...usually with an attempt at historical and economic context
Wednesday, August 26, 2009
Obama Won’t Take Responsibility for Latest Economic News
The White House has released some depressing economic forecasts. According to an Associated Press article by Jim Kuhnhenn , the current fiscal year (ending September 30) will post a deficit of almost $1.6 trillion. The 10-year deficit is estimated at $9 trillion. This is more than the sum of all previous deficits. Unemployment is expected to reach 10 percent. The AP story quotes Mitch McConnell, Senate Minority Leader (KY) as follows: “The alarm bells on our nation’s fiscal condition have become a siren.”
This appears to be bad news for Obama since, according to the story, he will have trouble (1) cutting the deficit in half by 2013 and (2) getting his $1 trillion-plus health care enacted.
This government is doing nothing to help the situation. As noted in my previous post, the measures they are promoting will greatly harm our economy. This is not hard to understand. Higher taxes produce greater unemployment and ultimately less revenue to the government. The combination of health care “reform” and cap and trade will produce another depression. That’s the direction we’re currently heading.
Yet Obama is so pleased with the progress the economy is making that he has appointed Ben Bernanke to another term as Federal Reserve chairman. I’ll deal with that in a future post.
Here are a few things to remember, that should help us understand Barack’s strategy:
1. As noted above, they are doing nothing that can help the economy. They are OK with massive debt and deficits.
2. The economic situation is bringing increased misery to Americans. These are real problems and real suffering for real people. Obama doesn’t care. He wants more turmoil and chaos in our country, because it should cause people to cry out to the government for help, which he will answer with more socialist programs, which also won’t help.
3. To all the economic problems, add other fear-mongering and new “crises,” like the swine-flu panic they are trying to stir up, etc. We’ll need government help with that, right? Even though the swine flu has yet to become the epidemic they seem to want.
4. One of the most reprehensible things (and there are many) about the Obama Administration is their cowardly attempt to blame the previous administration for the current problems, which they and fellow Democrats mainly caused, and which they have made much worse just since the start of the Obama presidency.
“This recession was simply worse than the information that we and other forecasters had back in last fall and early this winter,” according to Obama economic advisor Christina Romer, quoted in the above-mentioned AP article. This cannot be believed. All the relevant data was there and available. The day is coming when blaming the Bush Administration won’t work. I think it has already come. If not for the Obama Administration’s attempts to deal with the recession, it probably would have been over by now. Recessions normally don’t last too long if left to the market. Government interference with the free market doesn’t help.
The Great Depression was directly caused by the Federal Reserve. Milton Friedman explains:
The Depression was made worse by the New Deal. For a discussion of this see Robert Higgs’ article at http://mises.org/freemarket_detail.aspx?control=258. That’s all past history, I suppose, but the present government hasn’t learned from it, or else think they can do what FDR did better than FDR did it. Not likely.
To Obama, it is more important to get his fascist program in place than to actually improve the economy or anything else. That’s what we’re up against.
It becomes more important each day that citizens continue to contact their representatives and speak out against Obama’s socialist plans, and prepare for the 2010 elections.
 "Long-term deficit put at $9 trillion," AP article by Jim Kuhnhenn, appearing in Fort Worth Star-Telegram 08/26/09
I have sworn upon the altar of God eternal hostility against every form of tyranny over the mind of man.