So Much for America

The End of American Optimism – Mort Zuckerman, The Wall Street Journal
The U.S. is languishing in a non-recovery. Brief glimpses of a faux-recovery were seen when the president’s stimulus bill falsely signaled that the economy was on track. America though, is still 2.5 million jobs short of having even an 8% unemployment rate. Mort Zuckerman feels that the effects may be long term. In fact he questions whether or not this is the end of the post-WWII high growth era. It may be. Household debt is well above normal levels, at 122% of income. All that debt is holding back investment as Americans have to use all their available funds to service their debts. The biggest problem is, that even though companies out there may be trying to hire, there are few potential employees with the proper skills for the jobs being advertised. Rather than using money for job training, Obama & Co. are spending it on more welfare programs. The needed structural reforms seem to be nonstarters for this administration. Where is the corporate tax relief companies are screaming for? Where is the smaller government presence Americans are begging for? This administration is deaf to the requests of the business community, that’s why the outlook is so bleak. – Dick Young

The Fed Can’t Solve Our Economic Woes – Gerald P. O’Driscoll Jr., The Wall Street Journal
Mr. O’Driscoll writes that the fundamentals of investing were routinely forgotten during the boom era of 2005-2007. Housing prices were well above what they should have been, and that the pop of the asset bubble in housing brought down the remainder of the economy with it. O’Driscoll calls the recession a “balance sheet” recession. This is an accurate description. Public, corporate and consumer balance sheets were stretched far beyond rational levels in the boom era. Too much debt and inflated asset values gave Americans a feeling of wealth, but the piper must be paid. The Federal Reserve is attacking the recession with every monetary tool in its belt, but with no one wishing to spend the Fed’s easy money, the approach is having little effect. Worse yet, successful businesses are looking down the barrel at tax increases from the Obama administration. These successful businesses are exactly the group that should be encouraged, not discouraged by the reinstatement of Clinton-era tax rates. – Dick Young

The Next Pension Bailout – Review & Outlook, The Wall Street Journal
The next Obama administration gift to unions is being written up right now. Unions are getting ready to stick American-taxpayers with a huge new bill. Many unions have badly mismanaged their pension plans and want the government (you and me and other hard working tax payers) to accept responsibility for their broken pension plans. So while you’re working well into your 70s to pay the bills, you can be sure that the AFL-CIO members are having a great retirement funded by your tax dollars. – Dick Young

Obama: Fighting the Yuppie Factor – Victor Davis Hanson, National Review
The president, who seems as though he is always on one vacation or another, or golfing, just can’t seem to connect with the normal man. Perhaps that is because he is the product of prep schools, Ivy League colleges and a community of thought that places the intelligentsia above the common man as a form of academic aristocracy. Obama is treating the presidency like he has just been named American Idol. With tours of the late night talk shows, The View, and a general sense of “new celebrity” the president seems to completely disregard the plight of the common man today. – Timothy Jones

Democrats Running from President Obama – Rowan Scarborough, Human Events
It is no surprise that Democratic candidates are running hard from a President that is losing favor fast among the American people. November can’t come soon enough. – Dick Young