The Bad News Keeps On Coming. . . For Obama

The Bad News Keeps On Coming. . . For Obama

Yesterday, we talked about some of the problems Obama faces getting re-elected. That made me happy. So let’s do it again. Today, let’s talk about the economic problems Obama faces.

The economy is a mess. We’ve technically been out of recession since May 2009, but growth has been anemic (slightly below the long-term average) and job growth has been nonexistent. This will hurt Obama come re-election time. But “top line” economic numbers don’t bother people. What bothers people are the things that hit them personally. And that is where Obama is really hurting:

● Unemployment: The unemployment rate in February was 8.3%. That means 12.8 million people are unemployed. The actual rate is closer to 16%, which means 25 million people are unemployed. Talk all you want about growth, but as long as most people in the country know one or more of these 25 million people personally, they won’t believe things are getting better.

● Inflation: The official inflation rate is 2.9% in the US. But unofficially, people are recording a 12% rate. That means everyone is taking a 12% pay cut each year right now, and that’s the worst it’s been since Jimmy Carter’s era.

● Home Values: It may not be fair to blame Obama for the housing collapse, but he will still feel the heat because Americans have used their homes as a form of retirement savings. And that means people are hurting. According to Case-Shiller, which provides housing price data to the stock market, home values are at their lowest level since 2003 AND they now suspect that suburban home prices may not recover in our lifetimes. Shiller says the shift toward renting and city living could mean “that we will never in our lifetime see a rebound in these prices in the suburbs.” That’s disastrous for Obama because it means that until things change, people will feel insecure and will spend less, which depresses the economy.

● Gas Price: The biggie is gas prices. Gas currently sits at a national average of $3.90 and is expected to hit $4.25 by mid-May. Some analysts think this will go as high as $4.50 to $4.70 during the summer. Indeed, everyone is now warning that gas will keep going up until the summer is over. And while the MSM has studiously avoided letting anyone blame Obama for this, a Reuters poll shows that 68% of Americans disapprove of Obama’s handling of the issue.

What “handling” could they be upset about? Well, people overwhelmingly favor the Keystone Pipeline, they overwhelmingly favor offshore drilling, and they overwhelmingly favor fracking for natural gas. Obama has stood in the way of each.

● Utility Costs: Obama’s EPA just issued rules forcing power plants to cut their carbon emissions. This means energy costs are about to go up again, just in time for air conditioning season.

Beyond this, seniors are worried the pension system keeps getting closer and closer to bankruptcy and Medicare barely works anymore because it's broke, the budget is out of control which is crushing consumer purchasing power and causing massive inflation, and civil servants have transformed themselves into a permanent elite class of rich, protected jerks living high on the amounts stolen from poor and middle class taxpayers. . . who aren't happy about it.

All of this is disastrous for Obama. That’s the good news.

The better news is that all of this can be fixed. . . just not by Obama. Getting spending under control will solve the budget and inflation problems. Extending the retirement age and capping benefits or running them lower than the rate of inflation will fix the pensions and Medicare issue. Gas prices can be fixed by approving more drilling and switching to natural gas. Republican attempts to break public sector unions are changing the bureaucratic landscape, and Republicans are getting the credit for things like school reform -- an area that once belonged exclusively to Democrats in voter’s minds.

Moreover, one of the biggest imbalances in our economy, the “collapse” of manufacturing is starting to right itself. First, manufacturing never collapsed. The US is still the largest or second largest manufacturer in the world depending on how you count it. Secondly, with wage inflation in China, it is now more cost efficient to open a new plant in the United States than it is to open the plant in China. And with wage growth showing no signs of stopping in China, you will soon see manufacturing return to the US.

The moral here is simple. The Democrats are doing everything wrong and are causing people genuine pain. That will ruin their election chances. And the Republicans have a chance, after the election, to set all of this right and win over the American people probably permanently. Good times will be here again!

Yesterday, we talked about some of the problems Obama faces getting re-elected. That made me happy. So let’s do it again. Today, let’s talk about the economic problems Obama faces.

