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Obama & Econ 101

By Gene Wunderlich

Real Estate Agent with 1st Action Real Estate

June 02, 2012 08:45 AM

Obama & Econ 101

I just heard our illustrious President on the radio putting his spin on the recent dismal economic numbers. I'm sure you've heard them - unemployment up, gas prices up, job creation down, consumer confidence tanking again - yeah, that economic news. So the President's take...-

"The Legislature needs to make it easier for companies to hire people."

And that, Folks, is the heart of the problem right there. His first reaction to anything involves more government. The Legislature needs to make it easier. Really? I mean, don't get me wrong, over-regulation and interference by the government is at the root of the majority of the problems we have in this country today. The real estate market is a prime example of that. The government is more involved in our business today than ever before and our business is more screwed up than ever before. Coincidence?

But even more of a problem than his assumption that more government is the answer for everything is his basic incomprehension of economics - the basic law of supply and demand. Put simply, why would a company hire people, easy or not, if there is no demand for their product or service? If people aren't buying cars why would Ford hire a bunch more people just because the legislature made it easier? They wouldn't. If people aren't buying new homes, why would builders hire a bunch of people? They wouldn't. If people areen't buying what you're selling, why would you hire more people to build it?

And that's the problem for the President today - people just aren't buying the BS he's selling.

What we need to do is hire a President who knows what the hell he's doing, understands the basic rules of economics and what makes businesses grow. Then consumers (us) would regain some measure of confidence in the fundamental soundness of our country.,We wouldn't be worried that we're about to fall off a fiscal cliff, as the CBO so succinctly put it last week. People would start buying stuff again and companies would start hiring people to build stuff again. That's what it takes to make a business grow.

Oh yeah, and get the government the hell out of the way.

Of course that's just my opinion. I'm not the President with all his high falutin' advisors and I could be wrong.

Oh, by the way, I did have a chance to hear Mitt Romney at a luncheon yesterday. He gets it. I hope we get him.

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Jay Markanich

Jay Markanich Real Estate Inspections, LLC - Bristow, VA

Home Inspector - servicing all Northern Virginia

Gubment does not create jobs. Continually removing money from the private sector, through regulation, taxation, laws and harassment, and shifting it to grow the public sector, will not create jobs.

People with money and a reason to hire create jobs.

Jun 02, 2012 09:56 AM

Satar Naghshineh

Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Romney is not the answer. Three things just off the top of my head:

1. He subscribes to the same Keynesian economic theory that Obama (and all other presidents before him) subscribe too. I just saw Paul Krugman on the Bill Maher show saying that the stimulus was not enough and we should act like we are preparing for an alien invasion to turn the economy around. Really? The broken window fallacy??

2. Running a government is different than running a for profit corporation. Government, whether it is be local, state or federal, provides a good or service and is a drain to the people for the benefit of all, or a segment of the population. A for profit corporation creates a good and service while maximizing profits. For example, a private school and a public school run on two different models with two different outcomes.

3. I don't believe simply getting government out of the way will make multi-national companies hire or create jobs in America. We simply cannot compete on a global scale. Even if we get rid of the EPA and all taxes, I doubt Apple will assemble iPhones in the US as the cost to manufacture them in China is $8, mostly due to lowered labor costs.

Honestly, I do not have the answers. I just know that Romney is not it. I would love to see a Ron Paul administration. At least, we would have a chance.

Just my 2 cents.

Jun 02, 2012 10:10 AM

Richard Wilson

Cherry Creek Properties, LLC - Colorado Springs, CO

Town or Country, in Colorado, we do it all.

Gene, If you'll run, I'll vote for you! I don't have the answer to our economic mess, but I'd be willing to accept rolling back our government and regulations about 40 years and see if things didn't get better.

Jun 02, 2012 10:21 AM

Randy Ostrander

Lake and Lodge Realty LLC - Big Rapids, MI

Real Estate Broker, Serving Big Rapids and West Central MI

Good evening Gene. It has gotten to the point where we vote the lesser of the evils. Which one is going to hurt me less. I am not as much pro-Romney as I am anti-Obama. His health care crusade was not even remotely what he pitched to get elected. I am all for a change...in the White House.

Jun 02, 2012 10:58 AM

Karl Hess

Keller Williams Shore Properties - Barnegat, NJ

on The Jersey Shore

If business is so bad why are we seeing record corporate profits? Why is the average CEO pay 250 times that of the average worker when just 30 years ago it was 25 times? Why has the Dow Jones doubled over the last 3 years? I could go on and on. It's the same old tune from 'the right'...cut taxes and deregulate. Didn't we do that during the Bush Administration...and where did that get us?

Jun 02, 2012 11:59 PM

William Feela

WHISPERING PINES REALTY - North Branch, MN

Realtor, Whispering Pines Realty 651-674-5999 No.

We need to get throught the election and then things may get better. Many entities out there that want this admin out and will do what they can to make that happen.

I am not saying it is right or wrong...but it is happening.

Jun 03, 2012 09:25 AM

Than Maynard

Coldwell Banker Heart of Oklahoma - Purcell, OK

Broker - Licensed to List & Sell - 405-990-8862

Actually, his first thought is to blame other people and never look at his policies. His second thought is "More government is need!"

Jun 03, 2012 12:18 PM

Dale Terry

Yadkinville, NC

There will be no magic pill with Romney. I know what I have with Obama, he has spent trillions, polarized our country, and will continue with no change what so ever. Romney may actually tone down spending. He has my vote.

Jun 03, 2012 08:31 PM

Mike Frazier

Carousel Realty of Dyer County - Dyersburg, TN

Northwest Tennessee Realtor

Compared between the two, Romney will run circles around Obama.

Jun 04, 2012 02:16 AM

Gene Wunderlich

1st Action Real Estate - Murrieta, CA

Realtor & Legislative Liaison

Satar - while I agree that running the government is different than running a business, I would rather have a businessman give it a shot. The neighborhood organizer hasn't worked out that well. And no, just getting government out of the way will not resolve all the issues but it's a start. Like it or not we are part of a global economy now and if we can't be competitive with 3rd world countries in some areas of manufacturing or fabrication, we can at least define our niches where we excell. As more of our companies depend on their foreign commerce for larger chunks of their revenue it would be unrealistic to expect them to have all their admin, service and production domestically.

There is no magic pill. We're way past the magic pill stage. But I think that we need a change at the top as kind of a shock to the system. Too many people have given up on success and don't believe our current course is the right one. I hope they all come out election day. And we could use several changes in Congress as well. Unfortunately all the moderates are going or gone leaving only the most polarized in place and we see what that has done for us - nothing. Is there truly no middle ground left? Or are they just incapable of finding it?

Jun 05, 2012 10:36 AM

Karl Hess

Keller Williams Shore Properties - Barnegat, NJ

on The Jersey Shore

Didn't we just have a "CEO President?" How'd that work out? That being said, I think Romney's performance as Governor of Massachusetts is a better indicator of his ability to be President than his time as CEO at Bain.

Jun 05, 2012 08:11 PM

Virginia Cheezum

F. C. Tucker Company - Indianapolis, IN

Touche, Gene, touche!

My father was a staunch conservative and voted straight line Republican until the day he died, now he votes Democrat.

Jun 11, 2012 11:10 AM

John Mosier

Realty ONE Group Mountain Desert - Prescott, AZ

Prescott's Patriot Agent 928 533-8142

Report him and get him off the voter roles, Virginia!

Jun 11, 2012 06:15 PM