An administration doing all it can to delay economic recovery indefinitely.
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What actually drives economic recovery and growth is increased production, which results from increased incentives to produce, and reduced costs burdening production. That involves reduced tax rates, which allow producers to keep a higher percentage of what they produce. It also involves reduced regulatory costs and reduced costs of government spending. This is what the more modern supply-side economics adopted by President Reagan was all about. But Obama refuses to consider any of this because it involves reducing rather than expanding the power of government, and he is rigidly opposed to that ideologically.
Instead what we continue to hear from soon to be former House Speaker Nancy Pelosi, and the equally brain-dead Joe Biden (both of whom make Sarah Palin sound like a Nobel Prize winner), is the continuing Keynesian foolishness that extended unemployment benefits will promote economic recovery and growth. “That money is immediately spent at the gas station and the grocery store,” Biden tells us. But if that is so promising, why don’t we just send every American a check for $1,000 right now? Oh, wait, we tried just that in the “stimulus” stupidity of February 2008, at the behest of Pelosi, Biden and Obama then heading the Democrat Congressional majorities. That worked so great nobody even remembers it anymore.
This doesn’t mean we should not extend unemployment benefits. It just shows that Obama and the Democrats have no understanding of how to promote economic growth and recovery. What does it say about their economic policies that we are now seeking to extend unemployment benefits past two years to how long, three years? What effect does that have on unemployment? Obama and the Democrats can’t figure that out? Or are they deliberately trying to trash the economy?
But Obama persists in his public policy malpractice, and misleadership, in seeking extension along with the Bush tax cuts of the refundable tax credits in his failed 2009 stimulus package, like the so-called “Making Work Pay” tax credit. Because those tax credits do not reduce rates, they do nothing to provide increased incentives for production, and economic recovery. They are really just tax welfare, based again on the Keynesian hocus pocus that the increased demand from increased spending, deficits, and debt will promote recovery and growth. The American people just demonstrated in the 2010 elections that they understand what Obama doesn’t: that increased government spending, deficits, and debt are the problem, not the solution. They will demonstrate that again in 2012, if Obama is so reckless in his misleadership of the Democrat party as to give the voters that chance.
Obama Decrees Economic Shutdown
The economy is even now straining to break through the Obama bonds holding it back from economic recovery. With $2 trillion in corporate cash reserves, $1 trillion at least in excess bank reserves, and the 2010 elections putting an end to any further New Left immaturity getting through Congress, extending the Bush tax cuts just could be enough to allow a bounding recovery to resume. Just remember that American economic history is that the deeper and longer the downturn the stronger the recovery.
No doubt Obama will demand political credit for that inevitable recovery whenever it comes, no matter how many years his brain-dead policies manage to delay it. But with recovery coming only after the GOP political tsunami of 2010, and extension of the Bush tax cuts, no way the voters will be fooled by Obama and his party-controlled press again.
Political commentary regarding 2012 today is a treasure trove of great mirth. Obama’s chances of reelection are less than zero. There is a greater possibility that if he tries he will terminate the Democrat party outside of its urban political machines.
In 1964, Lyndon Johnson won a much bigger landslide than Barack Obama in 2008. By 1968, thanks to the Kennedy tax rate cuts, “the economy was booming, with 4.8% real growth,” as explained by Jeffrey Anderson in Investors Business Daily on November 26. “March 31, 1968…capped an economic quarter in which the real (seasonally adjusted) annual rate of growth in GDP was 8.5%,” as Anderson further explains. What happened on March 31, 1968? That was the day on which Johnson pulled out of his hopeless reelection bid, at the height of '60s liberalism.
So, no, a GOP economic recovery is not going to save Barack Obama politically in 2012. But that issue may never arise. Because the Obama Administration is plunging headlong into doing all it can to further prevent economic recovery.
Last week, Interior Secretary Ken Salazar announced a 7 year moratorium on oil drilling in the eastern Gulf of Mexico and up the east coast. They need that time to further study the BP oil spill and implement a “more stringent regulatory regime,” Salazar transparently prevaricated. Salazar is consequently depriving America of 7.5 billion barrels of oil and 60 trillion cubic feet of natural gas. To ensure their access to a reliable supply of oil at the time, the Japanese bombed Pearl Harbor. That’s shows what a serious attack on the American people this policy is.
Meanwhile, EPA Director Lisa Jackson is imposing cap and trade by regulatory decree, despite its thorough democratic rejection by a Democrat-controlled Congress and the American people in 2010. The result will be mass retirements of the coal plants that produce half of America’s electricity, skyrocketing electricity costs, and an indefinite moratorium on major energy, manufacturing, and construction projects. Once fully implemented, this bureaucratic coup will effectively be a $1 to $2 trillion tax increase on the American economy, destroying millions of jobs and trillions in GDP. As President Obama himself has suggested, this is his alternative way of “skinning the cat.”
As Dick Morris and others have explained, through this, its new draconian ozone regulations, and additional new sulfur dioxide regulations, even though there is no real problem with current regulatory standards, the EPA is “virtually making economic growth illegal in large parts of the United States.”
Meanwhile, FCC Chairman, and Obama law school pal, Julius Genachowski is plotting to seize the Internet under the guise of “Net Neutrality” regulations to be revealed at an FCC meeting on Feb. 21, as reported last week. Investor’s Business Daily urged readers on December 2 to note the emphasis in news reports “on ‘lawful Internet traffic’ and a ‘level playing field. This is government-speak for controlling what gets said and who gets to say it.… The FCC wants to decide what and whose ideas get heard.… The FCC would decide how and what information could flow through the Net.”
The Wall Street Journal noted last weekend that the FCC is moving ahead with these regulatory decrees “despite a federal court ruling in April that said the FCC lacked authority from Congress to restrict how Internet service providers manage traffic on their networks.” The Journal also noted, “All 95 House and Senate candidates — every one — who had signed a pledge stating that ‘I believe in protecting net neutrality’ lost in the midterm election.” But don’t expect trivialities like the law and democracy to stand in the way of the Hugo Chavez admirers on the FCC.
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?