Posted by: Barthélemy Barbancourt
on Jun 07, 2009
The data is in for April. Here's what happened:
1. Household personal income (inflation adjusted) rose, but every penny -- and then some -- went into savings or paying down debts. Consumer spending, on which Barack Obama is betting to stimulate the economy, actually fell. None of the stimulus money was spent. None.
2. Meanwhile, to pay for this stimulus spending that didn't stimulate, Obama had to borrow so much money that long-term interest rates have almost doubled since he took office, forcing postponement or abandonment of business expansion and hiring across the board.So why Obama has managed to increase the cost of borrowing he has done nothing to increase consumer spending. His Keynesian economics is failing, just as it always has.
Unemployment is now almost guaranteed to hit double digits and will stay there throughout most of next year. The recession will be longer and deeper then than it should have been due to Obama's ignorance and arrogance. The only bright side is that socialized medicine is probably dead as no one wants to further increase the deficit and the debt.
