MSNBC is running a piece about the Obama Economy. Just as they are delusional to their own readership, they seem to be delusional on everything else. The story says to ignore the polls because the markets indicate the economics that Obama is using is working. On Friday, the DOW did reach 11k again and the S&P 500 is up 74% since the recession began. But, what are the markets really a factor of?
When we speak of markets, there are the stock/securities markets (DOWJIA, S&P 500, etc.) There are also markets in the retail world and in the corporate world. The "market" is an invisible entity that houses the transactions of business. Through these transactions, the markets thrive or shrivel. When it comes to the securities markets, it is a little different. The securities markets make their transactions, not based solely on the transaction of goods and services, but based on speculations. When disastrous things happen in society, the securities markets do what? They tank! When the tide of these events is stemmed, what do the securities markets do? Just like the spouse that was cheated on, they try to slowly regain trust in the other. The securities markets slowly try to regain trust in the economy. So, they "readjust" themselves and basically march forward with the notion of "this is the way it is now, let's just hold out and see what happens." So, the market moves on down the road, moving up and down in value.
So, the DOW just hit 11k again. All is well, right? Last week, on April 6th, the jobless claim came out and it was a big surprise to the economists. It rose by 18,000! It was no surprise to the rest of us who actually have a clue. Unemployment still at 10% (arguably higher since after so much time, this number doesn't include people who are unemployed). Obama claims he will have laser-like focus on jobs and the economy. The only laser he is using is a destructive one. Not only this, the Federal Government is spending money like there's no tomorrow and charging it to future generations. There was a story from the Tax Policy Center that reports the amount of people not paying any Federal Income Tax is now at 47%. So, just about half of Americans pay no income tax - thanks to all of the deductions, credits, etc. Now, I'm all in favor of getting my money back from the government and I'll take it when I can get it. But, 47% pay no federal income tax. Why? Well, I have a theory:
Why do we find crime to be higher in poorer neighborhoods? I know there are all kinds of studies on this, but the main reason is desperation. When you've lost all hope but still have the need to survive, what do you do? Do you regard the law? No. Do you regard others? No. You do what you need to do to survive, regardless of the lives of others; regardless of this country. People who are told every day by their government that their poverty is a direct result of mean, capitalistic rich people and that their only hope is government, begin to actually believe it. For the most part, who is easier to control, form a Government standpoint? Those that have the least amount of money. Therefore, to make their poverty more comfortable, they offer tax credits, etc. so that they do no have to pay Federal income tax. This isn't done out of benevolence, but of sinicism.
Now, don't walk away from this saying that I'm against tax breaks because I'm not. However, to get a tax break you have to pay taxes! If someone is going to loss weight, they have to have that weight to begin with - you can't lose weight you don't have and you can get a tax break on that which you don't pay.
So, unemployment is still high; almost half of America is subliminally being encouraged to remain poor and we have a Government who takes no regard for the people - whom they work for! That's why they passed Health Care. That's why Obama rolled-back the Regan Revolution by signing an Arms reduction, not with Russia, but with ourselves. We will reduce our Arms, but you think Russia will? But, in typical liberal fashion, we don't care about the facts, we just want Russia to like us again :)
The economy is improving? Hardly.
Research for this post: