The Department of Commerce released its first set of figures accessing the health of the US economy during the fourth quarter of last year and to the surprise of many, mainly in the Obama Administration, the economy supposedly grew at a rate of 5.7%. On the surface, and without dissecting the numbers first, it appears that the Administrations claim that the recession may be over could be valid. Fortunately many Americans have learned they have to take many of the things coming out of this White House with an objective suspicion. After all, this is the administration that pledged to the American people that if congress passed its Trillion dollar so called stimulus unemployment would not rise above 8%; today the national unemployment rate stands at 10%. This is the same President that promised to hold HealthCare negotiations on C-SPAN so that the American people could see who were in bed with the special interests and corporations. The American people never had a chance to see these negotiations of C-SPAN but what they did see was one of the most corrupt congresses in History lead by Reid and Pelosi in a slew of backroom multi-million dollar deals in an effort to buy votes for Obama unpopular agenda. This is a President that railed against the influence of lobbyist on the US political landscape and swore he would never hire them to work in his administration. This promise, like the others, was short lived, as the President hired lobbyists for top positions within his administration.
The prospect that the economy appears to be growing again is something of good news, even if the actual growth is overstated. The Obama administration was quick to pounce on the news of potential growth but they should have learned from experience by now that they often pounce too quickly. What the administration failed to mention as they attempted to take credit for the GDP figure was the fact that an overwhelming majority of that growth came from private business inventories not his economic policies. According to the Commerce Department report, “The U.S. economy grew at a faster-than-expected 5.7 percent pace in the fourth quarter, the quickest in more than six years, as businesses made less-aggressive cuts to inventories and stepped up spending.” Amazing, not a mention of the “stimulus” in the reported growth figure, but the administration seems to think they played a part in it. The fact of the matter is this administration has not created a climate for private business growth and job creation to occur; in fact they’ve did the opposite as a recent poll shows 77% of investors consider this administration hostile toward business.
The Labor department released its jobless claims report and we found that initial claims for unemployment benefits rose unexpectedly. The only people in the nation that were expecting a decrease in claims were the Obama Administration and their allies in the mainstream media outlets and it’s because they live in a land called Delusion. The President and his party fail to realize how jobs are actually created in a Free and open society, a Capitalist system, and their performance on jobs and the economy shows just how in the dark they are. In a Free and Open Market economy, businesses need Capital and Credit in order to operate and expand but unfortunately all they received from this Administration in more regulation and taxation on the industry that supplies this much needed credit: The Banks. In order for business to expand and new businesses to open, the climate for business ventures must be solidly in place and most Americans simply don’t see this kind of climate being produced and nurtured in Washington. The American people understand that when the President says he is serious about job creation, he’s just blowing smoke. The American people understand that when you heavily regulate or tax something, you received less of it or less from it. When small businesses see their tax burden increase, they do like any American family would do when they see expenses begin to reach parity with income; they trim the budget and the quickest way to do so is to cut Payroll. When mid to large corporations see their taxes increased, some offset the increase by slashing payrolls while others simply pass them on to the consumer in the forms of higher prices. Increasing taxes on corporations sounds good to some in theory but in practice it often results in an economic debacle. When will some in Washington learn that Corporations don’t pay taxes? When most major corporations see their tax burdens increase they often offset these new liabilities by passing the tax on to the consumer at consumption. In an unfriendly business environment companies have to do what they have to do to meet, and hopefully exceed, growth and revenue projections and if that means passing on Obama’s tax in the form of higher prices to the consumer then so be it. It is beyond idiotic to believe that business can be overtaxed, over regulated, and overburdened and still be expected to created jobs and bring down the nation’s unemployment rate.
Even as Washington touts a supposed drop in the national unemployment rate from 10% to 9.7%, the American people seem to have lost trust in our government. The people understand that the national unemployment rate is much higher than 9.7% and they know this because they live in the real world and have seen themselves, love ones, and friends lose jobs in 2009. It is now becoming aware to more and more citizens that the government actually manipulates Labor statistics in order to show a lower unemployment rate than reality yields. The unemployment rate is calculated one of two ways and at times both methods are use. The best way to count the number of Americans employed is to survey all US businesses payroll and count from there. However, our government refuses to be an honest broker. The government decided it would count the number of employed persons, but “Adjusted seasonally”. This means that the government is basing the number on past hiring seasonal trends, and NOT hard data. The evidence shows that these numbers are actually derived from telephone surveys, and not an accurate headcount. The government acknowledges this counting method and does not dispute that if it were not used the nation’s unemployment rate would have “RISEN FROM 10.0% TO 10.6%”. This is nothing more than accounting tricks and the American people deserve more, they deserve the Truth, a characteristic lacking from our current government. The second way the government calculates unemployment figures is by the Establishment survey. This report only surveys about 370,000 US employers and the list of companies surveyed rarely changes year to year meaning that newer businesses are rarely accounted for. So the figures given are based on almost the same companies surveyed every year. What about the small businesses that lay off thousands of workers? Most are not counted. What about millions of workers who don’t work for one of the 370,000 businesses surveyed? These people are simply not counted, and many of them are unemployed. Therefore no matter how the White House tries to steer the news cycle on the day, the people, the true guardians of our great Republic, see through the media hype and rhetoric and can see the truth. This Truth is that the nation’s economy is in shambles and most of it, but not all of it, is due to the Statists and their anti-business, anti-growth, and most of all Anti-Capitalism agenda.
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