Saturday, September 8, 2012

Assisting America’s Economic Rebound: an essay in support of Obama’s second term and an impingement of the racist undertone of the 2012 general elections

Keywords or Terms: Republican Convention; Democrats Convention; Governor Mitt Romney; President Barack Obama; America’s Economy; General Elections; Party’s Platform; Promises, Propaganda and Second Chance.

It will not take long before November 6, 2012 is here, politicians, Republicans and Democrats, will continue to become antsy about their chances. But the promise of each Party’s flag bearer and competitiveness of each party’s platform before voters may quickly evaporate if the debates between the two candidates for the office of Presidency points to an alternative universe: it is better to give the incumbent a second chance. Republicans and their flag bearer, Governor Mitt Romney, may be averse to this argument; however, many voters who have been looking at the unemployment and job market, may actually be seeing the silver lining at the end of the rainbow regarding the whole American economy. Will the American Voters give the incumbent of the White House a second Chance? This question is explored in today’s blog.

While Republicans may want President Obama to stumble, actually some are praying for that in the forthcoming Presidential Candidates’ debates, over who is a better candidate to pull or see America out of the recession, one brought on us by two consecutive Republican Administrations, which had engaged in unpaid double foreign wars, Democrats are making an affirmative choice, that waiting for the miracle of gradualism in solving America’s economy’s malaise, is much superior to the aggressive tax brake and write-offs promised by a proposed Mitt Romney Administration. Republican voters are perhaps focused on the chances of occupying the White House, once again, where they can bring on the society, the supply-side economic policies, which many Democrats frown upon; and, which many neoclassical economists argue is not in the interest of a nation deep in debt and a tittering economy; where unemployment problems are still issues of great concern. Democrats on the other hand, will want the American voters to evaluate the work so far in stimulating the American economy, including policies already implemented and the time needed to see them work, to allow the economy to gain the necessary momentum to douse the unemployment problem.

One of the hidden aspects of corrective economic policy implementation is that it often takes a while before the full impact is realized across the economic spectrum. Although rapid growth in the economy is often sought by the pensive and impatient voters, especially by those suffering from the direct impact of a recessional economy, no other means of knowing the impact of implementation of corrective economic policies, but time. It takes time for policies to begin to bear positive fruits; and in some occasions, it takes double doses of corrective economic policies or measures to actually achieve the needed threshold of success. This is why you hear the argument: was the initial economic stimulus plan, embarked upon by Obama’s Administration, huge enough to make correction to the recession the nation found itself beginning in the last quarter of 2008?

Over the past four years, we have experienced undulating performance of the job market statistics and the economy. Consumer’s consumption have dipped and roughly edged upwards for some time, only once again, to fall on its face, because of poor management of stimulus plans and sometimes, the resistance of some economic indicators to budge in the face of fiscal pressures. Much as the Federal Reserve Bank Board has kept the borrowing rate at close to zero; household consumption and credit still remain lackluster. This fact, together with the recalcitrance or uncertainty in congressional support of current Administration’s legislative initiatives has compounded America’s economic problems; and this has presented room for criticism of Democrats by Republicans for the poor handling of the economy. While President Obama has remained reconciliatory and sought support for his plans to stimulate the economy, he has constantly been rebuffed by Republican lawmakers and this has made his job difficult and sometimes exasperating. Truth of the matter is there is hardly much that the Obama’s Administration can do to rapidly bring about the desired positive impact from policies perspectives on the issue of unemployment if congress is failing to work with the executive branch. Hence, it is not for the voters to blame completely the issue of the high unemployment, solely on the Obama’s Administration. The United States Congress bears the same guilt and responsibility for the poor job market in America

Although the Party in the White House often gets blamed for a poor job market, it can be blown out of proportion, especially in an election year, when the opposition party is seeking to unseat the incumbent and change the composition of congressional membership in their favor. When the unemployment problem in America became dire straits, with the unemployment rate hovering around 8.5 percent, despite a 22 straight month’s consecutive job situation improvement in the manufacturing sector, some conservative think thank reports still asserted that the unyielding unemployment rate and lack luster job market, was as a result of Obama’s Administration failure to appreciate the magnitude of the recession. Much as this may be true, the expressed considerable displeasure with Obama’s Administration understanding of the deep hole in the economy and or unemployment problem must be equally blamed on congressional Republicans, who were less disposed to corrective policies to stimulate the economy in the last four years.

It will be more accurate, in sum, if the Obama’s Administration had failed to see the need to put in place a stimulus plan or other corrective economic measures or policies, when the economy was trending into a recession, just about the time the Democrats began to occupy the White House. When Obama took up the mantle of power in 2009, the size of the deplorable state of the economy was hardly known; and if at all, the Republicans who were handing over power, were more mystified by the performance of the economy. After the fall of Bear Stearns, Lehman Brothers and Washington Mutual, then Secretary of Treasury, Henry Paulson, an insider Wall Street man, who once ran Goldman Sachs with an Harvard MBA, was either lost or untruthful about his estimation of how bad the economy was and how terrible a recession, the country was about to get into. Political expediency or the need to cover up for the out going Republican Administration may have played into this. But even before then, there were already noticeable indicators that the booming nation’s economy was trending to a burst, as the astronomical house prices were falling like a yo-yo, an indication of how very unstable the economy was and why it is imperative, that drastic corrective plan, or huge stimulus plan, was imperative to rebound the economy; or save the economy from completely bottoming out. Frankly, there are enough blames to go around for both Republicans and Democrats.

