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The Obama Economy

Here's an interesting article from the Wall Street Journal:

The Obama Economy
As the Dow keeps dropping, the President is running out of people to blame.


Quote:
As 2009 opened, three weeks before Barack Obama took office, the Dow Jones Industrial Average closed at 9034 on January 2, its highest level since the autumn panic. Yesterday the Dow fell another 4.24% to 6763, for an overall decline of 25% in two months and to its lowest level since 1997. The dismaying message here is that President Obama's policies have become part of the economy's problem.

Americans have welcomed the Obama era in the same spirit of hope the President campaigned on. But after five weeks in office, it's become clear that Mr. Obama's policies are slowing, if not stopping, what would otherwise be the normal process of economic recovery. From punishing business to squandering scarce national public resources, Team Obama is creating more uncertainty and less confidence -- and thus a longer period of recession or subpar growth...

So what has happened in the last two months? ...

What is new is the unveiling of Mr. Obama's agenda and his approach to governance. ... (O)ne negative revelation has been the way he has chosen to spend his scarce resources on income transfers rather than growth promotion. Most of his "stimulus" spending was devoted to social programs, rather than public works, and nearly all of the tax cuts were devoted to income maintenance rather than to improving incentives to work or invest...

The market has notably plunged since Mr. Obama introduced his budget last week, and that should be no surprise. The document was a declaration of hostility toward capitalists across the economy. Health-care stocks have dived on fears of new government mandates and price controls. Private lenders to students have been told they're no longer wanted. Anyone who uses carbon energy has been warned to expect a huge tax increase from cap and trade. And every risk-taker and investor now knows that another tax increase will slam the economy in 2011, unless Mr. Obama lets Speaker Nancy Pelosi impose one even earlier.

Meanwhile, Congress demands more bank lending even as it assails lenders and threatens to let judges rewrite mortgage contracts.

When, indeed, does the Obama Administration start?
 
I welcome your comments...
 
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Carville: A History Lesson for Rush Limbaugh

President Bill Clinton's Chief Political Advisor James Carville weighs in on Rush Limbaugh's "bipartisan" economic stimulus plan.  And, although Rush certainly does not need me to intercede on his behalf, I just can not help myself.  After all, I have been absent for some six weeks...

Carville: A history lesson for Rush Limbaugh


Carville seems to be rewriting history:
Quote:
Why surely it seems like just yesterday that Al Gore won the national popular vote in 2000 (and arguably won the popular vote in Florida too).

Arguably, maybe. But the facts don't back you up, James.

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I'm sure President Bush and the Republicans in Congress graciously accepted their 49.5 percent share of everything. (Note: We would be much better off right now had this actually happened.)

Wasn't it Trent Lott, R-MS, who wanted to share the Senate leadership with Democrats? As for being better off, that IS arguable.

Quote:
With 50 percent of the federal government during President Bush's term, Democrats might have reduced the deficit (a truly Clintonista idea).

Wasn't it Clinton who kept saying "We could balance the budget in ten years. Six years. Eight years." The Republican Congress did it in four years. Too bad it didn't last...

Quote:
Wall Street might have been more heavily regulated and K Street's lobbyists might not have been running the Capitol.

Regulation, or the lack thereof, is not strictly a partisan thing. The Democrats effectively turned their back on regulating Fannie and Freddie, and, in fact, blocked any reforms there while their friends made millions.

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Democrats might have invested money into infrastructure improvements so that bridges didn't collapse or entire cities flood.

That would have required responsibility from an elected official. So, no, it would not have happened.

And floods happen. It was Louisiana (your home state, James) Democrats who wasted all of the federal money that had been allocated for levee improvements on pork schemes.

Quote:
Heck, had Democrats been able to control 50 percent of the government from 2000 to 2004, we wouldn't have even gone into Iraq in the first place. There might have been more spending on education and a fully funded No Child Left Behind Act.

It was President Clinton who established the national policy of "regime change in Iraq", and then left it to the next President to effect it.  And millions of Iraqis would not have gone to the polls this past week to elect over 450 representatives to run their government.  And some 200 of the people running for election were women, which would have never happened had our troops not overthrown Saddam Hussein.  
 
More spending on education? Bush allowed Ted Kennedy, D-MA, to write his first education bill. And what has all of the prior spending on education bought us? Lower results by every measurement and high school graduates who can not read the diplomas they have been awarded.  (Notice, I did not say earned...)

Yeah, I think it is Carville who is rewriting history...
 
As always, I welcome your comments...
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A Sensible Campaign Platform

"The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." Cicero - 55 BC
Balance the budget.  That should be easy.  Figure out what your income is, then prioritize your expenditures, subtract the expenditures from the income until you get to zero, and eliminate EVERYTHING that falls below zero.  We all learned how to do this in high school.  And if we didn't learn it there, we certainly learned it soon after setting up housekeeping on our own.  This is Dave Ramsey 101.
 
Public debt should be reduced.  That should be one of the priorities in balancing the budget.  I don't know about you, but my parents taught me that if you don't have the cash to pay for it, you don't need it!  That is true for governments as well.  We can not in good conscience continue to pile debt onto the backs of our children.
 
The Treasury should be refilled.  You and I have savings accounts, CD's, and long-term investments.  We call it "Saving for a rainy day."  Well, recent history shows that the federal government has rainy days too.  And when it has a rainy day, it's a doozy!  In fact, almost everything into which governemnt inserts itself results in the unintended consequence of a rainy day!
 
The arrogance of officialdom should be tempered and controlled.  Our public officials have forgotten that they are elected by us - ordinary citizens - to serve us.  In their first official act, taking the oath of office, they pledge to "preserve, protect, and defend the Constitution of The United States of America."  But judging from the legislation and court decisions they thrust upon us, it becomes painfully obvious that most of these folks have never read, much less understood, The Constitution.  Instead, they look forward to the next election as if they are entitled to hold the office instead of using the office to serve the people who put them there.
 
The assistance to foreign lands should be curtailed lest Rome (the United States) become bankrupt.  We spend billions of dollars in foreign aid every year, sending it to countries that don't even like us very much.  In many cases, those American dollars never reach the people of those lands for their benefit, and instead those funds end up being embezzled by the corrupt leaders of those lands.  Our government has no mechanism for correcting this misspent "charity."  And now we have a presidential candidate who wants us to "give" 1% of our Gross Domestic Product to third-world countries and have it administered by the United Nations!  That is dumber than dumb!  Charity begins at home, and that means your home and my home, not the government.
 
People must again learn to work, instead of living on public assistance.  Every year at Thanksgiving, Rush Limbaugh tells the story of The Mayflower Compact.  Most of us have forgotten that socialism was tried in this country before it WAS a country, and it failed miserably.  The people who lived under that Compact dumped it for a better way.  The New Deal and The Great Society have thrown hundreds of billions of dollars into government programs that have done nothing more than create another generation of the "dependent class" - those who would rather sit on their butts doing nothing until the government hands them a check (and I am not referring to those who paid Social Security and Medicare premiums for years.)  See this article "Cory the Well Driller’s Letter to Obama the Socialist" at The Texas Rainmaker.  We need more "Cory, The Well-Drillers," "Joe, The Plumbers," and anyone else who dares to start and operate the small businesses that provide the vast majority of the jobs in this country.  And we need the workers who will show up and work a full day for a day's pay.  And government needs to get out of the way and watch as the miracle of the Free Enterprise System that made this country great does its magic.
 
Cicero was right more than 2000 years ago.
 
Those who fail to learn the lessons of history are doomed to repeat them.
 
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