Unhappy New Year
Most economists predict that, under current policies, the nation's unemployment rate will be close to 9% through the end of 2012, with the broader measure of unemployment (U-6) running above 16%. GDP growth is predicted to be sluggish, in the range of 2%. Government will continue to lay off workers as growth stagnates and tax receipts remain flat. In short, the economy will remain lousy.
It doesn't have to be this way.
The President, whose fiscal restraint was on display this week during his $4 million taxpayer-funded Hawaiian vacation, has no idea about how to manage the nation's finances and promote economic growth. Faced with the longest slump since the Great Depression, his solution is to raise taxes and increase spending. The only thing he's managed to get done lately is extending the payroll tax cut for two months and continuing to fund 99-week unemployment benefits.
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