July 3, 2008

Welcome to the POR (Pelosi-Obama-Reid) Economy: A Washington-Driven Recession or Downturn May Have Begun

Filed under: Economy,Soc. Sec. & Retirement,Taxes & Government — Tom @ 12:28 pm

Today’s employment report, in combination with the ISM Non-Manufacturing Index, should raise alarm bells in Washington.

Instead, I’m afraid that the Democratic majorities in the House and Senate, as well as the people at Obama campaign headquarters, are raising champagne glasses.

These folks aren’t just talking the economy down; they’re taking the economy down.

They’re the ones who have created what I’m going to start calling the POR (Pelosi-Obama-Reid) Economy.

Please, I know it’s hard for some of my readers to do this, but just try to imagine that you’re an employer, especially one who runs a small business — y’know, one of those eeeeee-vile people that just so happens to keep the economy going.

You’re now facing the following realities:

  • Record-high energy costs.
  • A Speaker of the House who insists that we can’t drill our way out of our problems — so we shouldn’t drill at all, while everyone else drills merrily away.
  • A Senate Majority Leader who says that we have to get away from coal and oil ASAP because they’re “making us sick.” So, again, we can’t drill at all, and pretty soon we won’t be able to dig at all.
  • Thanks to a Supreme Court which actually believes that the junk science known as “globaloney” is real (“globaloney” is my term for the ludicrous notion that earth is warming dangerously, that it’s our fault, and that only drastic reductions in energy consumption, reductions in worldwide living standards, and the perpetuation of Third-World poverty will prevent Armageddon), new coal-fired plants are being stopped, the latest being one in Georgia. Gleeful enviros are demanding “an end to conventional coal” — NOW — and appear to have the means to enforce it.
  • A presidential candidate with a shot at winning who thinks it’s okay that energy prices are at record highs, but just wishes the increases would have been more gradual. Too late — he’s got ‘em where he wants ‘em.
  • A presidential candidate with a shot at winning who wants a windfall profits tax on the energy sector.

Thanks to all of these things, you pretty much know that energy costs aren’t coming down, and may very well keep going up.

And if that weren’t enough, there’s this:

  • An impending tax hike in 2009 2011, targeting only the most productive, that will suck about $160 billion a year out of the economy if Congress takes no action.
  • A presidential candidate with a shot at winning who thinks that even more money ($40 billion or so) needs to be sucked out of the economy (again targeting only the most productive) so that the mother of all intergenerational wealth transfers can be kept afloat for another decade or so before the mother of all train wrecks arrives.
  • A presidential candidate with a shot at winning who advocates massive government interventions in the economy that haven’t worked elsewhere (health care, “green” energy), and won’t work here.

In this business climate, are you going to hire more people? Replace employees when they leave? Expand your business? Even if demand for your products or services is strong, which is still the case in many sectors, you’re going to try to get through with the resources and facilities you have.

Perhaps some of these employers and entrepreneurs are considering voting with their feet (I’d guess that Costa Rica’s starting to look pretty good to some), or just getting out or selling out.

Make no mistake: Harry Reid, Nancy Pelosi, and Barack Obama are the people who are making the economy sick. Don’t even try to push this off on George Bush.

If the Pelosi-Obama-Reid (POR) Economy has slipped into recession or negative growth, and I’m afraid that it has in the past few weeks, it’s because the congressional majority and its party’s presidential candidate have made it crystal-clear that they don’t give a damn what ever-higher energy prices and the prospect of punitive taxes are doing, right now, to the economy and the stock market. I’ve never seen anything even remotely as irresponsible as this in the US economic-political arena.

The only thing that could mitigate or prevent the recession or continued negative growth that I’m afraid has begun is whatever juice is left in President Bush’s supply-side tax cuts and the economic stimulus checks. At best, they’ll keep growth barely positive; I don’t seem them helping the job market much, if at all.

This POR Economy is an advance demonstration of what four years of an Obama administration would be like. Perhaps enough voters will recognize this and reject it — and, just as important, the congressmen and senators who support him.

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Related Ohio Item: In February, Harry Reid “accused the coal industry of using ‘the old Hitler lie — ‘when you say things long enough people start believing them.’”

