The economics thing. Yeah, that again.
Found yourself wondering about the massive job losses over the last month or so? Not quite sure that the liberals are right when the scream about “The Worst Economy Since Hoover” and “The Failed Policies of Bush” being the reason?
Well how about an explanation from the horse’s mouth, so to speak, from one of those Evil Rich who have been laying off people since, oddly enough, November 4th (shouldn’t the entire economy of the United States have boomed immediately, fueled by massive optimism caused by our imminent salvation by the Anointed One?). (H/t LC & IB Mike).
I caused part of this job loss and I know precisely why; the election. The results portend big trouble for small business.
The job destruction process has started. We are about 20% of the way through our ramp down process and on schedule to complete the shut down by spring 2009. Watch the financial news and you will see continued job cuts each month. We are not alone in our strategy. Far from it. Atlas has shrugged all over the country.
Blink and you may miss another government bail-out, loan guarantee, federal plan to alleviate a bad or unwise mortgage, a suggestion for more government funds for a more aggrieved constituency, or credit-card relief proposal, etc.
All this is said to be smart and necessary, given that we are told that the problem right now is an absence of liquidity. As I understand it, we wish to borrow or print trillions more in money to prime the system and get people active and at work again. That is altogether good and noble, inasmuch as our problems are driven by panic and now psychosocial as much as material (after all, we have not experienced a massive earthquake, plague or foreign attack that destroyed people and things.) But a few cautionary worries:
Unemployment is still below 7%. Inflation is low. So are interest rates. GDP did not go negative by much in the last quarter. The point is that we are not yet in an era of 1929-39 by any means.
