The 2012 presidential contest is the most important election since 1980. Our choice this year is more distinct than the one between Ronald Reagan and Jimmy Carter. In 1980 the economy was mired in stagflation, people were genuinely hurting, and our leader was clueless; even so, we were not facing, as today, national bankruptcy.
For generations, the American Dream has been that our children would be better off than we are. If you think about it, that’s the underlying principle behind the “house-and-two-cars” stereotype of the American Dream.
Count up another nail in the coffin of this Obama meme.
Clearly, “it’s all Bush’s fault” isn’t working anymore, if it ever did.
About a month after his inauguration, President Obama famously said that if he can’t turn the economy around in 3 years, he’d be a one-term president. With last Friday’s jobs report showing fewer jobs created than even the low expectations, it seems a good opportunity to look at how the economy is doing 3+ years after that statement.
As James Pethokoukis points out, Obama’s own stimulus plan predicts that we should be at about 5.6 percent unemployment since we passed his stimulus as written. The fact that we’re stubbornly hovering around 8 percent shows that the plan he and his advisory team came up with just plain isn’t working.
To most people, the fact that a plan is so clearly not working would be an opportunity to re-think the plan and the assumptions built into it. Unfortunately for far too many American families, Obama and his economic team are apparently incapable of this sort of self-reflection, since they continue to call for more of what didn’t work the first time.
This is part and parcel of the worldview of Obama’s Council of Economic Advisers, which are drawn from the ranks of government and academia, without a single one that I can find that has any experience in the private sector. To them, it is government that makes the economy run, so like the old Saturday Night Live skit, they keep asking for “more government.”
What Obama and his advisers don’t seem to understand is that in order for the government to spend a dollar, they first have to take more than that dollar — to cover the cost of the bureaucracy — out of the private sector economy through taxation, which keeps the person or company from spending that money on things that really do create jobs.
Now, let’s consider the now-infamous Solyndra, and lesser known examples of Obama’s “green jobs” initiatives such as Green Vehicles, Evergreen Solar, First Solar, Solar Trust of America, and the latest, Nevada Geothermal. Each and every one of these companies was seen as a good investment by Obama Administration officials; each has failed in some way or another. One or maybe two failures could be expected, but when you get to six in three and a half years, it seems reasonable to conclude that the people Obama hired to make these decisions have no idea what a profitable company looks like.
Of course, this is the same sort of government-first thinking that had Nancy Pelosi declaring that ObamaCare would create four million jobs. So far, those jobs don’t seem to have materialized, and it’s no wonder. ObamaCare contains twenty different taxes, and that’s without counting the mandate/penalty/tax/whatever it is this week. Many of those taxes, like the tax on medical devices, are directly aimed at companies that provide jobs actually making things. Only in the world of the government or academia would taxing companies that make things be considered a job creation policy. There’s also a surtax on investment income tucked into ObamaCare for some reason, and that’s another direct hit to job creation, because it not only acts as a disincentive for people to invest money in companies — money those companies could use to hire employees — but because it takes some of that money that could be used for investment and sucks it into the ever-hungry maw of the federal government.
ObamaCare also famously contains thousands of pages of new regulations, and many of them direct the Secretary of Health and Human Services to create even more regulations. Once again, only someone who’s never worked in the private sector could see added regulations on businesses as a way to add jobs to the economy.
It all works just fine in the insulated world of government and academic papers. You can raise taxes willy-nilly, saddle businesses with new regulations until their shoulders creak, and they’ll still be out there creating jobs if only the government pumps enough money into pet projects.
Unfortunately for Obama, his team, and the Democratic Party, real world doesn’t always work the way someone’s paper says it should. The founders of the Soviet Union found that out the hard way, now Greece is learning the same lesson. Let us hope and pray that America isn’t next.
Earlier today, Speaker John Boehner spoke to the Peter G. Peterson Foundation’s 2012 Fiscal Summit. Here’s a few of the highlights of his plan from the Speaker’s website, along with commentary, of course (emphasis in original):
In remarks this afternoon to the Peter G. Peterson Foundation’s Annual Fiscal Summit, House Speaker John Boehner (R-OH) will renew his commitment to the principle he set forth at the Economic Club of New York one year ago – noting that the debt limit exists to force Washington to deal with its fiscal problems, and that any increase in the nation’s debt limit must be accompanied by spending cuts and reforms larger than the amount of the debt limit hike.
This is why Obama is suddenly attacking Romney on his time at Bain:
A new national telephone survey finds that 51% of Likely U.S. Voters trust Romney more than Obama when it comes the economy, while 39% trust the president more. Ten percent (10%) are undecided. (To see survey question wording, click here.)
Strong language warning, Jon Lovitz really doesn’t care for Obama’s rhetoric about tax the rich, and he admits that he’s a Democrat and voted for Obama:
More bad news for the Obama campaign, and a good explanation of why they’re trying to talk about anything except Obama’s economic record.
Thirty-six percent (36%) of all adult consumers now believe the U.S. economy is getting better while 46% believe it is getting worse. Those results are a bit weaker than results from just before the jobs report.