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.
Read more about: Barack Obama, Cisco, Economy, Gary Shilling, health care, Liz Peek, Nancy Pelosi, News, Obama Administration, Ralph Lauren, U.S., Unemployment, Wall Street Weekly, Warren Buffett
























433 Reader Comments (so far…) Sign In or Register to comment
True Grit,
In a response to an unfortunate comment I posted, you wrote, "Maizie….surely you have something more profound to say then to sling that worn out mud around?"
Thank you! I appreciate your admonishment. It was poor judgement on my part to post the comment [you are referencing], which the editors of wOw wisely removed.
Usually, when I visit wOw, discussions on hot topicshave already begun. And, more-often, someone has [already] eloquently posted a reply that reflects sentiments or points of view similar to my political/social ideologies. This is among the reasons I hesitate to post lengthy comments specific to controversial issues here on wOw. Yet, the main reason is because invigorating debate and enlightening discussions often is sabotaged and leads to unconstructive criticism, personal attacks, and [as you have pointed out] mud slinging. I am ashamed that I allowed myself to participate the latter. It is in this context [I confess] that I lack the acumen, tact, and guts to add ‘profound’ commentary in the midst of what invariably becomes heated and reckless arguments.
Again, thank you for pointing out my blunder.
Maizie
"
Paul Smith — Just a guess here to your question — if Obama and his Administration are like most of the Democratic administrations — they will let things lag until about 3-5 months before the major election time and then - boom - they will make themselves look good so that some of the stupid voters in this country will think "Oh, wow, he’s really doing his job".
Seems to work for them! But it might be a little harder this time - there is no money available - we are in debt up to our ying yangs and there are millions of people without jobs.
Personally, I think we can properly question and raise doubts about Obama’s performance right now. I’m not waiting -
Liz Peek:
Obviously the two republican wins for Governor in Virginia and New Jersey are significant as we draw closer to the elections in 2010. I believe it measures accurately the loss of confidence that Americans are feeling with this administration. Barack Obama campaigned on "transparency, hope and change, and winning the war in Afghanistan." So far, we have witnessed the transparency being replaced with secrecy, hope and change routed to far left leaning government control projects and a very unpresidential and embarrassing waffling on the war in Afghanistan. This isn’t about what Obama "inherited" from a previous administration. This SCREAMS loss of confidence in our president because he hasn’t accomplished what he set out to do. He has taken on far too many projects in one year and hasn’t done a good job of completing them. Obama’s strong suit is suppose to be communications and marketing. We now know that this is no longer true as he seems incapable of communicating and marketing the message on economics. He failed to communicate the healthcare bill adequately so that Americans could understand it. Nancy Pelosi, a thorn in his side, will, no doubt, kill this bill on her own due to her arrogance and unwillingness to work with the republicans. Too many times this administration has gone behind closed doors.
Just yesterday," Senator Barbara Boxer Breaks Senate Committee Rules…
The liberal California senator passed the dem’s cap-&-tax legislation out of committee without a single GOP member in attendance. This is against the rules and the first time it has ever happened."
Recently, Nancy Pelois breaks her pledge and will not post the bill on line for 72 hours before voting to Nationalize Health Care.
Americans simply aren’t going to put up with this!
And still, we have a President who, during his campaign raised his voice and stated, "I will win this war in Afghanistan!" Meanwhile, he ignores General McCrystal’s advice as he positions himself, politically, to do the right thing for himself and not the troops who are at risk daily because they are understaffed.
Now, I can ask you…"Why did Virginia and New Jersey go Republican?" Could it possibly be because Americans are finally fully awake realizing that this far left leaning administration is a strange group devoid of caring about the unsustainable debt that they brought to the American people in less than one year in office? Could it be that Americans are realizing that when you elect a man to the highest office in our country he really needs to have experience in something other than a community organizer? Obama is merely the mouthpiece for this radical group of men and women and I’m not sure if he has had an original idea to offer the American people since the day he took office.
