Either Barak Obama fixes what’s broken in the economy, or he will be remembered for spending his entire first term blaming George Bush.
Last week’s jobs report was terrible for the eleventh month of a recovery. With nearly $800 billion in stimulus spending at its point of maximum impact, federal employment—net of temporary census jobs—was up a mere one thousand in May.
Private sector employment was up an insignificant 41 thousand, only one fourth the pace of the prior two months. Retailers are again cutting employment, as consumers turned pessimistic, flee the malls. Making worse a stock market panicked by European debt woes, the President claims his policies are working.
After all, health care reform and the prospects of much higher taxes and more regulations are causing U.S. businesses to rush out and hire everyone they can before all the able bodied are gone.
The economy is skating precariously on the edge of a second dip—this time into a depression—and the President should radically alter policies to ensure that doesn’t happen.
The private sector provides good examples. The Motor City is motoring again. U.S. automakers are gaining market share over import rivals, because Ford has convinced car buyers Americans can still make quality vehicles—without a government bailout or blaming prior management for a heavy debt burden.
Now Americans are finally willing to test drive, not just Fords, but GM and Chrysler products too. Amazing what focus on the customer can do!
Now is the time to apply that thinking to Washington. The recovery is faltering because U.S. businesses lack customers to justify new employees and the capital to expand, and they want help on both scores.