Where's My Recovery?

Well there's not much economic good news for the Obama administration. The economic recovery seems to be fizzling. As the AP notes:  

Unemployment claims are up, home sales are plunging without government incentives and manufacturing growth is slowing.

No surprise there. As this WSJ oped points out, the market hates uncertainty. And with an exploding deficit, the expectation that Obamacare will cost much more than projected, the anticipation of tax hikes to deal with our entitlement binge, and the dangling of cap and tax legislation, there's much to be uncertain about if you are a small business owner.  And as such, consumer confidence has cratered.

The House, feeling the voter ire on government spending in the polls, has refused to pass a budget this year. Richard Rahn, economist and senior fellow at Cato, vents from the Washington Times on this:

"Irresponsible" refers to Congress and the Obama administration - and here's why. For thousands of years, businesses, organizations, governments and even individuals have relied on a basic tool to make sure they do not spend or borrow more than they can service - it is called a budget. Yet, for the first time since 1974, when the current rules were put into effect, the U.S. House of Representatives does not intend to pass a budget resolution. The main purpose of the budget resolution is to set discretionary spending caps for the coming fiscal year.

Without a budget resolution, members of Congress are, in essence, able to spend as much money as they wish, subject only to the limitation of getting half plus one of the other members to go along with the spending proposal. The budget procedure was put in place to make sure members of Congress would not spend money as irresponsibly as many teenagers might if they were given unlimited credit cards. If teenagers were in charge of the federal budget, we might end up with a $1.5 trillion deficit this year. Ah, but we are going to have a $1.5 trillion deficit this year - and who's in charge?

In the face of the unprecedented congressional spending binge, President Obama has been asking Congress to spend even more. Not content with actively promoting the eventual bankruptcy of the United States, Mr. Obama is urging foreign leaders also to increase their government spending - which is truly bizarre. Look at the facts. All of the major European countries have been increasing government spending and deficits at unsustainable rates. The talk for the past couple of months has been about which countries would follow Greece in going over the financial cliff. Responsible economists, financial leaders and, most important, the markets have been telling European leaders they must cut government spending. Over the past couple of weeks, a number of those leaders have responsibly and courageously come forth with real spending-reduction programs. Britain's new government, despite being a coalition government, has proposed a 25 percent cut in most government departments. Can you imagine the howls from Congress and the U.S. news media if a U.S. president proposed even a 5 percent cut, though a far larger one is needed?

Now that legislation extending unemployment benefits has failed to pass in the Senate, MaxedoutMama comments on the absurdity that passes for our politics:

Last but not quite least, the fruits of the housing tax credit (due to be extended by your witless Cr_tt_r any day now) are worth looking at. We paid a great deal to book a lot sales far more quickly than otherwise, but anyone who looks at the pending home sales report is going to realize that it was a very expensive (and elitist) exercise in "Let's Pretend". Nationally SA sales dropped 30% on the month and 15.9% on the year. The more money we spend to try to prop up home sales the worse it gets. We might as well quit and take our licking now.

The irony and the tragedy of yanking extended unemployment benefits with unemployment around 10% while giving thousand of dollars a pop to people who were either going to buy anyway or really can't afford to buy and will most likely default is beyond belief.

One of the reasons the average person doesn't want to hear "stimulus" any more is because stimulus has been very badly spent. The housing tax credit in particular is an exercise in witless, very expensive legislation. The results are as predictable as the results of cutting off benefits to unemployed.

I am beginning to feel like I got drunk and woke up in a S&M club. I want out. [emphasis added].

All I can say to that is, Amen.