Diary

Economy Recovering... Or Is It?

The economy picked up 103,000 jobs in December and the unemployment rate fell to 9.4%. This sounds like good news, but it is only partly-good news.

 

And the partly-good news is that the economic recovery has some life in it. But why?

 

It is mainly because the Republicans won big in the November 2 election and Americans are no longer totally terrified about Obama. Those Republicans are going to pass House legislation to repeal ObamaCare and that is giving optimism. They are going to begin cutting spending and deficits. And the lower Bush-era tax rates were extended in December, giving another big economic and psychological boost.

 

In fact, the economy has been doing better since it became clear last Spring and Summer that Republicans were going to make big gains in the November elections. But that does not solve the huge underlying problems created by the Democrats over the last 30 years including massive debt, high taxes, a ruined housing market and growing poverty and government dependency.

 

Federal Reserve chairman Ben Bernanke said that recovery from this recession’s unemployment could take four to five years which we conservatives have been warning about and predicting that it could take up to 10 years. Japan had a famous Lost Decade after its collapse of 1990.

 

Yet when unemployment was 5% under Bush in 2006, the Democrats complained relentlessly only about “tax cuts for the rich”. In other words, even when everyone possible is employed and everything is rosy, the Democrats need to attack the Republicans. It never, ever stops with these people. They are insatiable.

 

In a similar vein, during the 1950s, 1960s and 1970s when Americans had high prosperity, great wages and very low unemployment, labor unions went on a rampage demanding more and more and more from private business, eventually driving whole industries into bankruptcy. They could never, ever leave well enough alone.

 

Now the unemployment rate has topped 9% for 20 months, the longest such period since the great depression of the 1930s. And even with December’s job gains, the unemployment rate fell only from 9.7% to 9.4% which was attributed to many people who simply gave up looking for work.

 

The manufacturing sector added only 10,000 jobs in December while construction lost 16,000 jobs. That means that the ‘hard’ side of the economy – the ‘wealth-producing’ sectors – are lagging badly, which bodes ill for the future. Meanwhile Democrat policies like high taxes, bureaucracy, regulation and corruption have sustained high rates of unemployment in Democrat-controlled states and cities, while environmental laws are pushing up joblessness sharply across rural America.

 

Said Bernanke: “Persistently high unemployment, by damping household income and confidence could threaten the strength and sustainability of the recovery.” So until we make major structural changes in the economy, things are not going to improve. That is why we need a reform-minded Republican in the White House starting in 2013 and a tough-minded Republican Congress.

 

Today in America we are seeing exactly what we conservatives have been warning about for decades – stagnant growth and broad unemployment. Taxes are rising all over while the real unemployment rate is said to be around 18%.

 

These are European-type figures. And we conservatives have been warning about the Democrats’ Euro-style socialism for many, many years. But Europe never had Fannie Mae to deal with, or the Community Reinvestment Act. Because the whole American economic debacle was caused by falling dominoes starting with one thing – easy credit – particularly for home ownership for poor people enabled by Fannie Mae and CRA. This all was advocated by the Democrats. These bad mortgages not only killed Fannie Mae and Freddie Mac but polluted the entire financial system with bad paper.

 

In another related story that surfaced recently, two people died in Arizona after the state ran out of money for the heart transplants that they needed. Leftists all over are attacking the conservative governor of Arizona Jan Brewer for the deaths. But look closely at the situation and you will understand the dynamics of it.

 

 Randall Shepherd, who thought he would receive Medicaid funding for the heart transplant he needs said the deaths are “a shock to me. There’s a bit of a personal loss and the realization that this could be me in time if something’s not changed here.”

 

But look at how Shepherd acknowledged reality (in italics) as reported by CNN:

 

‘Shepherd, like many others outraged by the state decision to slash $1.2 million from the state’s Medicaid funding, said he believes the cuts could have come from elsewhere. Nonetheless, he said he understands the reasoning behind the decision.

 

“It’s obvious. If the state’s broke, it is broke,” he said. “I can kick and scream all I want, and if there’s no money for a transplant, it is just not going to happen.

 

“I really feel bad for the governor, for the legislators, those who had to make this decision,” he said. “I certainly wouldn’t want to be in their shoes and making the call that results in somebody else living or dying.”

 

Arizona’s Senate Minority Leader-elect David Schapira, a Democrat from Tempe, said he will seek emergency restoration of Medicaid coverage for certain kinds of transplants.

 

“I would like to alert people in the rest of the country that we have death panels right here in Arizona, and those who cut this funding and refuse to restore it are the death panels,” Schapira said.’ (end of excerpt)

 

Look at this Democrat demagoguery by Schapira. Just like Fannie Mae collapsed because Democrats contended that everyone should own a home even if they couldn’t pay for it, the same Democrats have now normalized exotic and expensive medical treatments funded by governments that increasingly are bankrupt because of wild Democrat overspending and oppressive federal government mandates on states for health care and other needs.

 

It is time to make major budget cuts all over America and for those waiting for or depending on a government bailout to take their hits too. It is time for America to get on a future course of growth. Because with all this debt, that never, ever will happen and everyone will suffer including the ‘poor’ and those needing heart transplants.

 

Please visit my website at www.nikitas3.com for more. You can read excerpts from my book, Right Is Right, which explains why only conservatism can maintain our freedom and prosperity.