It’s not Obama’s fault

An item from the I-wouldn’t-have-believed-it-if-I-hadn’t-seen-it-myself department:

How did the media report the 486-point crash of the Dow-Jones industrial average on Wednesday, the day after Barack Obama was elected president?

According to most media reports, the crash had little or nothing to do with a new president who is pushing redistributive wealth, higher taxation and other anti-business policies. On WMAQ-TV (an NBC station in Chicago on Channel 5) the words “Obama” or “election” weren’t mentioned in the brief item about the huge sell-off. It was as if the election hadn’t occurred, or that it was unthinkable that investors might have taken Obama’s election negatively.

The New York Times’ lead paragraph in its story reporting the huge Dow loss began: “Stocks erased all their gains from Tuesday’s rally—the biggest on a presidential Election Day in 24 years—as investors banked their profits and dealt with another round of bleak economic news.”

[Emphasis added] Not a mention of the election in the story until the end when it noted:

For those curious about the connection between stock markets and presidential elections, Wednesday’s declines fit in with historical precedent. Since 1888, on average, stocks fell 0.5 percent from Monday to Wednesday of a presidential election week when the Democrats took the White House, according to Jeremy J. Siegel, a professor at the Wharton School. (A Republican victory brought an average return of 0.7 percent.) This week, stocks fell about 1.5 percent over the same period.

Over the full four-year term, stocks have historically fared better under Democratic administrations.

“For those curious…” How condescending, as if the writer was stooping to explain it for those of us who are too stupid or audacious enough to think that Obama’s election might have at least a smidgen of something to do with the disastrous day. Notice that there is no attribution in the last sentence, which suggests that the business world prefers to have Democrats mucking up the free markets. If, indeed, stocks have performed better under Democrats, I anxiously await from the writer an explanation for the causal connection.

Of course, there was no mention in the story that, according to the Wall Street Journal story, Wednesday’s losses were the Dow’s “worst percentage decline ever on the day after a presidential election, surpassing the 4.5 percent drop on he day after Franklin Roosevelt’s first election in 1932.” No, mentioning that would have thrown dirt on Obama’s victory.

The Journal story rightly explored the other reasons for the massive decline (“renewed economic worries, coming on top of an unsustainable series of market gains,” as well as expectations for a bad jobless report on Friday), but it also gave attention to the possible Obama factor:

“Some commentators concluded that Wall Street was welcoming Barack Obama with a Bronx cheer. While polls had favored Mr. Obama for weeks, the reality of a new president and uncertainty about how, and how successfully, he will handle the financial troubles may have contributed to the losses, which left the Dow down 5.1 percent at 9130.27.”

I haven’t done a systematic survey of newspaper financial reports on Wednesday’s market drop, but I’m surprised at how quickly the media that I saw in my regular watching and reading so quickly discounted any relationship between the market and Obama’s election—except like the New York Times, which was quick to credit Obama for the previous days big increase, but dismissed any notion that Obama might have something to do with the loss.

It’s what we can expect for four more years.

(For one view from the business community about the impact of Obama’s policies, read the next post.)

Obama’s doing God’s work

These are excerpts from private correspondence between a Florida businessman and others. It is part of an exchange of e-mails discussing how to respond to Barack Obama’s election. Here is what a correspondent had e-mailed him earlier:

As one of my Republican friends said...she has to hope and believe that maybe this is a sign from God that Obama can help some of those people who really need help and see this as something that they really need right now. Maybe this is what our country needs right now. I don't know if I believe that. But it is the only way that I can think about this.

What follows is his levelheaded response. I was so struck by it that I asked him for permission to circulate it, which he granted. I have chosen to leave out the identities of the correspondents because I don’t want to subject them to the kind of uninvited responses I receive from the radical left.

I like the thought. However, I don’t see much desire to do God’s will coming from any politicians. What I see looks more like self will run riot. The desire to tax not to balance budgets, but to address fairness looks more like a desire to play God, than the humble desire to do His will.

I employ the middle class. I have the high privilege of being boss, steward, friend, creditor. How can Washington employ the masses? Can they redistribute enough to substitute for a job? Can the masses go to their congressmen and ask if they can have an advance to put a down payment on a car? Why isn’t anyone talking about jobs? Where did all the manufacturing jobs go? Why did no American firms even bid on the Dubai Ports deal? What effect does wetland impact fees have on jobs? What effect will cap and trade have on jobs? All we hear about is climate change, what is the other side of the balance sheet? What is the effect of our right-minded legislation? I see the effects. I don’t think they can see them from Washington.

I am hopeful that the American spirit, freedom, free enterprise, ingenuity, hard work will not be snuffed out in a tsunami of taxes and regulation that is sure to come. God Bless us all.

Here’s another, earlier view from the same businessman:

The current financial crisis should not be underestimated now that the market has stopped its precipitous slide. We employed 185 people at one time, we currently employ 80. Our company is one of the fortunate ones to have some work. Those 105 workers were not assimilated into the employment rolls of other construction companies. Many of them are still unemployed. I have never seen an environment that was so difficult to maneuver in. If the government has not taxed us into oblivion, they have regulated us into stagnation. I see it firsthand. It is not to be taken lightly. Now we have asked those who created the problem to fix the problem. Government has never been the solution. The worst fact of all is that we have succumbed to the illusion that they are.

Eloquent words from a man who makes his living by literally getting his hands dirty—something that you don’t get sitting at a keyboard hailing our “transformation” into wherever Obama wants to take us when he says, "We can get there."