Thursday, October 7, 2010

Dialing Up The Rhetoric

President Obama has resigned himself to the fact that he has lost independents and is concentrating solely on riling up the base for the midterm. There is no other reason for the type of rhetoric he has been engaging in. Nevermind the fact that it is beneath his office to go toe to toe with specific lawmakers, it is the tone that is disappointing. As polls show, the gap in enthusiasm is huge between Republican and Democrat voters. Look I understand that as President you are the leader of your political party and it is your job to be a cheerleader. The problem is, with no discernible accomplishments that the public approves of he is reduced to this or this.

The best hope this President has of saving his term is to have a complete overhaul of the House with the hope some of these jittery companies get off the sidelines and into the game because of it. His agenda has done nothing but engender fear and uncertainty of economic viability for large companies let alone small businesses. This type of news that is all too common the last two years has to stop or he is one and done.

If you look at the very first graph in that last link from Gallup, you'll notice a disturbing trend in this "recovery". Technically we are in recovery as far as GDP growth, it is at an anemic annual rate of around 2% but it is there. The big problem is that graph. After topping out at 10.9% according to Gallup (it is not seasonally adjusted as the official government numbers but those have always been sketchy because of their propensity to be ever adjusted retroactively) we saw it trend back to a shade under 9% in July of this year, BUT it now finds itself creeping back over 10%. I am sure the Labor Dept. numbers that come out tomorrow will show the same trend up. How is this possible if we are in recovery? Theories abound but the most solid theory for this chronic underemployment is what I alluded to above.

Companies right now are sitting on record amounts of cash assets they are presently unwilling to part with. Think about it, if you are unsure what your future liabilities are as an individual do you not hoard a little more cash yourself? You don't go out and buy that new car, or make those home improvements. It is exactly what the business world does, especially smaller business people. In my regular nine to five life, these are the people I speak with and have spoken to over the last two years. Small businesses are unsure about everything from healthcare benefits to sales, therefore they must cut hours to present employees and not hire any new ones. When you see private sector jobs dwindling and public sector jobs increasing you start to wonder if this country has it all backwards and if our government forgot about those private enterprises. You know, the ones that actually fund all the public sector jobs.

When you see the ravages this economy has done to usually prosperous cities like New York you start to think, 'When will the downturn end?'. Unfortunately the message out of Washington is not restraint, and certainly is not centered on rebuilding the private sector. It is centered on the liberal grab bag of waste via stimulus, sweetheart deals to our public service unions, and a leviathan government looking to stick its hands in all parts of your life it doesn't belong. These are not reassurances that the people in Washington get "it", that's why you have so much shifting within the Right and the Left. People have had enough and they are ready to hold them accountable. And in the end it is why he has to resort to the inflamed rhetoric, he does not have a choice if he wants to continue on his path to "remaking America". His constituents need to hear that kind of talk or they will lose all Hope®.

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