A One Trillion Dollar Hug

Obama gave a speech yesterday. Word has it (I didn’t watch or listen) he discussed the economy in no uncertain terms.

Let me guess though, I’ll bet he used the words “crisis” numerous times; I’ll bet he furrowed his eyebrows real good like and probably had a real ominous look on his face too.

Were ya scared?

Did he make you think you need him to save you? …that this crisis is too severe for you to solve it on your own? Did he speak of sweeping, decisive, massive and immediate action being required on the part of the federal government? Did you need a hug? A big government hug?

These days it seems like it is our patriotic duty to consume more. And if we don’t choose to spend more money ourselves, the government will do it for us.

Obama is building his case: You need big government. You need guys like him; guys that are smarter than you cuz they read more books, went to better schools and have more letters after their name. Guys that aren’t afraid to take massive, decisive action; to write big checks with someone else’s money.

These problems, despite being undeniably caused by liberal policies in the first place, must be solved by the government. The government must “create” three million “jobs.” The government is the answer, no matter what the question, when you’re a liberal.

Liberals can’t do anything if it doesn’t justify government’s growth and influence in our lives.

But wait a minute. Isn’t it excessive spending that got us into this mess in the first place? Spending more now seems like drinking Scotch to cure a hangover.

But what if the right thing to do right now is nothing?

Here and there are some small signs that the economy is at least bottoming — a crucial stepping stone to meaningful recovery.

New orders, employment, backlogs, and exports all ticked higher than the previous month.

The November factory-orders report showed non-defense capex rising at a 3.9 percent annual pace, the first increase in four months and the best gain in 10 months. Computer orders surged 12.5 percent.

Commercial construction rose 0.7 percent annually in November, and is up 12.1 percent over the past three months.

And in the November personal-income report, real disposable income jumped 1 percent for the month and is up 7.1 percent at an annual rate over the past three months. Real consumer spending in that report rose 0.6 percent in November.

Additionally, the credit freeze continues to thaw. The three-month LIBOR rate is all the way back to 1.4 percent. And corporate bond rates continue to decline, a signal that private capital markets are starting to function again. The 30-year mortgage rate is holding around 5.3 percent.

At a recent conference in San Francisco, academic economists were very pessimistic, expecting recession to last through the whole year. But easy money and low retail gas prices may be a lot more stimulative than the academics think.

The stock market says we’re already over half way through the recession, it’s up almost twenty percent since it’s low point in November.

Americans are already saving more. Banks are amassing cash which they will lend as soon as their balance sheets improve.

Unemployment has a long way to go to match Reagan-era suffering let alone Great Depression levels. Reagan came into office with 7.6% unemployment, it rose to 9.7% then fell to 5.5% on his watch.

Riddle me this: How did he do that?  How big was Reagan’s government stimulus? (It’s a trick question).

Obama’s fear mongering is designed to set the stage for the hero to enter. The damsel in distress is you, he’s going to rescue you, and we all know what the hero gets to do to the damsel once he rescues her.

It’s not enough for Obama to be the first African American President of the United States.

Obama needs a legacy, and in the annals of history, the great liberals, the ones with fist-pounding speeches and legacies, all did the same thing. Increase government, create ever more massive government spending and debt, and screw the next generation (or two or three).

Obama’s 9/11 is the economy and he is going to take the only action a liberal knows.

The economy will improve. The free-enterprise system will come to the rescue like it always does. Capitalism will survive. It may have started already. Obama just wants the credit for it.

You see liberals have just one lever in front of them, and they’re always itching to pull it whenever we give them the chance. Obama wants to pull it so hard, it will be in the history books.

3 thoughts on “A One Trillion Dollar Hug

  1. Actually, Reagan did do one heck of an economic stimulus for those who were in defense related areas, or who did some “blue sky” R&D for this funny thing that’d never work called digital signal processing. And that stimulus was run with deficits, too, in case you hadn’t noticed. Nothing at all in terms of what Obama wants to run, of course. You can’t expect the Dems to fall into second place when it comes to deficit spending can you?

    The funny thing is that Reagan’s stimulus actually gave us something: cell phones and the death of an evil empire. Obama’s? All that we’re likely to get out of that are lots of trains to nowhere ridden by subsidized travelers that we’ll be paying for until our graves.

  2. I have to agree that the so-called “stimulus package” is a bad idea and I hope that members of both parties in both Houses of Congress vote it down. I frankly don’t buy that having the government tax or borrow another $750 Billion to $1Trillion, further depleting the available capital for private businesses, is somehow going to help those same businesses increase their production and create jobs. If anything, it will probably slow the recovery even further all so that elected officials can take credit for “doing something” even if the “something” they did turns out to ultimately be counterproductive.

    Also while this “stimulus package” is being sold in large part to rebuild or upgrade our nation’s infrastructure – something I don’t object to in principal – I suspect that in addition to the usual waste and inefficiency that comes from trying to fund what are largely local projects at the national level (which only adds layers of bureaucracy and graft with less accountability and control than when the users are the payers), a good portion, perhaps even more than half, will ultimately be spent on other projects that have little to do with rebuilding or upgrading our nation’s infrastructure. Sort of like every other omnibus spending bill.

    Based on the above, I oppose the “stimulus bill” because I think it will hinder rather than help the recovery to have the federal government take another $750-1,000 Billion out of the capital markets and because while I support in principal fixing and upgrading infrastructure, the method being chosen is not one that I believe can be trusted to accomplish that goal in an efficient and prudent manner.

  3. Pingback: Shot in the Dark » Blog Archive » Oceania Has Always Run A Deficit, Winston

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