James Pethokoukis writes, "Goldman Sachs drops this H-bomb on the Obama campaign:
We have lowered our forecast for US real GDP growth further and now expect real GDP to grow just 2%-2½% through the end of 2012. Our forecast for annual average GDP growth has fallen to 1.7% in 2011 (from 1.8%) and to 2.1% in 2012 (from 3.0%). Since this pace is slightly below the US economy’s potential, we now expect the unemployment rate to be at 9¼% by the end of 2012, slightly above the current level.
Even our new forecast is subject to meaningful downside risk.
So, we got that goin’ for us.
Health care reform?
Or, perhaps, economic recovery and jobs?
On Thursday, Obama’s economic adviser Christina Romer told Congress the administration agrees with other analysts that the economy will grow in the third quarter, and beyond. Even so, she said, “unemployment is likely to remain at its severely elevated level,” and noted expectations that few jobs will be added through the third quarter of 2010.
And what happens during the 4th quarter of 2010?
So why are Democrats fiddling with health care reform and cap-and-trade instead of the economy and jobs?
All I can figure is the radical element in control of the leadership in Congress right now sees the small window they have to push this garbage through as more important than putting policies in place which would enable economic recovery and create jobs.
Politically its a mixed bag for Democrats – push the extremist agenda through but at the cost of seats and possibly a majority in the midterm elections. Apparently they (the liberal Democrats, certainly not the more conservative Democrats who’re actually the one’s who might lose their seats) think enacting the legislation is worth the cost of 2010. And then, they might just be arrogant enough to think they can pull both off.
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