Outlook on the American economy gets bleaker with each passing news report. The country is in the midst of a national financial crisis with astronomical budget deficits, the national debt hurtling upwards, and a Democratic Senate that refuses to act on the problem. Today’s release of employment figures reinforces the gravity of the situation.
The Labor Department’s May employment figures show that the economic recovery continues to stall. All told the economy added a mere 54,000 jobs – the fewest in eight months - and the unemployment rate jumped to 9.1 percent. ‘
These figures clearly indicate that we are in desperate need of a new approach. Given that Plan A, throwing money at the recession in a desperate attempt to create jobs, has failed miserably, it’s definitely time for Plan B. The problem is, there isn’t a Plan B. Now that the nation teeters on the verge of default, with a debt burden that is projected to reach record high levels, taxpayers are more than bled dry and Democrats are flat out of ideas.
Conservatives have an entirely different idea. Rather than throw good money after bad, conservatives propose putting our investors minds at ease by slowing the flood of red ink coming out of Washington. And as we noted earlier this week, 150 economists think that is a wonderful idea. The economists argue that:
“An increase in the national debt limit that is not accompanied by significant spending cuts and budget reforms to address our government’s spending addiction will harm private-sector job creation in America.”
The chief economist for the National Federation of Independent Business, William Dundelber added more heft to the conservative case for cuts. Earlier today he issued a statement on job creation saying, “meaningful job creation on Main Street has collapsed.” Dundelber also warns that, “If Congress doesn’t deal effectively with the trillion dollar deficit, we’ve got plenty to keep us worried.”
As the chorus of those urging action on the deficit begins to grow louder the question becomes – will the Senate and White House listen. More spending is no more the answer to our economic problem than another donut is the cure for a heart patient. It’s time to put government on a diet and let lean and mean businesses flourish without carrying the weight of bureaucratic intervention on their backs. Namely, it’s time we enact strategic spending cuts, pass a durable spending cap, and support a Balanced Budget Amendment to the constitution
Do those three things and watch the flow of negative economic headlines and job losses finally ebbs.