If you listen to the Obama administration and the media outlets that reports the economy is starting to grow a recovery is taking place, I have some lake front property to sell to you in the middle of the desert. Be advised that after the 2008 financial crisis the economy is still in a Great Recession mode and slowly dipping further with an uncertain future for a rebound. Current and future market conditions continue to receive government handouts for political subsidies and bailouts are more crucialthan creative industry or innovative business ideas.
Instead the businesses that is supposed to produce and service the functions of the general publicwallowin its own pity of uncertainty because the political, financial and corporate giants provided false hope of capitalized gains then falsified doctoring their spreadsheets. Realistically the political component from 2008 will produce the same growth forecasts in 2012 or until a new president is elected.
The growth rate of the economy is slow with a slower recovery in the labor market because of a growing unemployment rate. The unemployment rate according to US Statistics is at 9.0 percent. Try higher, a lot higher. There are too many factors to determine how high but because of the US track record since 2008, 2012 will only go higher because the economic output is slowly causing a slow market recovery.
With President Obama adding $1 trillion more to the deficit that will not generate job growth expansion for small businesses to move the middle class, further unemployment extension should have huge consequencesfor the 2012 election because the Obama administration is pushing the federal government to spend, spend, spend an already struggling weak economy.
It is highly critical that there will not be an economic boom in 2012 as the country could be faced with another economic crash, many banking institutions will close, and disorder confusion and turmoil will run rampant as the President has power without the full body of congress to declare Martial Law which was signed into law this past December 31. This will be called an “economic Martial Law.”
If you think that the economy is not in that bad of shape, Christian Lagarde the head of the International Monetary Fund recently stated that “we could soon see conditions reminiscent of the 1930s depression and that no country on earth will be immune to the crisis.” This financial crisis will hurt all masses, lower, middle and upper classes will not be immune to the crisis.
Recently the Obama administration stated 200,000 private sector jobs were created this past Novemberand December fueling economic growth. Employers hired at the end of the year suggesting an economic recovery. Those jobs were for the service industry which is short term employment only for the holiday season. Transportation courier services engagedmany workers for the holiday rush but many of the jobs added in this sector will be scratched before mid-January.
The private sector never turns the economy around. President Obama wants us to believe that this is a start of economic recovery. In reality ithas done nothing to revive “Main Street” America leading to a frightening 2012 New Year.
If an economic growth in the private sector provided a positive outlook then the offset to job increase, major companies “Pepsi, Alcoa and Boeing” recently announced plans to close plants and jobs cuts, which would eventually grind down December’s employment gains put the country right back to a unassertive jobs recovery fueling more speculation job development is going nowhere fast.
The continue drop in the jobless rate carries consequences for the presidential election. The White House recently reported that the economy is heading in the right direction enabling the president to contend that his policies are working even with modest jobs recovery. Republicans noted that joblessness remains higher than what the White House estimated as most of them have seized on the country’s high unemployment rate as a leading argument in their case against the president.
GOP presidential candidate Mitt Romney stated and is correct that the President has failed to put Americans back to work and is building part of his campaign around the idea that his private sector experience could jumpstart the economy. What the Obama administration has accomplished for balancing down the economy with unnecessary regulations and costly new government sponsored programs that add to the country’s inflating deficit.
Government current policies and overspending by a Democratic lead Congress, dissatisfactiongrows daily from the middle class because the public no longer believes that Washington can provide any viable economic future for average Americans. The government economic forecast will not produce prosperity in 2012 even if the Stock markets and leading economic indicator slight movement, recession with the potential for inflation if four more years if the current administration is re-elected. For this gloominess to change, the important November 2012 election date will be a key to economic change.
We need change after the Obama years. America wants a leader who can bring the country together, and start to address the tremendous fiscal mess that we currently face. A President that won’t compromising our principles, but rally support from Democrats, Republicans and Independents in a need for financial restraint, lowering the deficit, boosting the economy with jobs makingthe 2012 vote the year to end disastrous politics
The opinion expressed in this commentary
article are solely those of Michael Coker