How Obama Is
Causing The Double Dip Recession
By DICK MORRIS
Published on
DickMorris.com on January 31, 2013
Now that the economy is officially contracting, it's a good time to look
back and list the various Obama policies that are causing it. We do
this not in the spirit of blame but rather to point to the corrective
steps he needs to take to head off a new recession. After several
quarters of optimistic but rigged data showing the economy growing at a
2 percent clip, the truth is emerging: We are on the verge of a double
dip recession).
Here's why:
• Our exports to China are artificially depressed because of Beijing’s
deliberate weakening of its currency to underprice its goods in the US
market and overprice ours' in theirs'. Correction: Demand that China
stops manipulating its currency and impose taxes on currency exchanges
if they don't.
• Stop insisting on tax increases which fall on small businesses. Cut
spending instead. The negative multiplier effect of a tax increase is
much less than that of a spending cut.
• Be far more aggressive in expanding oil and gas production. Our huge
oil import bill - about $40 billion a year - is dragging our economy
down.
• The current contraction is before the tax increases Obama just passed
have hit. These tax hikes on upper income people will take $50 billion
of demand out of the economy and his 2 percent increase in the payroll
tax will take out over $100 billion more. These tax increases go
directly toward cutting demand and employment. Correction: Cut spending
instead.
• The rising cost of health insurance due to Obamcare and increased
costs of government - particularly EPA - regulation.
The Bureau of Labor Statistics - aka the B.S. - will doubtless show
unemployment steady at some ridiculously low number like 7.8%. But
University of Maryland economist Peter Morici says that "labor force
participation is lower today than when President Obama took
office...factoring in discouraged adults and others working part-time
that would prefer full time work, the unemployment rate is 14.4%.
And, around the corner is a likely reduction in the US credit rating by
Moody's.
People ask: How can the Republican Party come back? Because of the
impact of Obama's economic policies which will soon be evident even to
the most optimistic and obtuse.
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