Stimulus doesn't work......why you may be asking? Because
the people who put the numbers together may or may not realize that the numbers
they are working from are not as accurate.....as they could be. Now, you might
be wondering why I would be talking about unemployment rates in a default real
estate blog.....right? Well, if you are one of the few lucky ones that
are.....let me leave you with a simple thought. No jobs, no housing market.
Ok...so, the above chart was President Obamas Council of
Economic Advisers predictions of unemployment. Now, the red line is the actual
unemployment rate.....as of this last week. The top light blue line is the rate
as projected by the Council of Economic Advisers if no stimulus money was ever
spent. Do you see the problem........nope? Well, if you can't see the problem
here, go speak to any 5th grader who is learning about graphs and
measurement....they will explain the problem to you.
Now....here comes the kicker. You see the bottom dark blue /
green line.....well, that is what the "advisers" said would be the
unemployment rate with stimulus spending.
In case you don't get it....let me break it down for you. We
spent stimulus....so, per the advisers our unemployment rate should be around
7.5% however, instead, it's at 9.1% so, my question is, at what
point....literally, at what point do we determine stimulus spending isn't
making a substantial enough impact that we stop the failed wealth
redistribution policies and get back to common sense?
The housing market isn't going to recover without jobs and
jobs aren't going to come with failed stimulus spending so, let's all start
acting like responsible adults and stop trying to politically "capitalize"
on the situation by pushing agendas.
Ask yourself, why is it so hard for elected officials to
speak truthfully to the American public, tell us just how bad it really is,
stop the failed spending policies, reduce our debt and begin working on
policies that stimulate small business ownership in this country? Maybe it's
because this message doesn't get you re-elected?
IF we don't start focusing on the real issues in our
domestic economic policies, we can all forget about a housing market because we
are going to be too concerned with paying over inflated prices for common every
day goods that people aren't going to be able to afford a house anymore.
Comments
I'm with you 100%. Stimulas doesn't work and neither does cash for first time home buyers. We need the politicians to start listening to the people on the street. Those people out there in the real world. Cut Spending, Cut the ReDistribution of Wealth, Remove the Over Regulation & Get out of the way and let the markets correct themselves naturally.
You are dead solid perfect on this subject. Stimulus money does not work. It just makes us all another day older and deeper in debt.
The stimulus is similar to all these bailouts. The country had/has a bankruptcy code for a reason. That is for people and businesses to get their financial houses in order or liquidate.
Government picking winners and losers is ill advised and lacks common sense as well. Crony capitalism will continue to wreck this economy and stall any recovery.
The talk of a double dip recession is garbage. The US economy has yet to recover from the start of this recession. We have been given a lot of smoke and mirrors, voodoo economics, political chicanery, and massaging of the statistics. Like the adage, "Figures don't lie, but liars sure due figure."
Just my 2 cents.