Change Americans Do Not Believe In
Published: June 26, 2011 at 9:40 am
The Wall Street Journal/NBC poll, as early as September 2010, “shows that a lot more Americans are blaming President Barack Obama for the current state of the economy than they did at the start of the year, and despite the official pronouncement that the recession ended in June 2009, only one in five say it is over.
Fast forward to June 2011 and the American people were right. The economy is not getting better—it’s getting worse. The New York Times headlined a report titled; “Forecast for Growth Drop, Some Sharply.” What’s disturbing about this report is that two respected firms have downgraded projections for growth in the US economy for next year. Goldman Sachs cut its forecast by half from 4% to 2% and Macroeconomic Advisers, a research firm, projected 3.5 percent growth back in April and is now down to just 2.1 percent for this quarter. This is not the kind of change most Americans believe in.
Despite the expert’s downgrading of America’s economic projected growth, the Obama administration continues to urge Americans to be patient. He explains his economic policies have hit a bump in road and the economy is mending. His critics, however, argue that the problem is not that we have hit a bump in the road but rather ”we’ve hit a brick wall. .
According to Rasmussen polls, the majority of voters believe that a failure to make significant cuts in spending is a bigger long- and short-term threat than the government defaulting on the federal debt. Fed Chairman Ben Bernanke agrees that failure to cut spending poses a huge risk for America. Says Bernanke, “As we have seen in a number of countries recently, interest rates can soar quickly if investors lose confidence in the ability of a government to manage its fiscal policy,” said Bernanke. “Although historical experience and economic theory do not show the exact threshold at which the perceived risks associated with the U.S. public debt would increase markedly, we can be sure that, without corrective action, our fiscal trajectory is moving the nation ever closer to that point.”
Obama’s response to cutting spending was more of a campaign slogan than a real solution. Says Obama; “We can’t just cut way to prosperity.” While even the President agrees that Washington must get serious about spending cuts, when it comes to proposing solutions for such critical issues, the President is missing in action.Continued on the next page