The Obama administration and the media say that we have been in an economic recovery since June of 2009. If that’s true, then why aren’t consumers spending and businesses hiring? The implication is that our biggest problem is the reluctance of consumers and businesses to move forward.
Color me skeptical. The American Recovery and Reinvestment Act (ARRA) was passed in February of 2009. Visit the press archives at Recovery.gov and you’ll see that ARRA spending began almost immediately. Gross domestic product (GDP)—often used as a barometer for the state of the economy—began to rise not long after. But GDP is calculated as the sum of consumer, business, and government spending; all of the growth was in government spending. It’s self-serving for the government to say that the recovery started in June of 2009.
Actually, the recession never ended and we are on track to The Greatest Depression. Congress just punted on extending the Bush era tax breaks. That can only mean that the majority want to raise taxes on the rich—a sure fire way to inhibit business investment. The House of Representatives just passed the Currency Reform for Fair Trade Act, which like the Smoot-Hawley Tariff Act of 1930, seems designed to ignite a global trade war. Nobel Prize winning economist Paul Krugman thinks the government isn’t spending enough fast enough.
Is the recession just a state of mind? In a way, yes.
George Santayana warned "Those who cannot remember the past are condemned to repeat it." Albert Einstein defined insanity as doing the same thing over and over again and expecting different results.