December Retail Sales Not So Hot

Here is some chilling news about the American economy.

Retail sales unexpectedly fell in December, leaving 2009 with the biggest yearly drop on record and highlighting the formidable hurdles facing the economy as it struggles to recover from the deepest recession in seven decades.

In another disappointing economic report, the number of newly laid-off workers requesting unemployment benefits rose more than expected last week as jobs remain scarce.

Does this mean that all of Obama's attacks on small business are finally bearing fruit? Very likely.

Here is one man's opinion. He has a loud voice though.

And basically what Obama said today was that he doesn't know how to stimulate growth in the private sector. He doesn't know how to do it. He has to bring in a bunch of people to now segregate in groups, and he's gonna check back with them later this afternoon to get their ideas. He doesn't know how to do it. I mean, if you know how to watch these things as I do, that's what just happened here. Now, what Obama wants people to think is he's got his sleeves rolled up and he's working hard on it and he knows that growth can only come in the private sector. That's what he says. He's saying all the right things.

But what he's really saying is he needs to convene all these people and he doesn't know how to do it himself. The reason he's convening all these people is it's a circus. This is a show...

That was from 3 December 2009.

And here is a good one from July of 2009.

On Wednesday, President Obama endorsed a House committee's plan to ensure American taxpayers will face a higher top marginal tax rate than either communist China or Cuba.

This plan, which would have the American taxpayer facing an average top marginal tax rate of over 50%, in some cases a almost world-record high 57.5%, goes against the complete economic consensus that you should never, ever raise taxes in the middle of an economic downturn. Doing so will only destroy jobs, slash economic growth, and drive down living standards across the country.

Did it pass? I haven't looked. But it doesn't matter. It is the attitude behind it that businesses factor in to their calculations. Is the government going to be helpful or punitive?

And why do taxes need to go up? Pretty simple. If the government doesn't remove from the economy a LOT of the greenbacks it injected there is going to be horrendous inflation down the pike. Which is going to happen any way. Because when you tax something you get less of it. And more greenbacks chasing fewer goods and services? Sounds like inflation to me no matter which way you cut it.

I look forward to prices on Whip Inflation Now buttons rising. Real soon now.

Cross Posted at Classical Values