Tuesday, April 24, 2012

"Romney Effect" Boosts Economic Outlook

The very prospect of Mitt Romney assuming the helm of the largest, strongest economy in the solar system is already causing the sun to shine a little brighter!  New claims for unemployment benefits are in decline. Hiring appears to be on the rise. Consumers are feeling moderately more confident and hence, are spending more. And businesses, anticipating the demise of Obamacare, are beginning to feel a little more optimistic about their long term prospects and plans. Way to go Mitt!

Of course, Obamanites will protest: "Wait a minute, if you're going to blame Obama for the recession (which of course was ALL Dubya's fault) then you've got to give him credit for the run-around...er...I mean turn-around!"

WRONG-O DONKEY BREATH! We Americans are a resilient bunch. The recovery was inevitable from the day the Federal Government lost their grip and screwed the pooch in the first place. We ALWAYS pick ourselves up and move on. No thanks necessary to FDR, GW Bush, BH Obama, or anyone else. It's just a matter of how we do it and how long it takes. And for that, the Washington frat boys deserve far more of the blame!

"Okay!" they bray, "Then what the crap has Romney done to deserve any credit? He's just a candidate, and a lousy one, at that!"

Excellent question! To which I answer, 'Absolutely nothing...yet. Which is far more than Obama has done to help the situation.'

But here's the truth. Obama and Democrats, with a fair dose of help from big government Republicans have done just about everything wrong since Obama took office. Even before that, both the growth and explosion of the housing bubble which precipitated the recession, can be laid squarely at their feet. Dating back to Jimmy Carter and accelerated by William Jeff, the affordable housing initiatives forced lenders (Fannie Mae & Freddie Mac) to extend copious amounts of credit to people who clearly, were unqualified. Of course, the banks resisted at first, but with Uncle Sam holding out an open checkbook and promising to back the risky loans, they figured, "what the hell?" That's kinda like handing a shot of whiskey to an alcoholic and acting surprised when he drinks it! So the party was on.

Washington is notorious for making all the wrong decisions when it comes to "managing the economy" which they have no business doing in the first place. That's why the best results accrue when they DE-manage; like Reagan deregulation, de-taxation, and de-federalization (aka privitization) or Gingrich/GOP style welfare reform and budget reform.

The prospect of de-management or UN-federalizing the economy via the repeal of Obamacare, reduction of federal agencies and programs and constructive tax reform as is portended by the prospect of a conservative administration under President Romney, has markets hoping for better future outcomes and hence, beginning to move again. It is, indeed, the Romney Effect!


  1. Do you think that it might back fire, though? I can see the mainstream media spinning the improvement of the economy as sign that Obama's plans are working.I agree with you that Washington needs to stop trying so hard to manage the economy.

  2. Anything is possible, Chem Dry. The President has a POWERFUL ally in the media. But the American people aren't stupid and try as they might to spin the news as Obama's plans working, the news just isn't all that good! Lots of people are still suffering. Job growth is anemic, at best, and the fundamentals of the economy remain poor. That's not going to "fundamentally transform" because the policies just won't work. Mitt is striking the right chords and staying on Obama's economic failures despite the Dems' efforts to distract.