Cloud of Uncertainty Over Economy Not Lifted With Debt Deal

Katie Pavlich | August 01, 2011 12:26 PM

White House Press Secretary Jay Carney started out the daily briefing today by saying, "The cloud of uncertainty over the economy has lifted, maybe." In the "maybe" portion of this statement, Carney was referring to the fact that a deal has not yet been voted on, passed by Congress and signed by the President. Regardless, Carney is flat out wrong about the cloud of uncertainty being lifted simply because there is a deal to avoid default.

Let me give you a few examples of why the cloud of uncertainty will still be heavily looming over the economy despite getting a "deal" on the debt ceiling.

-The U.S. debt today is $14.5 trillion and the debt ceiling will be lifted by at least $2 trillion, giving the U.S. further foreign borrowing power, putting us further into debt. At this rate, we're on track for $22 trillion in debt in 10 years. Also, notice how none of the politicians are talking about a plan to pay off the debt, they're simply scratching the surface on spending cuts.

-ObamaCare hasn't even fulling kicked in yet, leaving businesses guessing when it comes to government regulation and higher cost. Regardless, ObamaCare will cost business more, giving business owners less money to pay employees and therefore creating less jobs.

-Unemployment is sitting at 9.2 percent, with the real unemployment rate hovering around 17 percent

-The EPA is becoming increasingly out of control and continues to push through job killing regulations including new fuel efficiency standards for cars most people don't want to buy last week and forcing coal plants to limit and control emissions from crossing state lines.