Obama's economic numbers are weak and
Article added on September 7, 2012 at 16:26 Swiss time
The Messiah has not
delivered. After four years in office, Obama's economic numbers are weak and
In November 2008, the month of Obama's election, the jobless rate stood at
6,8%. In February 2009, the Messiah's first month in office, the
unemployment rate had reached 8.3%. In July 2012, the rate stood still at
8.3%. In between, it reached over 10%. The August 2012 numbers are just out
and the Bureau of Labor Statistics reports an increase of 96,000 nonfarm
payroll jobs in August. Therefore, the U.S. unemployment stands now at 8.1%.
Nothing to be proud of.
The housing market is still in a terrible shape with some 11 million
borrowers who owe more on their mortgages than their house are worth.
Analysts expect some 4 million foreclosures in the next two years. The
housing market is in a shape as bad as in 2009.
The national debt crisis has not been resolved. Public debt has reached some
$16.015 trillion. Barack Obama had promised to reduce the public deficit in
half during his four-year mandate. When President Obama took office in 2009,
the debt stood at 10.626 trillion dollars.
The 2012 United States federal budget deficit is estimated to reach some
$1.1 trillion (the fiscal year end on September 30, 2012). It is the fourth
year in a row with a deficit above $1 trillion. The 2012 deficit is
estimated to reach 7.3% of GDP. The United States remain on an unsustainable
The American welfare state is not only heavily weighing on the national
debt, but also on the budget's of most states. The $800 billion stimulus was
of course not really effective. As for 2008-Economic Nobel Prize laureate
Paul Krugman and his magic bullet: If you want another stimulus, please go
to the bathroom and leave us alone with your fantasies!
Obamacare has of course not lowered the cost of health care. Some steps have
been taken into the right direction to curb healthcare costs, but overall,
the result is a mess.
The bailed-out auto industry has well profited from Obama's action. The
number of 1.1 million jobs saved is a number nobody can proof. If GM had
gone into a normal bankruptcy, maybe someone from the private sector may
have stepped in and bought some of the equipment and employed some of the
automakers. Other car companies such as Ford could have profited from GM's
end. Toyota or BMW maybe would have increased their production in the United
States. In any case, it is not up to the federal government to save
Which leads us to the financial sector. There are now fewer and bigger
banks. The oligopoly of the big banks is stronger than ever. Therefore, they
remain too-big-to-fail. As I have argued many times before, split them up
into smaller entities, increase competition, lower their inter-dependency
and never again save a bank!
Both Democrats and Republicans will have a lot of soul searching to do since
they are equally responsible for the economic and financial mess.
In short, the Messiah has not delivered. It is up to someone else - with
economic expertise - to step in. Whether you like it or not, right now, they
only such candidate in the race is Mitt Romney.
American Songbook sheet music -
Today's deals at Amazon.com