Tag Archives: economic recovery

MY 2 CENTS ON “YOU DIDN’T BUILD THAT”

 

“People know that vast personal incomes come not only through the effort or ability or luck of those who receive them, but also because of the opportunities for advantage which Government itself contributes.  Therefore, the duty rests upon the Government to restrict such incomes by very high taxes.”

Who said that?  It was not our current president.  Here’s a clue – It was the only President in our history who presided over an even longer economic recovery than Barack Obama.  It was Franklin Delano Roosevelt in an address to Congress in 1935.  It is no coincidence that the economic policies of both presidents failed.  Minds that think alike produce results that look alike.  Roosevelt ordered thousands of young pigs to be destroyed to raise the price of pork – in a depression!  Obama ordered thousands of serviceable cars destroyed which raised the cost of transportation for lower income families — in a recession.

As the opening quote attests, Roosevelt sought to siphon money from the employer class to pay for federal government programs.  Obama seeks to do the same.  Roosevelt’s plan for recovery was to put people to work on the taxpayer’s payroll, not in the private sector.  See the CCC and WPA.  Obama’s plan is to rebuild roads and bridges (WPA) and subsidize unprofitable environmental programs like the Solyndra (CCC).

Roosevelt took measures later declared unconstitutional by the Supreme Court.  See The Schechter Brothers and the NRA (National Industrial Recovery Act).  Obama has also been at odds with the Supreme Court.  Both presidents felt restrained by the Court, as well they should.  The Court is there to protect the people from an overreaching government.  Both presidents sought powers beyond those stipulated by our founders, albeit for different reasons.

When two presidents think so much alike and manage economic recoveries with results that are so much alike, it’s not coincidence.  It’s because their policies don’t work.  And what are those different reasons?  Roosevelt’s goal was to restore the economy and benefit lower income workers.  He just didn’t know how to do it.  Obama’s goal is to put a choker on capitalism and completely transform America.  He knows what he is doing.  It’s up to the voters not to let him do it.

 

A COUPLE OF THINGS YOU PROBABLY DIDN’T KNOW

Let the New York Times increase your knowledge, at least on these 3 things.  Ignore my comments.  I never even went to college.

1. Republicans must be as pleased as Punch with Obama’s economic program.  The President is following economic policies Republicans consider ideal and have always dreamed they could put in place.

What should be done about the economy? Republicans claim to have the answer: slash spending and cut taxes. What they hope voters won’t notice is that that’s precisely the policy we’ve been following the past couple of years. Never mind the Democrat in the White House; for all practical purposes, this is already the economic policy of Republican dreams. ~ Paul Krugman

And all the time I thought the Republicans were saying cut the strangling over-regulation, stop stifling oil and coal production, stop passing vague laws for your czars to enforce as they see fit, stop threatening to increase the tax burden when things are already slow and stop attacking success.  In other words, just get out of the way.

2. Obama is slashing spending at a rate not seen since the end of the Korean War.

Look first at total government spending — federal, state and local. Adjusted for population growth and inflation, such spending has recently been falling at a rate not seen since the demobilization that followed the Korean War. ~ Paul Krugman

Mr. Krugman provides this link, Mr. Obama a big spender to a couple of charts that he portends prove his point.  The charts do show a sharp decline in the last 12 months, but the charts are not a picture of spending at all.  They are a convoluted measure of growth rates.  To illustrate – If you spend 100% more this year than last, and then 50% more next year than this, and 30% more on top of that in the third year, then the lines on Krugman’s charts would show a dramatic decline while you were actually spending more and more each year.

3. With Barack Obama as President, U.S. borrowing costs are lower than they ever were before in the history of the country.

Well, U.S. borrowing costs have just hit a record low. ~ Paul Krugman

Wags have often said “You can’t make this stuff up”.  Paul Krugman can.  Perhaps that’s why he won a Nobel Prize.