PRESIDENT OBAMA: You know, a year from now I think people — are gonna see that — we're starting to make some progress. But there's still gonna be some pain out there. If I don't have this done in three years, then there's gonna be a one-term proposition.



Obama's Economic Model Is a Failure


You would think $1 trillion in spending stimulus and $2.5 trillion of Fed pump-priming would produce an economy a whole lot stronger than 1.9 percent gross domestic product, which was the revised first-quarter number. And you'd think all that government spending would deliver a whole lot more jobs than 69,000 in May.

But it hasn't happened.

The Keynesian government-spending model has proven a complete failure. It's the Obama model. And it has produced such an anemic recovery that, frankly, at 2 percent growth, we're back on the front end of a potential recession. If anything goes wrong -- like another blow-up in Europe -- there's no safety margin to stop a new recession.

And that brings us to the grim May employment report, which generated only 69,000 nonfarm payrolls. It's the third consecutive subpar tally, replete with downward revisions for the two prior months. It's a devastating number for the American economy and a catastrophic number for Obama's re-election hopes. All momentum on jobs and the economy has evaporated.

Inside the May report, the data is just as bad. The unemployment rate rose slightly from 8.1 to 8.2 percent. The so called U6 unemployment rate, tracking the marginally employed or completely discouraged, increased to 14.8 percent from 14.5 percent. And labor earnings are barely rising at 1.7 percent over the past year, almost in line with the inflation rate. In fact, through April, after-tax, after-inflation income is scarcely rising at 0.6 percent for the past year.

The private workweek also fell in May. So did the manufacturing workweek and aggregate hours worked for all employees. The small-business household survey did rise, but that follows declines in the prior two months.

Barack Obama doesn't get this, but businesses create jobs. And firms have to be profitable in order to hire. Yet the president is on the campaign trail criticizing Mitt Romney by degrading the importance of profits. Huh?

Without profits, businesses can't expand. And if they don't expand, they can't hire. And if they don't have profitable rates of return, they're not going to attract new capital for investment.

Which brings us to a couple of important reasons for the virtual freeze in hiring.

First, there's the fiscal tax cliff. If all the Bush tax rates go up, incentives will go down and liquidity will leave the system. You can't pick up a newspaper these days and not find a story about how the fiscal cliff is elevating uncertainty and slowing U.S. growth. House Speaker John Boehner asked Obama for help in extending the Bush tax cuts this summer. But Obama said no. Instead, he wants to raise marginal tax rates on successful upper-income earners, capital gains, dividends, estates and many successful corporations.

A second uncertainty facing businesses is the Supreme Court decision on Obamacare due in a few weeks. If all those crazy tax-and-regulation mandates are deemed unconstitutional, it's Katy bar the door as businesses put profits to work and hire. But they're not going to move until they see that court decision.

Then there's the whole European mess with the threat of banking contagion from Spain, Greece and Italy. That could blow up the whole world economy if it goes completely sour. The Europeans should guarantee all bank deposits, interbank loans and bank debt until this story is straightened out. But they're not. So the problem festers.

And now European companies are withdrawing money from local banks and investing in dollars (especially through Treasury bonds that are yielding an incredibly low 1.5 percent). But the rapid rise of King Dollar is generating commodity deflation, which is a deterrent to manufacturing production. According to the May ISM report, manufacturing is slowing.

http://www.realclearpolitics.com/articles/2012/06/02/obamas_economic_model_is_a_complete_failure_114360.html

If it is between Mit Romney and Obama..... yep.

You better give us someone better.

RON PAUL!!

Obozonomics

There is nothing wrong with "profit." It is the way the profit ends up in the hands of the very rich and greedy corporations, and it is not distributed well into the hands of the workers.

The poor get poorer and the rich get richer. Why? Can these corporations survive without the workers? Do they pay a living wage? Do they find ways to withhold benefits and healthcare? Do they get rid of people earning too much, who are about to retire, and hire new workers who are desperate and will work for less?

Are they fair or just greedy????

Employers: Do you appreciate your employees? Or do you only hire them part time so you don't have to give them benefits?

No healthcare, no retirement, no sick leave, no holiday pay. Large chains don't want full time employees. They don't want good managers, and they will hire a woman because she will work for less money than a man.

Women, do it because they find discrimination everywhere they go.

People of this country need to just start doing what is right and stop whining and complaining about their politicians and blaming them for everything.

Stop depending on politicians to fix your lives. Do it yourself. Don't listen to their rhetoric.

People should be more frugal and stop spending money on worthless products just to keep up with their neighbors. Stop being the zombie consumers the big corporations want you to be.

People should get off drugs and stop funding terrorism. Terrorism is funded by drugs and weapons. Get off the damn drugs and the large criminal organizations will crumble to the ground.

Just getting off drugs will change the entire economic system.

A small businessman doesn't have a chance. The cities charge more for utilities, they charge fees for everything.

Our state promised no more "taxes" and now they tripled fees for car licences, and fees for drivers licences. Every month that your car is not licenced you are charged a $25.00 fee on top of the fee for the licence.

The only way to protest is to drive your car with no plates and get fined for that, or just get rid of your car and get a bicycle.

If everyone did that, they would probably start requiring people to have a licence for their bikes.

California is the worst of all.

I think you have to have a licence to be a pedestrian and probably one to breathe in California.

He will be another Jimmy Carter.

There's only one way Obama has a shot is if there is an idiot like Ron Paul who will pull a Ross Perot and will run 3rd Party and hand Obama another win like what happened for Slick Willy.

Yup, lets all go back to the days liaise faire capitalism, slavery,
and sweat shops.

You wish.

HUH?

I'm sure Bildebrg will put in another elitist POS if not the same one we have now.

Romney is the same type of trash as Barry. IMO