Recovery Summer My Ass!

For weeks now, all the economic data have painted a grim picture of an economy that’s rapidly grinding to a halt. And yet Obama, Biden, and the rest of the Clown Car Club Democrats swear up and down, with supposedly straight faces, that the economy is turning around and is headed in the right direction. Either they’re deliberately lying or they’re incompetently insane, take your pick.

/Michael Ramirez

‘Recovery Summer’ goes bust

Declaring a “Recovery Summer” victory tour at the start of June must have looked like a pretty safe wager for the Obama administration. The economy seemed to have shifted firmly into gear during spring. Lawrence Summers, director of the National Economic Council, told the Financial Times in early April that the economy was “moving toward escape velocity. You hear a lot less talk of ‘W’-shaped recoveries and double-dips than you did six months ago.”

A big reason for White House optimism was a stronger job market. The economy added an average of 320,000 net new jobs a month during March, April and May, about half of them in the private sector. Granted, the unemployment rate still hovered close to 10 percent. But if the economy kept growing at a 3 percent annual clip or greater — creating lots and lots of new jobs in the process — unemployment would eventually fall, perhaps dramatically.

Since then, however, the economy has fallen back to Earth, and “Recovery Summer” looks more like a bad bet. Private sector job growth has fallen by two-thirds, and the unemployment rate is still at a sky-high 9.5 percent. And if the size of the U.S. work force, as measured by the Labor Department, had stayed constant since April — instead of shrinking by a million — the unemployment rate would be 10.4 percent. Jobless claims are at their highest level since February. Worse yet, the expansion is decelerating. After growing by 5.7 percent in the final quarter of 2009 and 3.7 percent in the first quarter of 2010, gross domestic product advanced by just 2.4 percent from April through June, according to the Commerce Department.

See also:
White House’s ‘recovery summer’ could be slipping away
Grim jobs report undercuts talk of a recovery
GOP Targets Obama’s ‘Recovery Summer’ Amid Economic Gloom
The recovery is losing steam, fast
Doubt keeps people from investing
Recovery a job killer on Highway 66
Obama’s Economic Recovery Hits a Snag

So, what’s Obama’s plan to restore positive economic momentum, where’s the leadership? Aside from blaming Bush, who left office a year and a half ago, and the Republicans at every opportunity, it appears Obama doesn’t have a plan, he’s AWOL on the economy, he has no idea what to do or what needs to be done. In fact, all the policy he has so far foisted upon the country has been economically counterproductive and has created nothing but market confusion and uncertainty.

/I think Obama needs another vacation, don’t you think he’s earned it?

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Obama Lied, Your Health Care Plan Died

Remember this talking point, repeated ad nauseam?

Well, guess what, are you sitting down? Obama lied, what a shocka!

Friday night news dump: White House says 51 percent of company health plans won’t meet Obamacare guidelines

At Investor’s Business Daily, Sean Higgins and David Hogberg have a doozy of a story:

Internal White House documents reveal that 51% of employers may have to relinquish their current health care coverage by 2013 due to ObamaCare. That numbers soars to 66% for small-business employers.

The documents — product of a joint project of the Labor Department, the Health and Human Services Department and the IRS — examine the effects new regulations would have on existing, or “grandfathered,” employer-based health care plans.

Draft copies of the documents were reportedly leaked to House Republicans earlier in the week. Rep. Bill Posey, R-Fla., posted them on his Web site Friday afternoon. (View the full report here.)

The Associated Press is also on the story. Even they can’t ignore the dishonesty that was used to sell the health care overhaul:

Over and over in the health care debate, President Barack Obama said people who like their current coverage would be able to keep it.

But an early draft of an administration regulation estimates that many employers will be forced to make changes to their health plans under the new law. In just three years, a majority of workers — 51 percent — will be in plans subject to new federal requirements, according to the draft.

See also:
Administration: 51% Of Companies’ Health Plans Won’t Pass Muster
Health overhaul to force changes in employer plans
Health-care rules may force some to change coverage, leaked document suggests
Draft Health Rules Set Hurdles
Keep Your Health Plan Under Overhaul? Probably Not, Gov’t Analysis Concludes
Health overhaul to force employer plan changes
ObamaCare Vindication Watch: Majority of Workers Will Have to Change Health Coverage
Interim Final Rules for Group Health Plans and Health Insurance Coverage Relating to Status as a Grandfathered Health Plan under the Patient Protection and Affordable Care Act

Well, Obama and the Democrats passed Obamacare without reading it and now we’re sure as hell finding out what’s in it and it’s getting worse by the day.

/hey, you [expletive deleted] up, you elected them

How’s That Trillion Dollars In “Stimulus” Working Out?

