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Wall Street Weekly | 11/06/2009 11:45 am

Liz Peek: Obama Deaf to Election Warning But May Get Bailed Out

As bad as the recent jobs report is, the president is likely to receive some good news over the next several months …

Bears, Bulls, Chickens and Pigs: wOw’s Wall Street Weekly with Liz Peek (Week of 11/2) 

Editor’s Note: Liz Peek is a financial columnist.

The Bureau of Labor Statistics reports that the unemployment rate rose from 9.8% to 10.2% in October, the highest level since 1983. Job losses were primarily in construction, manufacturing and retail, and were worse than expected. This is not good news; the terrible job market clearly weighs on consumer sentiment and spending, slowing the recovery. The debilitating payroll cuts also produced some cranky voters this past Election Day.

All politics may be local, but it is hard not to read national significance into Tuesday’s election results. Voters rallied against high taxes and the worrisome economy, while in Virginia, disillusioned young and independent voters crossed the aisle yet again to elect a long-odds Republican.

Astonishingly, the Obama administration has chalked up this apparent warning shot to circumstances beyond their control. Neither tea parties nor sinking polls or, now, pointed election returns seem to have made the slightest dent in their enthusiasm for policies that the majority of Americans do not embrace. Speaker Nancy Pelosi could barely contain her glee that the Democrats had picked up an extra House seat in New York – all the better to ram health-care legislation through. Remember Obama’s words on the night he was elected? "I will listen to you, especially when we disagree."

Americans are genuinely concerned about their country’s fiscal prospects, and about Obama’s programs that will create even worse deficits down the road. Fundamentally, they are worried that a shrinking number of people are supporting a growing segment of the population. The jobs being "saved" or added currently are mainly government jobs; the private sector continues to lay off workers. Even a caveman (with all due respect) gets that this is an unworkable trend.

In 2007 economist Gary Shilling wrote that 52.6% of Americans received "significant income from government programs, up from 49.4% in 2000 and 28.3% in 1950." These figures included, for 2007, 19 million Americans on food stamps, 57 million receiving Social Security payments, over 4 million collecting income from the Veterans’ Administration and millions more employed by the government. For sure, the figure has risen in the past two years as increasing numbers have received unemployment assistance and as the government has propped up banks and autos.

At the same time, a growing number of Americans do not contribute to our tax roles. The Tax Foundation reports that about one-third of our population files returns but pays no taxes, up from 18% in the early 1980s, while another 20 million Americans do not file returns at all.

This is not about social justice. It’s about a shifting of the economic burden in a way that is unsustainable. As baby boomers approach retirement and begin to receive Social Security, the number of people paying in more than they are taking out is going to shrink yet again. Add to that inevitability the millions that will receive health care under the legislation working its way through Congress and it is no wonder that young voters shifted gears. They see the burden contained in the legislation that Democrats are so eager to adopt. It is worth noting that, in 1980, 55% of Americans were receiving government handouts – a level that ushered in the Reagan revolution.

433 Reader Comments (so far…) Sign In or Register to comment

deber B

Liz Peek….fabulous article!!   I’m taking the liberty to copy and paste it here:

by Liz Peek  

 - FOXNews.com

 - October 28, 2009

Who’s Pulling Obama’s Strings?

 

Is a new narrative starting to build? Is David Axelrod beginning to emerge as Geppetto to President Obama’s Pinocchio?

Obama fans are in a tight spot. As the White House turns ever harsher and more divisive, supporters are scrambling to explain why President Obama sounds so very different from Campaigner Obama. There are two possible explanations, neither of which is flattering. The first is that Obama was insincere on the campaign trail. The second is that his advisors – David Axelrod and Rahm Emanuel — are in control. The latter view is bound to take hold and it will not boost the president’s flagging popularity ratings.

Many who voted for President Obama feel deceived. When he said in Florida last year “we cannot afford the same political games and tactics that are being used to pit us against one another,” people believed him. When he extolled “rejecting fear and division for unity of purpose,” people believed him. When he said on election night “I will listen to you, especially when we disagree,” people believed him.

