I have been accusing Obama of economic illiteracy for some time now as our nation’s impending financial crisis should by far be our chief concern for the future of our nation and voters would be well advised to consider this before conferring their will in November.
…despite his obvious general intelligence, and uplifting and motivational eloquence, Sen. Obama reveals this startling economic illiteracy in his policy proposals and economic pronouncements. From the property rights and rule of (contract) law foundations of a successful market economy to the specifics of tax, spending, energy, regulatory and trade policy, if the proposals espoused by candidate Obama ever became law, the American economy would suffer a serious setback.
A setback hardly sounds ominous in the big scheme but I wonder if the average American has a grasp of how close our economy could be to the abyss right now. It’s one thing to hear consumers lamenting the fare the media serves up as market and economic intelligence. It is quite another to hear accomplished, accredited investors and the well informed talk of collapse.
I have always heard the former and have dismissed it as the flotsam that it is and have advised my clients to do the very same. Hearing the latter of late has me concerned.
There is a fair amount of optimism in the marketplace as well but that may be recalled if Obama ascends to the White House. His personal economic illiteracy is not so much the issue, as we all know the President can’t forge economic policy without the boys and girls on the hill.
Some cite Bill Clinton’s move to the economic policy center following his Hillary health-care and 1994 Congressional election debacles as a possible Obama model. But candidate Obama starts much further left on spending, taxes, trade and regulation than candidate Clinton. A move as large as Mr. Clinton’s toward the center would still leave Mr. Obama on the economic left.
Also, by 1995 the country had a Republican Congress to limit President Clinton’s big government agenda, whereas most political pundits predict strengthened Democratic majorities in both Houses in 2009.
Essentially, Obama will presumably make every effort to drain what’s left of our economy (“Hey, cool! What does this button do?”) and there will be no one to stop him.
History teaches us that high taxes and protectionism are not conducive to a thriving economy, the extreme case being the higher taxes and tariffs that deepened the Great Depression. While such a policy mix would be a real change, as philosophers remind us, change is not always progress.
Consider this: January is not that far away. How much do you expect our economy to recover between now and then? We’ve had a credit and housing meltdown, the lava flow of which has not yet stopped its seething march into the lower regions of our economy. This coupled with record high energy prices and reduced consumer spending have culminated in a near perfect storm. There is just one thing missing to set into action a collapse of our dollar and our economy.
A major disruption in oil production or a terrorist attack would do.
Obama in the White House may suffice as well.