Funny how Republicans never seem to listen to Wall Street anymore.
Stocks dropped Friday, as the Dow Jones Industrial Average tumbled 303.68 points, or 2.7 percent, to 10992.13. Analysts blamed Europe’s debt woes for the fall, along with the resignation of European Central Bank board member Juergen Stark. Stark is resigning because of a conflict over the bank’s bond-buying program. Analysts also attributed the drop to skepticism that President Obama can get his $447-billion jobs package through Congress. (emphasis added) Finance chiefs from the G-7 countries meet Friday to discuss the global economic situation.
Wall Street didn’t like the debt ceiling threat either.
Oh, do we need reminding that in Obama’s first two years with a Democratic Congress Wall Street saw its losses recovered and corporate America sits on a big pile of cash? According to Republican boilerplate of the past 30 years, if you save the rich then everybody else profits. To say that Reagan Christ’s beloved trickle-down economics has been discredited is to be too kind. And yet Republicans talk about is how high corporate taxes are.
Wall Street knows Obama’s jobs bill can do a lot of good.
Mark Zandi, chief economist at Moody’s Analytics, is frequently the go-to guy for both parties when it comes to analysis of various jobs proposals. So, what did he think of President Obama’s speech last night? Here’s the report: “The plan would add 2 percentage points to GDP growth next year, add 1.9 million jobs, and cut the unemployment rate by a percentage point.”
But there’s a higher principle at work here for Republicans. Why help the economy and add jobs when doing so helps Obama keep his? Economic sabotage is all they have. When Obama’s foreign policy is nearly unassailable (from the right) and supply-side economics has failed, what else do they have but to hurt the economy and hope people point the finger at Obama?
Fortunately, with just 26 sane Republicans in the House, Obama could pull this jobs plan off. That leads one to the next question: Are there 26 sane Republicans in the House?