The American Unemployment problem and the lackadaisical economic performance under President Obama are much more complex than they appear on the surface. When you try to evaluate all the factors that led to the economic depression, people tend to quit at the stage of their personal biases, without looking at the whole picture. The housing burst had complicated an understanding of all the factors that were in play as the nation’s economy was at the brink. Because the nation’s housing burst were intertwined with sale of international economics derivatives, there were some other foreign economic factors that played into the failure of America’s Economy, vis-à-vis, the world’s economy. To unravel all the problems that led to the recession and unemployment problems, one must not ignore what was going on in Europe, the nation’s biggest economic partner. When your biggest economic partners are having liquidity and banking problems; definitely, you are likely to feel the pinch or throw back from sliding demand of your goods and services. Could the Obama’s Administration have corrected for all the possible external factors that could have impacted or were impacting America’s economy, during his first term in office or since taking on power? Probably not, but one thing is clear: The Obama’s Administration was at least proactive and did all within its power to see that the economy does not go into complete abyss!

What President Obama lacked in the face of the worse recession in America’s history, was the support of the legislative branch. The Republicans in congress saw the shellacking of their party by Obama in 2008 as an affront on the White race: the unknown, unexpected black man, with rather an unassuming name for an American, was occupying the highest office in the land! Hate and racism beclouded reason and many Republican legislators who were about to help out, were kicked out of office for supporting any reform that could have allowed jobs to remain, or create new jobs in America. The White oligarchs were bent on protecting their position at the expense of the middle-income and ordinary Americans. Those lawmakers that could have ensured that reforms come quickly, backed off, from supporting legislation that could have turned the economy around very quickly. This is really the bane of the difficulty and terrible job market that America is today experiencing. If all the Republicans had cast off their differences with Democrats and the first African-American President, we probably would not be in the bent shape the economy and unemployment are in America. There are other compounding issues to the current state of the America’s economy, which I would not like to get into at this time. However, a second term and a more cooperating legislative body to this administration, is a better choice, than us going back to the deregulatory policies and supply side economics that nearly completely destroyed our economy and our people. This is the reason why voters must retain Obama in office and impinge the character of those Republicans who have vowed to make Barack Obama, a one-term President.

Apart from the current platform of the 2012 Democratic Party, including the focus of moving America forward, rebuilding middle class security, working to make everyone play by the same rules, collaborating to strengthen America’s communities and building stronger, safe and secure America at home and abroad, President Obama’s second term must contemplate the following associated elements as notified by Democrats at their convention: 1) putting America back to work; 2) enhancing the middle class bargain; 3) cutting waste, reducing deficit, asking all to pay their fair share; 4) building an economy that last; 5) continued reform of Wall Street; 6) transparency and accountability in government; 7) political campaign reform; 8) community building and strengthening; 8) protecting citizens’ rights and freedom; 9) ensuring safety and quality of life; 10) ending Afghanistan wars and returning our troops  back home; 11) preventing the spread and use of nuclear weapons; 12) countering emerging threats to America’s interests; 13) strengthening alliances, expanding partnerships and revigorating international institutions; 14) promoting global prosperity and development; 15) maintaining a strong military and advancing universal values. The point of all these, is to position the nation at the verge of success from essential reforms and initiatives necessary for a stronger economy, military might and resources to better the quality of life of every American.

All the campaign propaganda used by Republicans and those naysayers regarding the decline of America’s strength must be harnessed to better our service to America and its citizens, without regard to sex, race, national origin, disability, color, age or party affiliation. From my perspective, President Obama deserves a second chance and must be given a second term if we are to benefit from the foundation of change he has built, despite the obstruction from Republicans in congress. This proposition may not be shared by many in the Republican Party; however, the supply-side economics proposed by the Republican flag bearer, Governor Mitt Romney, will hardily hasten the demise of unemployment problems in America.

Frankly, there will always be an unemployment problem in our type of economic system because of the dynamics embodied in capitalistic economy. No Republican or Democrat can guarantee full employment, for in the American Economic System, four percentage or less unemployment rate is close to full employment; and this at best, is what any party in government can aspire to; and this is hardly full employment. For Republican snake oil men who are attempting to delude the public, always remember, it is close to impossible to guarantee full employment, unless you are running a state planned economy such as exist in Russia and other centrally-planned economy. Voters, anyone who tells you any thing different, is being disingenuous. Good night and God Bless America.
Post a Comment