Obama’s Summer of Recovery is Really a Summer of Despair for Americans!

by Richard H. Frank

President Obama, Vice President  Biden, Speaker Pelosi and Senate Majority Leader Harry Reid must all be drinking from the same bottle of spirits or smoking the same stash of medical marijuana.  The script they have committed to memory is wearing thin with Americans. They credit the stimulus with creating or saving 3 million jobs when in reality we have seen a substantial loss of jobs since Obama’s coronation approaching 6 million.  Despite the Democratic Congress passing legislation that extends unemployment compensation for up to 99 weeks, we have seen new claims increase from 450,000 to half a million each week over the past month.  Even the least educated among us knows that the numbers do not agree with the claims being made by the Obama Administration.

In spite of all the evidence to the contrary, Obama sees the summer of 2010 as the Summer of Recovery.  He cites the creation of green jobs such the Holland, Michigan plant expected to employ 200+ people to produce batteries for the Government Motors all-electric car, the “Volt.”  A car that will travel a meer 40 miles on a charge and cost the consumer $41,000.

During 2011 the Volt production is planned for 10,000 units with future volume expected to reach 40,000 units.  That’s 40,000 units for an industry “pre-Obama” producing up to 15 million units.  More importantly, for Michigan with unemployment approaching 14% (28.9% in Detroit), the green jobs amount to a drop of rain in the Great Lakes.

The Democrats have contended that trickle down economics did not work under the Reagan Administration.  The only trickle down we see from Obamanomics is misery and despair on the part of upwards to 20% of Americans.  Anyone living in a city or state dependent upon manufacturing, energy production or tourism has felt the devastating impact of the mis-guided policies of the Obama Administration. Businesses that have thrived for decades are gone leaving entire communities to struggle for survival.

For many Americans, whose only wealth was invested in the value and equity of their houses, that equity has evaporated largely due to Government interfering in the free market associated with acquiring a real estate mortgage.  Home purchases are down in July, 2010 27%, and foreclosures are at an all time high as unemployment holds at 9.5% (actually more like 18%).  The prospect of finding work for many is non-existent.  The next shoe to fall under the Obama Administration is the expiration of the Bush tax cuts.  Today there are 40 million Americans receiving food stamps and we may expect to see that number increase in 2011.

History tends to repeat itself and the 2010 Summer of Recovery may descend into the Summer of Despair where big cities such as Detroit, Los Angeles, Cleveland, Chicago and New York may be faced with civil disturbances rivaling those of 1967.

The only thing that may have thwarted this situation are the continued expansion of welfare and unemployment by the Administration and Congress.  Unfortunately, there is a limit to government support of those non-productive programs.

Barack Obama would have us believe that his policies “have brought our financial system back from the brink.”  Passage of TARP was supposed to save the financial markets and rid the system of toxic assets.  What it has accomplished is to make many banks and companies rich and not addressed the toxic assets situation.  Additionally, banks were encouraged to lend to small business in order to stimulate hiring to increase the levels of employment. The banks have achieved solvency through TARP but are not lending.   Established businessmen I have spoken to claim banks they have dealt with for years are so encumbered by Government regulation that the hurdles they have established to qualify for construction or expansion loans are insurmountable for the average successful small businessman.  Some banks are requiring up to 45% down to qualify for a construction loan and has drastically reduced or virtually eliminated the business prospects for acquiring new contracts or increasing sales.

Government finds itself desperate to impose taxes and fees where they think they will raise revenue to support their existence.  The truth is such oppressive actions only serve to suppress economic activity and thus result in even less revenue to support government services.

Barack Obama’s “change we can believe in” and promise to “fundamentally change America” has led to his Summer of  Recovery tour. Unfortunately that change is despair for more and more Americans and a death spiral for our free enterprise system.

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