When will the Recession End?
By James Franklin
With 2010 now upon us, I find myself waxing nostalgic, neither in a positive manner nor with a very optimistic outlook I’m afraid. No dear reader, I find myself looking back through our recent history with an air of pessimism. I just can’t seem to get past the fact that we have been in this recession since 2007!
The Obama administration can’t seem to get past that fact either. Top economic advisor Larry Summers stated that the recession was over and that the Federal Government needed to increase (yes, increase) the amount of spending being done to aid turning around the unemployment issue nationwide.
On the same day, top economic aide Christina Romer stated we were still in a recession and that we would remain in a recession until the unemployment problem turned around. Apparently, even our leaders are befuddled and unsure of what to do. Other than the obvious: blame former President Bush for all of our woes.
Granted, this mess we are in did begin under the not so watchful eyes of the Bush administration. They were the ones responsible for the banking bailouts and did initiate the financial “saving” of both General Motors and Chrysler. I would be remiss, however, if I did not point out at this time that the Obama administration loves to take credit for the positives of TARP. Unfortunately for them, history shows that most of the “positive” actions were taken prior to the Democrats taking control of the executive office.
With the country in a financial tailspin and the Obama administration unsure of the reality of the recession, it seems the only thing that the Anointed One and his chosen few can agree on is the fact that the recession ending and the unemployment rate are inextricably tied to each other. With this in mind, I would like to take a moment of your time and examine the Presidents’ policies and how they are helping or hurting the economy.
Right now, as I write this article, the US Congress is pushing hard and fast to pass Mr. Harry Reid’s health care reform bill. If passed, this bill will not become active until 2013. The tax increases needed to pay for this boondoggle will be enforced immediately though. This, simply put, is how the Democrats have massaged the numbers to try and convince you that this bill is “deficit neutral.” The depth of their lies and the efficiency with which they hide the truth is not why I am writing this article though.
Remember, the White House has admitted that the recession can’t end until the unemployment rate drops back down? Well, consider this, if health care is to pass, insurance premiums paid by employers will skyrocket. Small business, those responsible for the majority of jobs in this country, will be forced to pay more money out for every employee brought in, decreasing profits. Whether you are an employee or an employer, the prospect of making less is not attractive at all.
At the same time that our “trusted” leaders in Washington are attempting to cram health care down our collective throats, Mr. Obama is also working to pass the “Cap and Tax (oops, Trade)” bill. This bill, in the Presidents’ own words, would cause energy costs to increase significantly. Again, let’s consider the small business owners perspective on this issue. If passed, the cost of doing business would go through the roof! This would hamstring the businesses responsible for driving our economy forward. Again, these cost increases would cut into the profitability of America.
How do companies insure their profits, profits which they use to feed and clothe their children? Why they hire fewer of us of course! With unemployment hovering around 10% nationwide, those of us fortunate enough to have a job are more than happy to work harder and longer.
Until these two pieces of legislation are put down like the feral dogs they are, our economy will not be allowed to do what it naturally does on its own and that is to spring back. This recession will continue, and the Anointed One will continue to point the finger at others. Remember Mr. Obama, when you point one finger at others, there are four more pointing right back at you!
