Misery Index Under Carter - Denja Vu 2010 - image Cosnervative Post
New claims for unemployment rose sharply last week, while the rate of inflationrose to 2.7% (excluding “volatile” food and energy statistics) The data on unemployment claims is being prefaced by the word “unexpected” – which is a tad disingenuous, considering that nothing has been done to boost private sector jobs, which is the key to ending unemployment. While the administration touts “jobs saved through the “Stimulus”, those are jobs within state and federal governments, many of which are due to expire, leaving individual states and commonwealth’s with the burden of layoffs and/or increasing revenue with taxes.
The administration’s answer is a Job’s Bill, which stands about as much of a chance of doing exactly what the Stimulus accomplished. Harking back to the late 1970’s, Jimmy Carters first year in office was a mirror image of what is happening today, and the “Job’s Bill” created under the Carter administration, among other tactics to boost the economy, was categorized as “A Year of Failure” . The steps that Carter chose, and the Obama administration is following, led to an increase in the jobless rate, as well as a rise in inflation. That said it took the Carter Administration three years to tank the economy to the point where a “misery index” was created. This administration is one-upping the former one-term President, by moving at lightning speed.
The problem lies in an insistence on creating public sector jobs, and projects – while ignoring the public sector, which is what pushes the economy. Regardless of those who evoke the work Corporate and Satan in the same sentence, and believe that all Corporations “owe” the “masses”, one has to understand that when the corporation fails in a dismal economy, so go the jobs. One understands the President is a Progressive Democrat, and would be most likely to follow his Progressive predecessor Cater in like-minded think, but what one does not understand is how one in such a position cannot look back at recent history and understand that a second attempt at a failed policy will most likely end up a failure.
Those most hurt by the crunch are those most vulnerable or individuals on a fixed income. The rising costs of food, energy (heating oil) and, insurance premiums have just begun to squeeze the American populace. Should the current track continue without implementation of across the board tax cuts (utilized by both John F. Kennedy and Ronald Reagan), the economy will continue to decline. The premise of across the board tax cuts is simple. Those at the top of the food chain (corporations – and small business) will have the capital to invest in more workers (jobs!), in turn increasing the government’s revenue by an increased tax base. This is a proven system, taking money and putting it back into the private sector, rather than increasing the size of the federal government. The tax cuts don’t work overnight, but over time, while the job bills give immediate relief to those who work in state and local governments, they expire over time. Further, when criticized for the failed Stimulus, the Administration made an effort to appear fiscally conservative, by choosing to selectively cut costs. Cuts were made to Medicare reimbursements, which resulted in a whopping 14% increase in Medicare Supplement plans for seniors.
It bears repetition, History repeats itself, and when history includes hard data, or a virtual “how to” or “how not to” map on economics, one would think that ideology would take a back seat to saving one’s political hide, and ending the misery of the millions of American’s who are currently out of work.
As the pundits wonder when Obama will move to the middle, (that handwriting is on the wall) and the bickering in Congress continues (due to a continued use of 2006 to 2008 campaign rhetoric), the people caught in the middle, will continue to suffer. One has to prefer a Congress and Administration at total odds, which will result in nothing getting accomplished, over an Administration and Congress in concert that are using decades old failed economic policies.