Obama Paralyzed by Limp Economy, Broken Politics
A June jobs report Friday capped the weakest quarter in about two years. The economy created only 80,000 jobs, the third straight month of sub-100,000 growth. The unemployment rate remained unchanged at 8.2%.
"The one thing that tends to stick out with this report is it's in line with the general slowdown in terms of jobs creation you've seen with the last couple reports," said Doug Roberts, chief investment strategist at ChannelCapitalResearch.com. "It kind of locks
After the 2012 elections, market analysts and political strategists expect Congress will address the so-called fiscal cliff. Lawmakers can allow a number of tax increases and spending cuts that could drive the economy into a recession, or do nothing and risk a higher deficit, which also could torpedo the economy.
Critics argue that the Republican Party won't cooperate with the president and Democrats to address expiring tax cuts, pending spending reductions and other potential fiscal drags because inaction would likely keep the economic climate at status quo -- lethargic.
It's important to consider a few elements at play. From a market perspective, investors are searching for any sign of stability. As politicians in the U.S. and Europe avoid tough fiscal decisions, markets during the second quarter of 2012 were volatile and offered little to gain.
From a company perspective, businesses have shown timidity with little signal from Congress as to how it intends to solve significant tax questions. In other words, without concrete policy from Capitol Hill, businesses are afraid to invest in new labor, equipment and other resources.