Posted on 24 May 2011.
Last week, USA Today stated that 485,000 workers had been terminated from the auto industry while only 67,000 had been rehired with the $85 Billion bailout from the government.
Some pundits and lots of the media are pointing to the fact that manufacturing is hiring again. Those media and pundits are feeding us more junk. They are looking at one little fact and ignoring the elephant in the room. The elephant is that the most successful of the auto makers is Ford who did not terminate many employees and did not take the bailout. Instead, Ford renegotiated union contracts and replaced many union workers with non-union employees. At $85 Billion for 67,000 rehires, that is more than $ 1 million per rehire for the auto bailouts at GM and Chrysler. More than $1 million per rehired worker is a horrible return on investment!
Other manufacturers like Boeing are being forced by the government to hire union employees, so many are moving even more manufacturing out of the USA.
And the costs for Obama’s programs continue to rise.
The CBO’s latest estimate is that Obamacare will cost Americans an additional $2.4 trillion over the next 10 years in hidden taxes and added healthcare costs. The only winners of Obamacare are the insurance companies and the government.
Politico reported today that the recovery from this recession is the slowest pace of any recovery since 1932 and that unemployment will remain high for at least the next 3 years. Even Obama is now saying that the unemployment problem will last much longer than anticipated. Polico points out that this administration has increased government spending at the twice the rate of any previous government in the history of the USA. Obama increased the deficit 10 times more than at any time previous to him.
Money Magazine for June, 2011 states on page 22 that the only reason that stock prices have risen is because interest rates have fallen to such low levels. It states in the first paragraph: “While stock investors have gained from the Federal Reserve’s efforts to hold down interest rates …. All that’s about to change.”
Gasoline prices and food prices increased at rates that are more than 100% on an annual basis. Those price increases had very little decrease to consumption which shows prices for food and energy to be inelastic. That inelasticity caused a money drain that reduced discretionary spending by consumers and hurt the economy. So as Obama continues to make ethanol from corn (which drives up the price of corn and any products that use corn like live stock and milk) and to limit oil drilling in the USA, the average Americans suffer from his actions.
Kiplinger Letter of May 20, 2011 states “Over the coming year or two … making investment choices will get tougher …. as the Federal Reserve raises interest rates …. stocks will no longer be the obvious winner.”
Kiplinger continues with “Europe’s financial worries are far from over… now headed into round two for Greece.”
And Kiplinger states: “Republicans could send Obama packing after one term.” … “A firestorm over an NLRB move … Boeing out of South Carolina … Business groups are livid.”
The National Real Estate Association estimates that the average home value has decreased about 35% since Obama took office and that it will decrease another 5 to 15% in the next year.
Some argue that Obama inherited this situation. Did he? He was part of Congress from 2005 to 2009. He was part of the Democrat contingency that protected Fannie Mae and Freddie Mac. He represented ACORN who intimidated banks into making so many loans to people who should not have gotten them.
Even if Obama inherited the situation, his record at solving it has been a disaster. Politico stated that this is the slowest rate of recovery for any recession since 1932.
The average American has lost value in home equity, suffered from hidden inflation, lost money in savings and 401 Ks, become underemployed, and suffered from wage stagnation.
It is clear that Obama hurt this economy … pandering to unions, printing money, pushing interest rates too low, deficit spending, expanding government, and implementing the same socialism that is killing Europe like with Obamacare while granting more than 1300 exemptions to Obamacare (including an exemption to AARP who was the biggest supporter of Obamacare).
If nothing else, Obama exacerbated the problems. Obama has been horrible for America. His economic plans are horrible. He polarized the country rather than unite it. And he is leading America in a socialist direction like in Europe rather than setting the pace for the world with capitalism.
And why? Because Obama lacks any executive experience or respect for capitalism that is required for the president of the USA.
Compare Obama to Cain, Pawlenty, Christie, Huntsman, Romney, or Trump who all have educations at least equal to Obama in business and economics and have executive experiences that make Obama look woefully inadequate.
Obama has been a horrible experiment in affirmative action that has cost America a tremendous amount to the economy and to unity.
We need to reverse course from Obama to save America now!
Michael Master is the author of “Save America Now!” It can be ordered at http://www.amazon.com/gp/product/1616235756