Morning Coffee Klatch for Friday, July 27, 2012
GM, a.k.a. Government Motors is in the news, so are those now famous “Four Little Words”, and our economic “recovery”
- Remember how successful the government’s bailout of GM is, as we’re told by the President? Maybe that’s why Timmy Geithner is still holding 32% control of the Company, when he said he’d sell the government’s stake after the 2010 IPO. Read the article, “GM: still $42B in the Hole“, from The Washington Free Beacon, to learn how math and economics still evade the President and his minions.
- Yes, and I still get emotional when I hear the President’s Roanoke speech, and no, I don’t need the media telling me the President was taken out of context. If anything gets me fired up so much that I’ll crawl to the voting booth if I have to, it’s when the President denigrates and mocks, with “Four Little Words” the people, like my father, who had a dream and helped build this country, employing millions in the process.
- From the USA Today‘s article, “Economy weak in second quarter, GDP grows at 1.5% rate“, we get a brief situation analysis behind the numbers in a Commerce Department report.
The recovery remains sluggish by historical standards. The economy lost nearly 8.8 million jobs during the slump and reached its lowest total employment level in February 2010. It is still 4.9 million short of its peak, according to the Bureau of Labor Statistics.
After the 2001 recession, the U.S. economy recovered all of its 2.7 million lost jobs within a year after the number of people working hit bottom in September 2003.
Among the most important differences between the two recessions and their recoveries are the levels of consumer debt then and now, and the growth of government employment.
Governments have cut 633,000 jobs since Barack Obama became president in 2009, out of about 22 million. In George W. Bush’s first term, governments at all levels added 700,000 as private-sector employment fell by about 70,000. The economy has added about 200,000 private-sector jobs during Obama’s term, and is up nearly 4.4 million since the bottom.