Hot off the wire: The recession is over. Stimulus spending works. The country is on the road to recovery. Inflation is not a concern. The moon is made of cheese. Construction unemployment is over 23%. Only one of these is true. One is a fairy tale. The rest are “facts” put out by the government.
The rate of unemployment is rising, not just in the construction industry. It would be higher if the federal government had not hired so many people. There is a “Misery Index” in the January 18th issue of Business Week that is a combination of unemployment and inflation. The index is heading up – that means the economy is getting worse, not better. How could this be?
Companies are making some money according to the reports from the stock market and other sources. But they are not spending the money. I know of companies that are deferring their spending on capital projects and maintenance. They are accumulating cash because cash is king in uncertain times. We are in uncertain times. More and more contracting business plans are becoming “I am trying to figure out how to survive this year.” And “I hope the goofy low bidders go out of business before I do.”
These uncertain times are brought to you by the politicians in Washington DC and in some of the state capitals. The returning TARP funds will be misused and run up the national debt. The Cash for Clunkers, various bailout packages and the Stimulus program are doing the same thing. Look at California for a financial mess that will have national repercussions. What plan from the federal government is benefiting the country in the near term or long term?
Oh By the Way…The health care reform will not cost any extra money and the Emperor has no clothes! Which one of these is true?
