In the context of the Presidents Jobs Plan, The President excoriated us to “do the math”; yes Sir I will, I will.
North of 400,000 new unemployment claims a week, 1.6 million a month; miniscule job growth but…. the unemployment rate remains the same? There seems to be a problem with the math.
Our total is $1.5 trillion in stimulus spending over the past four years by two different administrations. GDP growth is in the neighborhood of 1%. $500 billion more in proposed stimulus spending will not, according to the math of recent history, solve the problem!
Inflation is at the outer limits of the Federal Reserve’s tolerance for inaction, nearing 2% in an economy where real earnings are declining and unemployment is severe. As the Fed has monetized the debt there is nowhere for the math to take them if inflation continues.
$3 trillion in corporate and banking cash is on the sidelines much of it due to the Dodd / Frank legislation. $2 trillion more sits oversees connected to U.S. corporations. The math says there is as much as a $5 trillion stimulus package just waiting for a home given the presence of conditions that make investment feasible. The math is simple; absent a profit repatriation holiday 35% times zero money coming home is zero tax revenue. If you offer repatriation at a zero percent tax rate $2 trillion times zero is also zero. Zero revenue either way but one stimulates investment and job growth and one does not. Do the math Mr. President!! Really, it’s easy.
Hundreds of billions flushed down the ‘green energy’ low flow toilet; five corporate failures in two and a half years associated with misguided stimulus money. The math says ‘green’ is in a deep hole and we should stop digging. The math also says that despite hundreds of billions, the green business model fails the math test. More money won’t make it so.
Millions of barrels of oil, trillions of square feet of natural gas go begging for lack of an environment that motivates production. Tens of thousands of good paying jobs held in abeyance. Zero government dollars required to produce the jobs associated with the available, identified resources. Major increases in federal and state revenues are associated with the production leases; the math?
From July to August, initial default notices on home mortgages increased by 33%, the highest in four years. 3.7 million Homes are in some stage of the foreclosure process. Federal programs to relieve the pressure have failed.
Poverty rates are accelerating to historic levels. Only 17% of Americans feel we’re on the right track, underemployment hovers around 20%. Collective Federal debt and obligations exceed $125 trillion.
Unions represent 7% of the private work force and yet seem to maintain omnipresent influence.
Mr. President, just saying, the more math we do the worse it looks.