The economy is a mess. We’ve technically been out of recession since May 2009, but growth has been anemic (slightly below the long-term average) and job growth has been nonexistent. This will hurt Obama come re-election time. But “top line” economic numbers don’t bother people. What bothers people are the things that hit them personally. And that is where Obama is really hurting:

● Unemployment: The unemployment rate in February was 8.3%. That means 12.8 million people are unemployed. The actual rate is closer to 16%, which means 25 million people are unemployed. Talk all you want about growth, but as long as most people in the country know one or more of these 25 million people personally, they won’t believe things are getting better.

● Inflation: The official inflation rate is 2.9% in the US. But unofficially, people are recording a 12% rate. That means everyone is taking a 12% pay cut each year right now, and that’s the worst it’s been since Jimmy Carter’s era.

● Home Values: It may not be fair to blame Obama for the housing collapse, but he will still feel the heat because Americans have used their homes as a form of retirement savings. And that means people are hurting. According to Case-Shiller, which provides housing price data to the stock market, home values are at their lowest level since 2003 AND they now suspect that suburban home prices may not recover in our lifetimes. Shiller says the shift toward renting and city living could mean “that we will never in our lifetime see a rebound in these prices in the suburbs.” That’s disastrous for Obama because it means that until things change, people will feel insecure and will spend less, which depresses the economy.

● Gas Price: The biggie is gas prices. Gas currently sits at a national average of $3.90 and is expected to hit $4.25 by mid-May. Some analysts think this will go as high as $4.50 to $4.70 during the summer. Indeed, everyone is now warning that gas will keep going up until the summer is over. And while the MSM has studiously avoided letting anyone blame Obama for this, a Reuters poll shows that 68% of Americans disapprove of Obama’s handling of the issue.

What “handling” could they be upset about? Well, people overwhelmingly favor the Keystone Pipeline, they overwhelmingly favor offshore drilling, and they overwhelmingly favor fracking for natural gas. Obama has stood in the way of each.

● Utility Costs: Obama’s EPA just issued rules forcing power plants to cut their carbon emissions. This means energy costs are about to go up again, just in time for air conditioning season.

Beyond this, seniors are worried the pension system keeps getting closer and closer to bankruptcy and Medicare barely works anymore because it's broke, the budget is out of control which is crushing consumer purchasing power and causing massive inflation, and civil servants have transformed themselves into a permanent elite class of rich, protected jerks living high on the amounts stolen from poor and middle class taxpayers. . . who aren't happy about it.

All of this is disastrous for Obama. That’s the good news.

The better news is that all of this can be fixed. . . just not by Obama. Getting spending under control will solve the budget and inflation problems. Extending the retirement age and capping benefits or running them lower than the rate of inflation will fix the pensions and Medicare issue. Gas prices can be fixed by approving more drilling and switching to natural gas. Republican attempts to break public sector unions are changing the bureaucratic landscape, and Republicans are getting the credit for things like school reform -- an area that once belonged exclusively to Democrats in voter’s minds.

Moreover, one of the biggest imbalances in our economy, the “collapse” of manufacturing is starting to right itself. First, manufacturing never collapsed. The US is still the largest or second largest manufacturer in the world depending on how you count it. Secondly, with wage inflation in China, it is now more cost efficient to open a new plant in the United States than it is to open the plant in China. And with wage growth showing no signs of stopping in China, you will soon see manufacturing return to the US.

The moral here is simple. The Democrats are doing everything wrong and are causing people genuine pain. That will ruin their election chances. And the Republicans have a chance, after the election, to set all of this right and win over the American people probably permanently. Good times will be here again!

The Bad News Keeps On Coming. . . For Obama

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The Times They Are A Changing Back

The Times They Are A Changing Back

Things aren’t going well for Obama’s economic policies, and people are starting to notice. In fact, things have gone so badly that a backlash has formed and a wholesale rejection of his policies is underway. But even more than that, there seems to be a serious attitude shift in the public.

How Bad Is The Obamaconomy?

After three years bankrupting the country with futile “stimulus” spending and give-aways to Obama’s supporters, our economy stinks. In fact, it’s the worst economy since the Great Depression. How bad is it? Theoretically, the recession ended in 2009 and the Obama recovery began at that point. Indeed, Team Obama twice now has heralded “the recovery summer.” And yet:

● Official unemployment remains at 9.1% in August.

