Here's even worse news: The only job growth has been in government and to a lesser extent healthcare. That means the private sector, the true engine of growth, is NOT improving.
That's just the data - now to assign blame: Democrats in US government and ANYONE who supported them in any election in at least the last 3 years. Why? With control of Congress for the last 3 years, and now the White House and a filibuster proof majority in the Senate, the political buck stops there.
To recap the failed policies and policy direction:
1) Community Reinvestment Act and failure to reign in Fannie Mae and Freddy Mac policies: These lead to irresponsible lending practices, translated as lending to people, for political reasons, who are unlikely to repay. This is the true root cause of the sum-prime debacle.
2) Stimulus package that was politically driven (pork) not economically driven (get money in the economy quickly)
3) Failure to consider further tax cuts: Even worse, taxes will increase soon as the AMT has not be re-adjusted, the Bush tax cuts will expire, and as various US States scramble for revenue to stay afloat.
4) Flawed health care "reform" program and opaque political process: The key issue here is that the broad private sector has no choice but to assume this will raise both costs and taxes. This results in a "hunker-down" mentality, meaning no hiring.
5) Take overs instead of letting markets run: Case in point GM. For a good counter-example, Ford is doing much better.
6) Failure to take the War on Terror seriously (and yes that's what it is): Why is this important? It goes to whether the private sector and Americans generally view government as competent. Without a sense that things are going in the right direction, consumers are less likely to open their wallets and private sector employers are again less likely to hire.
7) Focus on Climate Change: Guess what? The vast majority do not believe this is a priority issue, and certainly do not think that the act of breathing (by which I mean expelling CO2 into the air) cause it. Again, Failure of government to focus on economic fundamentals is a root cause of the problem.
To put an Asia view on this, the total number of jobs lost in the US since January is nearly the total population of Hong Kong and Singapore combined! As for the rest of Asia, China is growing at 8%, India nearly as much. Again, those governments are moving as quickly as they can to far more free market and transparent approaches as possible. Even China, with all its command and control mindset at least had a stimulus program that put money into the economy quickly!
Now as for all you who voted for Democrats. WHAT WERE YOU THINKING? Did you honestly believe the people you voted for have policies that are good for the economy? Do you still think that? What facts do you base those views on? I'm not saying you have to believe Republicans or anyone else for that matter. But please. Free markets, lower taxes, smaller government, less (but balanced) regulation, works every time. It'll also keep the government out of your bedroom, your church, and other things you deserve the right to control yourself.
Don't tread on me.
