Saturday, February 13, 2010

The US Economy Has Run Aground

After losing seven to eight million jobs in the last two years, the US economy is floating somewhere near the bottom. But, improvement is very weak. The ongoing dialogue between Barrack Obama and the business community is not helpful. The biggest victims are the unemployed. The Administration remains unconcerned and largely uninterested in the plight of unemployed Americans and the distress that most businesses face. The Congress and the White House have piled bad legislation upon bad legislation and crippling regulatory activity that ensures that the economy will remain in the doldrums for a generation.

If health care makes it through Congress via reconciliation, then the economy could easily take a new leg down. The destruction of the private health care industry that the Obama plan envisions, will mean signficantly higher health care costs imposed on an economy in the midst of the worst economic collapse since the 1930s. There will be more layoffs, more business failures, and unemployment could easily move into the 20s. Not a pretty picture, but a likely consequence of the policies of an Administration bound and determined to destroy the private sector of the economy wherever and whenever it can.

The country took a great risk when it elected a young man with little or no experience and a great gift for rhetoric. The rhetorical powers are still there but the lack of experience (and knowledge) threatens the economic survival of the country.