Yes, the chickens are coming home to roost. All of a sudden, the man who had all the answers three years ago has none. He was calm, cool and collected. He convinced the American citizenry that he could solve all of the country’s problems, and that it was critical that we abandon the “failed policies of the last eight years”.
We are 17 months away from the next presidential election and the economy is definitely slowing. Aggregate demand for goods and services is weakening. And unless President Obama changes course on legislation enacted in the last two years, we are likely to enter yet another recession. He won’t, though, and it will prove to be his undoing.
Conservative pundits and Republican presidential candidates are licking their chops. The President’s economic policies are failing. People vote with their wallets. They know Socialism doesn’t work. Should the economy slow further, it would not surprise me to see other Democrats, sensing opportunity, toy with a Presidential run of their own. Even Anthony Weiner’s troubles aren’t enough to take the spotlight off the economy. (Perhaps the President should appoint Representative Weiner to the post of Social Media czar.)
Unfortunately, we predicted extended economic weakness two years ago. It was easy to spot. We had lived through the Carter Administration. Those who don’t understand history are doomed to repeat it. Over-regulation chokes off economic growth. Businesses and individuals thrive on certainty. The health-care legislation, Dodd-Frank, and impending tax increases (unless the Bush tax cuts are extended further), coupled with out-of-control government spending and astronomical deficits have created the uncertainty. Employment is declining. Unemployment is increasing. The stock market, that predictor of future corporate earnings, is falling. Oil, gas, and other commodity prices are high. Aggregate demand is suffering.
This is Obama’s legacy. He can no longer blame anyone else. And we predicted it.