The Dow has declined 25% this year. Why is that? The reason is investor and consumer sentiment are at record lows. Although Obama's poll numbers are still at a normal level for a new President, the country thinks we are still going in the wrong direction. The stimulus bill did nothing to change that perception. Most people realize there was very little in the stimulus bill about stimulating the economy. Most of the money went to social programs and Democratic special interest groups. The money allocated for infrastructure improvements won't be spent anytime soon. Also, investors are wary of new taxes on businesses and individuals. In spite of spending hundreds of billions to bail out banks, the banking crisis continues. While this is occurring, President Obama is talking down the expectations for a quick recovery or stock market rebound. Where is the "hope?"
The Obama Economy
As the Dow keeps dropping, the President is running out of people to blame.
As 2009 opened, three weeks before Barack Obama took office, the Dow Jones Industrial Average closed at 9034 on January 2, its highest level since the autumn panic. Yesterday the Dow fell another 4.24% to 6763, for an overall decline of 25% in two months and to its lowest level since 1997. The dismaying message here is that President Obama's policies have become part of the economy's problem.
Americans have welcomed the Obama era in the same spirit of hope the President campaigned on. But after five weeks in office, it's become clear that Mr. Obama's policies are slowing, if not stopping, what would otherwise be the normal process of economic recovery. From punishing business to squandering scarce national public resources, Team Obama is creating more uncertainty and less confidence -- and thus a longer period of recession or subpar growth.(excerpt) read more at online.wsj.com
2 comments:
The economy was in full crash when he arrived. That was like a month ago. He has a way higher popularity rating than Bush did when he left, so it is hard to call it a no confidence issue. His blame is starting to trickle in, but we are a long way from being able to pin this thing on him yet.
The blame on Bush will probably recede sometime soon. Since Obama pushed so hard with his stimulus, you can say that he effectively bought the economy and it's now his. If the stimulus fails, it will be blamed on Obama. After awhile people will have to realize that Bush is gone and not coming back. The Democrats can get away with blaming Bush for a little while longer, but they will look petulant if they keep blaming their own failures on someone who is gone.
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