Wednesday, September 08, 2010

The Truth About Jobs

In response to the Clinton caused recession that he inherited, George W. Bush did a pretty good job managing the economy during the early years of his administration. As you can see from the graph above, jobs continued their 3 year upward move in 2006 right up until March of 2008, Unemployment was at historic lows, near the records set during the Coolidge years. The problem was that Bush did not really believe in small government or small business. He is first and foremost a lover of big government and big business.

As a result Bush was persuaded to give out a wasteful stimulus that sucked money from a fragile economy. The Democrat Congress elected in 2006 and 2008 was only too happy to go along. The combination of taking money out of the economy during a housing boom needing cash, aggravated an already unstable situation. Bush still tries to avoid blame for his own stupid moves, but it is hard to make that argument with a straight face. The corruption in Wall Street from poorly rated bonds secured by risky loans, the gambling in derivatives and credit default swaps that were frauds, led to a Wall Street collapse. Bush then started the bailouts and corruption. Bernanke and Paulson committed treason in the way they passed out that money to their friends.

Instead of the recovery that would have naturally occurred in late 2009, the idiocy of the Obama administration stomping on the federal spending peddle using borrowed money sabotaged the imminent recovery. He wasted money with his even larger stimulus and bailouts and continued the corruption that Bernanke and Paulson had started. We have not seen any recovery yet despite the constant lies of Obama and Biden. As is clear from the graph, we have seen a lull in the plunge downward. However whether we start to see recovery or see a second plunge down is dependent on what government does to get out of the way of the free enterprise system.

It is clear that Obama does not understand that. Otherwise we would not be facing unemployment as bad as during the depression years.


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