Obama Doesn’t Understand

Economics

To the Editor:

President Obama and Vice President Biden both went public on Thursday, June 3, and told us the following day’s job report was going to be a good one. Well once again they couldn’t have been more wrong. Friday’s numbers were very disappointing. The report stated the US economy added 431,000 jobs: It sounds good but if you dissect the numbers it’s actually horrible. Ninety percent of those jobs were government hires, most being were part-time US Census workers. What that means is 390,000 paychecks are being distributed by the government and paid for by taxpayers and the private sector.

The important number in this report is the private sector hires which was a dismal 41,000, well below expectations and the lowest number we’ve seen since January. How did the President respond? “The economy is getting stronger by the day” —Obama. Which part of the economy is he talking about? Small business (the life blood of the American economy)? No! Government (the US Census work adds zero productivity) Yes! Anyone who understands economics saw this as negative news. The financial markets saw this as negative news. Mr Obama, you don’t understand economics! Productivity grows an economy and 390,000 jobs you created don’t have it.

We are still in a financial crisis. It started in 2007 with the banks and is currently spreading to governments. Until this administration admits the so-called financial recovery of 2009-10 was inflated by government borrowing, we will continue to create the worst bubble of all, government debt.

Daniel M. Patti

84 South Main Street, Newtown                                   June 16, 2010