We all know that the employment numbers were awful. The employment picture is as bad as it was in the 1980's, and there is no need to repeat all the dreadful statistics and comparisons from that period.
However, I think it is important to evaluate what the government had at its disposal to remedy the situation and what we don't have today. When you see extreme slowdown in the employment numbers, economic growth and domestic output the government has tools it utilizes, fiscally and monetarily. Remember, 3-4% gross domestic product growth is desired.
When the economy is growing too fast, the Fed can reach into its toolbox and raise rates to slow the economy. Conversely, when it is growing too slow, the Fed will normally drop rates to stimulate it. This is very basic. However, it is crucial for all to know that this tool is gone. This tool is our country's most valuable player when it comes to helping to get the economy growing.
Another tool the government has to stimulate economic activity is to lower taxes on individuals and corporations. This administration is steadfast in its rhetoric -- it not only won't drop rates, but is poised to unveiled a massive tax increase.
The last tool that the government has is to artificially stimulate the economy by literally printing money through quantitative easing programs. This is horrible strategy and will permanently destroy our dollar, and also prove to be inflationary. This will do very little to change the employment picture or economic growth in the United States.
We are certainly going into a double dip recession (I am not sure if we ever really got out of the first one). With our most valuable recovery tool -- lowering rates -- gone, this administration's failed policies have put this country in the worst economic shape in history. We are in a national security crisis level and I think it is everyone's responsibility to quickly learn how the economy works and do their part in getting policies changed.
This isn't just a political, the-world-is-coming-to-an-end tirade .We borrow 40% more of what we spend from countries that don't necessarily like us, only having 63% of the people employed, $16 trillion in debt (and rising) and our country is racing into stagflation along with a severe recession.
With most of our tools gone or rendered useless due to the president's divisive politics, we have one other tool that we can use -- it comes into play on election day this November.
Ed Butowsky is an internationally recognized wealth manager. His upcoming book titled "Are You Committing Financial Suicide?" is expected to be released this spring.