Tuesday, February 10, 2009

Obamanomics' Raw Deal

“Insanity: doing the same thing over and over again and expecting different results.”- Albert Einstein

President Barack Obama spoke to us for an hour the other night. U.S. Treasury Secretary Timothy Geithner spoke the next day. Together, they have presented two polices that not only will destroy our economy in future years but has affected us immediately, as the stock market has shown us with over a 380 point loss. Between the two plans created by “them,” they are going to spend TRILLONS of dollars to save our economy. Past history shows this will not work. I will tell it will not work. I am not economist, politician, or a professor. I am a regular person with common sense, a library card, and the ability to read. I can figure this out along with so many others who have just has much knowledge.

Obama and Geithner are going to do what Jimmy Carter, Franklin D. Roosevelt, and Herbert Hoover did when the economy began to go into a recession. They are going to raise government spending, increase governmental involvement, and, eventually, raise taxes. These policies have NEVER worked.

Obama said that the policies of FDR were settled years ago and asked why people were reviving them. Well… Obama revived the debate. He said he was going to be the “next” FDR. He has said he is going to use FDR’s economic model He said this is the worst economy since the “Great Depression.” (This is completely untrue, since the economic indicators show this is as bad as the mid 1980s before Reagan’s tax cuts took affect.) So, Obama revived the debate.

Then, a University of California 2004 study:


along with many other experts have proved that FDR’s economic policies in the 1930s prolonged the “Great Depression.” It has been proved that between Hoover’s constant meddling and FDR’s catastrophic governmental spending, they transformed a brief depression that rest of the world felt to the American “Great Depression.” Even FDR’s Secretary of Treasury Henry Morgenthau said that they had spent so much money and it did not help. Only when they started to balance the budget and cut spending is when the economy improved. Then it was not until after WWII and the end of much of the New Deal is when the economy officially recovered. So, it was not FDR and, now, the debate is settled. Not quite. Why? Because, Obama still wants to use FDR’s out-dated economic policies.

The insane part of Obama/Geithner’s plans is that they are the New Deal times 10 or even time 100. Simple common sense then states that the result would be 10 to 100 times what they were in the 1930s. Therefore, Obama/Geithner are going to create the “Great Depression” again but much more worse through naïve and arrogant policies.

So, what should we do? Obama says people are saying do nothing. On the contrary, there is a lot the government can, should, and must do to insure the well being of the U. S. economy. It is sad that this needs to be mentioned as the preface of this debate in America, but, first, Obama/Geithner must promote free market principles. Our government must advance freedom and liberty in our own country. This stimulates the economy. It creates wealth, not just money, but a wealth of new ideas. The government must limit its meddling (regulations) to free the people to do what they know what to do—create wealth—which creates endless capital, jobs, and prosperity. The government is the problem—not the people, corporations, or capitalism. Socialism is the problem.

So, let’s take some examples from history to prove this point further. Yes, the same history that shows that Obama/Geithner’s policies do not work does show us policies that do. First, we have President Warren G. Harding, yes, he was a President. After Woodrow Wilson left office in 1921, our economy collapsed just as catastrophically as in 1929. Instead of doing what Hoover and Roosevelt would do 10 years later (meddle), Harding cut taxes and limited government spending. And…did nothing else. Remember the crash was worse than 1929. The “recession” lasted a year and the Roaring 20s were born. It did not become a lost decade as the “Great Depression” became. Then in the 60s, John Kennedy cut taxes in which continued the economic growth generated by Eisenhower’s policies. This unprecedented prosperity continued until Nixon and Carter adopted the Keynesian model (government spending to spur economic growth.) Nixon and Carter’s policies crushed our economic growth and brought upon the stagflation of the 70s. Strange… it did not work? Then Ronald Reagan came in the 80s and cut taxes and limited government regulations (meddling) again, which created the longest peacetime economic growth in America history.

See…there is a trend that any regular person with common sense, a library card or the Internet, and the ability to read can see. There is plenty for Obama/Geithner to do. If you cut taxes, limit government spending, and limit the government meddling, the economy recovers on its own. It “naturally” does this according to simple economic principles that Adam Smith described in the 1770s. These principles have and always will work. History shows time and time again that Keynesian economics does not work. It has NEVER worked.

There are more and more people, agencies, and experts warning what Obama/Geithner’s polices will do to our country and economy—how it will crush long term growth, any immediate recovery and cost American jobs. More people are saying this could bring on something worse than the “Great Depression.” More people are now against it that are for it—less than 30% of American approve of these policies. It seems only Congress and the White House is for them at this point.

As the stimulus (spendulous) bill passes through Congress, the stock market crashes, and gold sales skyrocket, Obama/Geithner are, in essence, watching Rome burn and playing a violin. Nero is somewhere smiling. See… as Albert Einstein said, “Insanity: doing the same thing over and over again and expecting different results.” They are doing what has never worked expecting different results. They are insane, ignorant, or arrogant, or worse, have other plans that we would be all to afraid to think of—that they intend to make us so dependent on the government that we have no other choice but keep relinquishing of freedom, liberty, and “property” so we can attempt to live our every day lives.

Are they just solidifying their power and control?

Insane or ingenious, what say you?

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