Probably 99% of people are not aware that President Obama’s stimulus bill had a provision that every quarter there would be a report filed on the effects of the stimulus. When it was found over a year ago that the stimulus did not stimulate the economy and failed to influence any significant national growth, the White House violated the law by stopping the required reports. The reports stopped in 2011. The last six quarterly reports have not been filed.
Like the appointments to the National Labor Relations Board, this is another flaunting of the law by the administration. It is an embarrassment to the Obama Administration that the stimulus was a waste of money. To create one job they spent over $217,000 per job. Any simpleton realizes that is not cost effective.
Now we have news that we may be slipping back into a recession. First, the St. Louis Federal Reserve declared last week that this has been the “worst recovery ever” in the history of the United States. Then this week it was announced that economic growth was weak in the fourth quarter of 2012. The average growth over 2012 was a dismal 1.5% according to the National Bureau of Economic Research. Add the fact that consumer confidence is down sharply, 48 million people are on welfare (a new record), payroll taxes have increased for all workers, unemployment claims are higher than expected and exports are down makes it appear that we may enter another recession during Obama’s second term.
Martin Feldstein, Harvard Professor of Economics, has warned that the Federal Reserve’s policy of buying $85 billion worth of assets per month is creating artificial housing prices that cannot be sustained. It was a housing crisis that created the recession in 2008 and we are headed in the same direction with another housing bubble. Feldman said it is a serious risk.
The warning signs are all present but the American people through their ignorance still support and admire Obama. He, of course, will blame the Republicans if there is a recession. He never takes responsibility for his disastrous decisions.