President Obama needed a filet mignon in the September employment report. But instead he got a rubber chicken. As voters finalize their elections impressions these weeks before November 6th, a lot of bad news is facing this Chicago incumbent.
Only 96,000 jobs were created last month, only 80,000 in June, way below Wall Street expectations. It's the sixth consecutive monthly disappointment. For a few months last winter, jobs were rising at an average of 225,000 a month. But that has sloped way down to 75,000. The unemployment rate continues at 8.1 % in general (but 15% for Blacks), which is the 44th straight month above 8%. The actual unemployment rate which includes discouraged workers is higher at just under 15%.
In a campaign stop in Ohio, Obama actually said ''we're still heading in the right direction.'' Is he kidding?? As a stagnant gross domestic product drops below 2 %, employment falters, retail sales decline and the ISM index for manufacturing drops below 50 (signaling contraction). No objective observer can deny that the economy is headed in the WRONG direction! With 40 million (yes, 40 million) McMansions lying empty and 46 million Americans on food stamps and real unemployment being closer to 18%...''you've got very big obstacles'' says David Bassanese of the Australian Federal Reserve.
I don't like playing pessimist, but numbers are the numbers. People just don't believe the economy is getting better even as he's printing more money for a third round of Quantitative Easing (QE3). This entails the Fed buying mortgage-backed securities at a rate of $US40 billion a month! Óbama's gotta change his message. But what change? Taxing rich people won't create jobs.....common sense tells you these people use there extra cash to invest in new and old businesses that opens out more job opportunities. Obama is surrounded by leftist campaign advisers (see recent posts). And it's hard to see them shifting gears to something constructive like backing off the 20-some-odd tax hikes embodied in Obamacare/ He and his ''spread-the-wealth'' cronies are turning America into an Obama-Nation! In other words...Obama's goose may be already cooked.
The Joint Economic Committee (JEC), spearheaded by Rep Kevin Brady, put out a report saying that the Obama recovery now ranks dead last in modern times. That's areal milestone in the post-World War II era. It's 10 out of 10 for both jobs and economic growth. According to the Bureau of Economic Analysis, real GDP has expanded only 6.7% over the 1-quarter recovery since the recession ended. The Reagan recovery at the same stage had increased by 17.6%. The Clinton recovery by 8.7%. Ad for jobs...the Bureau of Labor Statistics reports that the number of private-sector jobs has grown by only 4.1% since the cyclical low point. Reagan's record was 10.7%.
So much for Obamanomics. It didn't work. Still isn't working. As the JEC put it, spending stimulus, housing bailouts, auto bailouts (read nationalization) financial bailouts (read $ for friends), cash for clunkers, cash for caulkers and over $16 trillion in deficit spending left the Obama recovery dead last in modern times. In an odd twist, both Obama and his top economist Alan Krueger blame ''problems built up over decades." Does that mean they blame Clinton, Bush and Reagan?
For nearly 25 years -- during those ''bad old decades'' -- the economy increased 3.3% annually. Unemployment dropped from 11% to 6% to 5% to below 4%. Obama would swoon for numbers like that. But those statistics come from the era when big government was over, when pro-market forces stopped the expansion of the public service and when marginal tax rates were slashed to grow the economy. Now the question is, with Obama's economic Goose cooked, does Mitt Romney have what it takes to win the election and provide a pro-growth economic model that will restore prosperity at home and America's No. 1 position around the world?
The Way I See It....some powerful figures like Rupert Murdoch have taken shots at Romney recently. But I am optimistic. In response to his critics on the day of the bad jobs report, Romney talked about expanding energy resources, approving the Keystone pipeline, cutting taxes and increasing trade with Latin America. He reaffirmed his intention to cut federal spending and eliminate useless programs that are sapping the liquidity out of the economy.
Basically, Romney, with more experience with the reality of running businesses then Obama would ever have, promises a return to free-market, supply-side policies on taxes, trade, regulation and above all spending. Hopefully he will embrace a sound and stable dollar, as well. I still believe Romney is the most underrated politician in America today (thanks to a obscenely biased media) and he is the most Republican standard-bearer since Ronald Reagan. In other words...he's some real filet mignon.