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Written by Thomas Purcell
I don’t know how many people remember Joe Biden’s speech in June of 2010, but he once referred to the worst economic summers in American history as the Summer of Recovery.
Funny, but I wouldn’t call one in four people in the nation on food stamps as a kind of a recovery—I’d call it starvation pending.
Since Obama’s second year in office, his administration has been touting how the recession was over. They claimed that jobs were the only lagging sector and by all recordable statistics and measure, the Bush recession had ended. According to the NBER (The National Bureau of Economic Research):
Mark Zandi, chief economist at Moody’s Analytics, said it was noteworthy that the panel settled on June, as it was during that month that the spending from the Recovery Act stimulus was at its maximum. “One conclusion is that the stimulus played an important role in bringing the recession to an end,” said Zandi, who has been an economic advisor to officials and lawmakers in both parties.
Ok so the recession ended in June of 2009. And yet as of today, unemployment is up again, food stamp and Medicaid enrollees are higher than in June of 2009, and by all accounts from these same ‘experts’ we are now in a double dip recession.
So how is the economy still the fault of the previous administration, or of Republican politics? If you are going to have an honest debate about the current malaise of the economy then you have to come to one of two conclusions: that either the stimulus and Obama’s plan worked, but now his leadership has taken us into another recession, or that the stimulus plan failed and it made matters worse, or has not produced any measurable results.
Which is it? Either way the American people have been sold a bill of goods that leads a thinking individual into only one inescapable conclusion—Obama’s leadership and economic planning has been a disaster to the nation.
You also can’t make the argument that since it’s a Republican House, it’s their entire fault. Legislation is essentially stalled; the President has not been able to sign any new major legislation bills since October of 2011. If you call the House accountable for this recession, well, then you have to blame Pelosi’s 2006-2010 Congress for the original recession and the housing market collapse. You can’t have it both ways.
Had the Obama administration taken the guidance of industry and financial experts in late 2008 when he took over the White house we certainly would have been out of it by now and on our way to recovering the economy- perhaps even been completely free of the housing market woes. The original plan suggested to then President Bush was very simple; a 400 billion dollar rescue package (TARP) to bolster Wall Street form collapse and then placing the toxic foreclosed housing assets into a separate fund and sold off in a bidding auction. This was done during the savings and loan scandal a decade earlier and worked wonders. Many of the toxic properties sold in that auction later recovered their full value and investors more than doubled their money.
The reason no one is working is that a capitalist economy is driven by growth, spending and expansion, not government subsidies.
Instead, Obama chose to expand TARP into a huge 897 billion+ spending package that was entirely unnecessary and was used to fund phony ‘green’ companies to try and artificially inflate the job market. It’s a certainty unemployment might have topped 10-12% by simply letting market factors naturally correct employment, but it certainly would not have dragged on year after year as it has.
The reason no one is working is that a capitalist economy is driven by growth, spending and expansion, not government subsidies. Instead it is under onerous regulations from government, and with the toxic housing assets still on the market at artificially protected prices, the economy is simply stagnant.
The toxic assets are still there, so banks can’t lend money no matter the interest rates because they can’t afford to expose themselves to more risk. The real estate, insurance and financial companies can’t expand, can’t lend money, and can’t grow and so therefore neither can small business which does the bulk of hiring —and that’s keeping job numbers flat.
It’s basic economics 101. The left isn’t too happy about it either, because all the phony baloney congressmen aren’t so cheerful about the prospect of running in an economy where more people are now on some sort of state aid (Social Security, Welfare, and Medicaid) as their sole support than ever before.
Either way, Obama and leftist policies are solely to blame for our current economic malaise. You can’t have your cake and eat it too, Mr. President.