Why has the president left those admirable promises behind? Why is his administration going after Fox News, the Chamber of Commerce, insurance executives, AIG management, the drug industry, the Chrysler bondholders and any and all who oppose his policies?

Many believe that Obama is being manipulated by his political adviser David Axelrod and his Chief of Staff Rahm Emanuel. The aura of Chicago politics drifts over the capital like a smog. Ironically, the nasty assaults may be calculated to offset a growing view that the president is not tough enough to stand up to his detractors. He already looks weak as he “dithers” on Afghanistan, repeatedly blames George Bush for his problems and kow-tows to foreign leaders while apologizing for our nation’s past. Surely, though, it will not help Obama if the country begins to suspect the president is not his own man. Being seen as a follower in his own White House will surely magnify an unhealthy aura of inconsequence.

In other words, Obama risks inheriting yet another problem left behind by President George W. Bush. — For years, those on the left portrayed Bush as the willing puppet of political advisor Karl Rove and Vice President Dick Cheney. The image of Rove and Cheney directing traffic for an inadequate president was one of the most enduring of Bush’s presidency. Their power undermined Bush’s authority and worse, made him look simple.

Nothing could be more damaging for Obama, who is assumed by his fans to be an intellectual giant when compared to George W. As the public starts to question how much time the president is spending on fund-raisers (26 events since taking office compared to only 6 for G.W. during the same term in office) or on his golf (24 rounds so far— tying G.W.’s entire presidency), they may also ponder who’s doing the real work when the president goes AWOL.

For a host of reasons, the narrative will build. A March piece in The New York Times described the Wednesday Night Meetings of the Obama varsity conducted by David Axelrod. The piece asserted that Axelrod “helps decide which fights to pick and which to avoid, making him a leading voice in setting the political tone in Washington.” The Times reported that Axelrod had “hoped to keep (the meetings) under wraps so he would not suddenly be overrun by requests from people hoping to dispense advice.” Perhaps his political antennae also anticipated that he would begin to emerge as Geppetto to Obama’s Pinocchio.

Similarly, The Times has described Emanuel as “more chief than staff” and the author of Obama’s “do-everything-at-once strategy”. With his Rottweiler reputation, he is thought especially responsible for the increasingly belligerent White House sound bites.

Those who see history repeating itself can draw parallels between Axelrod and Karl Rove. Like Rove, Axelrod worked on numerous political campaigns and dreamed of someday landing in the White House. He was involved in the campaigns of John Edwards, Senator Chris Dodd and Representative Rahm Emanuel and, like Rove, is well known on Capitol Hill. Both men are driven by ideology as well as the urge to win. Similarly, both Cheney and Emanuel served in Congress, occupied important positions in former White Houses and have sizeable rolodexes.

 

 

A 2001 Time magazine article described Rove as “the busiest man in the White House… It was Rove who shaped the agenda, message and strategy that got Bush – the least experienced presidential nominee of modern times – into the White House.” They might want to reprise that story; Obama’s credentials set new records.

http://www.foxnews.com/opinion/2009/10/28/liz-peek-obama-pulling-strings-axelrod-cheney-bush/

By deber B on 11/08/2009 9:32 am
Kathy Lee

Liz, I applaud you for such a great editorial.  You are saying what many of us are feeling about Obama.  Very well stated.

Thank you Deber for posting Liz’s editorial. 

By Kathy Lee on 11/08/2009 8:11 pm
phyllis Doyle Pepe
What on earth are you talking about? If anything Obama has been naive or stubborn or, god forbid,  believed that he could somehow work together across the political divide. His message of "harmony" turned into a discord of very minor notes from a very disgruntled minority. Compromise? There has been no President that I know from history (except Lincoln) that has gathered around so many people of opposite viewpoints time and again on all sorts of issues. Obama has his problems, I agree, but being manipulated is not one of them. The fact that he has taken his time to decide how many more troops to send to Afghanistan tells me he’s weighing this decision very carefully. 
By phyllis Doyle Pepe on 11/08/2009 1:28 pm
~ countrywoman ~

Hi Phyllis, always happy when you step in to weave some clear vision into a thread.  What a clique, these funny girls.  Liz and her "Obama Bash-a-thon" Peek-ettes.  Always pronouncing their wishful little "buyer’s remorse" myth.  Could that steady diet of sour grapes be causing these delusions as well as the negative spew used to deliver them?   

