Well Sarah - cover your eyes... 'cause this is going to be negative, and it needs to be said over and over again until you damned liberals get it into your thick skulls: DEMAND-SIDE ECONOMICS IS NOT THE ANSWER.
Obamahood and his band of Merry-Congressmen are selling poor economic theory to the tired and droopy eyed American people - the idea the Keynesian Economics is going to pull our country out of an economic recession. The same attempt was made during the 30's, and did nothing more than further stagnate the economy... it wasn't until the war machine sprang to life that the American economy began turning around - providing the readily available supply of raw material, innovation, and production capable from our country at the time.
Keynes (the father of Keynesian Economic Theory) argued that the solution to depression was to stimulate the economy ("inducement to invest") through some combination of two approaches: a reduction in interest rates, and government investment in infrastructure. The short term result would indicate some movement of money and job creation... but the reality is massive devaluation of the currency through inflation, and job loss/stagnation in other sectors of the economy.
The theory is simple - the government injects "stimulus money" into the economy - a series of infrastructure jobs and pet projects - such as an $8 Billion high-speed rail line between LA and Las Vegas (home to Sen. Reid - pet project anyone?), or a bridge to nowhere... Jobs are created for these "shovel ready" jobs... but the money must be taken out of other sectors of the economy - through higher taxation of other individuals - or in our case, ANOTHER DAMNED LOAN FROM CHINA.
The cause of the economic crisis is NOT because government didn't do enough... it is because government over-regulated, made impossible demands on banks and other sectors, and then waiting for the implosion - so they could swoop in and clean up the mess with "the only solution left - Nationalization"...
Friends, family, and readers alike - I echo the words of Jack Cafferty: "Why am I not surprised? Congress lying to the American people has become part of their job description. They can't be trusted on anything anymore."
Congress' approval rating is still in the tank - mustering a pathetic 30%.
Obama's approval ratings have slipped from nearly 80% to nearly %60 in under one month in office.
62% of Americans STILL believe we are heading in the wrong direction in America.
While the general disdain for government is unchanged, and the unease of Americans remains the same, there is n'er an outcry against this bulldozer of Socialism being signed into law today, nor is there question why Republicans in the Senate are calling for the Nationalization of the Banks... Americans are witness to the peaceful transition from a once free society, to that of permanent government rule.
Welcome, friends, to the New United States, one nation, under Socialist Rule, with handouts and health care for all.
Are you suggesting that Conservative economics are the answer, then?
ReplyDeleteWhat about the abomination of economic philosophy that George Bush presided over? He took the worst aspects of conservative economic philosophy and wedded it to the worst aspects of socialism and rammed it down the throats of gullible Americans FOR EIGHT YEARS!
Do you think this stimulus bill or anything else Pres. Obama is promoting to try to prevent economic chaos is his PHILOSOPHY? Really, don't be so dense, or Republican.
It's disaster prevention. Republican obstructionists are trying to convince those same gullible Americans that it's an evil Democratic plot to turn the USA into the USSA (boy, now THERE'S a catchy slogan!).
Yes, according to neocons, fear-mongering is patriotic!!!
KaJo -
ReplyDeleteGeorge Bush began his Presidency with sound economic policy - Tax cuts, lower spending, focus on smaller government... He used 9/11 as an excuse to increase spending - and it was all down hill after that. I am not supporting George Bush in this article, nor would I - Bush presided over one of the most liberal/socialist government spending increases, and one of the most big-government increases in the history of the US... not just one of the, but THE worst... His economic policy was horrid - but it was BECAUSE he was trying to appease those on the left, to LOOK bipartisan - until 2004 - then he just lost it...
In fact, I DO believe that this stimulus supports Obama's philosophy in regards to economy... out of his own mouth, he intends to "spread the wealth around"... that supports Keynsian Economic Philosophy - taking tax money or other money somehow obtained from the government, and spreading it to sectors of the private economy which HE FEELS are most deserving... it VERY MUCH IS his philosophy.
There is nothing "disaster prevention" about this package - it is stag-o-nomics 101... the US attempted the SAME THING in the 30's, which saw no economic growth, and the worst worldwide economic depression in history.
Regarding the USSA - define socialism, compare and contrast with the latter half of Bush and now Obama's government, and try to explain how we are NOT Socialist???
I am not a neo-con, I don't agree with fear mongering - I agree with the truth... and it should be said, even if perceived as "negative".
Thanks for reading - thanks for posting.
You conservatives make me laugh, where the hell was that fiscal responsibility when you invaded Iraq? 1 trillion dollars spent on a country that doesn't even like us. While at the same time cutting taxes for the rich. What kind of screwed up logic is that? You guys screwed it up, give us liberals a shot at fixing it.
ReplyDeleteAnon - "You guys screwed it up, give us liberals a shot at fixing it."
ReplyDeleteIt was screwed up using liberal economic policy, NOT conservative ones! Tax cuts DID NOT get us into this situation... excessive spending and growing government DID. THOSE ARE LIBERAL PHILOSOPHIES.
If Bush was a true conservative, he would have waged his wars on a balanced budget - nay, he would not have waged full scale wars at all...
True conservative economic philosophy cannot survive under liberal regulation from the government...
To fix this problem - government must be reduced in size (and thus live within balanced budgets), taxes must be fairer and flatter, debt needs to be paid down - no more deficit spending.
Bush was NO economic conservative - stop spreading THAT lie! Obama is just picking up where Bush left off.
The government needs to quit trying to fix the economy. The Bush administration should never have bailed out the financial industry and the Obama administration should not be trying to stimulate the economy now. Both of these acts are huge steps toward destroying the free market economy. Furthermore, we are taking away the incentives to succeed. If I default on my mortgage, the government will bail me out by lowering my interest rate, lengthening the term of my mortgage and forgiving all of the missed payments. Meanwhile, if I am one of those people who was sensible with my money, paid all of my mortgage payments on time, didn't get in debt up to my eyeballs swiping my credit card every time a new model iPod or a big screen TV came out, I get nothing. Capping the salary of corporate executives accepting bailout money? So what if we fire those people to try and find someone to fix the company? What businessman that's worth his MBA is going to take a job with a salary cap when he can go work for a corporation that can afford to pay hiw what he's worth. You are dooming those companies to poor management and further failure. These are just a few of examples of the errors of government involvement in the economy. If you think the economy is failing now, just wait until all of this "stimulus" from both administrations finally runs its course. Then you will begin to see the tip of the iceberg of true failure. The failure of the free market system on a global scale. The government needs to let the recession run its course on its own. The people who are really feeling the pain of this recession are the ones that made the mistakes. It's called natural selection. The people and the companies who made the smart choices with their money will come through this natural swing in the economic cycle just fine, and the economy, the nation, and the world will be better off for having weathered the storm. Government intervention has never and will never do anything with the economy except make it worse. LET THE RECESSION RUN ITS COURSE.
ReplyDeleteI believe it was Dick Cheney who once said, "Reagan proved deficits don't matter." The era of big-government "conservatism" predates Dubya, and it is fully consistent with the dynamic that the Southern Avenger talks about here:
ReplyDeletehttp://www.youtube.com/watch?v=3ns0NlUgcsY
All of DC is caput. Both sides of the aisle are intellectually and morally bankrupt. The anti-Federalists were right. Time to go back to the drawing board.
What was the WWII war mobilization if not a giant Keynesian stimulation? The government borrowed money and spent it. That's what pulled us out of the late-thirties economic slump.
ReplyDelete