Friday, May 25, 2012
"Now Peter Schiff is Right Again": The State of the US Economy and The Future Challenges
Before you talk about the current American Economy, you have to know where we started at the beginning of the "Great Recession" and where we are now. Otherwise you'll just see an economy that looks bad and have no real perspective, as far as where we have been. Of course no American, unless they are Unpatriotic and wants to see the country fail or something, is happy with the State of the American Economy. But thats stating the obvious, thats like saying you should drive with you're eyes open or something, look before crossing, check the water before diving in it. Hopefully you get the idea by now but thats not the question, the question is where we go from here and to answer that question. You have to know where we started and then you also have to know, where we've come from. I don't want to make this blog political, other then to critique Libertarian Economist Peter Schiff.
When President Obama became President in January, 2009, we were already at 8% unemployment, we had lost 1.5M jobs from December, 2008 and January, 2009, our economy was subtracting at -7%, think about that for a second. An economy of 15T$ at that point, we've grown past that by this point, thats 1.12$ per quarter that the economy was tanking, we were losing over 1T$ for three months. By the summer of 2009, the economy started growing, we were officially out of recession, we grew 7% by the Third Quarter of 2009. By the spring of 2010, we started producing jobs again, meaning each month the economy was creating more jobs then it was losing. Since the summer of 2009, we've had about three straight years of Economic Growth, after starting with losing -7% and we've had 23 straight months of job growth. We are not back yet but we've had a long road to travel and we are not home yet.
Peter Schiff has the idea that the best thing for the economy would've been to let tank as much as possible. And get to the bottom point and fix the fundamentals problems of the economy. What the Obama Administration did with 2009 Recovery Act, was to put a floor on how far the economy could tank and buy us time to be able to rebuild the economy and move us forward. To not only get us out of the "Great Recession" but to get the economy back to good health and thats what the 2012 Presidential Election will be all about. Sorry Neoconservatives, nobody other then you're tiny club is interested in you're Big Government agenda. How do we get past the "Great Recession" and get this economy back to where it was in the late 1990's and even better then that.
We do this by growing the economy, getting us back to 4-5% Economic Growth, thats producing 200K plus jobs each month in Job Growth. And we do this with serious Infrastructure Investment, putting our Construction Workers and Manufacture Workers back to work. Which would also be a boom to our Construction and Manufacturing Industries, our Auto Industry is already back in black and hiring again. And creating an National Energy Policy, that gets us off of Foreign Oil by developing our Natural Resources and doing this by paying for it and not adding to our debt. And cutting things in the Federal Budget, we no longer need to be doing, as well as reforming the Federal Government. Thats how we rebuild the American Economy.