The official unemployment rate dropped to 10% in November from 10.2% in October. And if anyone had said just a few years ago that this would be good news, they would have been asked to have their heads examined. But indeed it is being trumpeted as improvement in the dire straits of the current economic slump.
It is interesting to remember that under Bush, liberals were calling our economy “the worst since the great depression” when it was nothing even vaguely of the sort. And now that it indeed is that bad, they are calling 10% unemployment a breakthrough. Only because a Democrat is in charge.
But if you look at president Obama’s speech before his so-called ‘jobs summit’ of December 3 – yet another of his endless string of appearances that accomplish nothing except to get his overexposed face on television – you can see the root of the problem. He casually used anti-business language, that productivity has been “squeezed” out of fewer workers and that this evil, embedded cost-cutting has become part of the problem that allows businesses to proceed without new hires.
The fact is, however, that businesses simply are hunkering down just to survive before the Democrats deliver the devastating double blow of tax increases and an expensive health-care plan. Because restrained business spending is not a function of Obama’s favorite punching bag – stingy banks – but of fear.
The big problem here is that Obama is a Chicago socialist who has never run a business. And the percentage of people in his White House who have private-sector business experience is the lowest in the last 50 years. Because Obama & Co. think that America is just one big Chicago Shakedown where you do not ‘create’ wealth but you ‘get’ wealth by doling out political favors, hitting up business for campaign funds in exchange for a legal wink, or taxing the heck out of anything that moves.
Now the president is said to be planning to use hundreds of billions of dollars in unused TARP funds to “invest in” job creation rather than return that money to the treasury to reduce the national debt. TARP was the $750 billion allocated in autumn of 2008 to prop up troubled banks. But some of the banks have paid the money back, while the whole nut never was lent out. And so Obama, acting like a wacky wife with her husband’s credit card, now wants to go out and spend whatever is left to spur job creation while at the same time as much as $500 billion of the stimulus funding passed in February 2009 still is not spent.
So what is going on?
It is called socialism. And Obama is building up a huge political slush fund, fueled by debt, deficit and taxes, to shovel into the economy for the 2010 elections to make it look like things are getting better. But they are not getting better. And all his spending cannot mask the real heart of the problem which includes a housing crisis, a hiring crisis, a wealth-creation crisis and a debt crisis all wrapped into one.
After such a precipitous decline like the last year, the economy typically might be poised for a bounce, or a V shaped recession. But today, with Obama policies imposing punitive regulations and wracking up massive debt, with big tax increases and surcharges planned for wealthy Americans, small business, large business and most everyone else that even pays taxes – but excluding Obama’s huge low-income, untaxed voter base – our recession is expected by some to possibly become an L shape. In other words, it drops off the table, hits a low point and then stays there, which is classic socialism. Think Europe or Japan, where stagnant economies and high unemployment have been hallmarks of the high-tax status quo for decades.
But optimistic Obama-maniacs claim that the third-quarter growth rate was 3.5% while falling unemployment means that everything is coming up roses.
Not so fast. That 3.5% was spurred only by government spending in the inefficient Cash for Clunkers program and a housing tax credit, not through private-sector wealth creation. Meanwhile the November drop in unemployment has been ascribed largely to the fact that tens of thousands of people are falling off the economic map and have given up hope of finding work. Otherwise the rate would have increased.
And if enough of these people resign themselves to long-term joblessness, the Obama economy will become another sterling trophy for world socialism, with millions of people simply existing on government handouts or falling into poverty, then thanking the Democrat party for sustaining them with food stamps and bare-bones government health care. What a life…
America is on an unsustainable path. Even communist China, which is seeing the light of freedom and capitalism, has lower business and personal taxes than the United States. Nations all over the globe are touting their low tax rates to attract business while Obama’s America is putting out the ‘Capitalism Not Welcome’ sign. That Obama would be conducting himself like a tinpot socialist while tinpot socialists are conducting themselves like Ronald Reagan is truly alarming.
And at the same time, he is urging ‘green jobs’, which are fantasies that are based in inefficiency and government largess. Now he is going to Copenhagen to promote a global cap-and-trade scheme that is nothing more than a forced shift of wealth out of the private sector. This will lead to more long-term worldwide unemployment.
It is interesting to note which states in the US have the highest growth rate, lowest debt rate and most people moving in. They are conservative places like Texas where recent legal reform is attracting doctors and cutting health-care costs as well. But that is unimportant to the socialist agenda which is to squeeze the private sector in favor of debt, taxes, lawsuits, a huge government bureaucracy and raw political power.
The socialists have a big problem in thinking they can ‘solve’ everything through governmental manipulation. Because man only has solved his economic woes not by empowering government, but by allowing the individual the freedom to build his own destiny. And all of those individuals working in every town, city, suburb and rural area of America, will, aggregated, add up to something that the government never can.
And the longer that Obama calls 10% unemployment good news, the shorter the Democrats tenure in power will be. Because we are not Europe and we never want to be.
Please visit my website at www.nikitas3.com for more. You can print out for free my book, Right Is Right, which explains why only conservatism can maintain our freedom and prosperity.