Revised GDP numbers suggest that going down is exactly what the economy is doing. The government revised second quarter GDP growth from 2.4% down to 1.6%. Even Paul Krugman is saying the stimulus didn’t work, but his solution is to drive the country into bankruptcy faster. Krugman’s complaint was that the stimulus wasn’t big enough. He also believe we should,” use Fannie Mae and Freddie Mac, the government-sponsored lenders, to engineer mortgage refinancing that puts money in the hands of American families.” Fannie and Freddie have already sucked $160 billion out of the Treasury and Mr. Krugman wants to back up and re-inflate the housing bubble. Talk about failed policies of the past, sheesh!
The solution to the jobs issue is private industry. The problem is that this is the most anti-business government in memory. Business is the target of the administration’s ire, tax policies, health care policies, cap and trade schemes, repeal of the Bush tax cuts, card check, financial regulation, have I left anything out? So business is sitting on its hands. No matter how much cash it may be accumulating it does not want to take any steps, like expanding, until the full weight of all these choking policies are understood and priced out or until the Democrats are run out of the Congress and the anti-business sentiment is lifted there.
So let the Joe Biden show continue. The man who says he know little about economics and proves it with every speech will go on telling us how the stimulus is working exactly as planned. President Obama will continue to take a new vacation about every 90 days and we will cross our fingers that there is something left to recover when we recover our government from these inexperienced, clueless dolts.
