Cycles happen in the market place. Any consumer should realize this if they have lived at least past the age of 30. How it is managed determines the degree with which the consumer, worker and governments feel the pinch. Just to recap from the National Bureau of Economic Research that is mentioned in the Forbes article:
The Business Cycle Dating Committee of the National Bureau of Economic Research met by conference call on Friday, November 28. The committee maintains a chronology of the beginning and ending dates (months and quarters) of U.S. recessions. The committee determined that a peak in economic activity occurred in the U.S. economy in December 2007. The peak marks the end of the expansion that began in November 2001 and the beginning of a recession. The expansion lasted 73 months; the previous expansion of the 1990s lasted 120 months. (Business Cycle Dating Committee, National Bureau of Economic Research)
Ok, so we give the President the point he took over during a recession, but remember that George W. Bush had to deal with 9/11 and the huge hit at our financial sector. We came through that with an expansion period with low unemployment (and sadly, no breathtaking adjustment in federal government social spending). This should not have been the disaster that Obama has made it to be. Back to the Business Cycle reports we find the following statement that Obama needs to own because he supported the massive expansion of government versus supporting the private sector on the recovery road:
CAMBRIDGE September 20, 2010 - The Business Cycle Dating Committee of the National Bureau of Economic Research met yesterday by conference call. At its meeting, the committee determined that a trough in business activity occurred in the U.S. economy in June 2009. The trough marks the end of the recession that began in December 2007 and the beginning of an expansion. The recession lasted 18 months, which makes it the longest of any recession since World War II. Previously the longest postwar recessions were those of 1973-75 and 1981-82, both of which lasted 16 months. (Ibid.)
Obama spent his time taking over as much of the private sector he could get his hands on including home mortgages, banks, automobile, student loans and health care. He put the economy into a state of constant shocking with these encroachments and steady intensity of regulations. What has it brought us? Of course, those business leaders that supported him and should have known better now have to deal with the bitter pill of swallowing their deadly pride and walk away from him. For not to do so, would spell out four more years of a disaster they can not survive.
I am waiting for the day that this administration is retired to the history books as the worst economic administration that replaced Jimmy Carter’s record as the worst. Funny, how they both got a Nobel Peace prize. They both have done great violence to our economy in their days.