● Unofficial unemployment remains around 17%.

● Official black unemployment remains at 16.7%.

● Median household income is down to $49,445, below 1996 levels. In other words, fifteen years of income growth are gone.

● Inflation is officially 3.2%, but it’s really closer to 12-15%.

● There are 46.2 million people living below the poverty line ($22,314 per family). This is a record since the statistic was first kept in 1959. The poverty rate of 15.1% is also a record.

● 13.7 million Americans receive unemployment.

● 16.3% of people still have no health insurance.

● Health insurance premiums are up 9% this year, following 2010’s rise of 14%. Thanks Barack!

About Face!

In 2008, when Obama came to power, the conventional wisdom assumed the public was ready to move left and accept more government control over their lives. But that didn't last. People now see the government as the problem. Indeed, not only has the public rejected Obama's agenda, but they've moved further right than ever. Consider these numbers from Gallup (which typically shades about 5% to the left):

● 57% of Americans say the federal government has too much power and only 8% think it needs more.

● 56% of Americans say the federal government “is trying to do too many things that should be left to individuals and business.” Only 39% believe the government should do more.

● 56% want lower taxes and fewer services and only 16% want more taxes and more services.

● 50% think the government regulates too much. 23% think it regulates about right and 23% want more regulation.

That means 60% of the public is ready to declare an end to the Pelosi/Obama Age of Big Government (Redux). But even beyond these numbers, something else has changed.

When Reagan came to power, there was a sense the government had gone too far. But there seemed little appetite for wholesale butchering of government functions and agencies. It was still a world of “the government should be smaller, but don’t cut any of it.” The left used this dualism for years to justify continued spending, by claiming that people don’t really want cuts because they can’t identify anything they are willing to give up. That’s changed. Suddenly, people want it all cut. Questions like “what agency would you wipe out,” are now common topics for discussion and were even asked by an MSM journalist at the last debate -- in the past, this would have been considered fringe stuff.

Also, Republican governors are slashing budgets, cutting taxes, demanding an end to regulation, and ending collective bargaining right, and House Republicans are in near revolt to make similar changes. . . yet this isn't hurting them with the public. In fact, many of their poll numbers are up (some Democratic pollster recently noted to their chagrin that the Democrats are doing even worse now than they did in 2010). Moreover, we just aren't seeing a popular backlash like we've seen in the past when sacred cows were touched. Where are the million old people who flooded the Capitol switchboard when Republicans first proposed changes to Social Security in the 1990s? They're silent. Instead, all we've seen is professional protestors, whose buffoonish efforts achieved nothing. Heck, this trend is so obvious that even Democrats are starting to adopt similar rhetoric, without the substance of course.

Obama wanted to be an historic President, and he has been in many ways: his deficits are historic, he lost our credit rating, he’s the least popular President ever, and he’s headed for an historic beat down landslide in 2012. But his most historic achievement may ultimately be that he brought to life a change in belief in the United States away from slowly expanding the welfare state to ending it. . . i.e. he may complete Reagan's legacy!

The only question now is will the public turn out in large enough numbers to overcome those with a vested interest in big government? Someone said the other day that this election will be between those who work for a living and those who vote for a living. Workers of the world unite! ;-)

Things aren’t going well for Obama’s economic policies, and people are starting to notice. In fact, things have gone so badly that a backlash has formed and a wholesale rejection of his policies is underway. But even more than that, there seems to be a serious attitude shift in the public.

How Bad Is The Obamaconomy?

After three years bankrupting the country with futile “stimulus” spending and give-aways to Obama’s supporters, our economy stinks. In fact, it’s the worst economy since the Great Depression. How bad is it? Theoretically, the recession ended in 2009 and the Obama recovery began at that point. Indeed, Team Obama twice now has heralded “the recovery summer.” And yet:

● Official unemployment remains at 9.1% in August.

● Unofficial unemployment remains around 17%.

● Official black unemployment remains at 16.7%.

● Median household income is down to $49,445, below 1996 levels. In other words, fifteen years of income growth are gone.

● Inflation is officially 3.2%, but it’s really closer to 12-15%.

