Time Is Running Out for Obama

Either President Obama fixes what's broken in the economy, or he will be remembered for spending his entire first term blaming George Bush.

Last week's jobs report was terrible for the 11th month in a recovery.

With nearly $800 billion in stimulus spending at its point of maximum impact, federal employment -- net of temporary census jobs -- was up a mere 1,000 in May.

Private-sector employment was up an insignificant 41,000, only one-fourth the pace of the previous two months. Retailers are again cutting employment, as consumers, turned pessimistic, flee the malls.

Making worse a stock market panicked by European debt woes, the President claims his policies are working.

After all, health care reform and the prospects of much higher taxes and more regulations are causing U.S. businesses to rush out and hire everyone they can before all the able-bodied are gone.

The economy is skating precariously on the edge of a second dip -- this time into a depression -- and the president should radically alter policies to ensure that doesn't happen.

The private sector provides good examples.

The Motor City is motoring again. U.S. automakers are gaining market share over import rivals, because Ford(F) has convinced car buyers that Americans can still make quality vehicles -- without a government bailout or blaming prior management for a heavy debt burden.

Now Americans are finally willing to test drive not just Fords, but GM and Chrysler cars too.

It's amazing what a focus on the customer can do!

Now is the time to apply that thinking to Washington.

The recovery is faltering because U.S. businesses lack customers to justify new employees and the capital to expand, and they want help on both scores.

Demand for U.S. products is growing just 2% a year because of a gapping trade deficit -- purchases of oil and from China are sending too many dollars abroad that don't return to buy U.S. exports.

Businesses don't have the capital they need, because the TARP did not fix the balance sheets of the 8,000 regional banks, which finance most small and medium-sized businesses. Instead, it was used by the Bush and Obama administrations to finance more trading and big bonuses at Wall Street banks.