Why No One Expects a Strong Recovery
One of the strongest factors promoting recovery from our 10 post-World War II recessions was an unshakable conviction that, regardless of the immediate trouble, the American economy is fundamentally strong. Based on this underlying confidence, recessions and recoveries roughly conformed to the principle of the bigger the bust, the bigger the boom, and vice versa. Thus real growth in the four quarters following postwar recessions averaged 6.6% and 4.3% over the following five years. As the chief economist for Barclays, Dean Maki, said in this newspaper on Aug. 19, “You can’t find a single deep recession that has been followed by a moderate recovery.” That may no longer hold. Since the current recession has lasted a record seven quarters—and has been marked by a near-record average GDP decline of 1.8% per quarter—we should be witnessing the start of a powerful and sustained recovery. Yet forecasts of a 2% recovery in growth are only one-fourth as strong as postwar experience suggests. Meanwhile, unemployment sits at a generational high of 10.2%. [You are gonna want to read this one…ed]
To Create Jobs, Voters Say Cut Taxes and Stop Spending
As the policy debate has unfolded in Washington this year, voters have consistently believed that tax cuts would do more than increased government spending to stimulate the economy and create jobs. Now that the nation’s unemployment rate has reached 10.2%, voters continue to hold that view. The latest Rasmussen Reports national telephone survey shows that 62% believe tax cuts are a better way to create jobs and fight unemployment. Only 21% believe that additional stimulus spending is a more effective tool. [The Obama administration and Congress would be well advised to listen to the people who put them into office. Otherwise what happened in Virginia and New Jersey earlier this month will be replicated across the country come election day in 2010…ed]
Obama says it: There’s a chance he won’t run in 2012
In an interview with CNN in China, President Obama opened the possibility to not running for re-election in 2012 — something that no president has done since Lyndon Johnson. Here’s what he said: “You know, if – if I feel like I’ve made the very best decisions for the American people and three years from now I look at it and, you know, my poll numbers are in the tank and because we’ve gone through these wrenching changes, you know, politically, I’m in a tough spot, I’ll – I’ll feel all right about myself,” Obama told CNN’s Ed Henry. “I said to myself very early on, even when I started running for office, I don’t want to be making decisions based on getting re-elected, because I think the challenges that America faces right now are so significant,” the president also said. [Says the guy who can’t get a day’s work done because he is too busy campaigning for 2012…ed]
Angry Congress lashes out at Obama
Growing discontent over the economy and frustration with efforts to speed its recovery boiled over Thursday on Capitol Hill in a wave of criticism and outright anger directed at the Obama administration. Episodes in both houses of Congress exposed the raw nerves of lawmakers flooded with stories of unemployment and economic hardship back home. They also underscored the stiff headwinds that the administration faces as it pushes to enact sweeping changes to the financial regulatory system while also trying to create jobs for ordinary Americans. President Obama’s allies in the Congressional Black Caucus, exasperated by the administration’s handling of the economy, unexpectedly blocked one his top priorities, using a legislative maneuver to postpone the approval of financial reform legislation by a key House committee. [The overwhelmingly Democrat Congress was just so thrilled they got this left wing loon of a president back in January. It’s wonderful to see the love affair is quickly unraveling only ten months later…ed]
CNN Poll: Blame for recession shifting from GOP to Democrats
Nearly two years into the recession, opinion about which political party is responsible for the severe economic downturn is shifting, according to a new national poll. A CNN/Opinion Research Corporation survey released Friday morning indicates that 38 percent of the public blames Republicans for the country’s current economic problems. That’s down 15 points from May, when 53 percent blamed the GOP. According to the poll 27 percent now blame the Democrats for the recession, up 6 points from May. Twenty-seven percent now say both parties are responsible for the economic mess. “The bad news for the Democrats is that the number of Americans who hold the GOP exclusively responsible for the recession has been steadily falling by about two to three points per month,” says CNN Polling Director Keating Holland. “At that rate, only a handful of voters will blame the economy on the Republicans by the time next year’s midterm elections roll around.” [More outstandingly bad news for the Democrats…ed]
Obama Job Approval Down to 49%
The latest Gallup Daily tracking results show 49% of Americans approving of the job Barack Obama is doing as president, putting him below the majority approval level for the first time in his presidency. Although the current decline below 50% has symbolic significance, most of the recent decline in support for Obama occurred in July and August. He began July at 60% approval. The ongoing, contentious debate over national healthcare reform has likely served as a drag on his public support, as have continuing economic problems. Americans are also concerned about the Obama administration’s reliance on government spending to solve the nation’s problems and the growing federal budget deficit. [Gallup desperately tries to explain away Obama’s plummeting poll numbers but the fact of the matter is the people in this country have finally opened their eyes and realized just what this guy represents. And they don’t like it…ed]
Holder’s True Motive
Attorney General Eric Holder adopted a tough guy pose when he announced that Khalid Sheikh Mohammed and four others will be tried in federal court for the most heinous terror attack on Americans in history. “After eight years of delay,” he intoned, “those allegedly responsible for the attacks of September 11 will finally face justice. It is past time to finally act.” Where to begin? The claim that the Bush administration was somehow dilatory sets a new standard for gall, particularly coming from Eric Holder. As former federal prosecutor Andrew McCarthy points out, “The principal reason there were so few military trials is the tireless campaign conducted by leftist lawyers (including Holder) to derail military tribunals by challenging them in the courts.” Those lawyers threw up hundreds of roadblocks. Military detentions and tribunals violated, they claimed, the U.S. Constitution, the Geneva Conventions, and the Uniform Code of Military Justice. Litigating all this has taken years. [The gall of this guy to blame the Bush administration for the delay in trying these terrorists when in fact Mr. Holder and his fellow liberal lawyers were busy REPRESENTING the bad guys all these years!…ed]
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