If we were in Britain or Canada, Barack Obama would be due for a “no confidence” vote.
No confidence is exactly what American business professiionals are telling us; no confidence in Barack Obama, Timothy “Tax Dodge” Geithner, The Deputy Treasury Secretary that withdrew her name from consideration just yesterday, Geithner’s top 17 Treasury Department executives which have uet to be even named, and all the rest of the president’s economic advisors.
Here’s what most college students learn inEconomics 101:
–The Stock Market is the barometer of confidence in the economy of the United States. A lower stock market usually means a loss of investor confidence in the way the economy is going and in the predicted future course of the economy.
–Lay off, job loss, cuts in workers hours and benefits LEAD the economy. Lay offs and job losses predict grimmer economic times so business owners don’t hire workers — they get rid of them before the economic and business environment worsens to an untenable and unsustainable level.
By JEANNINE AVERSA, AP Economics Writer
The nation’s unemployment rate bolted to 8.1 percent in February, the highest since late 1983, as cost-cutting employers slashed 651,000 jobs amid a deepening recession.
Both figures were worse than analysts expected and the Labor Department’s report shows America’s workers being clobbered by a wave of layoffs unlikely to ease in the coming months.
“There is no light at the end of the tunnel with these numbers,” said Nigel Gault, economist at IHS Global Insight. “Job losses were everywhere and there’s no hope for a turnaround any time soon.”
February’s net job loss came after even deeper payroll reductions in the prior two months, according to revised figures released Friday. The economy lost 681,000 jobs in December and another 655,000 in January.
Presidency of Fear
Keynesian Economics Is An Unproven Theory
I heard almost no criticism of the $819-billion stimulus package making its way through Congress. The general assumption seemed to be that practically any kind of government expenditure would be beneficial — and the bigger the resulting deficit the better.
There is something desperate about the way economists are clinging to their dogeared copies of Keynes’ “General Theory.” Uneasily aware that their discipline almost entirely failed to anticipate the current crisis, they seem to be regressing to macroeconomic childhood, clutching the Keynesian “multiplier effect” — which holds that a dollar spent by the government begets more than a dollar’s worth of additional economic output — like an old teddy bear.
They need to grow up and face the harsh reality: The Western world is suffering a crisis of excessive indebtedness. Governments, corporations and households are groaning under unprecedented debt burdens. Average household debt has reached 141% of disposable income in the United States and 177% in Britain. Worst of all are the banks. Some of the best-known names in American and European finance have liabilities 40, 60 or even 100 times the amount of their capital.
The delusion that a crisis of excess debt can be solved by creating more debt is at the heart of the Great Repression. Yet that is precisely what most governments propose to do.