The White House is apparantly feeling the heat after last week’s unemployment data was released showing an historic spike in joblessness at 9.4%, a figure much worse than what was promised during the Stimulus “debate”. The White House released a statement today saying that it is promises. What remains is how the US economy will navigate an environment of negative growth, rising interest rates, rising unemployment and rising energy prices (did you purchase gasoline this weekend?). Some people are starting to pay attention:
While the administration is sensitive to criticism that stimulus spending has been too slow, a new Gallup Poll shows danger in the other direction. For the first time, a majority of respondents disapprove of Obama on the issue of “controlling federal spending” (51 percent to 45 percent), compared to the 67 percent who view him favorably overall.
Increasing the rate of stimulus spending will not put a dent in any of these problems; rather, it will exacerbate them because the spending is poorly targeted and financed through increasingly expensive borrowing. Add to that the uncertainty generated by the Obama administration’s plan to raise taxes on the wealthy (small businesses) to pay for the ObamaCare legislation and you have the perfect recipe for a prolonged recession.