Last quarter’s “numbers” confirm that the stimulus didn’t stimulate, clunkers was one, the unemployed are still growing in ranks and the consumer is still cowering at home. Democrats are looking for someone to take the fall when in fact they are all making exactly the wrong moves economically, and soon time will show, politically.
One big difference between Washington and private markets is that politicians think everything they do is free-standing. Markets, however, combine all the potential costs of Washington’s policies and then decide whether to invest, or not. Consider what private decision-makers [read job-creators; employers-JR] see in their future:
A 2,074-page, trillion-dollar health-care bill to redesign 17% of the U.S. economy. A carbon tax—cap and trade—that remains an Obama priority ahead of the Copenhagen climate summit next month. A falling dollar and gyrating commodity prices, with no idea where those prices will go next.
Democratic liberals are talking about an income tax surcharge to pay for any commitment in Afghanistan. Card check, to expand unionization of the private economy, remains a priority. Domestic discretionary spending in fiscal 2010 is set to rise at 12.1%, with inflation near zero.
Nurturing a fragile economic recovery into a durable expansion requires policies that restore public confidence and reassure investors, risk-takers and employers. The Democratic agenda is doing precisely the opposite, which is how you get subpar growth and fewer new jobs. [emph. mine-JR]
High unemployment will progressively weigh more heavily on a Congress and Administration that has shown how ill-equipped and out of touch they have become they have been all along. They remain without a clue as it regards restoring our economy in a way that is meaningful for their constituents: jobs growth.
At the same time, they have failed to capitalize politically on the crisis (they themselves created), revealing how utterly failed and irrelevant their policies and leadership have become. How effectively they have shown once again that they are the wrong party at the wrong time, or at any time.