I love it when democrats continue to harp "on the mess GWB left for Obama to clean up." When I read that, I immediately go back to 1981 when Reagan was elected President….talk about inheriting nasty unfinished business…whew….Jimmy Carter handed him a recession, inflation and 24% mortgage interest rates!!! He didn’t complain. He didn’t blame anyone. He didn’t use President Carter as a reason why everything he was attempting failed. He simply rolled up his sleeves and cut taxes immediately to our small businesses and offered them low interest loans to improve and grow their businesses. Hello Obama? It worked. You knew it worked for Reagan. Yet, Obama continues to turn his back on the one thing that would’ve saved the jobs and added more beginning in February 2009. Recently, he threw the small businesses a "bone." Low interest rate loans. Hello Obama? While you were ignoring them, their production and employees have decreased. They can’t qualify for that loan. So, until our largest employer of jobs recovers basically on their own, we are going to see the unemployment rate climb above 10.2% That’s a given.
Liz, with regard to the Baby Boomers retiring and drawing out the social security that they have been paying in for decades I have to think that many of them will continue working, due to the economy, and will put off drawing their "retirement" checks. This may ease the situation somewhat but the real trainwreck is the healthcare bill. Somewhere along the line I wish Barack Obama had taken a course in economics. For this administration to spend this amount of time trying to bring a government health care plan to ALL Americans rather than address the small percentage of those Americans who actually need it is telling. All Obama needed to do is pass a law that insurance companies could no longer require evidence of insurability and they could not drop anyone due to any and all illnesses. Then he needs to sign a Tort Reform bill, immediately clean up the fraud and abuse in Medicare and put those Americans without insurance coverage on that plan until such time that they received medical coverage through their jobs. I believe that insurance companies would have lowered their rates in a competitive bid to underwrite millions of Americans with preexisting conditions. It’s all about the math.
Liz, our country, in just one year has turned from being "star struck" with Obama to judging him on the actual issues. How is it possible that someone who was so likable and so inspiring while running for President could, day by day, be so unlikable and so uninspiring as president? He talked the talk but he can’t walk the walk.
The polls register the heartbeat of America.
Thank you deber!!!!!
Deber B,
Do I hear an AMEN!!! Great post. Seems like many of the posters here need to take some lessons from you. Thank you for your knowledge and thank you Liz Peek for another eye awakening article.
AMEN!!!!
Deber — Great post! And I might add - as to Mazie James’s remark - instead of name calling and racist remarks why can’t some people remember that each contact with a human being is so rare, so precious, one should preserve it! Maybe she doesn’t understand that some of us don’t see things as they do - we see them as we are. I truly believe that some of us have to bring reality to a situation because there are some who cannot!
Our dreams for this country are not necessarily the same but ours are necessary for our life and the future of our children. I don’t know about you but I want a country that is tolerable for myself. When some blindly adopt a political system they become automatons - they cease to grow.
And, Deber I agree with you the polls do register the heartbeat of America. If the election would have been held this week for the Presidency - Obama would have been defeated in double digits!
What about the Upstate New York election — the one where conservatives like Sarah Palin put their weight behind a conservative independent candidate, rather than support the Republican canidate because they thought that candidate was too liberal.
Subsequently the first Democratic mayor since the mid-1800s was elected — what message did that send?
Seriously, deber — it doesn’t matter "you" didn’t win the election you lost — but, extremely significant "you" won the elections you won. Not significant that it was the first Democratic win in 150 years?
Since currently only 20% of voters are willing to "call" themselves Republicans, it doesn’t take much to have more Republican voters than one might think. What will be really interesting is to see how Virginia does in a few years when the Republican takes their transportation system down the tubes.
Bottom line, Sara, we won two out of three. That’s significant. I’ve lived in Virginia most of my life. I was born here. I believe McDonnell will continue to do what is in the best interest of the people in Virginia. New Jersey needed to get the corruption out of their state. The real deal will be in 2010. With Americans so against Obama/Pelosi’s idea of a great healthcare bill any democrats who sign on know that they are signing their death warrant..it will cost them re-election in 2010.
BTW, Virginia has beautiful roads and our transportation system is second to none. Have you been to Northern Virginia latesly? Where I live you wouldn’t know we’ve been in a recession. The real estate market is thriving and unemployment is low. This part of Virginia generates taxes for the entire state. So, please don’t worry about Virginia. You need to worry about California, Nevada and Florida where they constantly overbuild.
Bottom line, deber — the elections "you" won were only significant because "you" made them significant. I live in the Midwest — no one here gave a flip about who won "your" elections. It is pompous at best to think that the results of elections in Virginia and New Jersey are representative of the country at large.