Income falls 3.2% during Obama's term thus far

[Schneed10]

Originally Posted by Buster

Not when they're Government jobs.

Government jobs still stimulate economic growth, just not in a sustainable way.

The theory is that while people are unemployed, you might as well put them to work doing something productive. It doesn't do the nation any good to have people sitting on their duff when they could be building better roads or fixing things.

So the government pays them, they take that money and spend it, which helps businesses. Businesses then have more money to invest, they begin to grow, and they start adding jobs.

The key is to make sure the government jobs, which act as the catalyst for growth, are cut back once the economy starts adding jobs. If this isn't managed well (which often it is not), then you get overspending and severe deficit problems.

If Obama can successfully cut spending once the economy is running well, then he will have succeeded. Problem for him is that a second wave of economic recession is coming, due to no fault of his own, which will derail his ability to cut the deficit. He'll get voted out in 2012 if the GOP plays its cards right.