayed indoors in the comfort of their homes rather than work out, get out and brave the elements to go shopping and engage in commerce.
What is happening, it’s exactly as we talked about yesterday, and I want to go through this again. The natural tendency, because of the design — I’ll give you the example of an airplane again. An airplane, properly designed, wants to fly. The airfoil on the wing, if you achieve enough forward speed, it will fly. That is what it wants to do. You have to work to keep it from flying. You have to purposely fight the airplane to keep it from flying.
The US economy is constructed the same way. Free market capitalism is designed to expand. Free market capitalism, the entrepreneurial driver of free market capitalism is designed to grow, it’s designed to lift off. If it’s a pie, it’s designed to get bigger. That’s how it works. That’s the brilliance, that’s part of American exceptionalism. You have to purposely attack the US economy to cause it to contract this way, and that is what is fundamentally crucial for people to understand.
Three percent contraction. The US economy got smaller by 3%. It should make sense to people by virtue of the fact that the federal government is simply taking so much of it. In Obamacare alone the federal government has simply appropriated one-sixth of that economy, just commandeered it and is in the process of taking it. You add in all of the additional regulations that Washington is inflicting and it’s making starting a business all the more difficult. And that’s the direct result of overregulation.
The entrepreneurial spirit is being tamped down. The US economy’s natural tendency is being thwarted. There are policies — and this is the key — there are policies in place that are designed to shrink the US economy. They are tax policies, Obamacare, any number of new regulations on businesses large and small. (interruption) Well, but uncertainty is a derivative of all this. The erasing of the Southern border, 95 million Americans not working.