We tried it their way and it didn’t work. We tried it our way and it worked. The majority of the voting public believed that cockamamie line and now everyone get to live with the results.
Let’s examine the results of the Obama way just since the election, shall we?
Within a week scores of companies announce layoffs due to the certainty that Obamacare, Dodd-Frank, and EPA regulations will stand. Thousands lose their jobs.
Nobody is hit harder than the coal industry now put on a death watch as industry experts project 204 coal fired power plants will close by 2014 leaving coal mines with fewer customers.
Miraculously reports on the number of people on welfare have reached record highs, and the same with food stamps. No wonder it was reported welfare spending has increased under Obama by 32%.
The Obama way, gutting welfare to work rules really did work.
At the first presidential press conference Obama says he won a mandate to move his balanced approach forward by raising the tax rates on the wealthy and implementing spending cuts to avoid the fiscal cliff.
In his best Alinsky slight of hand he wants you to believe that transferring $1.6 trillion over ten years from the private sector to government will somehow offset ten more projected annual trillion dollar deficits. After all he is cutting spending too, at least the rate of ‘increase’ in spending.
From the CBO: Under the “Fiscal Cliff” scenario compared to current law, federal spending will fall .6% of GDP from 22.9% to 22.3% by 2022. Wow!
This should get the job creators hiring.
On to my specialty, housing. After being told by the President in the campaign housing is on the rise and we’re on the right track the FHA had to disappoint him by announcing they need more taxpayer money.
FHA seemed to conveniently forget to mention before the election that 739,000 FHA insured loans are ninety days or more delinquent or in foreclosure.
Lawrence Yun, chief economist for The National Association of Realtors came out with his forecast for 2013. The funny thing he qualified his predictions based upon the outcome of the Fiscal Cliff negotiations.
Home sales will be 4.6 million units this year and 5.05 million units in 2013, and is forecasting “meaningfully” higher home prices, which went up 4 to 5 percent in 2012. Yun expects a 15 percent cumulative growth in home prices over the next three years.
Don’t look for the days of 6 to 7 million home sales a year to return anytime soon. With only 62% of adults working in America Yun predicts we need 250,000 jobs created monthly for eight years to return to a normal job market . Yun says the employment rate is more important than the unemployment rate.
What about the inflation rate and interest rates? Yun believes both will increase with inflation potentially reaching 6% in 2013, and mortgage rates could rise to 4.6%.
That is if you trust the rates the BLS and Commerce Department are telling you. Shadow Government Stats expert John Williams says if we used the same methodology to calculate inflation as we did in 1980 the inflation rate would be reported at 9.8%. You don’t even want to know what the unemployment rate would be (23%) if using the methodology of the 1930’s.
If the housing recovery is predicated upon jobs you can be relieved to hear Obama tell you that taxing the private sector another $1.6 trillion, and continuing to spend more than a trillion a year than you take in, is the way that ‘works’. We should see job growth and home sales take off like a rocket soon.
There you have a thumbnail of ‘our way worked’ in just the first couple weeks following the election.
I’ll bet you can’t wait to see what the Obama way will produce next. To think of the joy of another four years to watch the Obama way in action. The results will be, shall I predict, stunning.
The opinions expressed here are solely those of Fritz Pfister or identified sources, and not necessarily those of RE/MAX Professionals of Springfield or RE/MAX International.