Category Archives: deficit spending

I THINK … there is no economic recovery with Obama-nomics.

It appears that the “recovery” recently proffered by President Obama and his Democrat cohorts is now falling into relapse — at least that is the latest report from the economic wunderkind. We should not be surprised.

First: There has been no recovery. Oh sure, the stock market had some gains, foreclosures abated a bit and the rate of new joblessness started to level off. Don’t those things suggest recovery? Nope!

First of all, the stock market tends to respond to corporate profitability. Profits go up. Stocks go up. The reason, however, is not good. Corporate America’s bottom line starting looking better because of cost cutting, not increased sales – and cost cutting was largely in the workforce. That is why the stock market rose and unemployment did not go down.

Second: The Obama stimulus package was largely a waste of money. It was more like a pain killer that makes the pain lessen until it wears off. Now that the stimulus money passed through the financial system, the same old economic headache has returned. This is what happens when we treat only the symptoms and ignore the disease.

Finally: Obama did very little to fix the real problems. His attempts to have the government produce growth by financing work projects is a loser. Never worked, and never will. Remember, every time Obama says the federal money will create spending, and therefore jobs, he does not want you to understand that he took away the money, through taxes, from people who would have spent it, themselves.

His age-old scheme simply redistributes wealth from those who oppose him to those who support him. Obama is using the economic downturn as cover to impost his big government agenda on the United States. He is operating more like a looter who uses a disaster as a cover for his actions. It may be good Machiavellian politics, but certainly not good economics.

You might counter by noting that a lot of the money being spent by Obama is not from taxes, but from borrowing or simply printing more money. Borrowing only insures that we will have a much larger financial crisis in the future. He is literally stealing out children’s and grandchildren’s … and by this time maybe eve our great grandchildren’s … money. This means a lower standard of living for future generations. This is not only bad economics, but immoral.

Printing money is another short term solution that will bring hyper inflation to a nation that will be, by then, reeling on the brink of economic chaos. They call it “stagflation.” Keep in mind that inflation can feel good because wages go up. This is not economic growth, as Obama and the Keynesians would have you believe. When you go to spend your wages at the store, you will find that your “buying power” will be no better, or even worse, as prices soar.

Government spending is often compared to a narcotic, since there is a certain short term good feeling followed by an inevitable crash – and people and institution do get “hooked” on government money.

Brace yourself for a rocky economic ride for the foreseeable future. For real relief, we should be looking at 2014 – two years after we toss out Obama and the Democrat leadership. If we do not, the long term outlook is grim.