Job Report Is Catastrophic For President Obama

Investors.com ^ | June 1,2012 | Larry Kudlow

[Hojczyk]

Where's the corporate tax reform that would lower rates and broaden the base and end the double-taxation of the overseas profits of American companies? A business tax cut would help enormously, but it's nowhere in sight. Obama is too busy trashing Bain Capital profits and Romney's business career, both of which, by the way, have recently been praised by former President Bill Clinton. (It was Clinton who lowered investment taxes and presided over an economic boom.)

A second uncertainty facing businesses is the Supreme Court decision on ObamaCare due in a few weeks. If all those crazy tax-and-regulation mandates are deemed unconstitutional, it's Katy bar the door as businesses put profits to work and hire. But they move without a court decision.

And now European companies are withdrawing money from local banks and investing in dollars (especially through Treasury bonds that are yielding an incredibly low 1.5%).

But the rapid rise of King Dollar is generating commodity deflation, which is a deterrent to manufacturing production. According to the May ISM report, manufacturing is slowing.

The Fed may yet launch a new quantitative easing to stop commodity deflation and accommodate the gigantic worldwide dollar demand. But the merits of this move are dubious. On the other hand, extending the Bush tax cuts would stop the economic and job slide and reestablish certainty.

In fact, all countries should move to the supply side with lower tax rates to spur economic-growth incentives. Europe, China and Latin America ought to read Ronald Reagan's speeches and examine his actions when he faced a similar crisis 30 years ago. It would be an hour or two well spent.

[vladimir998]

Well, I hope it is catastrophic for him, but to liberals, the old media, and blacks, it won’t matter.

[DuncanWaring]

Many of Holder’s people don’t care about the unemployment rate because the unemployment rate in their families has been 100% for generations.

[Tex-Con-Man]

Meanwhile, Krugman, the legendary NYTimes Keynesian economist, is running around setting his beard on fire trying to convince the world of his genius by proposing an Orson Welles stimulus package.

[Pearls Before Swine]

Many of Holder’s people don’t care about the unemployment rate because the unemployment rate in their families has been 100% for generations.

Technically, one is only counted in the unemployment figures if one is looking for work. But, I know what you mean, LOL.

[jamaksin]

Not to worry.

According to David Plouffe (senior advisor to President Obama), the job numbers would not be an issue by the summer of 2012.

So, in only a little over two weeks time, jobs will not be issue in the November 2012 elections - so sayth Plouffe.

[gitmo]

ObamaCare should be renamed to ObamaDontGiveADam*.