Posts Tagged ‘2010 midterm elections’

Obama’s Economy and the Jobs Crisis

November 15th, 2009 Comments off
The Obama administration has announced that it will be conducting a White House conference on job creation in December. This  upcoming employment pow-wow apparently was sparked by the continuing rise in U.S. unemployment numbers combined with a decline in polling numbers favourable to the Democratic Party.
President Barack Obama made a critical strategic error, in my opinion, when he selected Clinton administration retreads and Bush administration continuity to frame his economic agenda during his first year in office. Larry Summers, Timothy  Geithner and Ben Bernanke are the hand maidens of Clinton and Bush administration deregulation that crippled America’s financial system. Yet, it is precisely these minions of economic disarray that Obama selected as the saviours of the U.S. economy. It is as though  the ex-CEO of Enron was pulled out of prison to head the salvation of General Motors.
The clique picked by Obama to head economic policymaking has done what would be expected of them. They have sacrificed the real economy to backstop Wall Street, socialize its losses incurred through its unique brand of casino capitalism, and inflate a new equities asset bubble. Grow the bubble big enough, they must  think, and eventually the unemployment  numbers will recede.

Economic mythology is now being confronted by political reality. The so-called jobs summit has an air of desperation about it, as the Democrats begin to contemplate the loss of Congress in the 2010 mid-term elections. The next step will probably be a second Obama economic stimulus program, which may temporarily bring about a slight improvement in employment numbers, but at the cost of a further deterioration of America’s already bleak public fiscal posture. This will further weaken the dollar, which undoubtedly will bear political consequences in the 2010 mid-term elections. Obama may be in for a bitter surprise in the second half of his presidential term.




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