Outlook on theAmerican economy gets bleaker with each passing news report. The country is in the midst of a nationalfinancial crisis with astronomical budget deficits, the national debt hurtlingupwards, and a Democratic Senate that refuses to act on the problem. Today’srelease of employment figures reinforces the gravity of the situation.
The LaborDepartment’s May employment figures show that the economic recovery continuesto stall. All told the economy added a mere 54,000 jobs – the fewest in eightmonths - and the unemployment rate jumped to 9.1 percent. ‘
These figures clearlyindicate that we are in desperate need of a new approach. Given that Plan A, throwingmoney at the recession in a desperate attempt to create jobs, has failedmiserably, it’s definitely time for Plan B. The problem is, there isn’t a PlanB. Now that the nation teeters on the verge of default, with a debt burden thatis projected to reach record high levels, taxpayers are more than bled dry andDemocrats are flat out of ideas.
Conservativeshave an entirely different idea. Rather than throw good money after bad,conservatives propose putting our investors minds at ease by slowing the floodof red ink coming out of Washington. And as we notedearlier this week, 150 economists think that is a wonderful idea. Theeconomists argue that:
“An increase in the national debt limit thatis not accompanied by significant spending cuts and budget reforms to addressour government’s spending addiction will harm private-sector job creation inAmerica.”
Thechief economist for the National Federation of Independent Business, WilliamDundelber added more heft to the conservative case for cuts. Earlier today heissued a statementon job creation saying, “meaningful job creation on Main Street has collapsed.”Dundelber also warns that, “If Congress doesn’t deal effectively with thetrillion dollar deficit, we’ve got plenty to keep us worried.”
Asthe chorus of those urging action on the deficit begins to grow louder thequestion becomes – will the Senate and White House listen. More spending is nomore the answer to our economic problem than another donut is the cure for aheart patient. It’s time to put government on a diet and let lean and meanbusinesses flourish without carrying the weight of bureaucratic intervention ontheir backs. Namely, it’s time we enact strategic spending cuts, pass a durablespending cap, and support a Balanced Budget Amendment to the constitution
Dothose three things and watch the flow of negative economic headlines and joblosses finally ebbs.