Great Recession

The Reality For Barack Obama: Jobs Are The Issue!

Ronald Leave a comment

Today, it was announced that the unemployment rate has hit 10.2 percent, the highest since April 1983.

Unemployment is a troublesome issue, with the realization that the real unemployment rate, counting those who have stopped looking for work and are no longer getting unemployment compensation, and even those who only work part time, making it impossible to support their bills, is probably closer to 18 percent.

Stress and tension is rising, leading to more bloodshed and violence around the nation, and it is becoming very obvious that IF we do not see unemployment starting to decline and real work opportunities start to grow over the next nine months, it will be a devastating midterm election for the Democrats in 2010, and a sign of impending disaster for Barack Obama in 2012.

The American people only have so much patience, and Obama could be in danger of being seen as another Herbert Hoover or Jimmy Carter–smart person but totally ineffective when faced with a crisis.

So Obama has to, somehow, come up with a magic potion that creates substantial economic revival by the summer of 2010, or face the repudiation of his party by the American people in November 2010!

Good News On The 80th Anniversary Of The Great Crash On Wall Street

Ronald Leave a comment

On this day, October 29, the 80th anniversary of the Great Crash on Wall Street that led to the Great Depression, we have good news: an increase of 3.5 percent in the Gross Domestic Product in the third quarter of this year, the first such increase in a year.

This officially marks the end of the worst recession since the Great Depression, and the growth rate for the quarter matches the normal rate of increase in the 80 years since the beginning of the Great Depression.

The problem is that much of the growth was probably due to the economic stimulus, so the question is whether the economy will continue to expand on its own in the coming months. Plus there is the issue of when will unemployment stop rising, and when will foreclosures start to recede.

So while happy at this development, it is obvious that we should not be overly optimistic at a permanent overcoming of the recession, because there is still danger that we could go right back into the recession in the future.

So we need to have our fingers crossed and hope for the best!

The Urgent Need For Job Creation And Aid To Small Businesses: Are You Listening, President Obama?

Ronald Leave a comment

It is shocking to see the stock market flourishing, with a 3,500 point gain in seven months, and some banks reporting record profits. It is also disgraceful to see some financial institutions and insurance companies paying outrageous bonuses to their executives. Meanwhile, the unemployment rate flirts with ten percent, foreclosures are setting a record, and more people are facing poverty they had never experienced before. We are in mortal danger of making the “Great Recession” turn into the “Great Depression 2”!

Nine months into the Obama Presidency, it is clear not enough has been done to help ordinary Americans, and it is now essential that direct and quick action be taken to promote jobs and give aid to small businesses, not just the big corporations.

Aid to small businesses would promote job creation, and therefore low interest loans to allow small business to expand is a priority. Something must also be done to force banks, which have received federal money, to start opening up their money to expanded credit investments at reasonable interest rates.

More must be done to keep people in their homes, as if nothing is done on the massive foreclosure issue, it only downgrades all of us who are able to pay our mortgages. Everyone is the victim long term if we allow “nature” to take its course.

It is clear that if the national economic crisis does not start to turn around, we are in danger of widespread violence (already starting to emerge) and the possibility of a right wing whacko succeeding Obama, and the likelihood of a turn far worse in domestic and international affairs.

So, President Obama, focus on the workers and small businesses of this country. Stop concerning yourself with Wall Street bankers and the power elite. In fact, do what Franklin D. Roosevelt did in 1935–switch from a comparatively conservative economic approach of flirting with big business, and change your focus to deal with the massive crisis facing ordinary American citizens.

Just as FDR moved from the so called “First New Deal” to the more productive “Second New Deal”, it is time for Barack Obama to do the same thing now. If you do, the American people will be with you and against the banks, corporations, and Wall Street.

We are reaching a turning point, and the President needs to change direction, and focus on the reality that more must be done for the ordinary American citizen and small businessman!