The subject was “clean coal.” In a speech that day, he said that there’s no such thing as “clean coal.”

Do the folks in Columbus, and in the Ohio leftosphere, realize that Reid would prefer to nuke, if you excuse the expression, the primary element (about $150 million) of Ted Strickland’s $1.7 billion bond program?

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6 Comments

  1. Where is David Zucker? The guy who did the great videos mocking James Baker and also Madeline Albright : http://hotair.com/archives/2006/12/19/video-zucker-compares-james-baker-to-neville-chamberlain/

    We need him to skewer POR!

    Comment by dscott — July 3, 2008 @ 1:35 pm

  2. Your belated recognition that Bush’s economy may have slipped into recession (as if there’s really any doubt) gives me some hope that we’re near a bottom and might soon see some faint signs of recovery. Of course there were many of us, like myself, who were warning of gathering clouds way before the Democrats took control of Congress in 2006, so that dog really doesn’t hunt. As with the misbegotten war in Iraq, we were summarily dismissed. That those who have been so wrong about, well, just about everything continue to hold any sway whatsoever will likely be studied in history classes for generations to come.

    Comment by Invictus — July 3, 2008 @ 4:46 pm

  3. #2, for reasons noted, this has been for a few weeks and will be henceforth the POR Economy. We’re just living in it.

    The Bush Economy kept us out of recession despite every effort to sabotage it for the past 6-3/4 years.

    Pelosi-Reid’s energy stunts this month, coupled with the possibility that an objectively unfit, confiscatory-taxing radical might win the presidency, did the trick. The markets are genuinely frightened by the lack of seriousness and presence of abject irresponsibility in Congress and in Obama.

    The stimulus checks probably carry us to a positive second quarter GDP that had a flat or negative June contained therein. After that, we’re at the tender mercies of the POR economy until Election Day — or sooner, if McCain pulls away and the GOP looks it might gain back some seats — or later, if Mr. BOOHOO-OUCH wins and gets a rubber-stamp Congress.

    Comment by TBlumer — July 3, 2008 @ 5:42 pm

  4. It’s “The Democrat Effect” – the rational
    response by firms to prepare for the inevitable insult to the economy from unsurmountable regulation, litigation, and taxation to come – which started election night of ’06; coupled with the economic terrorism of the Left vis-a-vis 3 decades of homicidal energy deprivation, which has coincidentally become critical now.

    Oh, and BTW, these policies are absolutely purposeful, hence the term “economic
    terrorism.” The ultraleftsists (a.k.a. mainstream Democrats) need social and institutional collapse in order to attain power so that they can “rebuild” the U.S. in the image of the Left’s great ideological
    success stories – USSR, Nazi Germany, fascist Italy, Cuba, and Subsaharan Africa. I can’t wait!

    There are other reasons, of course [i.e. easy money policies, weak dollar, subprime lending to deadbeats, federal spending outstripping record revenues from the tiny tax rate cuts (about to end), high individual/corporate taxes in general], but “The Democrat Effect” and the Lefts policies of economic terrorism are the 2 major new variables that are pushing us over the edge.

    Comment by Joe C. — July 4, 2008 @ 6:58 am

  5. Let’s all recall when George H.W. Bush lost to Clinton in 1992.
    Lets further recall when Newt Gingrich led the Republican takeover with his Contract for America and this put any Clinton Socialist ideas to a screeching halt.
    Heck, Clinton signed on to the Welfar Reform Act in 1996.

    OBAMA has stated that he does not support the Welfare Reform Act – thus his one time 20% tax on all private penion monies (as outlined in a previous post) will give him $1.5 to $2 trillion for his give away programs to the poor.

    The fact that Pelosi and others would intentionally destroy the economy for their own gain is no different than Nancy Pelosi hijacking an aircrft and flying it into the Wrigley Building.

    In other words, I view Pelosi as being a terrorrist.

    Comment by Timothy — July 4, 2008 @ 11:10 am

  6. #4, any current evidence that Obama or his minions attempt to revive the targeted-investment pension raid would be welcome. I don’t doubt that they’d like to.

    Comment by TBlumer — July 4, 2008 @ 4:29 pm

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