Obama: "The Private Sector Is Doing Fine"

Last Friday, President Obama made an outrageous claim that the "private sector is doing fine" and would have you and I believe that what the economy really needs is to spend money to keep police, firemen, and teachers on the job.  With that single statement, this President made it clear that he doesn't understand our economy.  And, since he doesn't understand our economy, it's no wonder job creation has suffered so much under his watch.

The private sector is not doing fine.  It's in trouble and seriously slowing. There is still high unemployment and the First Quarter growth for all private sector economic activity was only 1.9%; this, as measured by a statistic called the Gross Domestic Product or GDP.  Apparently, Obama doesn't understand that government spending is not part of that measurement.  That's because state, local, and federal governments aren't producers.  Instead, governments are a drain on the economy because they literally suck money out of the private sector through taxation.

There's a simple principal that seems to escape our President.  If the private sector grows, tax revenues will grow at the same time. And, if tax revenues grow, you won't have to layoff teachers, firemen, and police. The city of Detroit isn't on the verge of bankruptcy because there aren't enough teachers, police, and fireman.  Detroit is dying because the private sector is absolutely dead in that city.  Whole neighborhoods are being razed because the people have left and gone elsewhere.

Obviously, someone at the White House got to Obama right after he made such a stupid remark because, later on, he semi-retreated on his "doing fine" comment.  But, this apparent "Freudian slip" just proves, again, that the only thing this President is about is big government socialism.

Read one of the commentaries that sparked this blog entry:  Obama Says Private Sector 'Doing Fine'; GOP Jumps on Gaffe