Heritage put out this “Recovery Summer Vacation” video that’s sure to go viral.
It’s a tragic comedy. Normally after a recession an economy will naturally rebound, unless something gets in the way, such as government intervention. Just yesterday Obama’s now departed economic adviser, Christina Romer, all but admitted that they have been clueless on the economy. Unfortunately, we’re all paying the price. (Oh, except for government workers.)
So, how bad is it? I’m glad you asked.
How bad is it? In the data for the last few weeks and months, real personal disposable income was flat; core capital goods orders, a precursor of business capital spending, declined 8%; new home sales fell 12.4%, existing sales 27%, despite record low mortgage rates; single-family housing starts declined 4.2%; building permits, foreshadowing future construction, fell 1.2%; initial jobless claims spiked to over 500,000, leading forecasters to expect at best meager short-term private-sector job growth; the Kansas City, Philadelphia and New York Fed manufacturing indexes fell; and the trade deficit increased, as exports fell and imports rose.
These weak backward-looking data were accompanied by big downdrafts in forward-looking financial markets. The Dow Jones Industrial Average lost over 4% and the tech-heavy Nasdaq over 6% in August—partly retraced yesterday—and the 10-year U.S. bond yield, at 2.47%, was back to its lows of March 2009. Real GDP growth slowed from 3.7% in the first quarter to just 1.6% last quarter.
Worse yet, much of the growth in the first half of 2010 was due to inventory-rebuilding; real final sales grew at only about 1%. Consumers are cautious, saving and paying down debt. The surge in government spending is abating. Global trade, dependent on growth abroad, is slowing: Japan is stalled, China slowing, and despite Germany’s strong quarter, eurozone growth is projected to be only half America’s modest rate through 2011.
The one bright spot has been the rebound in business capital spending. Businesses are flush with cash and profits have been solid. But the weak core durable goods report, the manufacturing downshift, and continued uncertainty about the economy and the Obama administration’s economic policy have many forecasters reducing capital expenditure projections.
This is what happens when we have clueless Keynesians controlling our government and meddling in the economy. They’ve willfully ignored historic economic data to advance an agenda at our peril. Now you know what “hope and change” is all about. It isn’t pretty.
Tags: adviser, clueless, economy, keynesian, obama, recovery summer, vacation, video
All it lacked was Tariq Aziz making preposterous claims witha straight face. Robert Gibbs is an incredible goober. Let’s hope there aren’t many more like him.
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Unfortunately, there are thousands like him….
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“”Risk of making high unemployment permanent”"
People do not understand that this is their plan.
Obama’s National Economic Council Director Larry Summers “Predicts Perpetually High Unemployment.” The Hill 4/30/10
Obama’s Treasury Secretary Timothy Geithner says “Unemployment Will Stay Unacceptably High for a Long Period of Time.” (NBC’s “Today Show, 4/1/10)
Obama’s Council Of Economic Advisers Chair, Christina Romer, says “Current Economic Growth Not Enough To Get A Lot Of Job Growth.” (NBC’s “Meet The Press,” 4/4/10)
Obama’s Economic Recovery Board Chair (Paul Volker) says that “Unemployment Will Be Too High for Far Too Long.” The St. Louis Beacon, 5/4/10)
High unemployment makes people dependent upon the good graces of……..
WELFARE.
Welfare state.
They are setting the stage in the minds of Americans to accept HIGH UNEMPLOYMENT….while giving out extended 99 weeks of unemployment…..
or
In other words……
Getting the people to LIKING those FREE Government checks.
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