The Obama Boom which the media was banking on to prevent Democratic losses in November and would propel Barack Hussein Obama to a 2nd term has failed. It will be remembered as one of the biggest flops since Ishtar, considering all the media hypebehind it. In recent months, the economy is slowing dramatically as the stimulus and government programs wear off. The Keynesian theories behind these actions have proven a failure and has lead to more debt. Borrowing money leads to economic stagnation and restricts growth. The Obama regime was ready with its Recovery Summer propaganda push, but recent events have forced them to pull back.
Declaring a “Recovery Summer” victory tour at the start of June must have looked like a pretty safe wager for the Obama administration. The economy seemed to have shifted firmly into gear during the spring. Lawrence Summers, director of the National Economic Council, told the Financial Times in early April that the economy was “moving toward escape velocity. You hear a lot less talk of ‘W’-shaped recoveries and double-dips than you did six months ago.”
A big reason for White House optimism was a stronger job market. The economy added an average of 320,000 net new jobs a month during March, April, and May, about half of them in the private sector. Granted, the unemployment rate still hovered close to 10 percent. But if the economy kept growing at a 3 percent annual clip or greater—creating lots and lots of new jobs in the process—unemployment would eventually fall, perhaps dramatically. As one White House insider remarked upon reviewing all the macro-indicators and then evaluating the economic team’s performance, “It looks like we got things just about right.”
Since then, however, the economy has fallen back to earth, and “Recovery Summer” looks more like a bad bet. Private sector job growth has fallen by two-thirds, and the unemployment rate is still at a sky-high 9.5 percent. And if the size of the U.S. workforce, as measured by the Labor Department, had stayed constant since April—instead of shrinking by a million—the unemployment rate would be 10.4 percent. Jobless claims are at their highest level since February. Worse yet, the expansion is decelerating. After growing by 5.7 percent in the final quarter of 2009 and 3.7 percent in the first quarter of 2010, GDP advanced by just 2.4 percent from April through June, according to the Commerce Department. And new data show the final second-quarter number may actually be closer to flat, with growth for the rest of the year just 1 to 2 percent at best.
The White House didn’t count on a summer swoon. Then again, it has suffered bouts of premature and unfounded economic optimism before, a malady that has led it to make a number of losing bets and faulty assumptions—which, in turn, have created an even worse environment for growth and jobs.
Read teh rest: Obama’s Bad Bets “Recovery Summer” goes bust
The mythical Obama Boom has turned into the Obama bust and recoverless summer. The regimes propaganda machine has been exposed as a lie and all it’s done is anger the American people even more. Goodbye Obama Boom, we hardly knew you!
