Yesterday Big Government posted an article about the slow economic recover and the things that are hindering a robust economy. The article points out that during the Bush Administration, any economic news was reported from a negative slant. The media right now is trying to put a positive spin on economic news, but the picture at the above link tells the story better than any words!
The article lists five things that are preventing the recovery all of us are looking for:
1. Historically high unemployment. None of the economic experts have voiced an expectation that the 9 percent plus unemployment rate will fall in the near future.
2. The mortgage foreclosure crisis hits the economy in a number of ways--as the value of housing falls, defaults increase, the value continues to fall, and homeowners' equity decreases. This contributes to a feeling of uneasiness about the economy in general.
3. Rising gas prices put a drag on economic growth. The Obama Administration has essentially blocked development of America's carbon resources and that policy will continue to adversely impact both economic growth and trade balances.
4. A significant increase in government regulations. The healthcare bill alone has caused many businesses to put off expansion plans indefinitely.
5. Large states (California, for example) with unfunded liabilities that cannot be met without government bailouts are going to be asking for federal money very soon. This will also be a problem.
To change these factors, Congress would have to change much of the policy now enshrined in Washington, D. C. Hopefully there are enough people in the freshman class of Congress that understand economics well enough to begin to move in the right direction.
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