Tuesday, September 08, 2009

The Failure of Obamanomics

The failure in President Obama's economic plans is pretty easy to spot. From the Innocent Bystanders website, the following chart shows the original unemployment estimates as presented by President Obama to sell his recovery plan, alongside the actual unemployment numbers since then:

Larry Kudlow has a good analysis of the unemployment problem:
This is a big-versus-small-business issue. Sort of the haves versus the have-nots.

The large companies are gradually recovering as a result of major cost-cutting, inventory reduction, and a lean-and-mean return to profitability and high productivity. So the payroll survey registered a 216,000 job loss, the smallest drop in over a year.

The household survey, however, which picks up small, owner-operated, LLC/S-Corp-type businesses, registered a devastating 392,000 job loss, which follows losses of 155,000 and 374,000 in the prior two months. This is the source of the unemployment-rate jump, as 466,000 newly unemployed were scored in the report.

So while the big companies are getting healthier, the smaller firms are being left in the dust. Unfortunately, small businesses provide most of the new job creation in the United States.

While the big businesses get richer, and the small businesses fail, Obama thinks we need a national discussion on health care? Keep in mind, most small businesses provide little or no health insurance for their employees, so health care is not an issue that will help them. In fact, considering one of the provisions of the health care plan was to place a tax on employers who don't provide health insurance, the current plan could actually hurt small businesses even more if Obama doesn't retract that provision.

Back during Bill Clinton's first presidential run, there was a sign in his campaign headquarters which read: "It's the economy, stupid!" Maybe Hillary has an old copy of that sign she could loan to Obama, because he clearly doesn't understand.

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