10 Jul
2011
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Surveying the Damage

Unemployment, by the latest government number, stands at an astounding 9.2%.  Although according to the National Bureau of Economic Research the Great Recession ended in June 2009, for the 14.1 million Americans still looking for job it continues, 41 months since it began officially in December 2007.  Traditional measures of recovery are flat, including employment, home prices, and GDP growth are all flat and trending toward worse times ahead.

The morass confounds the liberals in charge, leaving President Obama, Senate Majority Leader Reid, House Minority Leader Pelosi, and leading Democrat Senator Chuck Schumer sounding stupefied by the numbers.  It seems that the success guaranteed by Hoover/FDR plan, that is spending the nation out of depression, has proved elusive.  The President’s party is, in demagogic fashion, talking not about the joblessness, national debt, and currency devaluation but “corporate jets.”  The administration under which GE pays $0 in taxes on $14 billion profit apparently believes that most Americans can be distracted with nonsense as their country teeters on financial collapse.

National debt stands at $14.3 trillion, the most ever owed by the nation, and $5 trillion of the debt has been accumulated under Obama, who entered the office of the presidency in the midst of depression.  The American dollar is on par with the Euro, while the leaders of the European Central Bank scramble to bail out Greece once again.  Fiscally over-leveraged Italy, Portugal, and Spain serve as the backdrop for these talks.  The Euro is losing credibility daily, yet Federal Reserve has inflated the U.S.D. to such a point where they more than offset the financial turmoil in Europe.

The nations banks are still not lending.  With over $1 trillion in reserves since December 2008, commercial loans are stagnant, if not dropping.  Financial derivative products, precisely the products on which much of the blame went for the housing bubble, total $248 trillion.  For perspective, at the height of the last housing bubble they totaled a mere $183 trillion.  The nation’s car companies have not mounted the broad comeback promised by the government.  The coal industry is being hit with new onerous regulations from the EPA.  Housing prices are heading further south, and buyers increasing paying cash because the loan markets, and capital markets as a whole, are simply not functioning like they used to.

While in the next weeks when we hear the compromise talks among Boehner, McConnell, Reid, Pelosi, and Obama, remember the above facts.  Republicans must stand firm and demand that the president responsibly address the deficit problem he created with Pelosi and Reid, and point to the rampant joblessness, despair, and cynicism among the populace as reasons they failed.  Focusing the joblessness problem on Obama and his party is paramount, and pointing out that Obama looks toward to NASA’s shuttle program and the U.S. military for additional money to fund failed socialist experiments will help demonstrate his backward priorities.

All elected Republicans should vocal and direct: Obama has taken a recession and turned it into a recession.  In doing so, he has diminished America’s role in the world as a leader.  While Iran strives for the means to deliver a nuclear payload to Israel, and Pakistan, along with much of the Middle East, become increasingly fractious, our ability to counterbalance dangerous foreigns events deteriorates with our formerly vibrant economy.

Republicans would do well to keep this in mind, and demand that Obama slash spending, beginning with the programs he implemented and that have done so much harm to American citizens.

DISCLAIMER: This post and the contents thereof are the views of only the author identified immediately above and do not necessarily represent the views of the New York Young Republican Club (the "NYYRC"), its officers or its members. The NYYRC expressly disclaims responsibility for the contents thereof and by its charter documents may not, and does not, endorse any candidate for any office, except in a general election.

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