Diary

Talking Down the Economy

John McCain was right to say “the fundamentals of the economy are strong.”

During times of turmoil and uncertainty, it is incumbent upon all leaders at the national level to be a calming, reassuring voice to the American public. Senator McCain was simply being a statesman putting the best interests of his country before his own self interests.

Obama and Biden, on the other hand, are trying to exploit McCain’s efforts to calm a frightened public by ridiculing his assertion and telling the American people how “bad” their lives are. In fact, that’s been a consistent message from the Left for years and has succeeded in scaring the hell out of Americans to the point of eroding confidence in their futures, causing them to tighten their purse strings, and manifesting the “doom & gloom” mentality into the classic self-fulfilling prophecy.

By laughing at McCain’s statement that the fundamentals of the economy are strong, the Democrats are effectively telling the American public that the underpinnings of this economy are on the brink of a total thermonuclear meltdown. How would most working Americans respond to that? Consumers are the engine that drives our economy. If they are convinced jobs are going to be eliminated by the millions or that they are in jeopardy of losing their home and life savings, then the first thing they will do is postpone buying a new car or a new refrigerator or any other purchase not an absolute necessity.

And that’s the beginning of the proverbial snowball that leads to an economic recession.

The Democrats, in their “stop at nothing” efforts to win votes, have set that snowball in motion and are pushing it down the hill by convincing Americans the end of the world is near.

By the same token, corporate CEO’s will take a defensive posture and suspend new hiring or new capital spending in the face of economic uncertainty. In many cases, the CEO will take preemptive measures like laying off workers to keep their balance sheet healthy. That, of course, only gives fuel to that growing, rolling snowball the Democrats have created.

The Democrats apparently didn’t learn anything from Chuck Schumer’s monumental blunder when he publicly announced IndyMac was in financial trouble. The results of his outrageously-irresponsible comments were highly predictable as panic set in among IndyMac’s customers.

And Obama’s dire warnings of economic catastrophe are just as irresponsible because he is doing nothing but creating the psychological elements that recessions are made of.