Archive for the ‘The Economy’ Category
The President has started his “Economic Tour” in July of 2013. He’s only about five years late. It’s a shame he can’t be three years later. With no concept of how economics work, with no experience in the working economy, and with his history as president, those with an understanding of the working economy know that the only thing Obama can do is make things worse. And that’s hard to imagine.
Popularity: 1% [?]
This from the April 5th Wall Street Journal:
“The U.S. is still unable to sustain what used to be just average rates of growth,” said Paul Ashworth, chief U.S. economist at Capital Economics.
The unemployment rate fell to its lowest level since December 2008, but mainly because about 496,000 people dropped out of the work force. Some 11.7 million workers who wanted a job couldn’t find one last month.
Fewer and fewer people are working. Fewer goods are being produced. This will result in very high inflation due to short supplies and an inadequate workforce in a few years.
Popularity: 1% [?]
While in Michigan on December 10, 2012, Barack Obama spoke out against the Michigan right to work law. He said “These so-called right-to-work laws, they don’t have anything to do with economics; they have everything to do with politics.”
” What they’re really talking about is giving you the right to work for less money.” (BBC News 12/12012)
This is further proof that Obama has no concept how the economy works, no concept of supply and demand, and no concept of people will to give an honest day’s work for an honest day’s pay.
Detroit is paying a price for charging all of us too much for our vehicles for several decades. With their current unemployment rate at 18.1% (after almost 4 years of the Obama presidency) they are getting what they deserve.
Popularity: 5% [?]
This statement made by Barack Obama is one of the best pieces of evidence that our president has no clue how our economy works. This man’s incompetence is indisputable.
From his speech on Friday, July 13th, 2012
There are a lot of wealthy, successful Americans who agree with me — because they want to give something back. They know they didn’t — look, if you’ve been successful, you didn’t get there on your own. You didn’t get there on your own. I’m always struck by people who think, well, it must be because I was just so smart. There are a lot of smart people out there. It must be because I worked harder than everybody else. Let me tell you something — there are a whole bunch of hardworking people out there. (Applause.)
If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business — you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.
The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together. There are some things, just like fighting fires, we don’t do on our own. I mean, imagine if everybody had their own fire service. That would be a hard way to organize fighting fires.
Contrary to what Obama feels, the government was built by the people. The sad facts is that the people are being destroyed by government.
Popularity: 3% [?]
A Totally Unqualified President Has Brought Change, But Little Hope
What do others think?
Mr. Obama could protest that his swift and sudden fall from grace is no fault of his. He had been a blank slate, and the devotees had projected onto him their hopes and dreams. His victory had not been the triumph of policies he had enunciated in great detail. He had never run anything in his entire life. He had a scant public record, but oddly this worked to his advantage. – Fouad Ajami – Wall Street Journal – 9-11-2010
What do you think?
Popularity: 10% [?]
Do we really know what the unemployment rate is? Week after week the estimate made by the White House is getting revised upwards. The unemployment rate is worse then they say it is. The Obama administration is not telling us the truth.
They Don’t Know What An “Estimate” Is
When a true estimate is made on anything, the final results will are as likely to show the revision go up as they are likely to show the revision go down. With revisions made to Obama’s estimates, the revisions have shown a worse rate than the one estimated by the administration in 60 of the last 61 weeks. This is statistically impossible. Obama and his administration is lying to us every day.
Popularity: 5% [?]
Obama’s lack of understanding is beginning to stand out on the world stage. And Timonthy Geithner, the US Secretary of Treasury, is showing his lack of understanding and his lack of independence from the Oval Office.
In a recent decision, the federal reserve has decided to buy $75 billion worth of bonds through mid-2011.
No Understanding of World Economics
Obama’s lack of understanding world economics has made itself obvious in a statement made in Seoul, Korea at the G-20 meeting.
From everything I can see, this decision was not one designed to have an impact on the currency, on the dollar…It was designed to grow the economy.
A basic economics course in international economics at nearly any college or university in the US will teach you that a decision, such as the one to increase the money supply by $75 billion, will make a major impact across the world economy.
Click here to read the Wall Street Journal Article.
Popularity: 18% [?]
Does Obama have anyone studying economic history?
It seems the most powerful man in the world could come up with the resources to review history and see what has pulled our economy out of downturns in the past. But, it is obvious that Obama has not taken such a step.
