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  • Morning Bell: An Economy in Panic

    There’s no good way to spin the news that came out of today’s monthly U.S. jobs report. The economy generated only 18,000 total new jobs, the unemployment rate increased to 9.2 percent, and the number of unemployed Americans has gone up by 445,000. In other words, the recovery appears to have slowed markedly. President Barack Obama’s stimulus-infused “recovery” refuses to ignite, unsurprisingly to all but him.

    And to make matters worse, May’s paltry job growth numbers were revised even farther downward, from the initial estimate of 54,000 to 25,000. Sadly, the record continues—the Obama recovery remains the weakest recovery of the post–World War II era. In past recessions, employment fully recovered within two to three years. Today, U.S. job growth is stopped dead in its tracks.

    If you want a comparison of what job growth could look like, go back to the 1980s’ Reagan recovery. By the 20-month mark, the unemployment rate had dropped from 10.8 percent to 7.5 percent – a 3.3-point drop. In contrast, under Obama, the unemployment rate has risen a full percentage point to today’s 9.2 percent.

    The Heritage Foundation’s James Sherk puts the pace of recovery into perspective, noting that “The economy needs to add between 100,000 and 125,000 jobs per month to keep pace with population growth. Unemployment will rise if employers consistently create fewer jobs than this.” Unfortunately, that’s where we’re at today. And if the economy keeps up this trend, Americans can expect unemployment to remain permanently high.

    And the American people have President Obama’s big-spending economic policies to thank for slowing the pace of recovery. House Budget Committee Chairman Paul Ryan (R-WI) explains how the President’s debt-laden reliance on Keynesian interventions in the economy have helped put the U.S. economy in its current state:

    Investors and businesses make decisions on a forward-looking basis.  They know that today’s large debt levels are simply tomorrow’s tax hikes, interest rate increases, or inflation – and they act accordingly.

    It is this “debt overhang,” and the President’s threatened tax hikes, Obamacare, his incessant meddling in business (whether through the EPA or the NLRB) and the uncertainty those actions generate that are weighing on U.S. growth, investment and job creation today.

    Against this backdrop, the President and congressional leaders are continuing to meet in secret negotiations over proposals to raise the nation’s $14.3 trillion debt ceiling, proposals to increase taxes by as much as $1 trillion, and calls for even more stimulus spending (as if the $666 billion that has left us in the lurch isn’t quite enough). What is needed for jobs and our budget and debt crisis – besides immediate spending cuts– is a growth agenda.  By contrast, hiking taxes is a dearth agenda, and the best way to get more “revenue” is through revenue neutral tax reform. In this weekend’s continuing debt ceiling negotiations, any more discussion of tax hikes should be clearly taken off the table by today’s jobs report.

    Rather than spending and taxing more, it’s time to take a different approach.

    Congress and the White House must take immediate action to get America’s economic house in order and to foster an environment that encourages job creation. Those measures include repealing Obamacare, its employer mandates and tax increases; preventing the Environmental Protection Agency from regulating carbon dioxide; passing tort reform to reduce the cost of meritless lawsuits; expanding trade agreements; permitting more domestic energy production; and cutting spending to avert massive tax increases.

    President Obama habitually refers to the failed economic policies of the past. The pace of America’s economic recovery is unacceptable, and it’s being made worse by the Obama Administration’s adherence to a flawed philosophy of relying on government to do the work of the private sector. Obama should be more concerned with the failed economic policies of the present – his own.  A new direction is in order.

    Quick Hits:

    Posted in Economics [slideshow_deploy]

    84 Responses to Morning Bell: An Economy in Panic

    1. fatheromalley says:

      Make America the only safe haven for income in the world. Offshore accounts, no more 300 billion spend on tax lobbyists, no more 300 billion in compliance costs, no more 50% employer matching funds to FICA, no more payroll withholding which affects the poor more than the middle class or the rich. HR25 The FairTax… .. nothing, nada. All taxes are regressive. Do you really want the regression to be at the point of income? Or rather at the point of purchasing new retail? Go from 76,000 pages to 55 pages? Want change? Want hope? Do you really?

      • KC - NM says:

        Fair Tax is still not equitable. All this will do is drive the cost of goods up to compensate for the added tax. Those that do not have much will now need more from the government to be able to purchase their high calorie foods, booze, cigarettes, etc. The real answer is a Flat tax based on income – no exceptions, no deductions, everyone and every organization (including the church) would pay based on income. No loop holes, the rich would really pay their fair share, and the poor would pay the percentage of the government handout. No more free rides for anyone – if you can vote and are an American, you will pay tax.

    2. conservative says:

      This is what can be expected as Obama transitions us to a socialist economy. The real unemployment rate is more like 15%. Socialist France has traditionally had an unemployment rate around 17%, so Obama is right on track as he models us after failed European socialist economies.

    3. Mary says:

      No one has been able to explain to me why young men and women serve in the U.S. Military for 20 years, risking their lives protecting freedom, and only get 50% of their pay. While politicians hold their political positions in the safe confines of the capital, protected by these same men and women, and receive full pay retirement after serving one term. It just does not make any sense.

      Monday we learned that the staffers of Congress family members are exempt from having to pay back student loans .

