Democrats' "Recovery Summer" Fails
“We have managed to acquire $13 trillion of debt on our balance sheet,” and “in my view we have nothing to show for it.”
–Senator Michael Bennet, (D-CO), (Greenely Gazette, August 21, 2010)
Background
As Democrats try to sell their “Recovery Summer,” more Americans are becoming concerned about the state of the nation’s economic health as they feel the impact on their family budgets. An August 24, 2010 Reuters’ IPSO Poll showed that “the economy is a core concern for Americans, with almost three-quarters (72 percent) of Americans 'very concerned' about jobs.” The poll also showed that 62 percent of Americans now think the country is on the on the wrong track. With unemployment hovering near 10 percent and a housing market that continues to deteriorate, it is clear that the Democrats’ economic policies have failed.
Recovery Summer?
Increased Jobless Claims: While the nation’s unemployment rate has stood at or above 9.5 percent for the past 12 months, on August 26, 2010, the Bureau of Labor Statistics (BLS) delivered more troubling news. In its weekly uninsured claims report, BLS indicated that the four week moving average of initial unemployment claims rose by 3,250 to 486,750. According to Dow Jones Newswire, “This increase is the highest level since November 28, 2009…Other economic indicators also point to sluggish growth in the months ahead. Recent data showed new and existing home sales plunged in July and durable-goods orders remained weak, heightening concern that broader economic activity is deteriorating.”
Where are the jobs? On August 26, the Associated Press reported, “The jobs crisis is putting more Americans at risk of losing their homes. One in 10 households has missed at least one mortgage payment, and more than 2 million homes have been repossessed since the recession began. Few expect the outlook to improve until companies start to hire steadily again and layoffs ease.”
GDP Downgraded: On August 27, 2010, FoxNews.com reported, “The Commerce Department is revising downward the economic growth from April to June to 1.6 percent—a decline from the original 2.4 percent forecast and much slower than the 3.7 percent of the first quarter 2010.”
Record Deterioration in Housing Market: On August 24, 2010 the Associated Press reported, “Sales of previously occupied homes in the United States fell 27 percent in July, the weakest showing in 15 years, the National Association of Realtors said Tuesday. It was the largest monthly drop in the four decades that records have been kept.”
Failed Home Foreclosure Mitigation Plans: On August 21, 2010, the LA Times reported, “Just as the housing market recovery has stalled, so has the Obama administration's main program to ease home foreclosures. Only 36,695 homeowners received permanently lowered mortgage payments in July through the much-criticized Home Affordable Modification Program, the smallest increases since December, administration officials said Friday. And the number of people dropping out of the program continued to soar. Overall, nearly half the homeowners who entered the program since it launched in March of last year have dropped out.”
Low Consumer Confidence: On August 31, 2010, Bloomberg reported, “The rebound in U.S. home prices probably slowed, while consumer confidence languished near a five-month low, indicating threats to the economic recovery are mounting, economists said before reports today…Record foreclosures, unemployment near a 26-year high and a plunge in sales following the end of a government tax credit will probably pressure home values in coming months. Further erosion in home equity may undermine Americans’ confidence and limit consumer spending, which accounts for about 70 percent of the economy.”
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