Friday, October 8, 2010

Why Americans are Angry & Don’t Believe Economists or Politicians Any More - Sept Jobs Report

Photo Credit - Flickr Creative Common License Watz
Job losses continue confirms the latest September, 2010 Job Report figures released October 8 affecting a 95,000 net job loss. This news affirms the unemployment rate has remained at 9.5% or higher for 14 consecutive months. This is the longest record of increased joblessness since monthly employment recordkeeping began in 1948.

According to a Bloomberg Businessweek article, “The number of jobs lost last month was 19 times the median estimate of economists in a Bloomberg survey. It was led by a decline in government payrolls that shows the damage being done by rising budget deficits.”

In this same article noting the damage of rising budget deficits is “It indicates that we’re still in this soft patch, and in order to get out of that and minimize the risk of a double dip, we need more fiscal and monetary stimulus.” Is this why most Americans don’t believe economists any more and don’t trust politicians actually know how to create an environment that allows private sector job creation? Is the fact the Dow topped 11,000 on the September Jobs Report why Americans remain angry at Wall Street?

In mid-September the National Bureau of Economic Research (NBER) announced the official end to the recession noting it actually ended in June, 2009. Treasury Secretary Timothy Geithner and investment oracle Warren Buffett have not embraced this message. Neither has the 15 million unemployed Americans still looking for jobs that no longer seem to exist and are not being recreated.

The everyday reality of the non-elite and non-political class in America remains painful. 2010 was a year most will be happy to leave behind. The housing crisis continued with record foreclosure levels and home value losses. The commercial real estate sector is reflecting big problems ahead too.

More than a year after the banks were bailed out by taxpayers, loans and credit to small business needed to grow and hire have all but disappeared. These same banks doubled and tripled consumer credit card interest rates and minimum payments while shrinking credit limits for the majority of customers including the “never late, never missed payment, never over limit” customers. This, combined with high unemployment and underemployment, resulted in record payment delinquencies and personal bankruptcies.

Record federal government stimulus spending resulting in trillion dollar deficits went mainly to congressional pet projects and to bail out state and local government to ensure special interest public union jobs were more secure. Even with the federal money, state and local governments all across the U.S. still have billion dollar budget deficits. Public unions still decry any budget cuts or restructuring that will affect them.

Americans are angry as the new normal for many now includes a place in life they never thought they would be and don’t want to stay: 1 in 5 are in foreclosure; 1 in 8 are on food stamps; 1 in 7 are now living in poverty. Having lost their retirement accounts through stock market losses or having had to cash it in early to pay current living expenses, many Americans now believe they will never be able to retire in this life time. Those losing their jobs in their 50s are not sure they will ever work at a normal level again.

Americans are not sure social security retirement benefits and Medicare are viable for them in the long run. They don’t believe the health care reform passed by the Democrats will retain current medical care quality, and many have already seen just the tip of the iceberg in the coming cost increases in their health insurance premiums. They know ObamaCare will only become another unsustainable entitlement program that Americans can not afford. They knew it all along.

Americans know liberals will try to control what they eat, lifestyle choices, and medical procedure availability under the guise of civic duty to collective lifestyle mandates and health care costs. Progressives have already shown the coming control methods of isolate, demonize, and encourage scorn from others with American adults who still choose to smoke cigarettes. They have seen the hypocrisy in hating smoking, but rallying pot legalization. They have seen the choice control progressives see as their right to impose within government dependency in the current discussion to ban buying soda with food stamps. Americans realize this is just the beginning of lifestyle mandates in a nanny state.

It’s not a pretty picture. We have gone off course. Congress has created a mess. Many believe the Obama policies’ socialistic tendencies have confirmed once again you eventually run out of money and stifle real economic growth. With the doubling down of the Bush deficit spending by the Obama administration, most Americans now see the dollar devaluation and inflation as a given in the very near future. Can we all finally agree what has been done has not only not worked but has killed any hope of a meaningful economic recovery until we get government out of the center of the economy?

It’s time to let all industries know no one is too big to fail. It’s time to stop telling banks they will be bailed out again and again in advance through slush fund legislation. It’s time to stop ordering banks to loan money while insisting on stress tests that penalize for lower reserve levels. It’s time for government to stop taking over private companies. And, don’t even think about making all federal taxpayers bail out the bad habits of failing states even though they may not live in those states.

If you have been watching the mid-term election political ads on television and the Internet this week, it’s hard not to notice the Democrats are distancing themselves from their economic policies and massive spending record of the past two years. It’s easy to note the Republicans only want to talk about the deficit and job creation while blaming the pain of a prolonged recession on liberal Democratic rule. In a New York Times article the other day, a top advisor to President Obama recommends “that his party’s candidates should confront anger about the economic crisis head on — and then blame Republicans.”

Evidently its business as usual in Washington, and ultimately no matter who wins in the mid-term elections, this needs to change or it is what will prolong the pain for Americans if not put the last nail in the coffin. The 2011 Congress needs to grow up, put up, and get over the party politics. Liberals - Americans want opportunity not more government dependency and nanny state control. Conservatives – Americans want cooperation and accountability within solutions that work for every American. Whoever wins in the mid-term election - you wanted the job, so roll up your sleeves and get the job done. Deficit reduction and creating a pro job creation environment must be your only focus in 2011.

1 comment:

  1. Re: “... most Americans now see the dollar devaluation and inflation as a given in the very near future.

    If the stated value, of “Federal” Reserve notes, declines enough with respect to copper and nickel, the 1946-2010 U.S. Mint nickels, composed of cupronickel alloy, could become somewhat rare in mass circulation.

    The October 8th metal value of these nickels is “$0.0617794” or 123.55% of face value, according to the “United States Circulating Coinage Intrinsic Value Table” at