Saturday, November 22, 2008

The Change We Have Been Waiting For: Implementing Keynesian Economics With The Clinton Team

Yes, a long post headline, but right to the point as President-elect Obama announced some of his plans to revitalize the failing economy in today's radio/web broadcast.
And it is a doozy.
Firstly, it is a plan that calls for the creation and or saving of 2,500,000 jobs by 2011.
And, how will President-elect Obama do it?
Why with good, old-fashioned government spending on make-work projects that will supposedly repair the national infrastructure.
Of course, throw in for good measure, the ridiculous notion of a commitment to fuel-efficient cars and alternative energy technologies "that can free us from our dependence on foreign oil and keep our economy competitive in the years ahead." according to our president-elect.
So, the question has to arise.
Where is the president-elect going to come up with the money to accomplish any of these ideas, especially repairing our roads and bridges?
The secret is to do this one has three options.
1) Increase taxes. And, candidate Obama certainly drove that point home. But, will he have to lower that middle-class from the stated $250,000 threshold? To increase government involvement in the economy, yes he can!
2) Borrowing. We are already doing that for the $700,000,000,000 bailout/rescue package passed by congress. And President-elect Obama wants another $175,000,000,000 on top of that.
3) Inflation. Now, there is a word that rarely gets mentioned these days, but under this soon to be president, get ready to hear it a lot. It is what happened to the last liberal Democrat president, Jimmah Carter. Along with killer interest rates and high unemployment. Not to add his allowing the Shah of Iran to be deposed and the ushering of the first Islamofacists, the ayatollahs led by Khomeini.
The irony is that the president-elect is appointing a mostly Clinton-era team to implement this back to the future economic plan.
What I do not hear or read from our president-elect is how he will have policies that actually encourage growth in the private sector that will lead to real jobs and people paying taxes and keeping the economy strong.
Because it appears by this, he does not think that the private sector can do all that much. Why else would he seek these FDR era schemes? Does our president-elect not realize that these schemes only kept the Great Depression going until World War II? I guess not.
I do not get how the Clintonites lining up to be part of the incoming Obama administration do not point out to President-elect Obama that they raised taxes and did not even promote the make-work schemes and got their heads on a plate in the 1994 midterm elections.
Also, on the subject of roads and bridges, blogger Robert Stacy McCain points out in growing economic areas such as the South or Western state (except California, of course!) roads and bridges are in great shape and there are improvement projects going on all the time to keep up with changing conditions. And as Mr. McCain points out much of this money will go to the dilapidated highways in the Rust Belt and or places like New York state, California and the like. Note that these areas are almost entirely governed by liberal Democrats, Republicans and so-called Republicans like here in California with Gov. Benedict Arnold Schwarzenegger.
While it sounds great, this is but another rabbit hole that President-elect Obama and company are going to drag the United States down and methinks of the gal that made the following comment after an Obama campaign rally:

"I never though this day would ever happen! I won't have to worry about putting gas in my car, I won't have to worry about paying my mortgage. You know, if I help him, he's going to help me."

Well, for Peggy Joseph, she may not be able to afford that car payment or the mortgage anyway because if President-elect Obama has his way, one if not all three options noted above will come to pass and survival will be what Miss Joseph will be worrying about.
More hope and change. Hope and change, baby!


Rightwingsnarkle said...

Hmmm, lower taxes to free up investment, eliminate regulations that prevent innovation, keep wages down to prevent inflation, just get government out of peoples' way...

Why, yes, that's just the ticket. That's what we need. It's been working well so far, right?

BTW, I love this latest 'FDR made the Great Depression worse' wingnut talking point. That Limbaugh feller is one heck of a history teacher.

DoorHold said...

So if I'm to participate in the new Great Awakening, I have to be a construction worker or put up windmills? (And earn less than $250,000 doing either to escape having the fruits of my labor being confiscated and redistributed by the government.)

That doesn't exactly fill me with "hope" for MY future.