Or to be more precise, he’s preventing economic recovery — and thus dooming his political future.
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But even this is not the whole disastrous economic policy picture. President Obama is also campaigning for the new cap and trade tax that has already passed the House, designed to increase the cost of energy so much that the use of fossil fuels will eventually decline by 83%. The resulting unreliable supply of high cost energy will be another enormous competitive disadvantage for America that will only further sink the economy.
A Cyclical Recovery
In the shorter term, over the next year, the American economy will start growing again. Indeed, the index of leading economic indicators is already flashing restored growth. But this will only be the result of the normal cycles of the American economy, as that recovery is already long overdue, and Obama’s economic policies do nothing to restore growth, as explained above. The steepness of the declines we have suffered will naturally promote faster growth, as will the future mega tax increases promised by Obamanomics, as everyone scrambles to earn today what will be taxed into oblivion tomorrow.
But that growth will not be nearly strong enough to bring down unemployment rapidly, which will persist well into next year at over 10%. Instead, as that growth collides with Obama’s trillion dollar deficits, interest rates will rise sharply. The Fed is now promising that it will reverse its very loose monetary policy in time to short circuit inflation. But doing so would further contribute to sharply rising interest rates, and threaten to abort the recovery, and the Fed will blink at doing that.
By 2012, Obamanomics will have re-created the 1980 misery index, with high unemployment, high inflation, and high interest rates. Let me be the first to predict that President Obama will not even be running for re-election then.
Vice President Joe Biden recently said the Obama Administration might consider a second stimulus package. But what we need instead is a fundamental change in economic policy, especially since we have already passed a second stimulus package. In early 2008, then President Bush caved in to the Democrat Congressional majorities to pass the first Keynesian stimulus package. This stimulus, fully supported by then Sen. Obama, was so ineffective, just as Obama’s stimulus this year has been, that it has been totally forgotten. But it is important to remember that this longest recession since World War II has been countered from the beginning with throwback, brain dead, Keynesian policies, rather than supply-side economics.
Former Speaker of the House Newt Gingrich has been vigorously advocating precisely such comprehensive economic policy change through his grassroots organization American Solutions. Even the conservative media has not given these efforts enough attention. Perhaps Newt will be the one running in 2012.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?