There have been a number of reports in the past few weeks dealing with the economy. Most reports have been up beat, although modest. Housing construction rose in August and the number of Americans who lost their jobs was down two months in a row. Applications for building permits rose 2.7% in August.
The Labor Department reports initial claims for unemployment benefits declined for the third time in the last four weeks. Ben Bernanke, the Fed Chairman said the worst recession since the 1930's is probably over. Household debt for the second quarter is slightly down from the first quarter.
Business is starting to hire again but not at a pace to reverse the job losses of the past 18 months. Job creation and putting America back to work is the key to a sustained economic recovery and a sustained economy. Personal spending is the engine to economic growth.
The key lesson for President Obama is to truly learn from the tragic mistakes of the previous administration, understand how corporate greed played a large part in the economic meltdow by the excesses of Wall Street and the Financial Industry and take real workable measures to safeguard against a repeat performance. The President must also understand how the massive deficit spending and debt of the last three republican administrations have weakened our position and ability to take a hit when the economy falls onto hard times. The question, can corporate America regulate litself, has already been answered with a resounding NO. Their past record is confirmation.
Most of the $787 billion stimulus money will be spent in the fiscal year that begins October 1, 2009 so the states will still be receiving money to help put people to work. It is important that states spend that money wisely on those things that really matter and make a difference for the economy and the people.
The President needs to insist on putting America's house back in operation with sound fiscal policies that eliminate deficit spending. Democratic administrations have done it in the past and can do it again. This has to be a priority and fall in line with bringing the economy back to life. I have reported many times in past articles that balancing the federal budget with sound fiscal policies will allow our country and its people to address what ever problems come along. The past is still the key to the future if we truly take the time to learn from it.