The administration’s stimulus program has failed. Growth is slow and unemployment remains high. The president, his friends and advisers talk endlessly about the circumstances they inherited as a way of avoiding responsibility for the 18 months for which they are responsible.
But they want new stimulus measures—which is convincing evidence that they too recognize that the earlier measures failed. And so the U.S. was odd-man out at the G-20 meeting over the weekend, continuing to call for more government spending in the face of European resistance.
The contrast with President Reagan’s antirecession and pro-growth measures in 1981 is striking. Reagan reduced marginal and corporate tax rates and slowed the growth of nondefense spending. Recovery began about a year later. After 18 months, the economy grew more than 9% and it continued to expand above trend rates.
Two overarching reasons explain the failure of Obamanomics. First, administration economists and their outside supporters neglected the longer-term costs and consequences of their actions. Second, the administration and Congress have through their deeds and words heightened uncertainty about the economic future. High uncertainty is the enemy of investment and growth.
Most of the earlier spending was a very short-term response to long-term problems. One piece financed temporary tax cuts. This was a mistake, and ignores the role of expectations in the economy. Economic theory predicts that temporary tax cuts have little effect on spending. Unless tax cuts are expected to last, consumers save the proceeds and pay down debt. Experience with past temporary tax reductions, as in the Carter and first Bush presidencies, confirms this outcome. – Allan Meltzer – Wall Street Journal – June 30, 2010
Obama’s first stimulus package failed. If it hadn’t, then he would not be seeking more stimulus measures. So it seems someone in the administration would borrow a play from a previous game plan that has worked in the past.
Uncertainty Halts Investment
“Temporary” doesn’t build confidence in anything. Investors need a reason to invest. And they don’t invest for the short term. They need assurance that they can invest money, balance risk and return, and get to keep a major portion of what they earn. And they need that assurance over an extended period of time.
A Challenge to Obama Supporters:
If you had $1 billion, how would you invest it? What kind of return would you expect to get?
Popularity: 3% [?]
Hope and Change Should Include Private Sector Jobs
Paying people to do nothing will not work forever. Eventually we run out of goods and services. Our economy must have jobs. It must produce. And if we want to remain a free nation, then those jobs must come from the private sector.
Extending Unemployment Benefits Will Not Work
We must give people the incentive to work. Otherwise, people will not work. Individuals are electing to take unemployment benefits vs. taking jobs.
Management Recruiters of Sacramento, Calif., says it recently had a tough time filling six engineering positions at an Oregon manufacturer paying $60,000 a year—and suspects long-term jobless benefits were part of the hitch.
“We called several engineers that were unemployed,” says Karl Dinse, a managing partner at the recruiting firm. “They said, nah, you know, if it were paying $80,000 I’d think about it.” Some candidates suggested he call them back when their benefits were scheduled to run out, he says. – Wall Street Journal 7-7-10
Businesses Need Incentive To Create Jobs
Business has over $2 trillion available to invest ( WSJ Video: Long Recession Ignites Debate on Jobless Benefits). The questions is “Why aren’t they investing it?” Answer: They don’t know what will happen to their profits. Threats of taking money from successful businesses and investors have been made by Barack Obama since he started his campaign prior to the 2008 election.
National Leaders Must Promote Business
Obama and his followers must promote growth in the economy. That requires the growth of business. That requires an incentive for businesses to invest their money. We will not get businesses to invest their $2 trillion until they are assured that they will get a return on that investment. That will come when they are assured that their profits will not be taken by the US government. The real question is “Can this happen under President Barack Obama?”
Popularity: 1% [?]
While the Obama administration managed to get a $20 billion commitment out of BP to cover spill victims wages and clean up costs, they didn’t think it was enough. They wanted BP to pay the cost of Obama’s drilling moratorium.
BP successfully argued it shouldn’t be liable for most of the broader economic distress caused by the president’s six-month moratorium on deep-water drilling in the Gulf of Mexico. And it fended off demands to pay for restoration of the Gulf coast beyond its prespill conditions. – Wall Street Journal
Just another classic example of Obama trying to pass the buck.
Make Obama Follow His Own Rules
If BP should be required “to pay for restoration of the gulf coast beyond prespill conditions,” then Obama should be required to pay for the restoration of the economy beyond pre-Obama conditions. His threats of higher taxes and government handouts caused businesses to circle their wagons so they could wait and see what to do next. And that brought our economy to the greatest slow down since the Great Depression.
The cost of the damage Obama has caused to the US economy is many times the cost of the damages caused by BP.
Popularity: 3% [?]