I agree with you that our President has "his problems…."  But being "manipulated" is just today’s version of wishful myth-spinning from the sour right.  I am SO humbly grateful to have an intelligent ADULT at the helm of this country.  Someone who has the brains to listen, to act responsibly, someone who has the welfare of the American people as his agenda.  Someone who has caused the rest of the world to respect us again.  And as a Veteran’s widow, I am especially grateful to see an abundance of caution in the area of troop deployment.   

Now I will "submit" and stand by to be amused as someone attempts to spin my comment into "buyer’s remorse." 

:-} 

By ~ countrywoman ~ on 11/08/2009 9:14 pm
deber B
phyllis, I would add something to your last sentence…."the fact that he has taken his time to decide how many more troops to send to Afghanistan tells me he’s weighing this decision very carefully"  as it will affect him politically.
By deber B on 11/09/2009 6:02 am
Deni G
Well Liz does after all, have more than a passing knowledge of bail outs. And of course, deafness to warnings.

As to ‘astonishing’, that would be this little gem:

All politics may be local, but it is hard not to read national significance into Tuesday’s election results. Voters rallied against high taxes and the worrisome economy, while in Virginia, disillusioned young and independent voters crossed the aisle yet again to elect a long-odds Republican

which is a perfect example of completely distorting the facts to fit a preconceived agenda.

Facts:

Turnout for the Virginia governor’s race was the lowest since 1969

Virginia’s under-30 vote dropped by half, while the 60+ vote doubled.

The further Deeds ran from the Democratic base and Obama, the further his poll numbers dropped. Democrats couldn’t stand him. He lost and deservedly so.

The politics of the Governor races was indeed local.

The national significance into Tuesday’s election results would naturally be, the National Races. Which went to …wait for it… the Democrats.

The long-odds candidate was in New York and was the Democrat. Party lines were crossed in droves to vote that Democrat into a seat that had not held a Democrat in 150 years. Now that is impressive, Nationally speaking.

But perhaps you would write another article, explaining why ‘The Bankers’ really should get those huge bailouts. perhaps you too believe that the Bankers are doing God’s work.

In your articleConfessions of a TARP Wife you wrote:

My husband, CEO of one of the biggest TARP recipients, has received more than his share of accolades (in my opinion, well deserved). But because of a few tin-eared nitwits who failed to notice that their industry was under siege, the entire country now thinks that TARP bankers are greedy incompetents dedicated to ripping off taxpayers.

Geezus talk about tin-eared.

It’s Greenspan’s fault, it’s Barney Franks’, it’s the Congress, and oh! it would be the Bankers fault ‘except that almost no one saw this coming’. What a load of horse-pucky.

But my favorite line in your sad little TARP housewife article is this:

The good news is that Americans have short attention spans.

So soon we’ll forget what the bankers did to us and you can go merrily about spending lavishly, without fear of some nasty little reporter hounding you with rude questions.
By Deni G on 11/13/2009 5:19 pm
Leigh Hart

Sherrie, Which ignorant red neck voters are you referring to? The ones stationed at the numerous military bases throughout the state? The citizens in Arlington, Fairfax, and Prince William counties where some of the most educated and well informed people reside? The legionsof government employees who are immersed in the complexities of the Obama Administration’s policies on a daily basis?

By and large the Democrats are a "tax and spend" bunch. Just look at the budget and deficit since January 20, 2009 for current proof. Look at the statements and proposed legislation of the Dems who do indeed want "to take away ‘our second amendement rights’".

What most of the voters in Virginia were responding to is continued detoriation of their wealth, increased taxation, the government meddling in their healthcare, soaring deficits, and a lower quality of life for their children and grandchildren. They don’t need Beck, Limbaugh and Hannity to explain it to them.

