Friday, September 3, 2010

Clueless (cont.)

This from the WSJ today
The report is likely to cause renewed debate during the long Labor Day weekend over what new steps the Federal Reserve and Congress should consider to jump-start the job market.
This is in response to the jobs number which once again was atrocious, but admittedly not as bad as expected. The only silver lining is that the private sector actually managed to add some jobs but a net loss overall of 54,000 jobs and an increase to 9.6% of the unemployment rate. Why did I pull out that one sentence? It highlights exactly what the problem is, the Fed and Congress. I don't want them debating anything, as long as the Democrats control Congress their answer to every single bad number is to make it worse by proposing some new spending as we saw with that ridiculous $26 billion payoff to the teachers unions in August under the guise of a "jobs bill". I wonder if any of that taxpayer money they received will be kicked back into tight congressional races this November? The only jobs it is helping to save will be some liberal congressmen. No doubt that it is part of the reason the DSCC is flush with cash at this moment.

The beginning of the discussion should be to extend the Bush tax cuts that liberals (for knee jerk reactions) despise. Raising taxes in the current environment is unhelpful and most economists would agree with that, well the ones that aren't partisan hacks (Paul Krugman, Robert Reich ). Companies and investors are standing on the sidelines in part due to their uncertainty as to what their liabilities will be in the next year. The marginal tax rates being only part of the problem, start adding in the potential costs of Obamacare and it's a recipe for job stagnation. I think if Republicans proposed some legislation to extend the cuts I do feel it could get some steam in the House, Senate not so much. For two reasons, first the Republicans in the Senate are for the most part 'inside-the-beltway' R's and not willing to hand the Democrats a political win before the election. Cynical but true. Second, outside of Ben Nelson I don't see many Democrats in that chamber willing to go there. So we may have to wait until January to see movement on the issue, by then the cuts will have expired.

But hey we are supposed to feel good because our Labor Secretary says "There are jobs out there". Coming from a hardcore Leftist like Hilda Solis who is only intersted in redistribution, it should make me feel all warm and fuzzy? Well that's very reassuring to the millions out of work applying for the measly 67,000 jobs that were added in the private sector last month. Yeah that adds up. The Obama administration's war on math continues.

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