      For too long we have been too complacent about the workings of Congress. Many citizens had no idea that members of Congress could retire with the same pay after only one term, that they specifically exempted themselves from many of the laws they have passed (such as being exempt from any fear of prosecution for sexual harassment) while ordinary citizens must live under those laws. The latest is to exempt themselves from the Healthcare Reform … in all of its forms. Somehow, that doesn't seem logical. We do not have an elite that is above the law. I truly don't care if they are Democrat, Republican, Independent or whatever. The self-serving must stop.

      • Cynthia Moore says:

        I agree, Congress needs to stop spending, stop taking from the American people they are so out of touch with reality

      • OhioHistorian says:

        Because the "full pay for Congress" canard is a lie is why no one has explained it to you. Congress gets a really good retirement by private standards. But Anthony Weiner (the latest example) has served for 19 years and will NOT get retirement until age 50 at the earliest (Federal employee rules) and then is estimated to get about5 70% of his salary WITH INFLATION. That retirement is too good, I agree, but is not as you describe in error. It is canards like this that hurt us in getting rid of gravy retirement like they really have.

    4. Richard says:

      How quickly did employment recover during the Great Depression? Bush ruinedthe American economy, it will take years to correct his blunders and deliberate destruction.

      • Eagle Eye says:

        lol! And a generation to correct the "progressive" left's mistakes!

      • OhioHistorian says:

        It never recovered during the Great Depression is the answer. It took WWII which both dumped 70% of the GDP from the Government plus getting rid of most of the Hoover/Roosevelt regulations, to start growth back up.
        Bush did NOT ruin the American economy. It was the Democrat Congress elected in 2006 plus the both-party-endorsed stupidity called the Community Reinvestment Act where you could buy a house on your welfare payments that crashed this economy. It took more than one President could do. It took a whole boatload of ignorant fools in Congress, led by cheaters like Barney Fwank, Chris Dodd, Maxine Waters, and Chuck Schumer, to crash this economy. It was a coalition of the do-gooders and the progressive Black caucus that caused this in Congress, but they got lots of help from Presidents of BOTH parties (Carter, Clinton AND Bush). Now you have Obama who are proposing to allow you to live in your FHA house for 12 months without paying.

        Not to count the Federal budget, the non-defense side of which has gone up at something like 19% per year since 2006. Bush didn't kill this economy, the Congress, led by the Progressives, did it.

      • Norm LA says:

        Please look at the facts before you form an opinion about whose policies we are having to deal with in the economy today. The BLS web site is one place to look for numbers of jobs created, unemployment rates during a specific period. wages earned. And while you are at it, look at see just who was in control of the congress while the vaulted Bush was in the white house.

    5. Mike says:

      "We who live in free market societies believe that growth, prosperity and ultimately human fulfillment, are created from the bottom up, not the government down. Only when the human spirit is allowed to invent and create, only when individuals are given a personal stake in deciding economic policies and benefitting from their success — only then can societies remain economically alive, dynamic, progressive, and free. Trust the people." – Ronald Reagan

    6. Matamoros says:

      The 9.2% figure, appalling as it is, fails to tell reveal the full extent of the disaster. The Federal government's own measure (U-6 Unemployment) totals those out of work looking for work, those out of work who have despaired of finding any, and those who have been forced into the purgatory of part-time work. Combined, those categories of U-6 number hovers around 17% of our workforce, a far more accurate portrait of the misery. On top of which, our insanely profligate immigration system tremendously worsens the situation. While some 14 million American are out of work, the feds continue to import 125,000 foreign workers a month, and illegal aliens currently hold over 7 million jobs. Vigorous enforcement of immigration law would open up millions of jobs without a penny of the billions in wasted "stimulus" packages the Obama administration keeps regurgitating. Indeed, the billions won't even keep up with the increase of foreign workers, at least half of whom are illegal.

    7. Kathy Panas says:

      Well spoken, I appreciate the honest news each morning, thanks.

    8. roy says:

      Well, I'v listneed to ALL the so called experts, All they do is talk – We need action, NOW.
      I'm ready to retire, several months away, and am on next weeks lay off list! Nice!!! When I was in the army I had a rifle and we knew who the enemy was!
      What we need is an imeadiate reincarnation of Pres. Reagan. Can we survive 18 months more of this BS from — the anti american dumb o crats? AARP has a real nice recipe for dog food, Should I take my last pay chec and stock up?

    9. Dennis says:

      The policies employed by the Obama administration have failed miserably. It is time to take a new look at ways to re-invigorate the economy. We need an overhaul of the tax code, more incentives for business to invest in the future. We need to reduce regulation dramatically in order to get the private sector moving forward again. Reagan proved that reducing taxes allowed people to spend and invest more of what they earned in the things that were important to them. There is nothing wrong with that, it is what helps the economy grow and prosper.

    10. Lauren W says:

      What continually concerns me about the unemployment numbers is the fact that unemployment figures only take into account those who had a job which allowed them to collect unemployment benefits. There are millions more people who are self-employed and therefore unable to collect unemployment benefits. Their livlihoods have been impacted severely — sometimes decimated — by the current economy. Yet, they are not counted in the unemployment numbers.

