Saturday, May 14, 2011
Obama: No Recovery for Years!
Obama: No Recovery for Years!
By Kevin McCullough
President Obama's understanding of economic growth, and hence a full recovery of the economy, is lacking of insight, but most importantly honesty. If he does not correct course he will be pummeled in 2012. For dancing around the truth, and asking others to believe the spin, especially when they are living the opposite reality portends not just bad character, but a self destructive political strategy.
Watching President Obama attempt to speak straight in the midst of his reelection campaign efforts has become almost amusing. "Almost amusing" because when one out of ten workers cannot find work, and one out of five families is working as hard as they ever have, but cannot provide basic needs for themselves, people tend to get a little out of sorts as it pertains to being truthful about the economy.
When a struggling family is paying $5 a gallon for gasoline, and the President told people this past week that America is providing more domestically drilled barrels of oil a day "than at any point in history," but the truth is our production is roughly half of what it was in 1970, they tend to be annoyed, not amused.
So it's not really all that puzzling that while on Friday afternoon, the President was laying on the charm at a CBS townhall meeting with voters, that so few faces in the crowd were smiling.
Take this statement for example:
"So part of what's happened also is some structural changes in the economy. Where it used to be that there was broad-based shared prosperity, now if companies are doing really well -- they're not necessarily hiring back workers. They're just figuring out how to do more with fewer workers. That may increase profits, but it doesn't help folks who are lookin' for a job. And often times that look -- puts a lot of pressure on the people who are already on the job. So, some of the changes that are taking place in the economy are ones that took a decade or two to get to. And it's gonna take us several years for us to get back to where we need to be."
Out of both sides of his mouth, and seemingly simultaneously he insults the very small businesses who are the only ones equipped to help him fuel a recovery. He insults the idea of profits--which are necessary for higher employment to come into play. He insults efficiency which is needed for growth to occur. And he insults stewardship which keeps companies from going bankrupt.
He then "cherries" this sundae by pledging that it will require a few years before a recovery will be felt.
Then in complete intellectual suspension he tells the crowd to follow him, because he will take them to the promised land.
"But the important thing, though... I want to emphasize. Is we're moving in the right direction."
But which is it Mr. President? Insulting companies for not re-hiring workers they were forced to lay off because of your loused up stimulus bill, budgetary items, new entitlements, Obamacare, and the longest threat of a tax increase ever held over small businesses heads seems a lot like shooting your own campaign efforts in the foot... With a twelve gauge.
The truth is Mr. President it doesn't have to take another decade for small businesses to begin to excel and for the economy to turn around. I've given you extensive and powerful strategies in my new book. But the answers are out there.
The President has complained regularly about how tough the economy is, yet consider the economic realities President Bush faced post 9-11. The air-travel industry, the investment sector, the energy sector, and the trickle down to every corner of private life were shaken by much harder realities than anything Obama has faced. Yet the Bush economic recovery efforts largely minimized the recession that President Clinton left for him, and even helped him to keep unemployment numbers at near 4.5-5% on average for the duration of his two terms.
In fact it can easily be proven that if Barney Frank, the Congressional Black Caucus, Fannie Mae, and Freddy Mac had all been put in check in their efforts in 2003 and 2005, the housing crisis, that led to the banking crisis, that led to the investment crisis... etc. would've never come about.
The difference between the current non-recovery, and the Bush recovery is how the Presidents view the value of small business. President Bush embraced them as though they are the life-blood of American commerce--which they are.
President Obama came into power promising to raise their tax rates, punish those who were successful, add increased burden through other financial penalties via cap and trade. He also of course wanted to add the penalty for not participating in Obamacare that would exact an $8,000 per year fine for every employee a small business opted out of the program.
When small businesses drive practically everything in this nation day to day, making life difficult for them causes everything in the economy to slow down as well.
Sorry Mr. President, we can't wait a decade for your version of a full recovery to take hold.
And by that definition we are definitely NOT headed in the right direction!
To read another article by Kevin McCullough, click here.
Posted by Brett at 10:34 AM