“The consumers suffer when the laws of the country prevent the most efficient entrepreneurs from expanding the sphere of their activities.”
–Ludwig von Mises
With national unemployment at nearly 10 percent, African American unemployment at 16.5 percent and Hispanic unemployment at 12.5 percent, most Americans, trying to keep food on the table, know the Democrats’ economic policies have failed. Many economists are predicting a double-dip recession, yet Democrats, again ignoring the pleading of America’s small business owners, march religiously down the path of more regulations, higher taxes, and more restrictions on freedom—all of which are hostile to private sector job creation and economic growth. The latest assault on the economy was Democrats’ financial services reform legislation, signed into law by President Obama on July 21, 2010. In a June 28, 2010 letter to members of Congress, the U.S. Chamber of Commerce, representing over three million businesses (i.e., job creators), expressed its strong opposition to the Democrats’ latest job killing venture. The letter stated, “[The bill] would unnecessarily affect companies that had nothing to do with the financial crisis, and would not create the efficient, liquid, and transparent capital markets America needs to fuel long-term economic growth and job creation…[The bill] would exacerbate flaws within the existing regulatory structure, increasing uncertainty, reduce the availability of credit, and likely cause unintended harm throughout the economy.” While small business owners prepare for the impact of the 2,315 page regulatory monstrosity, Democrats are trying desperately to convince the American people to ignore reality.
A successesful recovery?
Increased Foreclosures: President Obama set aside $75 billion to fund the failed the Home Affordable Modification Program. On July 27, 2010, Bloomberg reported, “About 18.9 million homes in the U.S. stood empty during the second quarter as surging foreclosures helped push ownership to the lowest level in a decade.”
Ruined Livelihoods: On July 19, 2010, CNNMoney.com reported, “Automakers GM and Chrysler were pressured to close hundreds of dealerships quickly by the Treasury department without regard for the job losses that would result, according to a government watchdog [Special Inspector General for TARP] report out Sunday…The audit also found that dealerships weren't axed as money-saving ventures for the manufacturers but for ‘far more amorphous reasons.’ The auto team ‘did not consider cost savings to be a factor in determining the need for dealership closures…’”
Increased Cost of Bailouts: On July 21, 2010, Reuters reported, “Increased housing commitments swelled U.S. taxpayers' total support for the financial system by $700 billion in the past year to around $3.7 trillion, a government watchdog said on Wednesday. The Special Inspector General for the Troubled Asset Relief Program said the increase was due largely to the government's pledges to supply capital to Fannie Mae and Freddie Mac and to guarantee more mortgages to the support the housing market.”
Decreased Confidence in the Economy: On July 26, 2010, the AP reported, “Americans' confidence in the economy eroded further in July amid worries about a job market that has proven stubbornly stagnant…The Conference Board, a private research group, said Tuesday that its Consumer Confidence Index slipped to 50.4 in July, down from the revised 54.3 in June…The decline follows last month's nearly 10-point drop, from 62.7 in May, which marked the biggest since February…”
Decelerating Economy: On July 30, 2010, Bloomberg reported, “The U.S. economy slowed in the second quarter as a scarcity of jobs eroded consumer spending…Gross domestic product grew at a 2.4 percent annual pace, less than forecast...”