      Just think of the varied career paths in which the person must rely on the health of the economy in order to provide income: Construction contractors, Realtors, Hairdressers, Daycare providers, lawn care providers, etc. Small business owners are also ineligible for unemployment benefits and often are responsible for providing salaries for others: dry cleaners, restaurant owners, convenience store owners, etc.

      SO many more people are negatively affected by this economy than the OFFICIAL numbers show. If they were counted, we would be way past the numbers ever shown for the Great Depression.

    11. fatheromalley says:

      Make America the only safe haven for income in the world. Offshore accounts, no more 300 billion spend on tax lobbyists, no more 300 billion in compliance costs, no more 50% employer matching funds to FICA, no more payroll withholding which affects the poor more than the middle class or the rich. HR25 The FairTax… .. nothing, nada. All taxes are regressive. Do you really want the regression to be at the point of income? Or rather at the point of purchasing new retail? Go from 76,000 pages to 55 pages? Want change? Want hope? Do you really?

    12. Gerald Smith says:

      Let's stop all the polite conversation and hand-wringing about jobs and the economy as if Obama were simply incompetent – no one could be this inept and be able to walk and chew gum at the same time. This is all part of a deliberate scheme to "fundamentally transform America" and it's time our congressional leaders started telling it like it is. I don't think we have the luxury of waiting until November 2012 for something to happen. For all we know, the election could be called off due to an "emergency." As someone noted recently we have lived through 29 months of socialism and is depressing as hell.

      • wmangels says:

        you are as right as you can be, why dont the reps speak up and tell it like it is they are either politions or patroits,
        .

    13. George O. Short, Jr. says:

      Those who ignore history are doomed to repeat it." –George Santayana
      One only has to look at the failed policies of the FDR administration to see the ultimate effect of the present administrtion's polices. The government intervention in the free market so far has resulted in
      9.2% unemployment. New job growth is almost at a standstill. The government is meeting behind closed doors to discuss solutions "our unreasonable debt level" Government meddleing though czars, bailouts, talk of raising taxes, and mor"stimulus spending has stopped our recovery. The solution is to cut government spending, place every elected federal official on Social Security only, and limit their terms.

    14. Dennis D. Wilcox, MD says:

      Is there any doubt that this Administration is out to sabotage the American economy? Mere denial of economic reality is not enough to explain what has happened to our country since Obama ascended to the Presidency. He told us he wanted to make revolutionary changes and the electorate responded because they didn't want another Republican-In-Name-Only. Now we have more Americans than ever dependent on the State who continue to vote for more government hand-outs. While Obama stokes the fires of class warfare the folks who speak clearly and reasonably are ridiculed as out-of-their minds. Call me crazy.

    15. Wes Evans says:

      When you pursue a European style progressive/socialist welfare agenda you will get the European progressive/socialist consequences of slow low growth 1-2% and 10-18% unemployment. Americans did not pay attention to what happens in economies that follow the liberal progressive/socialist model. Our present economic situation is the norm for the best of Europe and the other countries with liberal progressive/socialist governments many are in much worse condition. The more progressive or socialist the slower the economic growth and the higher the unemployment.

    16. Clearhead says:

      "OUTSOURCING" does not produce jobs, income, or livelihood for most Americans. If we send our resources, expertise and labor somewhere else (like China), THEY are the ones who will ultimately get the jobs, income and livelihood. We certainly cannot achieve a decent existence by giving away our jobs to another country, nor can we attain economic stability by spending money we do not have. If my 9 year old son can understand this, our 'government' can as well. Therefore, the 'government' is intentionally leading our country into a charted and proven state of FAILURE, of which our so-called president has become the cornerstone roll model.

    17. Mike the Bike says:

      It would have been better for the United States economy if both Presidents Bush and Obama would have just taken all that federal money that they gave to the banks and split it up and gave a portion to every American citizen. That way, Americans would have been able to keep spending and at the same time we would have only "owed it to ourselves".

    18. RedBaker says:

      How much of future borrowing to cut? All of it. Even with a fast 4-year reduction of borrowing to zero, the debt will still reach $19 trillion. If interest rates rose to 6%, the interest payment would be over $1 trillion.

      We have no choice but to cut borrowing to zero as fast as possible, and forbid new borrowing.

      To offset that huge subtraction from GDP, we have to slash regulations and cut harmful programs like ethanol and energy restriction. We need to dump non-essential federal deparments and functions. Then we need real reform of medical prices, by instituting mandatory market action by consumers. We should slash government from 61% of GDP (41% government spending, 20% regulations) to 40% or 30%.

    19. Redfray says:

      Mr. Brownfield, your wording is tickling to my ears. The phase "flawed philosophy" is good for what has been called "politicially correct". Politically correct language is from the generation of passive dreamers that is not connected to the real world. You can't buy love or peace.
      If obama is so stupid as to not know what he is doing, then who is calling the shots? He and his so called choices are right on target to destroy this country by calulated means. The real question is, who will fire the first shot?