● There are 46.2 million people living below the poverty line ($22,314 per family). This is a record since the statistic was first kept in 1959. The poverty rate of 15.1% is also a record.

● 13.7 million Americans receive unemployment.

● 16.3% of people still have no health insurance.

● Health insurance premiums are up 9% this year, following 2010’s rise of 14%. Thanks Barack!

About Face!

In 2008, when Obama came to power, the conventional wisdom assumed the public was ready to move left and accept more government control over their lives. But that didn't last. People now see the government as the problem. Indeed, not only has the public rejected Obama's agenda, but they've moved further right than ever. Consider these numbers from Gallup (which typically shades about 5% to the left):

● 57% of Americans say the federal government has too much power and only 8% think it needs more.

● 56% of Americans say the federal government “is trying to do too many things that should be left to individuals and business.” Only 39% believe the government should do more.

● 56% want lower taxes and fewer services and only 16% want more taxes and more services.

● 50% think the government regulates too much. 23% think it regulates about right and 23% want more regulation.

That means 60% of the public is ready to declare an end to the Pelosi/Obama Age of Big Government (Redux). But even beyond these numbers, something else has changed.

When Reagan came to power, there was a sense the government had gone too far. But there seemed little appetite for wholesale butchering of government functions and agencies. It was still a world of “the government should be smaller, but don’t cut any of it.” The left used this dualism for years to justify continued spending, by claiming that people don’t really want cuts because they can’t identify anything they are willing to give up. That’s changed. Suddenly, people want it all cut. Questions like “what agency would you wipe out,” are now common topics for discussion and were even asked by an MSM journalist at the last debate -- in the past, this would have been considered fringe stuff.

Also, Republican governors are slashing budgets, cutting taxes, demanding an end to regulation, and ending collective bargaining right, and House Republicans are in near revolt to make similar changes. . . yet this isn't hurting them with the public. In fact, many of their poll numbers are up (some Democratic pollster recently noted to their chagrin that the Democrats are doing even worse now than they did in 2010). Moreover, we just aren't seeing a popular backlash like we've seen in the past when sacred cows were touched. Where are the million old people who flooded the Capitol switchboard when Republicans first proposed changes to Social Security in the 1990s? They're silent. Instead, all we've seen is professional protestors, whose buffoonish efforts achieved nothing. Heck, this trend is so obvious that even Democrats are starting to adopt similar rhetoric, without the substance of course.

Obama wanted to be an historic President, and he has been in many ways: his deficits are historic, he lost our credit rating, he’s the least popular President ever, and he’s headed for an historic beat down landslide in 2012. But his most historic achievement may ultimately be that he brought to life a change in belief in the United States away from slowly expanding the welfare state to ending it. . . i.e. he may complete Reagan's legacy!

The only question now is will the public turn out in large enough numbers to overcome those with a vested interest in big government? Someone said the other day that this election will be between those who work for a living and those who vote for a living. Workers of the world unite! ;-)

The Times They Are A Changing Back

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We're Number Five! We're Number Five!

We're Number Five! We're Number Five!

"There's no substitute for victory." "Winning isn't everything, it's the only thing." Outdated notions like those should not be allowed to get in the way of America's slide into mediocrity. The Obama administration put America in fourth place last year in global competitiveness. Fearing it might offend other "lesser" nations, they have succeeded this year in dropping the US to number five.

In its scramble to the bottom by way of rabid egalitarianism and bureaucratic control of business and free enterprise, the Obama administration has come up with a new mantra: "It's not whether you win or lose, but how you throw the game." Switzerland came in at number one in competitiveness, again. I guess if your major attractions are chocolate, anonymous banking, cuckoo clocks and Nazi stolen art, your competition isn't going to have much of a chance.

Singapore came in second (they cane you there if you don't produce), followed by Sweden (a socialist nation, no less) which had previously held the second-place spot. America got pushed out of fourth place by economic powerhouse Finland. The rankings come from the World Economic Forum which bases its conclusions on input from 15,000 global business executives analyzing complex economic data. Don't let the Forum's headquarters in Davos, Switzerland affect your opinion of the accuracy of the survey.

