New report shows the U.S. economy is trending up

Mitt Romney and all the GOP presidential candidates continually harp about the “failure” of the Obama Administration in making the US economy better, but in reality, their speeches and accusations don’t square with the facts.  Things in the economy are certainly trending upward.

 

President Obama held a forum in the White House Wednesday with CEO’s of large and small businesses to discuss ways to “in source jobs” to America meaning bring jobs that were outsourced in the last 10 years back home.  At that forum, he quoted highlights of a recent report that contains good news about the trends in the American economy.

 

Acknowledging that we have a long way to go, the President said  the economy has produced 22 straight months of increases in private sector employment adding 3.2 million new jobs in that period. In 2011, nearly 2 million new private sector jobs were created. This is more than any year since 2005. 

 

The trends in other business areas are also positive. During the Bush Administration 2001-2007, investment equipment and software by businesses declined 15% as a percent of GDP. In that same period despite the Bush tax cuts on the so-called job creators, 3,000,000 manufacturing jobs were lost mostly to foreign countries. Our trade deficit grew to unprecedented levels reaching more than 6% of GDP.

 

However, during the last 22 months, a turn around has begun to slowly gain steam. 

 

Since 2009, business investment in equipment and software has increased 18%.

President Obama, flanked by business leaders at the White House said that there is a growing trend for American companies to bring jobs back to the United States.  The main reason for this is the present business climate and conditions in America make it profitable for companies to manufacture goods here rather than in China.

 

The President cited Ford and Caterpillar for making major investments to bring jobs back from Mexico, China, and Japan. He also praised medium businesses like KEEN footwear which moved production from China to Oregon, Master lock for bringing jobs back to its former home in Milwaukee, and GalaxE Solutions for opening facilities in Detroit and Texas.

 

There has also been an increase in foreign domiciled companies that are opening plants in the US employing Americans. Approximately $228 billion in investment by foreign companies was made in 2010 up from $153 billion in 2009.

 

President Obama proposed tax incentives for companies that bring jobs back home and tax penalties for those who outsource American jobs. He said he will be asking Congress to enact these changes this year.  There is little chance the do-nothing Congress will cooperate, however.

 

Nevertheless, the trends are moving in the right direction and this should be good news for the unemployed in the next few months.

 

Too bad Republican politicians aren’t up to date on their facts. It is totally appropriate for them to lay out their plans to help the economy. So far, they have given few details on what they would do if elected. Instead they spend all there time painting a gloomy picture and blaming Obama for everything while failing to acknowledge the Republican role in creating the problem and the facts things are improving.

 

It would be helpful if Republicans who want to be President would occasionally cheer for the economy to get better and not discourage Americans by painting a false picture.  Once in a while they should put self interest and politics aside.