A year ago Barack Obama inherited a recession brought on by financial panic following the collapse of the housing bubble. The market crash was made worse by Wall Street shenanigans and recklessness at Freddie Mac and Fannie Mae. Job losses followed.
In response, Obama pushed through a stimulus bill that went well beyond the borrowing done by George W. Bush in his last months in office. In fact, Obama and the Congress borrowed an additional $787 billion to infuse the economy with fresh job-creating cash.
The president warned us that without this borrowing, unemployment might reach double digits. Yet with the stimulus, unemployment has soared from 7.6 percent to 10 percent. That translates into over 4 million jobs lost in 2009 alone.
In reaction, an embarrassed administration continues to cite hypothetical jobs saved, rather than the actual number of jobs lost this year. Just this week senior White House adviser Valerie Jarrett, press secretary Robert Gibbs and senior White House adviser David Axelrod variously claimed "thousands and thousands," "1.5 million" and "2 million" jobs saved. If the White House insiders can't get their theoretical numbers straight, how can anyone else?
Why the continual job losses?
First, the government can create only so many jobs by borrowing and spending. It is less efficient than private enterprise in reacting to market needs — new products, new services and new consumer tastes. Higher federal budgets eventually translate into more bureaucrats to shackle the private sector with more regulations that discourage innovation and experimentation.
In contrast, the U.S. Small Business Administration claims that small businesses employ about half of all working Americans. Yet building contractors, orthodontists, local real-estate agents and small software companies (to name just a few types of small businesses) in the last year have not been convinced that it is time to start buying new equipment and hiring more employees to gear up for increased consumer demand.
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6 comments:
Sounds like a candidate for dumbass of the year award.
Why doesn't it say a recession brought on by 8 years of bad decision making. Why will the right not own up to the issues that their president caused. Yes, the housing bubble bursting is what caused all of this. Wake up!
Why does everyone assume these politicians are dumb?
They are doing exactly as they are told. They work for rich elite international bankers who own most of the Wall Street corporations' stocks. They manipulate the value of the stocks to sucker us into investing in their crooked game of craps.
The government is taking over the economy because that is what the owners of the corporations want. Period. There are no jobs, bacause these folks no longer need spoiled lazy Americans to produce goods or commodities. We are unemployed because they want us to be unemployed and dependent on the government.
This is not socialism. Socialism is not a bad system - as long as the government leaders are not corrupt.
This is facism. The merger of government with corporations. It is the end result of a "free enterprise market" - where the corporate elites have chosen not to compete with each other. This is checkmate. Workers lose.
Let's start calling it what it is. The 2 party political system and the Capitalistic economy we think exists is gone. The mergers have ocurred and the game is won. Now the slavery of the American people and the commencement of a Facist Military Dictatorship begins. The 2 parties do not compete with each other just as Exxon, Shell, and BP do not compete with each other.
Wake up dumb Americans and smell the facism.
8:38am, It's nearly all politicians that have purposely brought this calapse on...Freddie & fannie were were overseen by Dems {barnie frank ring a bell?}...thats what caused the bubble and its bursting. Please wake up and realize its both sides of the isle that are destroying our Country! These politicians are called progressives and never before in history have they pushed so hard to enslave the citizens and destroy their Constitution. Progressives are the same as terrorist toward our Constitution and Liberties!!!!
Hello? Lights are on. Anybody home?
The stimulus was passed while Bush was still in office. Remember? John McCain suspended his campaign for it. Voted for it.
Hey 7:36. Apparently you haven't been home. hussien osama passed the "stimulus" bill. Lights are on, but yours is a little dim.
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