By Larry Kudlow
You would think $1 trillion in spending stimulus and $2.5 trillion of Fed pump-priming would produce an economy a whole lot stronger than 1.9 percent gross domestic product, which was the revised first-quarter number. And you’d think all that government spending would deliver a whole lot more jobs than 69,000 in May.
But it hasn’t happened.
The Keynesian government-spending model has proven a complete failure. It’s the Obama model. And it has produced such an anemic recovery that, frankly, at 2 percent growth, we’re back on the front end of a potential recession. If anything goes wrong — like another blow-up in Europe — there’s no safety margin to stop a new recession.
And that brings us to the grim May employment report, which generated only 69,000 nonfarm payrolls. It’s the third consecutive subpar tally, replete with downward revisions for the two prior months. It’s a devastating number for the American economy and a catastrophic number for Obama’s re-election hopes. All momentum on jobs and the economy has evaporated.