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It's Lack Of Demand, You Liars

By The Reverend Published: June 14, 2012

Still waiting for Mitt's "will you be my VP valentine call"....here's Paul Ryan, yesterday....

“Look, President Obama is promising one of the largest tax increases in American history starting in January and we wonder why small businesses aren't creating jobs? On day one....Mitt Romney will fix this. He will start repealing the red tape that's choking off jobs and hindering our recovery. He will start repealing Obamacare, which is putting so much uncertainty in businesses. He’ll begin the process of lowering tax rates by closing special interest loopholes, which help small businesses with certainty so they can create jobs. He'll announce a 5% spending cut on government agency budgets to begin the process of deficit reduction, and he will approve the Keystone pipeline which we know will create lots of jobs and help make us a whole lot less dependent on foreign oil.”

In the midst of that jumble of Fox talking points is the big lie of this election season. It is the biggest and most consequential lie since Dick Cheney told Americans with a snarl that "there is no doubt that Saddam is reconstituting his nuclear program."

Ryan's lie, the same one Romney repeats almost hourly, is that job creation in America is still slack because of 1) small business owner uncertainty caused by Obamacare, 2) government regulations choking business, and...wait for it....3) tax rates are too high.

7/18/11, Wall Street Journal.....

The main reason U.S. companies are reluctant to step up hiring is scant demand, rather than uncertainty over government policies, according to a majority of economists in a new Wall Street Journal survey.

8-16-11, former Reagan administration official, Bruce Bartlett...

...the "only policy that will really help" stimulate growth and job creation is "an increase in aggregate demand":

Ben Bernanke, 3-26-12....

[T]he fact that labor demand appears weak in most industries and locations is suggestive of a general shortfall of aggregate demand...

Survey of small business owners conducted by American Sustainable Small Business, The Main Street Alliance and the Small Business Majority, 2-1-12.....

"shows small business owners see weak customer demand as the most important problem they face right now"

Gallup, 2-15-12.....

71 Percent Of Small Businesses List Demand As Main Reason They're Not Hiring.

National Federation of Independent Businesses, May, 2012....

The most recent National Federation of Independent Businesses survey of small businesses shows that for the past several years, sales have been the "single most important problem" to a higher percentage of small businesses than taxes.

Remember the line, "it's the economy, stupid?" That line was spun by the alien life form, James Carville in 1992.

In the 2012 presidential campaign the new slogan should be, "it's lack of consumer demand, you liars."

Romney and Ryan refuse to speak to the lack-of-demand problem that is holding down job growth. Instead, they lie....they misdirect...they seek to confuse voters by replacing the central cause of our sluggish job growth....consumers don't have enough money to stimulate demand.....with 'it's because of government regulations, uncertainty over ObamaCare, and taxes are too high.'

The lie is now everywhere....just like the lie that Saddam had WMD's. Saddam didn't have WMD, ....and tax rates, Obamacare, government regulations, or uncertainty are not causing our fictitious job creating businesses from hiring new employees. It's the lack of demand which is holding back new hiring. Write it down....Lack of Demand.

As the NY Times piece this week clearly indicated.....the financial sector collapse of 2008 has stripped middle class Americans of 40% of their wealth....three quarters of that loss attributed to devalued real estate prices. Couple that tragic statistic with the fact that profitable Big Businesses laid off workers by the millions late 2008, early 2009.....to preserve profits for their shareholders...and then couple the entire mess with the fact that millions of Americans were foreclosed upon .....and it should come as no surprise why consumers are not helping to increase demand fast enough to justify massive new hiring. Consumers don't have enough money to spend.

But Romney and Ryan will have none of it. They are trying to retake the White House, nothing more. And they will do ANYTHING, say ANYTHING.....knowingly false or not.....to accomplish that goal. But on the most important issue to voters....jobs and the economy....they are lying.

It's not tax rates....it's not Obamacare...it's not government regulations....it's not even the nebulous catchall word, "uncertainty"....stopping new jobs from being created.

It's lack of demand, you liars.

 

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