Free Markets, Free People
Today’s economic statistical releases:
The big number today is obviously the advance estimate for 3rd quarter GDP. The BEA reported that GDP increased at an annualized 2.5% rate. The top three contributors to GDP growth were personal consumption expenditures, nonresidential fixed investment, and exports. So despite a bit of gloom as the economy slipped during the 2nd quarter, GDP, along with several other series of statistics, are showing a rebound.
The Kansas City Fed manufacturing index rose to 6 in September, up from 3 last month. The increase was mainly concentrated in durable goods.
Sadly, the rest of today’s numbers are a bit less cheerful.
Initial claims for unemployment held basically steady, though still unpleasantly high, at 402,000. The 4-week moving average dropped to 403,000 from 405,500 last week.
The Bloomberg Consumer Comfort Index fell to -51.1 last week, from -48.4 the previous week. This week’s reading is the lowest in the past month.
Contract signings are very weak for existing home sales, which shows ongoing trouble for housing and construction. Pending sales fell -4.6% in September, with weakness in all geographic areas. Weak consumer confidence combined with tight credit conditions are weighing down the market.
Have you been following the latest gambit of our president? It’s time to pull the youth vote back to him with some candy. Taxpayer candy of course. In his latest “policy” swing, he’s offering a way out of student loans to … students with loans, of course.
And of course there’s the convenient lie – you can essentially get something for next to nothing. Go borrow money and the government will help you “satisfy” the loan after so many years if you do things like “public service”. Oh, and it will never cost you more than 10% of your salary … so go for it.
Wait, one more thing from the Candy Man as he addressed a crowd of college students at the University of Colorado’s Denver campus:
But, he added, “young guys, I need you involved, I need you active … I need you to get the word out.”
Of course that’s code for “hey, vote for me and I’ll solve all your student loan problems”. Cronyism at its finest and all without legislation. Wasn’t it the Democrats who said they feared the “executive President”. But I digress.
Here’s the basic truth:
But the colleges fees have to be paid somehow, even when repayments are stopped, said Burke. Sooner or later, this “will ultimately result in tax increases — in putting this on the backs of three-quarters of Americans who did not graduate from college.”
Working-class people will end up paying for middle-class graduates’ basket-weaving and women’s studies degrees, she said.
That’s right … these are government guaranteed loans. So they will be paid. The creditor doesn’t care who pays it. The student or the taxpayer. So what Obama is more than willing to do is to buy votes today, by executive order, for taxpayer bailouts of deadbeat students tomorrow.
Obama is “shifting the burden of paying for college to all of those Americans who did not graduate from college — the waitresses, construction workers, mechanics — and that should infuriate the taxpayers who worked hard to pay off their loans, who decided to live a modest lifestyle to pay off their loans,” said Lindsey Burke, an analyst at the Heritage Foundation.
Obama’s policy is also widening the class division between working-class Americans and those with college credentials, said Matthew Denhart, a researcher at the Center for College Affordability and Productivity in Washington, D.C.
In case you were wondering, Colorado is a swing state and one in which polls show the Candy Man below 50%.
Crony Capitalism isn’t the only form of cronyism in the world as Barack Obama (and politicians of all stripes) have been proving for years. And all funded by your money.