    20. KC - NM says:

      For yesterday's comment, also pertains to today's –
      I agree that raising taxes is not the answer that will fix the debt issue. However, fixing the tax loopholes should be a significant undertaking that needs to be corrected. There are many who are in the rich category who pay little to no taxes due to the loopholes. And then there is the progressive tax based system that is flawed and so complicated that fraud is easy and waste is abundant. Fixing the loopholes in the current system will help – but why not just fix the system. Get rid of the entire income tax process and develop and invoke a flat tax based on income. There are no deductions, no exceptions, no exclusions for specific or special interest groups, businesses, etc. Even the poor who only live on government subsidy would pay something based on the amount of subsidy they receive. Everyone pays their fair share! If you can vote, if you are an American citizen, then you would pay the flat tax percentage of the income realized. Simple and easy, no need for IRS, tax lawyers, attorneys, consultants, or computer programs.

    21. Lloyd Scallan says:

      None of this is a "surprise. Obama knows exactly what he is doing. When will all Americans realize that every policy implemented by this administration is designed to destroy our Western way of capitalism thus force people to accept socialism/communism.

    22. frank says:

      Keynesian economics was dealt a death knell blow in the 1970s with "stagflation", which could not be explained or effectively dealt with using that brand of Big State interventionism. Unfortunately, the left wing, Big Statists in the university departments of economics clung desperately on to their failed political & economic point of view. Which is why Big Statist Obama felt comfortable bringing in big shot Keynesian economists like Larry Summers who helped push his liberal plan of economics that included a $1T "stimulus" program, which failed.

      The solution is to get the government out of the way & let the economy self-correct temporarily. With an extremely high debt level to start with, it was even less likely that any Big Statist economic policy was going to work.

      I agree with Brownfield's suggestions that, "measures include repealing Obamacare, its employer mandates and tax increases; preventing the Environmental Protection Agency from regulating carbon dioxide; passing tort reform to reduce the cost of meritless lawsuits; expanding trade agreements; permitting more domestic energy production; and cutting spending to avert massive tax increases."

      We must also allow business to be able to be certain what their expenses will be as they plan ahead. Eventually we need to go to either a very simple Income Tax, with no deductions or some sort of simple Fair Tax & eliminate Income Taxes all together. Business/corporation taxes should be lowered or eliminated, since in the end these costs are passed on to the consumer who pays a higher price for goods & services. It will also end "crony capitalism" in which politicians get to pick & chose which businesses get tax breaks, based upon who gives them the biggest campaign contributions to get elected.

      We also need a Balanced Budget Amendment to force the Federal Government to live within its means & stop borrowing massive amounts of capital needed by private businesses to invest with.

      Finally, there is the Federal Reserve, a private banking cartel. It should be abolished & Federal Reserve Notes (fiat money with no intrinsic value) phased out & Congress should do what the Constitution authorizes it to do: "coin money"… we should return to a dual gold/silver standard (like before the Civil War) in the ratio of 1:16 (not a simple gold standard, which the remaining central bankers might be able to manipulate).

    23. KC - NM says:

      The economy and job numbers are terrible, we are worse off now than in 2008. The actions of the current administration have done nothing but spend money on programs that made some other politicians richer. The few workers who's jobs were saved or the very few that were created certainly did not come out the winner in the money. The current administration is destroying America and change is needed. The "yes we can" needs to be "yes we will replace you in 2012". This goes for both sides – Republican and Democrate who pass more spending, increased debt ceiling, and continue to waste tax payers money. The job data is bad, but the economy and general direction that this country is heading due to Pres. Obama is much worse. Time for change!

    24. Jeanne Stotler says:

      When I hear POTUS say how his job creation is helping I cringe, My son has been out of work 13 mos. and no jobs in the future, this is Fla. where unemployment is over 20%, and soon to go up with the shutting down of NASA. He talks of creating gov't jobs, well this only cost the tax payers more, we need private industry jobs, jobs that the ordinary person can do, that those recent grads from HS and college can do, these will add to the tax revenue, then Congress needs to get firm with POTUS and defund his csars and her many aides and all the junk org. that are getting public funds. If you want to create a business, you need to do so and not depend on Gov't. to keep it afloat. Dems. and REps. both should not be influenced by these org. like ACORN that only want to spend yours and my money in ways we don't agree with.

    25. Todd Paulus says:

      For the sake of argument, let's assume that the President is intelligent. If that assumption is valid and everything that the President promotes or forces on our economy is, in fact, the opposite of what is required, can we then conclude that the President is, therefore, INTENTIONALLY destroying the economy? And under our Constitutional definitions, what does that make our President? Considering the philosphy and ideology of all those that surround the President, is this a surprise to anyone? __I could get sidetracked by what I would like to see happen to this administration, but what I fear is that our current Republican leaders will cave in to the pressures of the clearly left-wing media and Washington DC environment. I pray that the Republicans stand strong against this constant barrage on our Constitution's walls.

    26. Steve Cafaro says:

      Panic – There is no panic. The solution to the job and economic crisis is simple. Let us make a concerted effort to repatriate to the USA the jobs, factories and industries that have been exported to foreign countries. This action would result in an tremedous influx of jobs that would solve the jobs dilemma, the housing crisis, the dollar problem, the National Debt, the American balance of trade deficit and a host of social problems too many to enumerate.Imagine American as a land of opportunity once again!

      America must begin producing for her own needs if our Country is to survive as a free, independent and sovereign Nation. If we continue in our errant ways, there will be a true panic as America becomes subserviant to businessmen, government leaders and thoughtless globalists who have created and continue to endorse today's flawed economic agenda.

