OBAMA, SPENDING TO RECOVER WON'T WORK, JUST ASK JIMMY ?
President Elect Barack Obama made his first major economic speech and as expected he called for massive government spending to spur the economy. Citing that without the massive infusion of government bucks, that the economy faces nothing but gloom and doom. In fact the entire speech had nothing that presented even a positive out look for anyone or anything.
The fear mongering tactics that Obama is using follows a usual pattern that Democrats use in order to try and get public support when they are pressing for ideas or programs that may not sit to well with the people.
As fond of European ideas as Obama he he must not have looked at most European countries an example of the results of his ideas. If spending massive amounts of government money in order to spur an economy in a down turn worked then many European countries like Denmark would be world powers now rather than hyper inflated economies with large unemployment figures and no economic growth whatsoever.
Obama seems to forget the hyper inflated days of the last President who used government programs and government spending to try and spur a weak economy, Jimmy Carter. Most have compared the current economy to the Great Depression. This economy as slow as it is not even close to the depressive state of the thirties. But Obama's plan does promise to return the economy to the recessive problems of the seventies under Carter.
Carter presided over hyperinflation running at or near 20%. Three consecutive years of negative growth. Huge unemployment numbers. Interest rates above 18% which stopped almost all new home purchases and construction. And gas lines that spread for miles because of a windfall profit tax that killed production and refining of oil causing major gas shortages.
Obama's plan does not promise anything differing from the Carter years except that he does propose a $310 billion dollar , "tax cut, " which is not a tax cut at all but tax credits of $500 dollars to individuals and $1000 to couples with most of the money going to people who DO NOT pay taxes creating a tax welfare situation. An increase in spending that will stimulate nothing.
He also proposes a $3000 dollar tax credit to business to supposedly spur hiring. This of course will not create the hiring frenzy that Obama claims as the credit is a one time deal providing little incentive for hiring because it does not help the bottom line of any company eligible.
The second major portion of Obama's plan calls for billions in infrastructure money which will not even hit the economy for years if at all. According to the President Elect this will create thousands of jobs and improve the infrastructure in the country. But with all of the red tape involved with any infrastructure project as well as using the money for the project designated the possibility of any of this getting into the economy within two or three years is minimal at best.
FDR attempted massive government involvement to try and end the Great Depression with little or no real results to show for it. Sure many civil projects were built during the thirties but in 1940 when FDR was running for his third term he told an advisor that if he had to run for re-election based on his economic success he would not be re-elected. Unemployment was actually greater in 1940 then at any other time during the Depression and not one of FDR's government programs had worked to stem the tide of negative growth in the economy. It took the entrance of The United States into WWII to end the Depression and get the economy growing again.
In more recent events the massive infusion of billions of dollars of bailout money which was touted as saving the economy has not worked in reviving the entities that were bailed out. In fact the public was told that dire circumstances would result if the bailouts were not passed. They passed and the money was spent and nothing has changed or improved except those instances where free market solutions were applied and NOT government answers.
Government never solves problems it only creates more. As President Reagan said, government is not the solution it is the problem. Obama does not understand this and as a result he is pushing for government solutions because he and his fellow Democrats believe that ONLY government can solve the economic problems we face.
If Obama wants to stimulate the economy and infuse money into circulation then the real answer is a payroll and business tax cut which immediately places money into the hands of the people and business which will result in consumer and business spending as well as greater revenue for the government. Additionally a real business tax cut will provide real money which allows a business to spend for growth and hiring.
But Obama is not interested in real solutions only government solutions. So the gloom and doom that he claims is upon us will become an actuality as the massive spending and printing of more money to pay for the spending will create hyperinflation, a more recessive economy and years of recovery rather than months.
Ken Taylor
The fear mongering tactics that Obama is using follows a usual pattern that Democrats use in order to try and get public support when they are pressing for ideas or programs that may not sit to well with the people.
As fond of European ideas as Obama he he must not have looked at most European countries an example of the results of his ideas. If spending massive amounts of government money in order to spur an economy in a down turn worked then many European countries like Denmark would be world powers now rather than hyper inflated economies with large unemployment figures and no economic growth whatsoever.
Obama seems to forget the hyper inflated days of the last President who used government programs and government spending to try and spur a weak economy, Jimmy Carter. Most have compared the current economy to the Great Depression. This economy as slow as it is not even close to the depressive state of the thirties. But Obama's plan does promise to return the economy to the recessive problems of the seventies under Carter.
Carter presided over hyperinflation running at or near 20%. Three consecutive years of negative growth. Huge unemployment numbers. Interest rates above 18% which stopped almost all new home purchases and construction. And gas lines that spread for miles because of a windfall profit tax that killed production and refining of oil causing major gas shortages.
Obama's plan does not promise anything differing from the Carter years except that he does propose a $310 billion dollar , "tax cut, " which is not a tax cut at all but tax credits of $500 dollars to individuals and $1000 to couples with most of the money going to people who DO NOT pay taxes creating a tax welfare situation. An increase in spending that will stimulate nothing.
He also proposes a $3000 dollar tax credit to business to supposedly spur hiring. This of course will not create the hiring frenzy that Obama claims as the credit is a one time deal providing little incentive for hiring because it does not help the bottom line of any company eligible.
The second major portion of Obama's plan calls for billions in infrastructure money which will not even hit the economy for years if at all. According to the President Elect this will create thousands of jobs and improve the infrastructure in the country. But with all of the red tape involved with any infrastructure project as well as using the money for the project designated the possibility of any of this getting into the economy within two or three years is minimal at best.
FDR attempted massive government involvement to try and end the Great Depression with little or no real results to show for it. Sure many civil projects were built during the thirties but in 1940 when FDR was running for his third term he told an advisor that if he had to run for re-election based on his economic success he would not be re-elected. Unemployment was actually greater in 1940 then at any other time during the Depression and not one of FDR's government programs had worked to stem the tide of negative growth in the economy. It took the entrance of The United States into WWII to end the Depression and get the economy growing again.
In more recent events the massive infusion of billions of dollars of bailout money which was touted as saving the economy has not worked in reviving the entities that were bailed out. In fact the public was told that dire circumstances would result if the bailouts were not passed. They passed and the money was spent and nothing has changed or improved except those instances where free market solutions were applied and NOT government answers.
Government never solves problems it only creates more. As President Reagan said, government is not the solution it is the problem. Obama does not understand this and as a result he is pushing for government solutions because he and his fellow Democrats believe that ONLY government can solve the economic problems we face.
If Obama wants to stimulate the economy and infuse money into circulation then the real answer is a payroll and business tax cut which immediately places money into the hands of the people and business which will result in consumer and business spending as well as greater revenue for the government. Additionally a real business tax cut will provide real money which allows a business to spend for growth and hiring.
But Obama is not interested in real solutions only government solutions. So the gloom and doom that he claims is upon us will become an actuality as the massive spending and printing of more money to pay for the spending will create hyperinflation, a more recessive economy and years of recovery rather than months.
Ken Taylor
posted by The Liberal Lie The Conservative Truth | 9:06 AM
2 Comments:
It may be to late after this fool gets done. Hard to believe the American public did this.
http://mike630.vox.com/
I don't feel it's hard to believe that the American public did this at all. Far to many Americans don't believe that terrorism is a threat. That should be the first concern of the American public, but obviously it isn't, or else President Bush would be given more credit for having kept us safe since 9/11. The majority of the American public who voted in this election were selfish and only interested in their pocketbooks, and they have screwed that up too! Apathy, greed, jealousy of those wealthier than they are, all of that combined to make for an Obama win. Unfortunately it will come back to bite all of us in the butt!
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