Tuesday, August 16, 2011

Obama's Economy - #3171 - Moody's Lowers Economic Growth Outlook - Wall Street Journal (2) Regulation Business Jobs Booming Under Obama - Investors.com (3) The Reagan Stimulus vs. the Obama One - USA Today

Moody’s Analytics said its near-term outlook for the U.S. economy has fallen significantly in the past month wake of the debate over the U.S. debt ceiling and the downgrade of the nation’s credit ratings by Standard & Poor’s . Moody’s Analytics, a sister company to credit-ratings company Moody’s Investors Service, now expects real gross domestic product to increase at an annualized rate of about 2% in the second half of this year and just over 3% next year, compared with its estimate a month ago for growth of 3.5% for the second half of this year and through 2012. The firm attributes most of the expected decline to a loss of business, investor and consumer confidence, noting the economy’s improving fundamentals such as the strengthening of business’s balance sheets and consumers’ strides in cutting household debt. The credit-rating company also said it thinks the odds of a renewed recession over the next 12 months — now at 1 in 3 — will increase if stock prices continue to fall. Moody’s maintains that the odds of a renewed recession rise with each 100-point drop in the Dow Jones Industrial Average. While Moody’s expects the economic recovery will continue, prospects for economic growth and job creation have “diminished substantially.” Read more.......

Regulation Business Jobs Booming Under Obama - Investors.com - If the federal government's regulatory operation were a business, it would be one of the 50 biggest in the country in terms of revenues, and the third largest in terms of employees, with more people working for it than McDonald's, Ford, Disney and Boeing combined.  Under President Obama, while the economy is struggling to grow and create jobs, the federal regulatory business is booming.  Regulatory agencies have seen their combined budgets grow a healthy 16% since 2008, topping $54 billion, according to the annual "Regulator's Budget," compiled by George Washington University and Washington University in St. Louis.  That's at a time when the overall economy grew a paltry 5%.  Meanwhile, employment at these agencies has climbed 13% since Obama took office to more than 281,000, while private-sector jobs shrank by 5.6%.  Read more.........

The Reagan Stimulus vs. The Obama One - USA Today - How ironic that as America debated its debt ceiling all summer and faced a stunning credit downgrade, the nation approached a most timely anniversary: It was Aug. 13, 1981, that President Reagan signed the Economic Recovery Act. Understanding Reagan's thinking 30 years ago is critical to discerning where we are now. Reagan's initiative was the antithesis of President Obama's $800 billion "stimulus" that didn't stimulate. The 2009 version was the single greatest contributor to our record $1.5 trillion deficit. It was, plain and simple, what Reagan didn't do.    When Reagan signed the Economic Recovery Act at his ranch near Santa Barbara, it was the largest tax cut in American history. He also revealed leadership that Democrats and Republicans alike agree we are not seeing currently from the White House. Even TheWashington Post called Reagan's action "one of the most remarkable demonstrations of presidential leadership in modern history." Confiscatory tax policy -   The enemy that day was America's progressive federal income tax system, birthed in 1913 by Congress and President Woodrow Wilson. It was revolutionary, requiring a constitutional amendment. That tax, which began as a 1% levy on the wealthy, would rocket up to a top rate of 94% by the 1940s.  Read more.........  Article contributed by Steve Peters.

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