Unemployment and the Economy: Have We Mortgaged Our Futre with Deficit Spending and Debt for NOTHING?

The unemployment rate ROSE in August to a 26 year high (9.7%, or almost 10%). This was after all of those orgasmic mainstream media (worst hypocrites to ever walk the Earth) on August 8, about how the economy had "turned the corner", and was "improving", because of a MEANINGLESS one month "drop" in the unemployment rate to 9.4% from 9.5% (a whole .1% improvement). As pointed out at the time (right after August 8) in my Google blog, "The Maverick Conservative", the unemployment rate had "improved" a similar .1% in July of 1992, from 7.5% to 7.4%. The mainstream media at that time dismissed such a number as insignificant (being more right then about the number than they are now in trying to boost the Obama Administration by putting a happy face on every number). It turned out in 1992 that the economy really had turned from a relatively mild recession, and Bill Clinton was really WRONG in asserting that the economy was in terrible shape, with no recovery in sight.


Well, what do you say when the hyped "trend" REVERSES. That is what has happened. The unemployment rate got .3% WORSE in August, which was three times the amount it "improved" in July. You can argue that the July number was an aberration. But then you have to admit that the mainstream media was LYING in July about the significance of that number. No matter how you try to "spin" it, unemployment is NOT "improving". We are now .2% above the previous recession high of 9.5%, and at a 26 year high. 26 years ago, of course, Ronald Reagan did not panic us into socialism, and total Federal Government control of our lives, but instead set in motioning a lasting economic boom with TAX CUTS across the board (ending with a simple income tax system with only two low rates above zero, which we have complicated and messed up ever since).


It is not just the unemployment rate on which the mainstream media is reporting with total, hypocritical stupidity. Just yesterday the "headline" economic news was first time unemployment claims had "eased" 4,000. Good news", right? Nope. That is just how the media tried to play it. The number of first time claims (people losing their jobs) had dropped from 574,000 to 570,000. That is NOTHING--a statistical blip like the unemployment rate drop from 9.5% to 9.4% in July Further, the trend was WRONG (just like the August jump in the unemployment rate destroys any idea of an "improving" trend). The previous week jobless claims had dropped by 10,000. A drop of 4,000 actually represented a decelerating "improvement" in jobless claims. Further, first time unemployment claims have remained about the same for MONTHS. This means thatt he economy is no longer in "free fall", but it also means that there is no significant "improvement". Retail sales have shwon the same picture.


My blog, "The Maverick Conservative", has told you the correct situation for some two months--while the hypocritical mainstream media was hyping every bit of "news" about the economy as "good" (when the news has not been "good", but merely not total disaster--yet). What I have told you, and what is true, is that the economy has, indeed, "stabilized"--to some degree. We are "bumping along the bottom"--no longer in free fall, but not really "improving". Indications are, in fact, that we are still slightly deteriorating.


Think how BAD this really is!!!! What do I mean? I mean that we are on our way to a yearly deficit of 1.6 TRILLION dollars, and a ten year accumulated deficit of at least 9 TRILLION dollars. And there is still no clear evidence that the economy is improving. We have robbed Peter to pay Paul, for little gain. We have made it virtually impossible for our economy to further recover, by mortgaging our future, and we have little to show for it.


Take "cash for clunkers". Forget the "morality" of forcing taxpayers to help pay for CARS for some individuals. What did "cash for clunkers" do? It put some people in debut--even after the taxpayer help--for a new car they can't really afford. One "explanation" of the recent DROP in retail sales was that "cash for clunkers" had taken money from the rest of the economy. Further, the program meant that anyone who wanted a new car, and could dredge up a "clunker" anywhere, has ALREADY BOUGHT ONE under that program. The program has now ended. What now happens to auto sales? Right. NO AUTO SALES for the next few months (exaggerating slightly, but only slightly). We have merely increased the deficit to artificially accelerate auto sales into this summer, without permanently improving sales. Further, we have distorted the market, and the economy, in doing so--to our ultimate detriment.


Yes, we really are in bad shape. We have spent enormous amounts of money we don't have, and committed to spending much more, with no discernible benefit. We appear to have gone insane, or rather our leaders have--acting like government spending and central planning can solve everything because we have leaders who know all, see all, and can do all (lol). The people who oppose an health care "overhaul", especially at this time when we don't have the money to even try that bad idea, know that this is INSANITY.


Our leaders, and mainstream media, do not appear to realize this is insane. That is why I am a pessimist here. Our "leaders", and our media, appear determined to force this stuff down our throat, even after we have come to our senses ("we" referring to most of the public). It is enough to drive one to despair.


If we have mortgaged our future, and are still this bad off, "despair" is the only rational response. Joe Biden has said all of this lurch into unrestrained spending and central planning was necessary to "aovid" a depression. The facts seem to suggest that these polities will CREATE a depression as our "chickens come home to roost" (in the immortal words of Reverend Wright, and probably Van Jones, referring to 9/11).