What does a trillion dollars in wasteful deficit spending on Democrat pet pork projects buy, besides record deficits and the most unsecured national debt in American history? Well, lets see, 2.7 million jobs lost since the “stimulus” just had to be passed immediately, without anyone even having read it, and the highest unemployment rate in 26 years, with no net job growth in sight. Hip, hip, hooray, you go Obama and the Democrats (hopefully starting in 2010)!

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Job losses accelerate to 263,000 in September

The nation’s job losses accelerated in September, driving the unemployment rate to a 26-year high of 9.8% and casting a cloud over the incipient recovery, economic data showed Friday.

Nonfarm payrolls fell by a greater-than-expected 263,000 in September, the Labor Department reported. It marked the 21st consecutive month of job losses.

Since the recession began in December 2007, 7.2 million jobs have been lost and the unemployment rate has doubled.

While disappointing, the September numbers were not catastrophic, economists said.

“We are more inclined to view September as a temporary setback than as a signal that the decelerating trend in job losses has stalled out,” wrote Stephen Stanley, chief economist for RBS Securities. “It is far too early to be pulling the alarm on this nascent recovery.”

But another economist sounded the warning.

The “weak employment report lessens hope for a sustainable recovery,” wrote Harm Bandholz of UniCredit Research. “Once the impact of the inventory cycle and the fiscal stimulus has run its course, gross domestic product growth will slow down substantially again.”

The employment figures also carried a political dimension, as Republicans said the continued job losses proved the stimulus had failed, while Democrats said they proved that government support is essential.

“Today’s job report is a sobering reminder that progress comes in fits and starts — and that we’re going to need to grind out this recovery step by step,” said President Barack Obama. “I’m working closely with my economic advisors to explore any and all additional options and measures that we might take to promote job creation.”

“We are headed for what appears to be, at best, a jobless recovery,” said Rep. John Boehner, the Ohio Republican who leads the GOP in the House. “That is not what the American people were promised.”

Details of the report were almost universally dismal, with the number of unemployed people rising by 214,000 to 15.1 million.

And of those, 5.4 million have been out of work longer than six months, accounting for a record 35.6% of the jobless.

Stimulus Spending Doesn’t Work

The global recession and financial crisis have refocused attention on government stimulus packages. These packages typically emphasize spending, predicated on the view that the expenditure “multipliers” are greater than one—so that gross domestic product expands by more than government spending itself. Stimulus packages typically also feature tax reductions, designed partly to boost consumer demand (by raising disposable income) and partly to stimulate work effort, production and investment (by lowering rates).

The existing empirical evidence on the response of real gross domestic product to added government spending and tax changes is thin. In ongoing research, we use long-term U.S. macroeconomic data to contribute to the evidence. The results mostly favor tax rate reductions over increases in government spending as a means to increase GDP.

. . .

The bottom line is this: The available empirical evidence does not support the idea that spending multipliers typically exceed one, and thus spending stimulus programs will likely raise GDP by less than the increase in government spending. Defense-spending multipliers exceeding one likely apply only at very high unemployment rates, and nondefense multipliers are probably smaller. However, there is empirical support for the proposition that tax rate reductions will increase real GDP.

Gee, who would have ever figured that tax cuts were more effective at stimulating the economy and creating jobs than massive government deficit spending on Democrat pet pork projects that do nothing to create sustainable jobs. Just a thought, maybe the Democrats should have passed more tax cuts instead of wasting most of a trillion dollars in taxpayer money on incredibly stupid crap like frozen sliced ham, turtle tunnels, and outhouses in national parks.

See also:
US unemployment at 26-year high
Jobless rate reaches 9.8 percent in September
263,000 Jobs Lost, Worse Than Views; Jobless Rate 9.8%
Unemployment rate rises to 9.8% as employers cut more jobs than expected
UPDATE: Fed’s Rosengren Sees High Unemployment Next 2 Years
2.7 Million Jobs Lost Since “Stimulus” Bill Enacted
Stimulus can’t ease job pain for U.S. states and cities
Biden on Unemployment: “Less Bad” Isn’t Good
Republicans Seize on Jobs as Proof Obama’s Policies Have Failed
Job Numbers Released, GOP Pounces
As Biden lays out stimulus goals, GOP demands specifics on new jobs
Romney: Stimulus Not Working, Time to Fix It
Stimulus: New Research on Government Stimulus Spending and Tax Cuts
How Bad Does The “Stimulus” Suck?
Where’s The Stimulus And Why Do We Need Any More Of It Anyway?

/so, Obama and the Democrats have lost 2.7 million jobs, the U.S. unemployment rate is the highest in 26 years, and their trillion dollar “stimulus” has failed miserably, I guess there’s only one thing left for them to do, blame Bush!