The United States is entering a period of political, social and economic instability. Lawmakers will pass more socialist legislation if allowed to. Hardships will be minimized if citizens immediately take control of government.

1.) The country's resources are inefficiently allocated. Years of expansionary monetary and fiscal policy along with socialist legislation has prevented the kind of adjustments that are necessary in a free market. Congress has responded to the recession by passing more socialist legislation. Laws such as Bailout 2008 and Obama Simulus prevent resources from being more efficiently allocated.

2.) Real estate is still way overpriced. For years government has promoted home ownership. As a result home prices are at much higher than they would be in a free market. Given enough time free market forces take control of any market.

3.) For at least five years prior to the current recession Gross Domestic Product had been driven by increases in asset prices.  Since 2003 government has allowed and encouraged clandestine initiatives designed to elevate stock prices. As a result, stocks are over priced and the integrity of all capital markets has been compromised.

4.) The income distribution in the country has become severely skewed in favor of the wealthiest Americans. Over 22% of the country's income goes to just 5 % of the population. This type of income distribution occurs prior to economic depressions such as the Great Depression of the 1930's. When most of a country's disposable income is at the top where spending is largely discretionary, small economic changes have exaggerated effects on spending. In technical terms, a country's aggregate demand curve becomes highly elastic and is subject to erratic shifts.

5.) Government spending as a % of GDP is as high as it was during WWII, a true emergency. In the 1930's a good argument could be made that government was too small. We really did need a larger military and an interstate highway system. There really is no way to use government to stimulate the economy when spending is already at historic highs. Spending on government projects constitutes and automatic inefficient allocation of resources and will lead to a worse economic decline in the not too distant future. There are two ingredients to demand, the ability to pay and the desire to own. In modern stimulus packages, the desire to own is missing, hence the inefficient allocation of resources.

6.) Citizens have lost control of government. Congress is cramming legislation down the thoats of constituents and sending them the bill. When democracy stops working, there is a danger people will resort to violence.

7.) Citizens have little information. News coverage is coordinated between the 6 giant news organizations when they have a common agenda. If a law being considered by congress is helpful to the news organizations, only one side is covered. Congress hordes information, because knowledgeable constituents make a lawmaker's job more difficult. During the alleged financial crisis of fall 2008, all but the the pro-bailout side were censored. All media largely censor and marginalize the campaigns of challenger's to incumbents.

8.) U.S. labor is overpriced on the world market. U.S. labor is no longer more educated than their overseas counter parts. In some countries education is to their students as rock music is to students in the U.S. For every million workers in the U.S. who are living on $100 per day there are several billion foreigners with the same or more education who are living on $10.00 per day. Wages here are going to be under pressure for a while.

9.) Expansionary monetary policy by the Federal Reserve and foreign central banks has allowed corporations to maintain pricing power and operate at high profit margins but has kept real wages from rising. During the past 20 years the productivity of labor has increased dramatically. With higher productivity comes higher real wages, except that the productivity bonus was stolen.

10.) Americans have an unjustified belief in intellectuals in Washington who are assumed to have magic knowledge. Citizens have lost touch with the concept of self government.