Obama is Playing Whack–a-Mole With the Economy
By: Brooks A. Mick
An book has just been published by the author of “The Black Swan,” Nassim Nicholas Taleb, in which he states that the Obama stimulus bill weakened the US economy. I hate to tell Mr. Taleb, but I’ve been saying this for quite some time and demonstrating it by referring to the chart of the change of government spending graphed against the change in GDP, which shows that the deficit spending dampened the GDP by 45 cents for each dollar spent.
As further evidence, one can note that it is now stated that the recession ended in June of 2009, according to the National Bureau of Economic Research. What is interesting about that date, if you accept that the recession ended then, is that only 6% of the stimulus bill money had been spent by that date. One would have to conclude, since it is a logical given that causes cannot follow effects, that the stimulus spending did not bring us out of recession! We were heading into recovery before any significant stimulus spending occurred.
My prior piece on this site concerning this subject pointed out that many standard economic indicators were looking up and yet Obama’s actions continued to prevent robust recovery. In affect, Obama is playing a carnival game of Economic Whack-a-Mole. Whenever the recovery pokes its furry brown head above ground, Obama whacks it back down through deficit spending, through demonizing and demagoguing of banks and CEOs and the Chamber of Commerce, through adding massive entitlements under Obamacare, through refusing to extend the Bush tax cuts, through deliberately generating uncertainty by passing massive bills whose provisions nobody understands, by layering on regulations of the financial system–by taking every action possible to put a lid on the economy and keep a natural recovery form occurring.
There is a rapidly diminishing time window in which the country might be saved. We have to massively curtail spending. A balanced budget is not sufficient; we need a large surplus to begin paying down the debt. Tax increases are not the answer. If you still believe in static analysis, you are part of the problem. We need a growing economy to generate sufficient tax revenue. The only way to get a growing economy is to stop disencentivizing success! We need tax cuts to be permanent so that there can be some stability and long-term planning by businesses.
Some Democrats appear to see what’s happening, or else they are simply playing survival politics, pretending to be anti-Obama. Either way, they have to go. The presence of truly conservative Democrats, assuming there are such, nonetheless simply enables the far-left progressive policies of Obama, eid, and Pelosi to be implemented. Even if there are good Democrats, they have to go.
Vote Republican in November. It is the USA’s last chance, most likely.