The Forum has been producing these rankings for about three decades now. In almost every instance, America ranked number one. As recently as 2008, America was still number one. Refresh my memory. Did something happen in 2008? Oh, yeah, now I remember. America elected a President who had no business experience whatsoever, no executive experience outside of "community organizing," and who surrounded himself with advisers who hate capitalism.

The Obama administration has modeled its economic program after that of Greece, which is currently holding its own in 90th place. Germany, which is quickly undoing its worst democratic socialist enactments is in sixth place, shooting to push America out of the fifth position next year. Also close on America's heels are Japan, Denmark, the Netherlands and England, all of which are rapidly abandoning the policies which the Obama administration has embraced and is shoving down America's throat through legislation and executive order.

While America continues to slide, countries which were considered hopeless just a few years back are gaining. Moving up are China, Brazil, India and Russia. Though none of those four would be considered paragons of enlightened capitalism, they are moving in the opposite direction from America. While the Obamists feed bureaucratic proliferation, over-regulation and over-taxation, each of those four nations is removing its own roadblocks from the path of competitiveness. At this rate, they'll be able to abandon slave labor, forced work, starvation wages and environmental ignorance in just a few years, making them true competitors.

When the premier of China, officially still a communist nation, has to lecture the President of the United States on fiscal responsibility, poor economic conditions, high unemployment, and low productivity, it should come as no surprise that America is on a downhill slide lubricated by foreign oil. This condition gives all-new meaning to the words "slippery slope."

Perhaps Barack Obama can solve this problem by making another speech, this time in front of a joint session of Congress and the United Nations General Assembly.

"There's no substitute for victory." "Winning isn't everything, it's the only thing." Outdated notions like those should not be allowed to get in the way of America's slide into mediocrity. The Obama administration put America in fourth place last year in global competitiveness. Fearing it might offend other "lesser" nations, they have succeeded this year in dropping the US to number five.

In its scramble to the bottom by way of rabid egalitarianism and bureaucratic control of business and free enterprise, the Obama administration has come up with a new mantra: "It's not whether you win or lose, but how you throw the game." Switzerland came in at number one in competitiveness, again. I guess if your major attractions are chocolate, anonymous banking, cuckoo clocks and Nazi stolen art, your competition isn't going to have much of a chance.

Singapore came in second (they cane you there if you don't produce), followed by Sweden (a socialist nation, no less) which had previously held the second-place spot. America got pushed out of fourth place by economic powerhouse Finland. The rankings come from the World Economic Forum which bases its conclusions on input from 15,000 global business executives analyzing complex economic data. Don't let the Forum's headquarters in Davos, Switzerland affect your opinion of the accuracy of the survey.

The Forum has been producing these rankings for about three decades now. In almost every instance, America ranked number one. As recently as 2008, America was still number one. Refresh my memory. Did something happen in 2008? Oh, yeah, now I remember. America elected a President who had no business experience whatsoever, no executive experience outside of "community organizing," and who surrounded himself with advisers who hate capitalism.

The Obama administration has modeled its economic program after that of Greece, which is currently holding its own in 90th place. Germany, which is quickly undoing its worst democratic socialist enactments is in sixth place, shooting to push America out of the fifth position next year. Also close on America's heels are Japan, Denmark, the Netherlands and England, all of which are rapidly abandoning the policies which the Obama administration has embraced and is shoving down America's throat through legislation and executive order.

While America continues to slide, countries which were considered hopeless just a few years back are gaining. Moving up are China, Brazil, India and Russia. Though none of those four would be considered paragons of enlightened capitalism, they are moving in the opposite direction from America. While the Obamists feed bureaucratic proliferation, over-regulation and over-taxation, each of those four nations is removing its own roadblocks from the path of competitiveness. At this rate, they'll be able to abandon slave labor, forced work, starvation wages and environmental ignorance in just a few years, making them true competitors.

When the premier of China, officially still a communist nation, has to lecture the President of the United States on fiscal responsibility, poor economic conditions, high unemployment, and low productivity, it should come as no surprise that America is on a downhill slide lubricated by foreign oil. This condition gives all-new meaning to the words "slippery slope."

Perhaps Barack Obama can solve this problem by making another speech, this time in front of a joint session of Congress and the United Nations General Assembly.

We're Number Five! We're Number Five!

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