Saturday, December 25, 2010

Sweet Holiday Season For Democrats, But Republicans Are Coming

“I think we will see recession coming to an end, probably this year [2009]. We’ll see recovery beginning next year, and it will pick up steam, over time.” That’s what Ben Bernanke, Chairman of the United States Federal Reserve, said at the beginning of 2009. As an informed United States citizen, we can evaluate the accuracy of his prediction, because we now have lived though 2009 and 2010.

Although President Obama’s American Recovery and Reinvestment Act of 2009 saved or created 3,170,000 just in October of this year, unemployment rate of the nation still hovers close to 9.8%. 111,399,000 have received TAX-CUTS as result of the act. With numerous other plans in the bill, one might still wonder why we are not seeing any improvements labor market. Here’s something to think about: The Administration haven’t spent enough money on REALY creating jobs. They have been putting money into projects that demands highly trained professions, not mainstream folks. Furthermore, as republicans cry, tax-cuts alone won’t solve all the problems. That’s because, even small businesses get money in hand, the production of materials costs even more. As for rich people getting massive tax-breaks, like $700 000/year just in tax cuts, does make an “impact” to the Main Street. Think about it: it’s like adding water to ocean.

But in January, a whole bunch of new Republicans are coming to town, virtually guaranteeing a gridlock. But before that happens the Democrats and Obama can sleep little bit better over the holiday season knowing that they got what they wanted. “"I think you saw, in this very short congested work period we had, is Democrats and Republicans were working together," Senate Majority Leader Harry Reid said on Wednesday. However, Reid was noticeably absent from negotiations between the White House and members of Congress that resulted in an extension of the Bush-era tax cuts and a 13-month extension of unemployment benefits.

"The president did a good job. He did a good job without me," he said.

"I think that we're going to be obligated to make sure that (Senate Minority Leader) Mitch McConnell believes he's part of the process," Reid said. "Divided government does not mean you can't get things done. Legislation is the art of compromise. And when you have divided government, that's when you have to compromise."

Let’s hope so….
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