The 2010 election campaign is well on it’s way. Candidates are slandering other candidates. Candidates are making promises they cannot keep. Candidates are blaming the other party for the current recession. Candidates are spreading garbage about other candidates on TV and on radio. Candidates are switching parties to position themselves for a 2010 victory. All candidates are claiming that they are not receiving money from special interest groups. The Republicans are blaming the Democrats for the lack of jobs. And the Democrats are blaming the Republicans for the recession.
The frustration for the Democrats is that this has been a remarkable two years. Congress has passed a record breaking number of major bills including the Stimulus package, Financial Reform, Health Reform, etc. Yet the voters’ concerns about jobs and the voter frustration with both political parties overshadows all these historic accomplishments. Neither major political party gets good ratings from the voters. Many voters want to throw out the incumbents. State cutbacks are hindering both public sector and private sector job growth.
Overshadowing all the tax cuts and government spending is the national deficit. All candidates talk about it but thus far none are convincing. The Republicans and Democrats want to extend the Bush tax cuts which, if not effective, will only increase the national deficit.
Meanwhile the Tea Party appears to have lost some steam with their support of Rand Paul and Sharon Angle. It’s not clear how much influence, if any, the Tea Party will have on the 2010 Fall elections.
Many corporations have reported huge second quarter profits for 2010. GM reported profits of 1.2 billion dollars for the second quarter of 2010. Workers are being pushed for maximum output at a lower pay. The Republicans have attempted to block efforts to raise the minimum pay, block efforts to extend unemployment benefits and block Democratic efforts to help the economy recover at every level.
The Democrats are blaming deregulation for the current economic problems. The Republicans are blaming the Democrats for the national deficit. But the blame game may not work well for either party. The BP oil spill only frustrated the Democrat’s efforts.
However, now for the first time in months, the economy is poised for a job recovery of some magnitude. But the increase in private sector jobs may still be overshadowed by the decrease in public jobs. The states are receiving funds to help teachers and to help with Medicare payments. The European crisis is calming down. The value of the dollar is falling with regard to other currencies. The interest rates are down. The energy prices are lower. The combination of high business profits and maximum productivity leaves the companies in a position where they can hire and where they can’t increase productivity without hiring.
The Republicans may lose their opportunity to steal credit from the Democrats for the economic recovery. The fourth quarter of 2010 may include a significant increase in private sector jobs. Of course, this can all vanish with a change in the global economy.