Writing over at the always stimulating American Thinker, Mikiel de Bary speaks some economic truths to the Obamanomics myths and half-truths. Read the whole [short] article, but here are a few of his points:
10. The Obama economic team really does not know how we got into this mess. For example, Christina Romer, chair of the Council of Economic Advisors, claims that the “fundamental cause” of the current economic downturn is the decline in asset prices from the levels reached in 2006 and 2007, i.e., from the peak of arguably the biggest and broadest asset bubble in history. In other words, she believes that the retreat from absurd valuations is giving us problems.
How often have you seen people, not only on the Left, confuse cause and effect? It is part of the reason that rather than debating what government should do we should keep government out of as many things as possible. The best and brightest do not stay in government work… so we have a bunch of second-raters trying to run our lives.
7. The Administration tries to meddle with private contracts — see its attempts to pre-empt the bankruptcy courts and undercut the functions of mortgage foreclosure clauses. For a few cosmetic results, it chills confidence in all future investments.
6. The federal government burdens what is now left of free markets by raising its own spending and borrowing and, of course, by planning to increase taxes and regulation.
Since I do not believe that Mr Obama is this *(@&#$ stupid, I have to assume that he is intentionally screwing up the economy more. As his henchman Rahm said, he can never let a good crisis go to waste. Spoken like the true power-hungry tyrant that Mr Emanuel is.
3. President Obama apparently believes that increasing taxes on some of us and then redistributing the money to favored groups and promoters somehow “stimulates” the economy. Who besides macroeconomists (and their former students) believes this?
The points that he goes on to make about the Federal Reserve and the money supply (potentially doubled) should scare the hell out of everyone. We are not talking about plain old inflation, we are talking hyperinflation. With that much extra money chasing the same number of goods, the value of the dollar is going to plummet.
I suspect that Mr Obama would like things to get worse. Then the proles need him more and will “assume the position” when it comes to their rights and limits on the power of government. Read the whole article.