WSJ: An Economy Built to Stall - With a third slowdown in three years, maybe the problem is the policies.

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    Jun 02, 2012 9:08 PM GMT
    http://online.wsj.com/article/SB10001424052702303552104577440342850277660.html?mod=ITP_opinion_2

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    Well, this week makes it official. The weakest economic recovery since World War II has become weaker still, sinking into a spring slowdown for the third year in a row. Are we finally ready to debate a change in the policies that have led to this pass?

    On Thursday the government reported that growth in the first quarter was 1.9%, even weaker than the 2.2% initial estimate. Then Friday delivered the third slower jobs report in a row, which qualifies as a depressing trend. Employers created only 69,000 net new jobs in May, and April's total was revised down to 77,000 jobs. Stocks were crushed in the backwash.

    The jobless rate of 8.2% marks more than three years of unemployment at or above 8%, despite an economy that ostensibly emerged from recession in July 2009. Few industries outside of manufacturing (up 12,000 in May and up by a robust one-half million since January 2010), transportation and health care saw job growth.
    ...
    On Friday the White House blamed the third slowdown of its four-year term on Republicans for blocking the President's policies, but what policies are they talking about? In his first two years in office, Democrats gave Mr. Obama everything he wanted, save for cap and trade and union card-check, which would have done even more harm to job creation. They passed stimulus, ObamaCare, multiple housing bailouts, Dodd-Frank and more.

    Even after Republicans took the House, they gave Mr. Obama the payroll tax holiday he demanded first for 2011 and again for 2012. Far from some new fiscal "austerity," overall federal spending hasn't declined. Meanwhile, the Federal Reserve has delivered monetary stimulus after stimulus—QE I, QE II, Operation Twist, and 42 months of near-zero interest rates with the promise of 30 months more.

    Mr. Obama has had the freest run of policy of any President since LBJ. So maybe the problem is the policies.

    ...
    This is an entirely artificial crisis created by the mantra of "temporary, targeted" tax cuts, combined with Mr. Obama's campaign strategy to run against high-income earners with his Buffett rule and attacks on bankers and Bain Capital. If Mr. Obama wants a better chance at re-election, and especially with troubles in Europe and China, he'll call off the class war and call for no change in taxes for at least another two years until there is a larger tax reform. He'd find he'd get little resistance from Republicans.
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    Jun 02, 2012 9:21 PM GMT
    When is Rupert Murdoch going to prison?

    Maybe then the WSJ editorial page might return to it's former glory.

    Do they even fact check it anymore?
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    Jun 03, 2012 12:13 AM GMT
    southbeach1500 saidWSJ: An Economy Built to Stall - With a third slowdown in three years, maybe the problem is the policies.

    Nah.... it's Bush's fault! icon_rolleyes.gif


    And why W had the longest consecutive period of job growth of 52 months and the longest consecutive period of GDP growth of 26 quarters.
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    Jun 03, 2012 4:44 AM GMT
    freedomisntfree said
    southbeach1500 saidWSJ: An Economy Built to Stall - With a third slowdown in three years, maybe the problem is the policies.

    Nah.... it's Bush's fault! icon_rolleyes.gif


    And why W had the longest consecutive period of job growth of 52 months and the longest consecutive period of GDP growth of 26 quarters.


    Only if you leave off the last 2 years of his presidency, which makes the entirety of it a net loss in both.
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    Jun 03, 2012 5:45 AM GMT
    freedomisntfree said
    southbeach1500 saidWSJ: An Economy Built to Stall - With a third slowdown in three years, maybe the problem is the policies.

    Nah.... it's Bush's fault! icon_rolleyes.gif


    And why W had the longest consecutive period of job growth of 52 months and the longest consecutive period of GDP growth of 26 quarters.


    It's also why Obama and the Democrats are not trusted when it comes to economic issues. It's interesting to watch the creep downwards in the odds that intrade is giving to obama - it had held steady above 60 when a liberal extremist pointed it out but it's dropped to its current probability of 53%.