Friday, June 1, 2012

So Much for the Facts

In "Obama Says Economy Will 'Come Back Stronger,'" ...

Makes me think of Obama as Vader, with Guinness' immortal line, "if you strike me down I will become more powerful than you can possibly imagine."

...the Associated Press reports that our President remains optimistic despite today's "unexpected" bad news:

President Barack Obama says the May jobs report shows that the economy is not creating jobs "as fast as we want" but vows that the economy will improve.

Firing up the printing presses an creating more dollars doesn't create growth, it stifles it. More so, it devalues the currency further, while inflation is running at about 4% annually. 

Obama says, "we will come back stronger. We do have better days ahead."

Not sure what he's basing that on, since the people who probably know best -- those who operate on the economy's front lines -- are not seeing any evidence of it, as Reuters reports in "Economic worry tightens U.S. CEOs' grip on spending":

CEOs will hold their wallets a little bit tighter heading into the summer after the long-awaited recovery in U.S. employment stumbled in May.

Anyone putting in purchase requests or submitting expense reports is quite aware of the new reality of business spending. 

The United States had been a relative bright spot this year in a troubled world economy coping with Europe's debt crisis and a cooling Chinese economy. But a weaker-than-expected May jobs report on Friday gave corporate America fresh worries.

AT&T Inc was one company that was not surprised by the disappointing jobs numbers as it has seen a lack of hiring at both big and small corporate clients. Fewer employees at these companies means fewer phone lines, which hurts AT&T's growth prospects.

"We are not seeing any hiring in the upper end of business in the U.S.," said Randall Stephenson, chief executive of the biggest U.S. phone company by revenue, told an investor conference in New York on Friday. "People aren't hiring a lot in the U.S," he said.

At smaller companies, Stephenson said, the situation was worse. "As you go down-market, it's getting tighter and tighter, and you're seeing the wallet for investment being less open."

Then again, facts don't really matter when you're running for office, right?

Neither Obama nor Romney can take credit for economic growth, but it seems anything politician do these days sure has visible negative results. What more motivation do we have for a true free market system than the failed attempts by the state to control capitalism?

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