Aug 13, 2009: how is the economy doing?

We hear the Obamabots telling us that they have rescued the economy. Of course, they tell us that we will be able to keep our insurance, there will be no rationing and there will be no euthanasia of the old. So, how can we trust their claims on the economy?

There are a number of economic indicators that we can examine. I have already produced for you the data on freight going by the rail road. There is no indication of economic recovery. Another economic indicator is the Baltic Dry Index. While it rose earlier in the year, it is now heading down. No sign of economic recovery.

We can look at the accumulation of cash and the capital expenditure of firms in the S&P 500. We see that due to cutting down on employment and the fact that companies pay next to no business tax because of the loss of profitability, companies have accumulated cash, but are not doing any capital expenditure. The economic "recovery" then is like a square root. We recovered from the freezing of the money and the GDP, but there is no increase in production. The economy stagnates. This is illustrated well by employment numbers. The average length of unemployment has skyrocketed and many people simply quit looking for work.

If you are an average American, you might be persuaded that the Obamabots had misunderestimated the extent of our economic troubles. If you have been reading these posts, you should know that the Obamabots are celebrating. Their plan to recreate the Depression is right on the money.