      • Todd says:

        Steve, I agree. We need to bring companies (and those jobs) back to the USA. We can only do this if the government creates the economic environment that is condusive to business. That is doen through minimal government regulation, advantagous tax system that allows companies to re-invest in the community and country and an educated work force that is run at the local (city, county and at the most state levels). If companies see that the Return on Investment for expansion in the United Sates is good, then they will return.

        • Todd says:

          Unfortunately the current administration is doing the exact opposite of what is needed in order to create teh pro-business economic environment we need. They are pushing and creating (Obamacare is just oone big step) a tax system that is pushing businesses and jobs out fo this country. Taxing the rich is just a tag line for taxing corporations and those business leaders who create jobs. And the news is full of stories lately about government intervention in businesses trying to invest in this country (i.e. Boeing's new plant in South Carolina and all the EPA regulations that are hitting). And education is so bad in this country that it will take a generation or two to fully re-gain our status in the world in regards to public education.

    27. steve kokosinski says:

      Is there anyway to get this through the thick sculle of the meat heads that are meeting wirh the president, BEHIND CLOSED DOORS? Why cant they do this in the open? What are they hiding? I dont trust this process at all!

    28. SarasotaJohn says:

      Let's get him elected for a seconc term, with another four years he can wipe out the United States for Good.

    29. John Vogt says:

      Asking Obama about the ecomony is like asking a truck driver about a medical procdedure.

      Neither have a clue

    30. Rick says:

      Well said. It’s the definition of insanity… Doing the same thing over and over, and expecting a different result. A new direction is not only rational; it’s required.

    31. Scott Warner says:

      Does Obama and his administration have any clue that millions of jobs have left the country or have been eliminated, and will not come back unless major changes are made to make it feasible for them to return? I would faint if I heard anything intelligent come out of this administration. There is such HUGE potential for a president who will stand up and lead and tell it like it really is – assuming they have a clue on "what the situation really is". Change is required by ALL of us including the government. Those changes must be 360 degrees in nature including:

      Policy changes are needed to reduce corporate taxes; reduce US government regulations that increase the cost of producing products here; perhaps even add incentives for producing in the US instead of overseas.

      We as consumers need to be willing to pay more money to buy US-made products vs. imported products. We consumers feed the fire by wanting to pay lower costs for what we buy. Imports should probably be taxed more to reduce the trade deficit.

      Labor Unions and Union members need to reduce their ridiculous demands on salaries, benefits, and life-time pensions. Companies cannot compete with these inflated costs, and public services like teaching, fire and police services, and government services cannot sustain such lofty costs. Companies and public services could hire more workers if the cost of labor was lower.

      The immigration situation has led to millions of workers who are not even paying taxes and have taken jobs away from US citizens. Part of this problem is also a reluctance of today's younger generations to do trade type jobs that were the backbone of the growth of the US in years gone by. Now the trade jobs are done by workers who are here illegally because they are willing to work for less money.

      Stock Owners and company owners must reduce their greed and expectations that drive businesses to eliminate jobs in the US and to move the jobs to other countries. When there is such pressure to the bottom line, companies stop investing in their labor capital and jobs are lost and not added.

      I am sure there are other groups that remain that also contribute to the problem. To me, the previous groups look like the low hanging fruit and represent larger segments of the problem and need to be addressed first.

      Like I said, there needs to be change from ALL parties. Otherwise, the government will keep trying to put bandaids on a problem that needs major surgery, and we will never see notable economic growth and more people working again.

    32. Gene Zarwell says:

      Answering the call for balanced budgets has deft ears. However, to project revenues seems to always target deficit spending that is not tax payer or tax base approved – same people are the ones who create profits and in most case cast votes. White House is not the planning arm of government, it is the tasking arm to Congress to be the watch dog of Administration performance to maintain a controlled economy protecting our citizens rights as documented Constitutionally and by Declaration. So drafted our founding fathers. Democracies last for only 200 years, but our Republic has the wisdom and the intelligence to thwart those with other ideas, yet, we need to circle the wagons, reconsider our global status, defend our Constitution, and prepare for our next step instead of concentrating on how Americans have lost that esteem to lead; i.e.; a gallon of gasoline is valued at 19 cents of a 1961 dollar – today it is 350 cents of a 2011 5 dollar. Fiscal policy is a muck. We need to call in our debtors. If you signed that credit card you are liable for that bill – doesn't Congress get it? Maybe November 2012 they will. Shouldn't our Treasury Secretary be preparing the petitions to send them all to Madoff's debtor prison as well.

    33. Ron W. Smith says:

      Reports from the autos industry indicate increased hiring, and a number of states are showing increases in employment after a long dry stretch. Some signs are actually good, in other words, if not yet good enough. We have a ways to go, to be sure, but many months for team Obama to get our "economic house in order." Congress is sitting on jobs creation and needs some prodding from from the Executive branch.
      Meanwhile, there's the matter of spending cuts and long-range planning for zeroing out the national debt. Continuing on the path favored especially by Right-wing hawks, further increases in National Security spending are not the way to go. It's time for high seriousness here, too. With an annual deficit of $1.6 trillion and the national debt at $14.3 trillion, close inspection of our very costly self-assumed role as Superpower on Call is in order. Spending more than the rest of the world combined on national Security is just unacceptable. Hegemony is better suited to flush times than lean, particularly when annual spending on National Security and the annual deficit look to be a suspicious pair and borrowed money the engine. I would recommend wide open discussion and debate of our foreign policy decisions, all interested parties welcome for airing grievances and suggesting solutions.
      Jobs creation is very important. So, too, earnest, honest approaches to elimination of the national debt and annual deficits. Careful analysis will reveal, I'm rather certain, that we're spending good money after bad because of foreign policy decisions we make based on long habit rather than because of current necessity and ability to pay.
      I'm ready for the open discussion and debate to begin, but I'm not holding my breath.

