On June 17 the Obama administration kicked off their “Recovery Summer” public relations campaign in an effort to highlight how the stimulus bill was going to bring in hundreds of thousands of jobs and economic growth to America over the summer months. Well Labor Day is nearing and summer is heading towards its close and the economy is unfortunately showing more signs of going in reverse rather than building any real long term recovery.
According to ABC News, “Private companies only added 153,000 jobs in May, June and July combined, according to the Labor Department. If you count government jobs and the shedding of special Census hires, the net gains were only 80,000 over the period. The economy would need to add 8 million jobs to reach pre-recession levels.”
Chicago Federal Reserve President Charles Evans recently said in a speech that, “the risk of a double-dip recession has escalated. He said government programs to help distressed homeowners have been ineffective and aren’t helping the pivotal housing sector recover.”
Despite weak job numbers and gloomy housing industry reports the administration continues to say their policies are working and the country is on the right path. Earlier this month Treasury Secretary Timothy Geithner penned an op-ed for The New York Times entitled “Welcome to the Recovery.” In that piece he says that “The share of workers who have been unemployed for six months or more is at its highest level since 1948, when the data was first recorded, and we must do more to ensure that they have the skills they need to re-enter the 21st-century economy. Small businesses are still battling a tough climate.”
Part of the tough climate that small businesses are facing are an unfavorable tax climate. Despite that the Obama administration has already taken the stance that they want to let many of the 2003 tax cuts on capital gains, dividends, estates, and higher income levels expire at the end of this year. These tax hikes will further hurt our economy and place an undue burden on small business owners and entrepreneurs. If we continue to raise taxes and pour money into more so-called “stimulus” plans not only will our economy not recover but we will continue to drive future generations of taxpayers into debt.