After months of painting a picture of economic recovery, the Obama administration is finally acknowledging that our economy is in deep trouble.
The administration recently put out a new analysis of the employment picture. The analysis said the current 9.1 percent unemployment rate is unlikely to drop at all this year and will drop only one-tenth of 1 percent — to an average of 9 percent — in 2012. It projected that even in 2013, joblessness will drop only to 8.5 percent. And those figures don’t count millions of Americans who have given up looking for work.
When might unemployment hit a reasonable rate of, say, 5 percent? The White House says that won’t happen for seven years!
The economic forecast is “not what we’re going to be happy with,” a member of the White House Council of Economic Advisers conceded during a conference call with reporters.
In fact, many observers believe our economy may be slipping back into recession.
Doesn’t that suggest at a minimum that more “stimulus” and bigger deficits are not the way out of the crisis.