Well Mr. Obama's speech was filled with more of the same, more governmental spending and more failed governmental micromanagement of our economy. What a pompous campaign speech by an individual whose one term Presidency is fading very rapidly into oblivion. Not to shock the President and his economic advisers but they must realize that the current gap between gross domestic product and potential gross domestic product is about $1.3 trillion. That is a substantial amount of money which this new and recycled jobs plan does little to address in the long run. Actually from an economics perspective I see no mention of this at all.
Naturally he also called for higher taxes on those who pay the most in taxes already, I had mentioned in a previous column that Warren Buffet and his buddies can contribute to the national debt.
The mortgage market also must clear itself finally and not continue to be propped up by individuals who economically can no longer afford their homes. The new plan does more of the same which will still not address the excessive amount of toxic mortgage debt in our economy. Which forces the continuing problems in this area of our economy.
My economic advise is simple, Congress do not pass this debacle of a campaign/jobs bill. Let the free market system clear itself of the economically inept government programs that have burdened the markets for too long. Allow free market incentives to increase production of goods and services which allow for the creation of new jobs for those 18% who are unemployed. Keynesian economics does not work and has never worked in our economy, not in 1933 nor in 2011.