Obama owns this economy and he knows it. Sure Obama's surrogates and water carrying media pundits would love to change the dynamics and pass the blame onto the Republican led House but facts are facts and we are here facing the economic views due to Obama, his policies, and his wasted political capital. Sure Obama loves to blame Bush for the recession and the fact remains most people continue to blame Bush for the recession. The problem is that at this point passing blame of the recession is not good enough. Who is to blame is not or at least should not be the right question. The question is "who is to blame for the lack of economic recovery?" It is becoming increasingly apparent that the people are blaming Obama for the lack of recovery and rightfully so.
The problem is Obama largely ignored the economy in the first two years of his first term. Instead of focusing on economic recovery which would have ensured democrats retained leadership in both houses of Congress, Obama instead focused on his ill fated Health care law. Obama wasted all of his political capital in getting a Health care bill signed into law. See as Obaam said he won the election and he was going to have his way. Obama himself even said that he was going to pass health care no matter what and that is what elections are for. Well in 2010, we had an election and the results couldn't have been a clearer repudiation of the lack of focus on the economy. Democrats didn't lose in 2010 because they passed Obamacare; they lost because the economy was still in the tank a full two years after Obama took office. Now another year and a half later, we have a stagnant economy at best. Last week 8.2% unemployment numbers just goo to show that Obama's policies on the economy have failed us.
Now Paul Krugman says we didn't spend enough on stimulus. That is of course hogwash. Obama wrote in stimulus that was supposed to be a one time deal spent over two years. Yet we still haven't come close to the 2009 spending baseline. The increased spending by government has become permanent. See the left trying to pass off the increases in spending onto the Bush administration are disingenuous at best. See Obaam didn't use the stimulus and then lower what government spent; no Obama kept spending at the increased rate. So Mr. Krugman you are wrong to say we didn't spend enough. We are still spending at those increased levels. What was proposed as a one time deal are still being spent. This is permanent increased stimulus that is doing nothing for the economy.
For the last five quarters we have grown at less than 2.0% GDP. This is not enough of an increase to even cover the growing population. We have been going backwards since Obama has been in office. Most voters are going to make the jump that the economy is what it is. We are going to have high unemployment under Obama. May was always going to become the last month Obama had before people begin making up their mind on the economy. Anything that Obama does will be seen as too little too late. Anything that would change to improve the economy now would be seen as nothing more than a political gimmick. To add to the problem, factory orders are down and this is going to be seen in this quarter's GDP report due out in July.
Now Obama will be busy blaming everyone but himself, the fact remains Obama blew his political capital on what could become a law that is declared unconstitutional. For all of Obama's talk of pivoting towards jobs that was nothing more than throwing platitudes towards the American people. Obama never became serious about the economy until September of last year when it was apparent that the economy could not be ignored and expected to recover. Now to give Obama some credit, the economy has structural problems in it that must be corrected. This was never going to be just a business cycle recession. The economy had been run into the ground since the early 1990's. The irrational exuberance in the '90's has come home to roost. Economists should have come clean earlier about economic problems. The housing bust and financial meltdown were cause by this "irrational exuberance". The FED kept interest rates artificially low for years. This allowed people to borrow more money than ever before and that increased the value of homes. This unsustainable boom was bound to become a bust. The financial industry melted down because of the easy money and ill advised lending practices that ensued.
By 2004 it had become painfully obvious we were in trouble. It took Bush almost his full first term to overcome the recession he inherited and the effects of the attacks on 9/11. It took until the spring of 2004 before the jobs started coming back even after the economy began growing. This should have been the warning shot across the bow. However, it wasn't, interest rates were held artificially low and the economy grew on the people's borrowed money. SO the federal government tapped out its credit, then the States tapped out their credit, and finally the individual tapped out its credit. There is no more money to be borrowed. Unfortunately now we need inflation just to get us out from under our burden of debt. That my friends will become the definition of our bankruptcy.
The problem is Obama didn't recognize the structural problems. Obama didn't recognize that All of America's credit had been consumed. There is no where else from which to leverage credit. We can't borrow anymore lest we become a banana republic. Sure people are investing in US treasuries but they will only so long as it is profitable. From every appearance this is going to become a global recession. Brazil, China, and India growth is slowing. Europe is in a mess. Obama's policies have stifled business growth. Bottom line things are going to get worse before they get better.
Not focusing on the economy and failing to get us out of the economic doldrums is Obama's fault. Just this year, Obama or the Senate Democrats have killed every proposal that would have increased jobs in America. Obama may want to blame Republicans and Obama surrogates may want to say Republicans are cheering for economic failure but it is Obama and the Democrats that have been unwilling to even bring up proposals that have passed the House. It is Obama that doesn't want something good to happen lest Republicans share in the credit. As always it is Obama's way or the highway. See Obama won, now it is high time he take responsibility for his economy and his wasted political capital.