By Leigh Hart on 11/07/2009 3:26 pm
phyllis Doyle Pepe
If most of the voters in Virginia have seen a deterioration in their wealth they join most of us and not because of anything the Democrats have done, but because of the meltdown of the investment houses which led to this recession. And  if their taxes are increased I’m assuming it’s state? And government "meddling"––what a strange word to use ––in healthcare by which millions of seniors, children, disabled, and veterans would be without. The Congress–––which is part of the Government––is now  in the process of delivering a bill to make health care in this country  BETTER, more fair, less dependent on the whims and fancies of the insurance companies. Last you say these Virginians now have a lower quality of life? Why is that? When did that start? And how does it manifest itself? We have had soaring deficits for some time and will continue to have, but the old "You have to spend money to make money" is something this country will have to do until we get back on track or at least on half a track. 
By phyllis Doyle Pepe on 11/08/2009 1:47 pm
Frannie Em

Sherrie

The republicans got control of congress in ‘93 and lost it in ‘06.  During the Bush years the repubs only had a one or two seat advantage for some long stretches.  The dems held the WH for 7 of those years so it has been a mixed bag.  So instead of 25 years, I think you are really only talking about 12 in the last 25 and the repubs didn’t even have a great advantage.

 

By Frannie Em on 11/08/2009 12:21 am
Sherrie Crews
Excuse the typos, I was typing hastily out of frustration that there are such ignorant educated people in this country who claim to know what they’re talking about.
By Sherrie Crews on 11/06/2009 11:36 am
macwoof woof

Sherrie, did you catch Gail Collin’s column?  www.nytimes.com/2009/11/05/opinion/05collins.html

it is almost as good as Stewart on Beck-

 

Stewart parodies Becks’ paranoid conspiracy charts, Nazi rhetoricSource: mediamatters.org
By macwoof woof on 11/06/2009 11:52 am
Maggie W
Stewart deserves an award!  That skit is priceless…. and so perfect!  Thanks!
By Maggie W on 11/06/2009 12:19 pm
Frannie Em

I saw the skit on TV and I couldn’t stop laughing.  When I was growing up at the ranch we had a cook, she is in her 80’s now and when I call her I find out she watches Beck and it gets her scared because she believes most of it.  

I don’t like to watch him.  All the melodrama is over the top for me and I think it is manipulative, but every so often I tune in to see what he is up to, I don’t last long, but he does bring up issues that no one else is talking about, and then about a month later the scandal will break and he had the news first.  He is just too wacky melodramatic and manipulative for my taste. 

By Frannie Em on 11/08/2009 1:31 am
dr hoodia thinkiam
funny..i thought "ignorant and educated" were opposite????
By dr hoodia thinkiam on 11/07/2009 9:31 pm
Belinda Joy

I can not believe I agree with Liz Peek on something. Stop the presses!

But I do. In the respect of the growing amount of citizens reliant upon the federal government to sustain them in one way or another. I too have been following the statistics in this regard and it is scary. But in this statistic you are missing a huge point. In your article you point out OVER 50% of the nation is reliant upon the federal government. And with that number growing, less people are now actually paying out taxes to the federal government.

Yet on this site on various threads, in your articles, on the news each day we are bombarded with people like yourself lambasting the President about how he is running the country. Using the argument that he is misusing "our" money and such. I find that to be quite the contradiction.  If most of the people doing the yelling are collecting medicare or medicaid, unemployment or disability payments. On welfare or foodstamp programs. Receiving grants or funding for education, back to work programs or child care. Doesn’t that smack of hypocrisy to you?

I know it does to me. There is a lot of talk about how the majority of Americans are now against President Obama and his various plans to turn things around. Well if we are to believe the statistics that you quote, "who" are these people doing the complaining? How can they have one hand in Uncle Sam’s pocket and the other waving a banner with President Obama as Hitler in the other?

By Belinda Joy on 11/06/2009 11:53 am