…the President assertions that:
1) The stimulus didn’t work because it wasn’t big enough
2) What we need is more spending
3) And higher taxes
Are
1) Wrong, 2) Wrong and 3) Wrong.
economic theory, history and statistical studies reveal that more taxes and spending are more likely to harm than help the economy. Those who demand spending control and oppose tax hikes hold the intellectual high ground.
Which tickles just a bit as surely President Obama has staked out the intellectual high ground, right?
Using powerful statistical methods to separate these effects in U.S. data, Andrew Mountford of the University of London and Harald Uhlig of the University of Chicago conclude that the small initial spending multiplier turns negative by the start of the second year.
Sound familiar?
government purchases have a GDP impact far smaller in New Keynesian than Old Keynesian models and quickly crowd out the private sector. They estimate the effect of the February 2009 stimulus at a puny 0.2% of GDP by now.
That’s two tenths of a percent.
By contrast, the last two major tax cuts—President Reagan’s in 1981-83 and President George W. Bush’s in 2003—boosted growth. They lowered marginal tax rates and were longer lasting…tax cuts have been far more likely to increase growth than has more spending.
Read it. It’s a bit technical, but it serves to reveal a President whose recently and soundly rejected policies are founded not in economic efficacy rather at best, in ignorance and at worst, and most likely, in an arrogant, transparent and desperate attempt to further his extreme liberal ideology.
and at worst, and most likely, in an arrogant, transparent and desperate attempt to further his extreme liberal ideology.
I think the “and most likely” is completely unnecessary here. He has not done one single thing since he was elected that in any way, shape, or form, has benefited or will benefit this economy. And “benefit” in my context is used as to what a pro-growth, pro-business, capitalist minded person would consider a benefit, not a statist/socialist/collectivist/anti-colonial one like him.
The GOP better have their collective stuff together to be certain Obumbler is defeated in ’12. The ’12 election campaign began the day after the ’10 election was over! All 3 tiers of govt. can become GOP if they do things right, AND DO THE RIGHT THINGS!!!
Obama’s latest attempt to jump-fail the economy? A seven year ban on drilling in the Eastern Gulf:
Critics of the ban, including Republican leaders, Gulf state officials and Gulf Coast residents, said it would only hurt oil and gas workers in hard-hit coastal communities, where hundreds of jobs were lost because of the disaster.
http://www.cnn.com/2010/POLITICS/12/01/obama.gulf.drilling/
Thick as a whale omelette, our president.
“Critics of the ban, including Republican leaders, Gulf state officials and Gulf Coast residents, said it would only hurt oil and gas workers in hard-hit coastal communities, where hundreds of jobs were lost because of the disaster.”
Which includes, of course, a few union goons. Funny how Richie Chumpka isn’t railing against that. But then, many of the Gulf States are right to work and don’t take kindly to no Yankee union organizers messin’ with the natural order of things.