Obama’s Economy Not Working
It’s the ECONOMY, Stupid!
Barack Obama’s White House has decided to back a Keynesian economic policy of “let’s get big government dollars to spend our way out of this economic crisis.”
Is it working? Absolutely Not.
Has Obama effectively lined his supporter’s pocket’s in the process? Absolutely.
When US Automaker General Motors was in financial trouble, the US Government effectively took GM over. As the US Gov’t reworked the company, it ditched the banks and creditors of GM, and transferred huge amounts of the “New GM Ownership” to Unions and other Obama supporters. It’s almost like when a new King started in England, and he decided to take enormous tracts of land from people he didn’t like, and bequeath enormous wealth to his new supporters. Basically it’s robbery, but legalized!
In the Federal Reserve minutes from their meeting last month, there were some very important words hidden near the back, in the small print: The Fed doesn’t think that the US Economy will recover for 5 to 6 years.
In other words, far from winding down the Great Recession and talking about the new Economic Gains that Obama has been touting this week, this shows that in the global economic crisis, the US is now becoming the problem.
The new Fed Reserve minutes show a complete change in policy, demonstrating how fast the recovery has lost steam. International Monetary Research says that the US authorities have “botched the policy response.” Oh really?
- New home sales at 300,000 in May, lowest since records began in 1963
- Outbound exports from Long Beach (major SoCal shipping port) dropped from 139,000 in May to 116,000 in June.
- Philadelphia’s new manufacturing orders index plunged to -4.3 in early July
So what will Barack Obama and his team of Economic Advisers do? According to Gabriel Stein of Lombard Street Research, they are “throwing in the towel.” Washington wants to start another round of government spending again — raising the debt level from $2.4 trillion, to a whopping $5 trillion.
Sound HOPEful and CHANGEful to you? Me either.
We need to get government deficit spending to stop before the dollar becomes totally worthless. Out of all the dollars ever created in the 234 years of USA’s history, over half has been created in the last 3 years.
We need to get the US Government out of the business of spending money on stimulus programs and bailouts. We have spent billions of dollars, and it hasn’t brought the economy out of the recession. Now we want to do it again?
The US Government needs to stop the bleeding. Reduce entitlement payments immediately. Reduce the size of the behemoth that has become our Federal Government, creating Czars of This and Czars of That, each with mandatory staff and spending budgets. We need to get out of the business of saving failing banks and businesses. Let the AIG’s of the world fail. Stop the bailout spending spree. And reduce the US Federal Income Tax.
The more money is in the hands of the individual consumers, the better. What, we won’t be able to afford all of the government programs? It’s okay. The individual cities and communities will pick up the slack, feeding the poor, helping them back onto their feet.
It’s what Americans do.
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Good post! I like your recommendations. The American public is ignorant of the poison of Keynesian economic/social policy. It has been so successful in becoming established – it’s like blackberries…spread everywhere and it hurts to get them out. People don’t like pain and it is a pain to weed out a system so established. I’m curious if the Fed recognizes not only that we aren’t going to recover for 5 to 6 years…but it’s most likely going to get worse. If they do, maybe they are on to something…if not, then they can be surprised just like the rest of America. Hope and change is never going to come from a political party or from someone aspiring to a high political position. If we want to see something different, we have to start living differently.
Two recent links, written for everyone/anyone to understand:
http://online.wsj.com/article/SB10001424052748703615104575328981319857618.html
http://online.wsj.com/article/SB10001424052748704738404575347300609199056.html
Great articles. When are we going to learn that politicians want to spend to win votes, not necessarily for saving the economy.
Exactly the opposite is happening over here in the UK, our new Coalition Government is taking an axe to the budget in an attempt to curb the deficit. I’m honestly not sure which is better, the thought of the national debt soaring and devaluing our economy beyond the point of saving, or the sight of potentially thousands of public sector workers being made redundant while the bankers (who were bailed out by Gordon Brown’s Labour government) take home millions in bonuses. Certainly it’s a grave problem both of our countries are facing – I’m just glad I’m not the one in charge of sorting it out!
So – I am only recently getting into British politics. Are the Tories the rich conservative people? And they are opposed to Labour, which is self-explanatory.
In terms of the opposite happening in the UK, I would think that getting rid of government workers would be a good thing if they can truly get by without them. Of course no one wants to see the lay-offs in comparison to the bankers robbing everyone blind, but in terms of cutting costs, I think the US needs to follow that example and make a whole bunch of government workers redundant. France has over half their work force working in the government… which means they don’t produce anything for their country. If that continues, soon they will have no one left to produce… and where will they be then? I hope the British workers can get involved in the private sector, open shops or work in them, and contribute. I hope the same thing happens in the US.
At least the leaders in the UK are looking at the budget and taking some action.
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Tories are the conservatives yes, but they formed a Coalition government with the Liberal Democrats (the “third” party) who traditionally sit right in the middle of the political spectrum.
I agree that cuts need to be made, but there is very much a sense that it’s happening without much consideration to how departments are going to function afterwards. Namely, the statistic being bandied around that says budget cuts of 25% are to be expected to have been made within four years. Initially this was dismissed as a rumour, but now that targets have been delivered, more often than not it’s true, even as a nationwide average.
All the while a lot of salaries are being frozen, as is Council Tax (that pays for policing and fire services) – budgets are being slashed, no more money is coming in to match inflation, recruitment is frozen, pensions are being docked, there’s no incentive for staff to stay and no incentive for a private sector worker to come and replace them when there are actually vacancies because of the reduced conditions.
I’ll reiterate by saying I agree that cuts needed to be made – it’s the widespread and immediate frenzy of cuts that concerns me.
Yes, frenzies of anything at the government level don’t usually turn out. You don’t want to see the pendulum swinging back and forth too swiftly at the top.