LWW
10-31-2010, 05:09 AM
... this attempt to foist a fascist economy on the American people is also failing.
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">On the eve of the midterm elections, a third-quarter gross domestic product report showing a meager 2 percent growth rate is the final nail in the Obama Democrats' political coffin.
The economic nails slowly have been hammered into that coffin all summer and fall. A spate of sub-par economic statistics has shown the failure of the fiscal-stimulus spending program. And myriad tax and regulatory threats produced by new government policies have created a massive uncertainty overhang and a dismal jobs outlook. American businesses have gone on an investment-capital and hiring strike.
<span style='font-size: 14pt'>For a White House that bet the ranch on a massive government pump-priming plan, it all has turned out to be a complete failure. The scheduled economic recovery has simply not occurred.</span>
And that's why a Republican/tea party tsunami lies just over the horizon. <span style='font-size: 14pt'>That tidal wave could be even greater than current polling suggests.</span>
It should have been recovery summer , according to the president and his followers. But it is now officially a recovery slump . The entire command-and-control economic philosophy of the Obama Democrats has proved to be a big bust. And they'll pay a very big price for this.
In fact, the past two GDP reports have averaged less than 2 percent growth, something that qualifies as a growth recession , not a recovery.
<span style='font-size: 17pt'>Even worse, the GDP deflator -- the broadest inflation measure -- came in at 2.2 percent in the third quarter, following a 2 percent reading in the second quarter. That means inflation is rising faster than real output. Stagflation.</span>
The Bernanke Fed should take notice of this on the eve of its quantitative-easing pump-priming exercise, expected to be announced the day after the elections. We are actually experiencing a mini version of a stagflationary growth recession.
<span style='font-size: 14pt'>The spending, taxing and regulating policies of the Democratic Congress and administration have blocked growth, putting the Fed in a position to provide even more money to chase fewer goods. But in classic Milton Friedman terms, even though the economy is mired in stagnation, that's still an inflationary prescription.</span>
On top of all that, the depreciating-dollar policies of the Fed have led to a boom in commodity prices, including food and energy -- things ordinary Americans pay for in the course of their typical week.
When the economy came in at 5 percent in the last quarter of 2009 -- and at 3.7 percent in early 2010 -- it looked like a recovery scenario. This, of course, followed the Fed's massive $2 trillion stimulus plan and the $868 billion fiscal stimulus. But those sugar highs quickly evaporated as growth slowed to 2.7 percent in the spring and 2 percent in the summer.
Meanwhile, a stubbornly high unemployment rate of 9.6 percent was supposed to have dropped to 8 percent last year and 7 percent by the end of this year, according to the president's Council of Economic Advisers. But it didn't. The so-called stimulus failed to stimulate.
Actually, unemployment is much worse for regular workaday folks. Counting marginal part-time workers and discouraged workers, unemployment is 17.3 percent. And this year, though the president promised 1.5 million new jobs, <span style='font-size: 11pt'>non-farm payrolls have grown by only 613,000</span> <span style='font-size: 14pt'>and actually have fallen over the past four months.</span>
<span style='font-size: 17pt'>The trouble with the whole Obama mindset is the notion that government can run the economy. That idea has failed.</span> It is business that runs the economy, including entrepreneurs and risk takers. Yet the animal spirits have been stifled, while the producers have been laughed at, mocked and insulted.
<span style='font-size: 20pt'>The Obama class-warfare campaign against business and investment has created a wall of worry and a refusal to invest in the future. The incentive model of growth has been discarded by Obama's extreme left-liberal Keynesianism. Predictably, higher costs -- including the cost of Obamacare, probably the single greatest barrier to growth and jobs -- have forced the most productive factors in the economy to hole up and virtually shut down.</span>
But the whole tea party movement of free market populism represents an attempt to re-oxygenate the economy by unclogging the blood vessels of entrepreneurship with a major rollback of spending, taxing and regulating. <span style='font-size: 14pt'>This tea party philosophy is derided daily by the Democrats, but it represents a bull's-eye in terms of creating future economic growth.</span>
<span style='font-size: 26pt'>Fortunately, the Republican Party has returned to this Reaganesque message. This is the single most important theme in the GOP comeback.</span></div></div>
<span style='font-family: Arial Black'><span style='font-size: 26pt'><u>HEAR! HEAR! (http://www.rasmussenreports.com/public_content/political_commentary/commentary_by_lawrence_kudlow/the_final_nail_in_the_democrats_coffin)</u></span></span>
LWW
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">On the eve of the midterm elections, a third-quarter gross domestic product report showing a meager 2 percent growth rate is the final nail in the Obama Democrats' political coffin.
