Obama and his insane clown posse have announced that the recession is officially over. Strangely unemployment is still 10%. It seems it’s all in how you define “over.”
Corporate earnings reports are coming out right now, and gosh… corporations are making money again. That equals recovery, right?
Not if you’re unemployed.
The reason that all of Obama’s meddling in the economy hasn’t fixed unemployment is that a) he’s an idiot and b) he’s never run a business of any size.
When demand for a company’s product goes down, they make less product. To make less product, they need less employees, so they lay people off. The government rearranges the deck chairs on the Titanic, and corporations still make money. They make money because they have less costs, because they laid people off and scared everyone else into working twice as hard. Thus, corporate earnings go up while unemployment remains high.
Corporate earnings do not equal recovery. Not if the entire economy has shrunk. Obama can’t borrow enough from China to re-expand the economy to where it was before, which is why unemployment will remain high until demand comes back. Not government demand… business and consumer demand.
There is literally only one way to fix the unemployment problem (aside from a magic wand capable of creating demand out of thin air). Find a way to put more money into corporations’ budgets. And guess what… there’s only one way the government can do that. Lower taxes.
If you have a brain, this will make sense to you. If it doesn’t make sense to you, I can safely assume you’re a liberal.