The Wall Street Journal posted an opinion article today pointing out that President Obama is implementing policies that are slowing down, or even stopping, our recovery from this recession. After falling 4.24% yesterday, the Dow is now down over 25% since Obama was elected, its lowest level since 1997. The new administration’s policies of punishing business and rewarding failure is clearly having a detrimental effect.
The average length of a recession during the past fifty years is 11 months. The current recession has existed now for 15 months. Instead of focusing on promoting growth, Obama has focused on income transfers (tax credits to those who don’t pay taxes, mortgage bailout, etc). Now, there is even mention of reforming healthcare. While I can agree with Obama’s statement “There are times when you can afford to decorate your house, then there are times when you need to refocus on building its foundation,” I cannot understand why his actions are in direct opposition.
When the recovery occurs, it will not be because of Obama’s policies… it will be in spite of them. The market showed its opinion of the President’s proposed budget plan when it took a nose dive. It unfortunately seems that every time the administration mentions an action the market drops even further. Just today Orszag defended raising taxes in the middle of the recession. As those who make hiring decisions have less money, less people are hired. It is a fantastic way to stagnate the economy further.
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Posted under Economy
Written by admin on March 3, 2009



