The unemployment rate is now 9.6%. When you add in those who gave up looking for work, the unemployment rate is around 16%. When you add in those who are able to work full time but can only find part time work, the “unemployment and underemployment rate” is over 20%. Graduates cannot find jobs. Workers in their 40s on up cannot find full time work. The middle class is slowly sinking into poverty.
The Obama administration’s response to our economic mess is bail-outs and stimulus. But, this policy response has not produced jobs or prosperity. It has not jump started the economy. The green shoots have turned brown and they have shriveled.
We are on the wrong track, headed in the wrong direction at higher and higher speeds. We are on the runaway train of Barrack Obama and Frank Pallone. We are in an economic crisis that has not been seen since the Great Depression and things are getting worse because the Administration and Congress do not know what to do.
Congressman Frank Pallone has been a key supporter of the Obama Administration and its economic policies and direction. These policies and direction have caused a downward spiral to the economy. The Obama Administration and Mr. Pallone refuse to change direction or adopt pro-growth policies. Their ongoing response is more and more stimulus and government spending.
The Obama Administration’s spending is reckless. The Fed now prints huge amounts of dollars to pay for U.S. government debt. The Obama Administration then uses these funds for stimulus and bail outs. In other words, private investor s and foreign governments have essentially stopped buying a lot of US government debt. Downgrades by Moody’s and S & P of U.S. government bonds are inevitable.
A robust economy means a robust private sector. But, the private sector has been smothered under the weight of massive government debt and deficits.
Small and medium sized businesses cannot finance their growth in the capital markets. Massive government debt and deficits crowd out capital that might go to the private sector. At the same time, business owners, investors and lenders have lost their confidence in the United States.
The massive US government debt and deficits and huge bail outs and stimulus programs portend the bankruptcy of the United States. This negative reality and one crisis after another create fear, uncertainty and doubt by business owners, investors and lenders alike. They will not lend or invest in expansion and jobs under these circumstances. With so little confidence and so much doubt in the air, there can be no recovery.
A recovery requires robust investing and lending activity especially with respect to small businesses and start ups. Business owners, investors and lenders need certainty and stability. Only then will they have the confidence to lead the private sector toward recovery.
The Obama Administration, supported by Frank Pallone, declared at the beginning of the summer that this would be Recovery Summer. There has been no recovery. There will be no recovery without a significant change in policies and direction by the US government.
More stimulus and bailouts will only raise the US government deficit and debt, portend large future taxes and create more uncertainty and fear by business owners, investors and lenders. What we need is a new direction. What we need is for our Government to bolster confidence by the private sector and capital markets. This will require major spending cuts by the Federal government. The Federal government must live within its means. It must bolster stability and confidence. Only then will the capital markets work to stimulate the economy. Only then will job growth ensue.
What does Frank Pallone focus on while the US economy is in a downward spiral – He focuses on Obama Care and Financial Reform. These major pieces of legislation have done nothing to spur the economy. He tries to pass Cap and Trade. This initiative will just put more tax burden on small business. So, quite naturally small business owners, investors and lenders are reluctant to invest and lend. They are concerned that the Obama Administration and Congress will impose more and more unknown regulatory and tax burdens on them. They are concerned that the Obama Administration and Congress will sink the U.S. economy in a sea of red ink.
We are in an economic crisis. Yet, Congress and the President do not deal with it. The crisis will only be solved with less government control over small business, not more. We will only have job growth if the U.S. Government cuts spending and gets out of the way of small business.
That is why I urge you to vote for Anna Little for Congress. Anna Little is the Republican candidate for Congress running in the 6th Congressional District. Anna Little believes that we need to end reckless and out of control spending in Washington. She believes we must cut taxes and end regulatory burdens on small business. She believes in pro –growth policies that will restore confidence. Only then will investors, small business owners and lenders create jobs.
Michael E. Goldberg