The economic nails slowly have been hammered into that coffin all summer and fall. A spate of sub-par economic statistics has shown the failure of the fiscal-stimulus spending program. And myriad tax and regulatory threats produced by new government policies have created a massive uncertainty overhang and a dismal jobs outlook. American businesses have gone on an investment-capital and hiring strike.
<span style='font-size: 14pt'>For a White House that bet the ranch on a massive government pump-priming plan, it all has turned out to be a complete failure. The scheduled economic recovery has simply not occurred.</span>
And that's why a Republican/tea party tsunami lies just over the horizon. <span style='font-size: 14pt'>That tidal wave could be even greater than current polling suggests.</span>
It should have been recovery summer , according to the president and his followers. But it is now officially a recovery slump . The entire command-and-control economic philosophy of the Obama Democrats has proved to be a big bust. And they'll pay a very big price for this.
In fact, the past two GDP reports have averaged less than 2 percent growth, something that qualifies as a growth recession , not a recovery.
<span style='font-size: 17pt'>Even worse, the GDP deflator -- the broadest inflation measure -- came in at 2.2 percent in the third quarter, following a 2 percent reading in the second quarter. That means inflation is rising faster than real output. Stagflation.</span>
The Bernanke Fed should take notice of this on the eve of its quantitative-easing pump-priming exercise, expected to be announced the day after the elections. We are actually experiencing a mini version of a stagflationary growth recession.
<span style='font-size: 14pt'>The spending, taxing and regulating policies of the Democratic Congress and administration have blocked growth, putting the Fed in a position to provide even more money to chase fewer goods. But in classic Milton Friedman terms, even though the economy is mired in stagnation, that's still an inflationary prescription.</span>
On top of all that, the depreciating-dollar policies of the Fed have led to a boom in commodity prices, including food and energy -- things ordinary Americans pay for in the course of their typical week.
When the economy came in at 5 percent in the last quarter of 2009 -- and at 3.7 percent in early 2010 -- it looked like a recovery scenario. This, of course, followed the Fed's massive $2 trillion stimulus plan and the $868 billion fiscal stimulus. But those sugar highs quickly evaporated as growth slowed to 2.7 percent in the spring and 2 percent in the summer.
Meanwhile, a stubbornly high unemployment rate of 9.6 percent was supposed to have dropped to 8 percent last year and 7 percent by the end of this year, according to the president's Council of Economic Advisers. But it didn't. The so-called stimulus failed to stimulate.
Actually, unemployment is much worse for regular workaday folks. Counting marginal part-time workers and discouraged workers, unemployment is 17.3 percent. And this year, though the president promised 1.5 million new jobs, <span style='font-size: 11pt'>non-farm payrolls have grown by only 613,000</span> <span style='font-size: 14pt'>and actually have fallen over the past four months.</span>
<span style='font-size: 17pt'>The trouble with the whole Obama mindset is the notion that government can run the economy. That idea has failed.</span> It is business that runs the economy, including entrepreneurs and risk takers. Yet the animal spirits have been stifled, while the producers have been laughed at, mocked and insulted.
<span style='font-size: 20pt'>The Obama class-warfare campaign against business and investment has created a wall of worry and a refusal to invest in the future. The incentive model of growth has been discarded by Obama's extreme left-liberal Keynesianism. Predictably, higher costs -- including the cost of Obamacare, probably the single greatest barrier to growth and jobs -- have forced the most productive factors in the economy to hole up and virtually shut down.</span>
But the whole tea party movement of free market populism represents an attempt to re-oxygenate the economy by unclogging the blood vessels of entrepreneurship with a major rollback of spending, taxing and regulating. <span style='font-size: 14pt'>This tea party philosophy is derided daily by the Democrats, but it represents a bull's-eye in terms of creating future economic growth.</span>
<span style='font-size: 26pt'>Fortunately, the Republican Party has returned to this Reaganesque message. This is the single most important theme in the GOP comeback.</span></div></div>
<span style='font-family: Arial Black'><span style='font-size: 26pt'><u>HEAR! HEAR! (http://www.rasmussenreports.com/public_content/political_commentary/commentary_by_lawrence_kudlow/the_final_nail_in_the_democrats_coffin)</u></span></span>
LWW