    34. Rick 74 says:

      "President Obama habitually refers to the failed economic policies of the past."

      In the majority of the Bush term after the collapse of the Clinton-era bubble market, the economy perked along at a rate that can be looked at in comparison with today's economy. Jobs were not destroyed until the collapse of the housing market with its concurrent ripples through finance.

      Republicans need to emphasize this. There were not lots of "failed economic policies" beyond the shores of Freddie and Fannie until the new administration piled one failed policy atop another.

      • and2therepublic says:

        He is referring to the Wilson administration, the FDR administration, the Truman, LBJ, Carter, and Slick Willie administrations.

    35. F.D. O'Toole says:

      I'm looking at some graphs of Federal Receipts vs Expenditures over the years. Consider what has happened to the economy as a result of the Obama tenure in office. Coming out of the last recession in 2004, receipts vs expenditures were about 15.5% vs 19.5% of GDP. (A yearly deficit of 4%). As the Bush tax cuts gained traction, the economy boomed and government receipts shot up to about 18% of GDP. Expenditures held at the 19.5% level. (A yearly deficit of 1.5%). The effect of the Democrat takeover of congress in 2008 added to the financial crisis so that expenditures jumped steeply to 25% of GDP in late 2008 into 2009. Receipts in that same period fell from 17% to 14%. At present, the imbalance is 15% vs 24% for an approximate annual deficit of 9%. As we should have learned from the Roosevelt era in which spending went through the roof while unemployment through the thirties rose from 14% to 19% by the end of the decade, you can't spend your way out of a recession.

    36. Paul says:

      Abortion, and the right to Euthanasia, assisted suicide,suicide, martyrdom (Islam), enables, less people using less resources and exhaling the life sustaining but now declared noxious gas CO2 ought to solve this job problem in about a generation. Hang in there(babies excluded), avoiding the aforementioned paths to a solution.

      Social issues of course should not be considered when discussing economics. This is where the word masochist has relevance.

    37. The Farmer says:

      President Obama and his friends have every reason to be happy, they set out to destroy Amereica and they are doing just fine, while all the time the press and the Republicans are not telling America like it is. They won’t call his lies, lies, and try to make out that he is just mistaken rather then exposeing his effort to destroy our country.

    38. kaydell bowles says:

      Is President Obama's dismal record suprise anyone. We, the American people, elected a junior Senator and Acorn organizes to be the President of the United States who had little experience about the economy or business. There were lots of promises but all discarded and the true policies of a Socialist began from his Czars to his people who he surrounds himself and visit the White House, i.e., union leaders.

      Then he tells us how expensive the energy is going to become, how more taxes he wants to impose, yet nothing about the spending. Make light of the shovel ready jobs the told us were there and then they were shovel ready. Yet billions of dollars went to where?

      We can no longer trust him or his cronies. Now we have a problem with their program of guns going to Mexico; he giving the people a lecture on civility yet his civility is at rock bottom. I could go on but we cannot afford the Democrat-Socialist- Communism program that is his and Congress. Next election we must elect honest and principled people who will enact what they campaign on and if not then they must be impeached! Promises cannot be ignored.

    39. Thomas Kittredge says:

      Wow! How is that "hope and change" working out for everybody? More taxes! Sure, lets tax the rich, that will surely solve our economic problems. Washington is not and hasn't been responsible with the taxes they receive from us now. They have tapped out every program that has been established for the future and then some. Giving the Washington experts more money is like giving a thief ,that is running out of the bank he just robbed, the rest of the money. If our government hasn't been responsible with the tax money they receive up to this point what makes you think they will be responsible with more? If one of my children maxed out a credit card because he or she was irresponsible, I certainly wouldn't give them another one. i would take the one they have away, untill they paid down the debt , and proved to me they could be responsible. For the people who would like to pay more taxes, I think the IRS should make a special form, just for you, whether it be one of our countries ingenious politicians or a law-abiding citizen, so instead of wasting all our money, they can specifically waste yours.

    40. George Colgrove, VA says:

      RINO's are more damaging than liberals. THe liberal brand is a know brand. The RINO brand is unkown. RINOs damage the republican brand. These are comments Rush Limbaugh said. If we end up with RINOs voting to increase the debt ceiling or raise taxes they will be replaced with CONSERVATIVE republicans. Do not go for a third party, but rather replace RINOs with conservatives. It is time we start focusing on the primaries to get these waste of a congress seat out of there. I will vote for a democrat before I vote for more RINO's who are destroying the conservative movement. The news with the Jobs numbers are a result of RINO's and democrats wo work side by side.

