Why Obamanomics has failed

In short Obama's undermining of property rights is creating tremendous uncertainty. Ok we know tax increases, government spending and superseding bankruptcy laws on a whim is bad policy but what should he be doing?

The contrast with President Reagan's antirecession and pro-growth measures in 1981 is striking. Reagan reduced marginal and corporate tax rates and slowed the growth of nondefense spending. Recovery began about a year later. After 18 months, the economy grew more than 9% and it continued to expand above trend rates.

Cut spending and taxes is simple concept but tough to implement when your campaign was heavily funded and promoted by the public sector unions. So the substance is unlikely to change but even the rhetoric is wrong.

Second, the administration and Congress have through their deeds and words heightened uncertainty about the economic future. High uncertainty is the enemy of investment and growth.

This uncertainty comes from Obamacare and Cap & Trade.

Mr. Obama has denied the cost burden on business from his health-care program, but business is aware that it is likely to be large. How large? That's part of the uncertainty that employers face if they hire additional labor. The president asks for cap and trade. That's more cost and more uncertainty. Who will be forced to pay? What will it do to costs here compared to foreign producers? We should not expect businesses to invest in new, export-led growth when uncertainty about future costs is so large.

Let's hope after November Obama changes course.

Unions face opposition from long time allies

Even their most ardent supports are coming to realize the present state of public sector unions is not sustainable.

For decades, many state and city politicians, especially Democratic ones, helped assure their re-election by cozying up to public-sector unions and benefiting from their campaign dollars and precinct walkers. Prior to their current jobs

This bitter irony is born out of necessity local & state governments have ran out of money.

"I'm getting branded as an antilabor person by the public employee unions, which amazes me because I've spent my lifetime doing right by working men and women," said Mr. Sweeney, 

Fortunately for Mr. Sweeney the visceral reaction of the unions will be perceived as an asset by the majority of voters in a general election. The trick for these new blue dog Democrates is surviving their primaries. The unions & net roots will ruthlessly be targeting any heretics.

At the local level they can't print money and they have reached the limits of borrowing. So the question becomes what is the union strategy if everyone can see the writings on the wall?  I think the plan is to delay the day of reckoning while pushing for a bail out from the feds, hoping to leverage those campaign contributions in 08.