Larry Kudlow explains why the economy is not really recovering even though the media keeps chirping happily about how much better it looks.
The household survey, however, which picks up small, owner-operated, LLC/S-Corp-type businesses, registered a devastating 392,000 job loss, which follows losses of 155,000 and 374,000 in the prior two months. This is the source of the unemployment-rate jump, as 466,000 newly unemployed were scored in the report.
So while the big companies are getting healthier, the smaller firms are being left in the dust. Unfortunately, small businesses provide most of the new job creation in the United States.
Veep Joe Biden is out there saying the Obama stimulus plan has saved or created 150,000 jobs in the administration’s first 100 days and another 600,000 in its second 100 days. But he sure isn’t talking about small-business jobs.
In fact, it’s hard to know what he’s talking about. Uncle Sam has borrowed $388 billion in the second quarter and is scheduled to borrow $406 billion in the third quarter and nearly $500 billion in the fourth. In order to provide $152 billion in so-called fiscal stimulus, the government is draining close to $800 billion from the private-sector savings supply — $800 billion that will not be invested in new-business enterprises, including small businesses.
To be honest, it’s hard to know what Biden is talking about at any given moment he opens his mouth. But on the economy and the “stimulus” plan he’s even more incoherent than usual. (Actually, I suspect Biden was brought on board the ticket to provide Obama with a comic side-kick. Buddy movie politics.)
The economy is a shambles directly because of the policies of the Obama administration. Kudlow predicts a minimum 500 point Wall Street rally if ObamaCare fails. (I’d bet on a lot higher, frankly).
But it will take a lot to get this many people back working. Until the leftist Obama agenda is stopped cold, don’t expect any miracles.
I’ve begun to think that Donald Trump/Larry Kudlow would be a much better executive team than Obama/Biden.
It hasn’t really been mentioned, but there is something very significant about Biden’s latest.
Namely, what Biden has done is claim ownership for the economy, across the board. “We went from a possible Great Depression to recovering from a recession (because of admin policies)” says Biden?
OK, fine. You done it. Mm-hmm. Now, EVERYTHING that follows is because of you. And no beating around any Bush any more.
Better hope it holds up, friend, ’cause it’s all you now.