Don’t Blame Geithner…It’s All of ‘Em

Last quarter’s “numbers” confirm that the stimulus didn’t stimulate, clunkers was one, the unemployed are still growing in ranks and the consumer is still cowering at home. Democrats are looking for someone to take the fall when in fact they are all making exactly the wrong moves economically, and soon time will show, politically.

One big difference between Washington and private markets is that politicians think everything they do is free-standing. Markets, however, combine all the potential costs of Washington’s policies and then decide whether to invest, or not. Consider what private decision-makers [read job-creators; employers-JR] see in their future:

A 2,074-page, trillion-dollar health-care bill to redesign 17% of the U.S. economy. A carbon tax—cap and trade—that remains an Obama priority ahead of the Copenhagen climate summit next month. A falling dollar and gyrating commodity prices, with no idea where those prices will go next.

Democratic liberals are talking about an income tax surcharge to pay for any commitment in Afghanistan. Card check, to expand unionization of the private economy, remains a priority. Domestic discretionary spending in fiscal 2010 is set to rise at 12.1%, with inflation near zero.

Nurturing a fragile economic recovery into a durable expansion requires policies that restore public confidence and reassure investors, risk-takers and employers. The Democratic agenda is doing precisely the opposite, which is how you get subpar growth and fewer new jobs. [emph. mine-JR]

High unemployment will progressively weigh more heavily on a Congress and Administration that has shown how ill-equipped and out of touch they have become they have been all along. They remain without a clue as it regards restoring our economy in a way that is meaningful for their constituents: jobs growth.

At the same time, they have failed to capitalize politically on the crisis (they themselves created), revealing how utterly failed and irrelevant their policies and leadership have become. How effectively they have shown once again that they are the wrong party at the wrong time, or at any time.

12 thoughts on “Don’t Blame Geithner…It’s All of ‘Em

  1. If we’re reaching way back in time – you know, ten months – to figure who “created” the economic crisis, Johnny Doosh, it was the Republicans. I know it seems like a much longer time, cause you right-wing kooks have been SO pissed off, but you had a Republican president just last year. And a Republican majority in Congress for most of his misrule. Why don’t you nut up and take some responsibility for something, oh wingnuts of America?

  2. Last quarter’s “numbers” confirm that the stimulus didn’t stimulate, ” – yet – the money was targetted to keep firms afloat, and to save jobs to the extent the government is able to do so. It isn’t All Powerful, Roosh, seemingly, as a conservative, you’d know that. You may want to avail yourself of the various analyses which point out the fact that the economic growth elements (such as they are) of this stimulus are pegged for two and three years out.

    “clunkers was one”- tell that to Ford and GM – it probably only resulted in 1/3rd more car sales (of the cars sold thru clunkers) than would have sold otherwise, but as stimulus efforts go, a couple of billion dollars was pretty well spent to generate some confidence and energy. Most economists I’ve read feel it was a reasonably successful program, not perfect, but by no means a clunker, that’s yet more spin and hyperbole from the right.

    “the unemployed are still growing in ranks and the consumer is still cowering at home. ”

    Wow? Cowering? Talk about your condescension. But let’s be clear shall we, Republicans helped investment banks and corporate captains shitcan the US economy by creating paper-tigers called CDSs and by destroying millions of jobs on-shore. The consequence was 8 plus years of stagnant wages while energy and health care costs (and day care and education) continued to rise, all funded on home equity loans which shouldn’t have ever been granted if Debt to Income actually were measured for loan qualification and quality (rather than discarded). Now look, both Democrats AND Republicans enabled banks and investment firms (and tech firms, etc..) to do this stuff, but to pretend this started in January is just ludicrous. It didn’t, in fact, it took years to lay the groundwork for this calamity, and what I find particularly troubling is that you (Republicans) STILL defend things like offshoring and profit at all costs approach to business. There’s no regard for sustainability, no regard for the human element or the value of human capital to most/many of you. If our consumers are “cowering”, it’s because their damned worried about the fact that 1/4 of them are underwater on their home loans, their wages are stagnant and costs continue to climb. That has NOTHING at all to do with CRA’s – just as this crisis doesn’t.

    Rather than trying to blame – try to understand, and maybe your party will be relevant again, because while Democrats aren’t exactly loved, Republicans are deeply distrusted (as they rightly earned).

    Democrats are looking for someone to take the fall when in fact they are all making exactly the wrong moves economically, and soon time will show, politically.

    Perhaps JR – I don’t agree with you, nor do most ecnomists about needing to have the government do something earlier this year to prevent catastrophe, but I think what time will show is that neither party is trusted, incumbents will get destroyed at the polls, and more radical change will be implemented. Until China (and others) cease to believe in the good faith and credit of the US, the deficit isn’t the first problem.

  3. If we’re reaching way back in time – you know, ten months…

    See, that’s your problem. You’re short-sighted like most liberals and as such you’re not looking back far enough.

    To deny it was Dodd, Frank, Carter and Clinton; the CRA and Fanny/Freddie that caused this crisis is simply just that, wanton denial.

  4. Penigma, looking at your comment makes me feel like I’m standing on the back of a garbage truck pulling up to the dump.

    I know what’s coming out, that there will be a lot of it, and that I don’t want to be anywhere nearby.

  5. Cowering? Talk about your condescension.

    Again with the misplaced adjectives.

    The word you’re looking for is “descriptive hyperbole”.

  6. Actually, given that Wilson got the Fed approved, he doesn’t get off here. Don’t forget for a minute that the Fed sees a great part of its role as keeping credit markets going, their rate reductions in 2003 and such are in part responsible for the mortgages contracted in 2003-2005 that were largely the ones going back in 2007-8.

    Now granted, Wilson just got the ball rolling, and didn’t take us off real money, but he does bear some blame here–though more for some other events occurring from 1929-1945 that, yes, do have a lot to do with Versailles.

    And Penigma, if you’re going to argue that the spend-u-more plan worked, you’ve got to explain why their prediction is a full 2% off in terms of unemployment. Sometimes, ya gotta listen to the data, and realize that creating hundreds of thousands of government jobs ain’t a good deal if it costs you millions in the private sector.

  7. “makes me feel like I’m standing on the back of a garbage truck pulling up to the dump.”

    Don’t worry Roosh, those words have been recycled many many times before ending up in the landfill.

  8. I’ve never been able to explaint to union public employees (or teachers) why private business responds differently to legislation. Let’s make one more effort, shall we?

    Suppose your employer announces a series of incentives to standardize your company with worldwide wages and working conditions. On Monday, he announces a 10% quota increase coupled with a 10% pay cut. On Tuesday, he announces an hour of mandatory phy ed at lunch. On Wednesday, he gives you the option of praying three Hail Marys at the end of every shift or getting a swift kick in the a**.

    Are you eager to go to work on Thursday?

    Now you know why employers and investors cringe every time Obama opens his mouth.


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