U.S. economy plods but could plummet under Obama

Instead of growing, the U.S. economy is expected to shrink between 1 percent and 1.5 percent in 2009 according to the Federal Reserve.  As a result, unemployment will stay high for the next few years according to a forecast released on July 15, 2009. And it is expected that the economy will just plod along, creating few jobs.

However, if there is some kind of an economic shock, all bets are off because in a crisis, it could shake even more.  One of those shocks could be the results of the cap and trade bill and Obama health care.

Recently, Glenn Beck, host of the third most listened to show in the United States, received calls and e-mails from small business across America and their response could be that shock which could twist those unemployment like a tornado.

In the transcript that Beck made available, business owner after business owner told him that with the passage of those bills, they would begin cutting back on workers hours, firing them or simply just closing up shop.  These are the folks that create at least 70% of all the jobs in America.

On Wednesday, Beck read from the letters of 127 small business persons, each one describing how they will start letting people go, especially under the Obamahealthcare program. For those who are left, they could also become part timers.

While it may not sound like much, five employees cut from the payroll here, perhaps another three at another business, but those numbers could quickly turn into thousand and then millions.

What also could be happening is that small business owners may not even wait for the bills to go through Congress as many of them have already started handing out pink slips in anticipation or making plans to get out of business while they are still ahead.

So are the Federal Reserve says, the economy will plod along if there is not some kind of an economic shock.  That shock could be all those workers finding themselves out of work. The 2 million jobs that have been lost since the $787 billion economic stimulus bill was passed could look like a trickle compared to what cap and trade and Obamahealthcare could do the unemployment rate.

To read the article from the Federal Reserve, go to:  

http://www.washingtontimes.com/news/2009/jul/16/fed-sees-economy-sinking-slower/print/

To read the transcript of the Glenn Beck show with letters from small business people, go to:
http://www.glennbeck.com/content/articles/article/198/27967/

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