President Obama had a news conference last week. He talked sincerely about the state of our economy. We agree with him. We believe that the partisan politics in Washington is as responsible for the down economy as any other given factor.
We really do find ourselves in a chicken-and-egg scenario. Current budget projections are based on current tax revenues. Current tax revenues are down because fewer people are working, business is selling less, business is reluctant to invest and hire, home values are down – all sources of tax revenue. Increase employment and tax revenues will increase – people will pay income tax and will spend money thus creating tax revenue from business. But what comes first? Should the government invest in programs that put people to work (thus creating larger deficits in the short term) or should we wait for business to regain confidence and loosen their purse strings?
Here is the point of this post – we believe President Obama clearly understands the economic dynamics, we believe President Obama has correct priorities, we believe President Obama wants what is best for this country. We are not naive – we know as well as anyone that the 2012 election will be a referendum on faith in economic outcomes. A thriving economy is in President Obama’s interest as a public leader and as a politician.
Of course he wants to be reelected – but that does not mean he wants less for our country. On the other hand – the Republicans in Congress have conflicting political motives – they know that an unhealthy economy is good politics for them – or so they believe. The Republicans know that Obama cannot be beat if the economy is thriving – how much are they willing to let the country suffer to defeat the President?
Listen to the President: