As Obama’s campaign continues to struggle to bring in money, they have abandoned the $1 Billion mark they wished to raise, and may even fall short of $750 million–the new goal. It seems the President is having trouble invigorating the base, asking for $5 from supporters in the form of a tweet which read “DEADLINE: for the price of buying your friend a drink–pitch in $5 before midnight to help this campaign win”, and in e-mails asking for only $3 at a time. It appears it is not only the US Treasury which Obama can’t seem to keep out of the red. (Original article).
But when you look out your window at the reality of the situation, is it any wonder that Obama cannot seem to gain momentum? Unemployment is stuck at 8.2% and the actual number of discouraged workers who have stopped looking, and under-employed is much higher. “Initial jobless claims, an indication of layoffs, increased by 8,000 to a seasonally adjusted 365,000 in the week ended July 28”.
Furthermore “orders for manufactured goods decreased 0.5% to $465.81 billion, the Commerce Department said Thursday. Economists surveyed by Dow Jones Newswires had forecast a 0.5% gain in factory goods in June.” In 3 of the last 4 months factory orders declined, suggesting manufacturing is not in high demand in our ailing economy. In terms of new orders for goods from factories, when excluding the volatile and government supported transportation sector, orders were down 1.8% in July, the biggest drop since March 2009. Unfortunately the biggest booming sector is one which gets its business from the government, “defense capital-goods orders surged 62.9%. But excluding defense orders, overall factory orders were down 1.5%, after rising 0.2% in May.” Government taking money out of the private sector to support the defense industry does not mean any net gain in wealth or jobs, just a transfer of jobs to that particular industry from others. (Original Article).
But what about the bailouts that were supposed to revive our economy? Well, General Motors’ profits slipped 41% in the second quarter. Much of the decline in profits has been blamed on the European branches operating loss of $361 Million, but the company still received tax funded bailouts, which were supposed to be paid back, yet the gap of money the taxpayer will cover continues to rise. And North American branches are far from booming, GM reported a drop in deliveries of 6.4% in July compared to Ford’s July drop of 3.8%–Ford did not receive a bailout. (Original article).
Taxpayers have lost $35 Billion on the bailout to GM, with the government still owning 27% of the company as the stock price plunges. But that hasn’t stopped GM from increasing risky sub prime auto loans in order to boost the “sales”. Although the industry average for sub prime auto loans is about 6% of cars sold, in quarter 1 of 2012 GM sold 8.2% of its cars in this way–up from 4.8% of sales in the last quarter of 2010 when the bankruptcy was still fresh and the company was less likely to gamble with fresh funds from taxpayers. Now that the bailout is in the distant past and voters may not remember, GM decided to try to save face rather than have a safe and effective business plan. It seems all that matters is the company lasting until after the election in November. But the economy would be doing much better if that $35 Billion had stayed in the private sector where it would have been invested in companies that would actually post profits and provide steady jobs. Government cannot create wealth, it can only move it around.
But maybe none of this matters to Obama supporters. Maybe what really matters is the President’s overwhelming support of peace throughout the world at all costs. Oh wait, Obama just recently “secretly” authorized the support of rebels in Syria trying to out Assad. This is similar to the US intervention in Libya to oust Gaddafi. Both were brutal dictators, yet we have no evidence that our intervention improved the lives of citizens or installed a less hostile government; and this trend carries over to Egypt. But the danger behind a conflict with Syria is Russia and China’s insistence that the U.S. not get involved, and pledged military assistance to Syria if we do. If you view America’s exit from Iraq through tunnel vision, then maybe Obama might seem like a peacekeeper, but how can the same guy who preemptively got a Nobel Peace Prize be taken seriously when he involved America in two more conflicts with hostile governments, increased involvement in Afghanistan, and escalated tensions with Pakistan? This is leaving out our deteriorating relationship with Iran which could boil over into full fledged war with Israel at any time. (Original Article).
To sum it all up Obama has failed at reviving our economy, and taken none of the necessary steps to allow business to pull America out of financial trouble. He has weakened the dollar with help from the Federal Reserve, and increased the number of people on government assistance. Obama has failed to put America back to work and their is no light at the end of the tunnel for the middle class who takes the biggest hit though all of his anti-wealth, anti-success policy and rhetoric. He has not even deescalated American intervention overseas nor scaled down our use of military in other countries. Instead he has decreased our allies and increased our enemies. And to add icing to the cake, he cannot even maintain his own campaign funds. If it weren’t for free advertising and avocation from the media, Obama would stand no chance this November, but even they have a hard time covering up Obama’s own words. Remember the philosophy of this President “You didn’t build that, someone else did”. This is not the type of person who will improve ANYTHING about America.