Obama and his ilk are selling the July economic numbers, telling us the stimulus is working, the recession is ending and the economy is on the mend.<\/p>\n
Businesses shed “just” 247,000 jobs in July, far fewer than the 330,000 most economists and Wall Street analysts were looking for. As bad as that still sounds, July’s toll was only two-thirds the monthly average since December 2007, when the recession began.<\/p><\/blockquote>\n
So your carotid is still gushing blood, but it’s coming out more slowly now.<\/p>\n
It’s not that there isn’t good news to be had, it’s that politicians are connecting dots that shouldn’t be connected.<\/p>\n
Americans are desperate for some good news, and this recession will someday be behind us, but our recovery will have nothing to do with wasteful government borrowing and spending. A recovery will come from small businesses and free enterprise, finding ways to succeed despite <\/em>the government’s increased burden in the form of inflation and ultimately, higher taxes on everyone<\/em>.<\/p>\n
As such, we’re bracing for the inevitable self-congratulatory back pats from the White House and Congress, lauding their own economic stewardship for pulling us back from the abyss. On Friday, President Obama said his policies “rescued our economy from catastrophe” while building “a new foundation for growth.”<\/p>\n
Don’t believe it. Claims that higher taxes and a total of $2 trillion in stimulus, TARP and bailout spending this year have turned the economy around are unconvincing. Indeed, they’re farcical.<\/p>\n
As economist Casey Mulligan noted on the New York Times blog after dissecting second-quarter GDP data, total stimulus at the state and federal levels amounted to about $12 per person. That’s stimulus?<\/p>\n
Suggesting that government is responsible for what looks to be a rather weak recovery is an insult to all the small private companies and millions of laid-off workers who bore the brunt of bad government policies over the past two years.<\/p><\/blockquote>\n
I will put my party hat on when banks start lending, businesses start hiring and consumers start spending. On that day we’ll have a true<\/em> recovery. At the same time, I will be watching the beach for the inflation title wave that will be the unavoidable result of “Stimulus,” “Cash for Clunkers,” corporate bailouts and “pedal to the metal” fed monetary policy.<\/p>\n
In the mean time, whatever Obama says about the economy from now on, you can pretty much disregard.<\/p>\n","protected":false},"excerpt":{"rendered":"
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