Anemic economic growth of around 2% not only puts the U.S. economy at heightened risk of recession, but is also too slow to a) generate enough jobs to quickly close the jobs gap, and b) boost take-home pay. Anyone satisfied with or hyping this report does a great disservice to the America worker.
Fifty-five percent of small business owners and manufacturers would not have started their businesses in today’s economy, according to a new poll that also reports 69 percent say President Obama’s regulatory policies have hurt their businesses . . . .
The poll reports another ominous statistic for job creation: “67 percent say there is too much uncertainty in the market today to expand, grow or hire new workers.” Why? Because “President Obama’s Executive Branch and regulatory policies have hurt American small businesses and manufacturers,” according to 69 percent of the business owners surveyed.
Because Obama’s policies have suppressed economic growth, the ranks of the unemployed and underemployed have grown steadily. As unemployment benefits have finally run out, the long-term unemployed have, by the millions, declared themselves to be permanently and totally disabled. Millions of Americans have come to be dependent on government largesse as a result of the economic folly of the Obama administration. So how are those people going to vote? One might think that, angry at the government policies that have robbed them of their ability to be self-supporting, they would vote Republican. No doubt some will. But many more will cling to the only life raft in sight, and will vote for the party that promises the never-ending continuation and expansion of government benefits.As Instapundit's Glenn Reynolds says: "They'll turn us all into beggars 'cause they're easier to please."
Unemployment rates of those 16-24 are now officially over 50%. Even the cohort between 16 and 29 suffers from 45% unemployment. In short, in four years we have become Europeanized: young people with no jobs who are living at home and putting off marriage and child raising — a “lost” generation in “limbo,” etc. etc. They may have a car, borrow their parents’ nicer car for special occasions, watch their parents’ big screen TV, and have pocket change for a cell phone and laptop by enjoying free rent, food, and laundry, but beneath that thinning technological veneer there is really little hope that they will ever be able to maintain that lifestyle on their own in this present day and age. Meanwhile, just like some Middle East tribal society, “contacts,” “networking,” and “pull” are the new gospel, as parents rely on quid pro quos to offer their indebted, unemployed (and aging) children some sort of inside one-upmanship in the cutthroat job market . . . .
In other words, we are seeing the proverbial chickens coming home to roost in an economy that has run up $16 trillion in debt, regulated its way into paralysis, hounded the private sector, and demonized profit-making. The strange thing about the 2008 disaster was not just that hand-in-glove with Wall Street banks Freddie Mac and Fannie Mae created a huge real estate bubble and then watched it pop (one inflated through private speculation and government-backed sub-prime loans), but that the blame went not to the intrusive, incompetent federal government or even to a Goldman-Sachs-like bundler (a firm from whom Obama got more campaign money than did any other prior presidential candidate), but to the vague “private sector” — as if the well-driller or timber man had somehow collapsed the economy. The result was that Obama’s medicine from 2009 onward was worse than the original disease.
My business experience confirmed my belief in empowering people. For example, at Bain Capital we bought Accuride, a company that made truck rims and wheels, because we saw untapped potential there. We instituted performance bonuses for the management team, which had a dramatic impact. The managers made the plants more productive, and the company started growing, adding 300 jobs while Bain was involved. My faith in people, not government, is at the foundation of my plan to strengthen America's middle class.