      • and2therepublic says:

        George, Rinos are by definition, liberal republicans. I agree with your opinion on a 3rd party candidate. Did you know that when Lincoln won in 1860, there were four candidates on the ballot. Yep, the previous coalition between northern democrats and southern plantation owners had desolved into two camps. The electoral vote was: for Loncoln, 180; for Breckinridge, 72; for Bell, 39; for Douglas, 12. The popular vote, for Lincoln 1,857,610; for Douglas, 1,365,976; for Breckinridge, 847,953 ( exclusive of South Carolina were there was no popular vote); for Bell, 590,631. It must be remembered, in estimating the popular vote, that every ballot in the free states represents a citizen of the United States, while the ballots in the slave states represent three fifths of the slaves.

    41. charles says:

      We need a president who understands basic economic principles.He is acting like a community organizer.This country can't afford this president.

    42. Dr. H.D. Sinopoli says:

      It is futile to make a truthful comment…especally if it does not complement Heritage…it will never get posted. Obama..lifer Democrats & lifer Republicans (supported by Heritage) will never respond to the people….For them it's money & power.

    43. Jeanne Stotler says:

      Just remember if the state creates more jobs, state taxpayers are paying for them, if the Feds create more Goverment and more jobs WE are paying for it, the amount of taxes created from each job returns very little in comparison to what they pay ot in salaries and benefits. We need smaller federal goverment, with a balanced budget, and less jobs created in State gov't. Labor is out to stop expansion of jobs in "Right to work " states and use there funds that they MAKE Union pay to buy votes which are against the beliefs of some members. This is in violation of human rights to express their choice.

    44. Mike, Wichita Falls says:

      Any reasonable person would have changed course long before now, but Obama is not a reasonable person. He is a committed statist; the government can solve all of society's problems. Let's stop hoping he will change and start planning his removal from office in January 2013.

    45. Ben C. says:

      Yesterday several postings asked about the statement: "corporations don't pay taxes. Corporations collect taxes." All business owners know what this means – any taxes (local, state or federal) are included in the cost of doing business. Its overhead. Raise my taxes and increase my cost of doing business and I pass this cost on to my clients / customers. I don't pay the tax – you do. Sadly, this is a fact that escapes non-business owners. Its Basic Business 101.

    46. D. White says:

      And Nancy Pelosi had the gall to two weeks ago on MSNBC to state that Obama had created more jobs in the private sector in his first year than George Bush in all eight years. We must continue to tell all areas of government to cut, balance, deregulate, but out or go home.

    47. Bobbie says:

      My goodness, the attacks! What's wrong, Dr. H.D. Sinopoli? Weren't qualified for the private sector?

    48. Bobbie says:

      No excuse. No exception. He was ignorant to any other solutions. His actions only covered what was intentional for today. Proof in his record. He'll start looking for forgiveness with his give me another chance cries. He's been given enough chances. None of his actions favor recovery! As far as him claiming to be inexperienced? He was a government community organizer, government lawyer, in the senate for two years during President Bush's term, so unless he wants to admit he didn't earn the pay or positions, either way he doesn't deserve another term!

    49. LlightSaber says:

      I'm positively frightened of the damage this president will wreak on the economy in his remaining year (I pray to God).

      Tangentially related: today I called several senators to ask why they hadn't yet signed onto the capcutbalance pledge. Two notable calls: Susan Collins of Maine: According to her office she hasn't released a statement yet. She tends to leave decisions to the last minute. She doesn't release statements until she makes the vote. Huh?

      When Roger Wicker's office discovered I was out of state, they just hung up. Imagine that. What has America come to?

      Here's where I'm at today: If the Republicans raise taxes, or impose usage charges (thank you, Senator Kyl, for more euphemistic b.s.K); if they nominate Romney, I'm out. They're on their own. I'll be sitting out 2012.

    50. Dan Gray says:

      I am a state unemployment claims examiner. When they passed the latest Emergency Unemployment, which had similar provisions to the bills passed after 9/11, they left out the word "Temporary". High unemployment was now structural.
      Many game the system because it is easy to lie and receive benefits to which they are not entitled. Even when we catch them, they are barely penalized. The previously small percentage of cheats has grown to an astoundingly high proportion of claimants. My state is billions of dollars in debt in order to pay UC benefits; we lose additional billions to fraud each year to fraud.
      The law has no teeth. We only prosecute in extreme cases, and UC fraud is a summary offense like a traffic ticket. Many times we actually pay the clamant's overpayment off out of the employer's pocket or from our long-since depleted trust fund.
      Daily I hear the pain of good, honest, hard-working employees and employers who suffer from the progressive policies of both parties over the last quarter century. Unfortunately, until we instill sound fiscal policy and restore traditional societal values, there is little opportunity for individuals and companies to forge a brighter future.

    51. and2therepublic says:

      "The want of confidence in the public councils clamps every useful undertaking … What prudent merchant will hazard his fortunes in any new branch of commerce, when he knows not but what his plans may be rendered unlawful before they can be executed."

      James Madison – Federalist No. 62 – 1788.

    52. Dave says:

      The trojan horse that has been in America for some time now is reaping its reward. Liberalism, gutless politicians and inept leadership have brought us to the edge. We cannot ask God to bless America when we slap him in the face daily and turn our back on what the foundation of this country was built on. Our lord said "I will not be mocked". The ONLY salvation for this country is found in 2nd Corinthians 7:14. For all the sophisticated,highly educated , elite thinking that exists today, our lord says "mans wisdom is foolishness in the eyes of God". Turn back to God or perish. For many, that is too simple but so is Gods plan for salvation. The choice is ours and so is the outcome. Think about it.

    53. Denver says:

      Attributing innocent error to the Pres's policies and actions is ridiculous. This tyrant is doing precisely what HIS values and viewpoint demand. He Knew enough about the importation of a large block of old M-1 Garands from Korea… he no doubt knew all about "Fast & Furious" too. Impeach him for it or at least do the Fitzgerald ploy and harass him 'til he does something you CAN nail him on. WAKE UP BOEHNER!!!

    54. Eagle Eye says:

      $666 billion failed stimulus…hmmm….."666" Creepy!!

    55. A.Jack says:

      REVOLUTION !!!!!!!!!!!!!!!!!!!! NEED I SAY MORE ……………………

    56. Richard Billies says:

      A spot on analysis of our current predicament. Unfortunately, the Progressives see their "wants" as more important than the Country's "Needs". See my post at http://allthingspoliticaltoday.com/?p=723 and read Eugene Robinson's column in Friday's Washington Post to look into the mind of one Progressive.

    57. C. Popham Smith says:

      With all due respect, economists have been telling us in no uncertain terms, that it takes a minimum of
      200,000 newly created private sector jobs every month for a sustained period of five years in order to barely
      come close to alleviating the unemployment crisis in America.
      125,000 new jobs is simply not enough.
      Good luck, America.

    58. Denver says:

      If Watergate was enough to get Nixon," Fast & Furious" is enough to get this one. All we need is people in congress with the intellectual honesty and courage to do what's right….or was Mark Twain right!!??

    59. Terry Stone says:

      The best commentary on the economy in South Carolina in my opinion is a large banner with large letters across the front porch of a spiritualists house that advertises " Specials $10.00".

    60. EReed says:

      This president has mentioned spending money for infrastructure – roads, bridges, tunnels, etc. It's my
      understanding that when federal funds are spent for these items, union wages must be paid. Is the
      president simply taking care of his union friends?

    61. S.J. Smith says:

      How can Obama be allowed to continue his unbelievable facade of Presidency? Unbelievable because there are probably enough of us including, I hope, the Republicans in Congress, that think impeachment would be the best and only recourse. How long can we be complacent when the enemy pretends to govern while destroying all that has kept us the nation we are? Until it overcomes us and there is no recourse?

    62. Richardf Ahern says:

      The Reality of History

      Confronted by an evil and corrupt government and the consequences of its unsound finance, the speculator may prosper from the wild fluctuations in price, the capitalist will protect himself by hoarding and refusing to invest while commerce, having no nationality, will leave in search of more fertile ground; but the wage earner, first to suffer under the ravages of a deoreciated currency, remains incapable of prospering from the fluctuations in price and frustrated by his inability to hoard his own labour from the ever encroaching demands of taxation. His dilemma is without peaceful resolution for he can but only flee to another land or sacrifice his life in definance of the injustices of the greedy ruling class. Visit: http://www.wastewatchersinc.org

      IMPOSE SELF-RESTRAINT UPON GOVERNMENT-Restore sense to government and prevent its inevitable desire to expand its revenue to the point of economix collapse. Government out of Control

    63. John says:

      ALL of this makes complete sense; it is totally logical and 100% consistent if we just consider the likelihood that Obama's INTENT is to crash the U.S. economy to Transform this country into his precious "One World Order" of a Global "Green" community, where his fleet of limos becomes enormous and the entire Middle Class becomes the Lower class. Only the Rich and the Government will know anything like the America we once knew, if Obama gets re-elected. The likely anecdote if Michele Bachman and a whole new Senate.

    64. Dave says:

      I would like to correct an error that I inadvertently put into my comments of yesterday. The correct Bible verse is Second Chronicles 7;14 not corinthians. This is too important not to mention as it truly is THE answer in correcting the path we are on.

      • Agreeable says:

        You are ABSOLUTELY correct. The word of God will never come back void. It IS TRUTH. Thank you for being the one to say the truth. ;>)

    65. GeeWilly says:

      A simple answer is this: If corporations want to be "people" then let them invest in the economy and create jobs… then they can file their taxes like the rest of us schmucks and request a "TAX REBATE" based on the actual number of jobs created. Created jobs = lower tax rate! Everyone wins and we see just which corporations will put their money where their mouths are..

    66. John Clancy says:

      This administration's failure to take reasonable steps to improve the economy makes it clear to all who follow what is really happening: President Obama and the mob in Washington are designedly trying to destroy our economy and our way of life. The moves are intentional. The republicans must pull us from the brink–now.

    67. Blair Franconia, NH says:

      Where are the jobs?

    68. Erick says:

      Economics 101: Political stability = economic opportunity… so, COPORATE AMERICA forget investor greed for the time being & invest in AMERICAN POLITICAL ECONOMIC STABLITY, NOW!!! STEP UP, it’s time to give back to America & Americans that bailed out the corporate idiots, time & again… United WE stand, divided we FALL. Get it, got it, do the RIGHT thing.

    69. Mango says:

      Even with government jobs increasing the jobless number rises.

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