Monday, January 9, 2012

Yeah, I've heard that noise before...

During his weekly radio address, the President trumpeted the economic growth of the nation and the job market, saying:
Now, to get there, the most important thing we need to do is get more Americans back to work. And over the past three years, we’ve made steady progress. We just learned that our economy added 212,000 private sector jobs in December. After losing more than 8 million jobs in the recession, we’ve added more than 3 million private sector jobs over the past 22 months. And we’re starting 2012 with manufacturing on the rise and the American auto industry on the mend. 
We’re heading in the rightdirection. And we’re not going to let up.
I'm pretty sure the President has been singing this exact same tune for a couple of years, now. I remember when he proclaimed that he would "focus like a laser" on job creation back in 2010, then proceeded to get wrapped up in instituting a healthcare takeover. Indeed, Obama put job creation at the top of his list in 2009 and again in 2011, as well. And of course, the Stimulus Bill was supposed to be leading the way in all of this.

Rather than going to the trouble of showing yet again how moronic the job growth predictions were, with regard to the effects of the Stimulus, I'll just note that economic growth has been anemic throughout Obama's Presidency, to say the least.

But it's unfair to fault the President with all of this. Business cycles are a reality and down periods are an unavoidable reality. Similarly, I can't really fault him for his propaganda-laden speech; he's a politician, after all. And any politician--regardless of party affiliation--tries to put the best face on whatever situation they need to accept responsibility for, rightly or wrongly.

Still, the repetition grows tiresome. And any way you slice it, the economy is due to recover. The point is, we should understand that the recovery has little--if anything--to do with Obama's policies and initiatives. This is something easily understood by merely keeping in mind the concept of incentives, which I so often bring up.

Ask yourself this question, pretending that you are a business owner: what action or policy by the government in the past several years has created a real incentive for you to increase your workforce, for you to hire additional help? This is hardly rocket science. The administration has--via policy--slowed growth, not increased it (aside from growth in very limited sectors, benefiting from direct handouts, which isn't a formula for sustained job creation, at all).

Yet, as the election draws closer, there is a good chance the economy might grow significantly. And Obama will want to take credit for it, if it does. If it doesn't, he'll surely blame Republican "obstructionism." Don't let him get away with it.

Cheers, all.

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