Inquiring minds are reading “Why The Economy Won’t Come Back For Obama” by Thomas Del Beccaro over on BigGovernment.com:
The Media is aflutter these days about the imminent return of the economy. Of course, it marks a stark contrast to the manner in which they covered the Bush economy. In the months leading up to the 2008 election, the Media was talking the economy down. Now they are attempting to talk it up. No amount of Media optimism, however, will change some basic dynamics which will keep the economy in its weakened state or worse for years to come. As you go through these reasons, keep in mind that consumer spending makes up, and has for years, approximately 70% of the US economy.
Mr. Del Beccaro gives his 5 reasons:
1. Historically High Unemployment
2. The Foreclosure/Mortgage Crisis
3. Rising Gas Prices
4. A Rising Regulatory Burden
5. A Large Troubled State
To see his explanations, please click on the link above.
Mr. Del Beccaro reserves special comment for The (Formerly) Golden State:
Incredibly, Californians have lost $1.7 trillion in equity since the height of the market in 2007. How bad is that? It is a number nearly equivalent to California’s entire GDP! In other words, California consumers have lost purchasing power equivalent to an entire year of economic output for the entire state – a state said to be the World’s 8th or 9th largest economy.
Then there is the man-made California agriculture depression. Agriculture used to be 17% of the state’s economy. It is depressed due to government policies that have all but SHUT OFF water to the Central Valley. Liberal government policies have elevated the needs of a tiny bait fish over farms – dealing a huge blow to farm production. But that is not all. Now California is implementing global warming laws that will hurt the employment sector even more not to mentioned threatened tax hikes.
California’s economy used to equate to over 16% of the nation’s economy. Presuming it still does, ask yourself: if 16% of the nation’s economy is crippled – who can rightfully expect the overall economy to recover?
Politically, the Obama administration has approximately 18 months for the economy to show significant progress and the voters turn virtually deaf. So probably about June of 2012 is the latest for his re-election hopes…but most likely sooner.
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