Friday, February 5, 2010

Obama, the Economic Disaster

If I needed to be reminded that Keynesian economics is bad for the economy, one need look no further than Obama’s latest economic debacles. What has made the latest piece of news is the jobs deficit—8.4 million! Look at this chart below, which actually puts it at 9.1 million. This is ridiculousness that we have had to deal with since Obama got elected to office:

Even with the unexpected drop in unemployment to 9.7%, it plans to go back up into double digits. As a matter of fact, it looks like we’ll hit a double-dip recession before things get better. What happened to preventing further unemployment? I thought his poorly-planned stimulus plan was supposed to make sure that we would not go beyond 8%.  Looking back, it seemed to be nothing more than funding a haphazardous funding of some pork-barrell spending. But Obama clearly isn’t a good forecaster, that much I already knew.  Nor is he capable of keeping his word. That is why his release of the 2011 governmental budget, which will be nearly $4T, worries me. I truly thought it took a lot of chuptzah for him to release this unprecedently high budget after his State of the Union address when he said he'd cut back on spending. Even in the past few years, the actual budget has been much higher than the predicted one

This is more troublesome because when the same party controls both the legislative and executive branches, especially when it historically been the Democrats, disaster has ensued. It’s no wonder that after a president like Lyndon Johnson, we only had to deal with Democratic presidents for three of the past ten presidential terms. Even with Clinton, the only thing that made his second term tolerable is because the Republican Congress pushed back, thereby curtailing Clinton’s liberalness, which is why there was welfare reform and an actual surplus in the Social Security fund. The Democrats of 1968 are the same as 2010—it's just one big love affair with Big Government and entitlement spending. When both branches are in control of the Democratic Party, fiscal chaos ensues. This is what we are seeing now. That is why President Bush’s fiscal irresponsibility is as minute as the Iranian Shah was to the Ayatollah that followed him.

The problem with Democrats [and some Republicans] is they think that money grows on trees. Their elitism shows when they think they can spend the peoples’ money better than people can. It is the very kind of hubristic thinking that has gotten us into the mess we have. What Democrats can’t notice for the life of them is that the more middle men there are [i.e., bureaucracy], the lower the multiplier effect goes down. Although I discussed the issues with this mentality last week, I think I heard it best put when I heard the phrase [describing left-winged economics], “the theory says that if I take a dollar from my right pocket and put it in my left, then I am a dollar richer. No wonder it always fails.” The government will always have a multiplier effect that is considerably less than one, which translates into “the government is inefficient at spending other people’s money.”

The issue is that Obama won’t let up. He sees himself as the collective embodiment of America. To exacerbate that, he, unlike Ronald Reagan, thinks that government is the answer to every problem. You know what? I want him to keep going like this. What we need is someone to screw up badly enough, or at least make a good effort at trying. America needs a wake-up call to remind them why being shackled by the chains of Big Government is bad. We need to remember why the colonists were angry enough to dress like Native Americans and throw a bunch of tea off a boat in the Boston harbor back in 1773. In short, we need to remember what it means to be free. I’m not one to use one-liners, especially when associated with Southern hicks, but we really need to tell our elected officials, loud and clear, “Don’t tread on me!” If the American people can get beyond the apathy and actually become politically involved, we can remind the government that they serve the people and not themselves.

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