Does Obama really think that the private sector is doing just fine? No, he doesn't. His problem is much worse -- Obama is pretty much incapable of expressing his thoughts. What he wanted to say is that private sector is not hiring not because the taxes are too high. In fact, the private companies are swimming in cash and credit is cheap. But they are not expanding because they don't see enough demand for their products and their existing production capacity is underutilized. Therefore we need to stimulate the demand, and the easiest way to do that is to help the local governments to hire back teachers they had to layoff. That is what Obama wanted to say. What he ended up saying instead is that the private sector is doing just fine. The man is beyond help.