Friday, April 29, 2011

Obama Admin's Keynesian Policy Failures

The Friday, 4/29/11, main WSJ editorial entitled The Keynesian Growth Discount has nailed my personal beliefs of the financial damage done by this current administration.

1Q11's GDP of 1.8%. Couple this with continuous high unemployment (nearly 9% officially; probably 18% in all). This is clear evidence that the massive government stimulus has done more harm long-term than good. There is little confidence to invest by businesses and consumers because this administration's monetary and fiscal policies are not only unbelievable but clearly erroneous.
First came $168 billion in one-time tax rebates in February 2008 under George W. Bush, then $814 billion more in spending spread over 2009-2010, cash for clunkers, the $8,000 home buyer tax credit, Hamp to prevent home foreclosures, the Detroit auto bailouts, billions for green jobs, a payroll tax cut for 2011, and of course near-zero interest rates for 28 months buttressed by quantitative easing I and II.
With this year's deficits likely to hit over 1.6 trillion, I am sure that the Keynesians out there including BHO think we need to spend yet more...$2T or $3T (aka, print more increasingly devalued notes).

Too many of us have no idea if we will be employed tomorrow. Too many of us see inflation sucking us dry -- we buy gas, groceries, and pay our bills and see prices skyrocketing. Too many of us see our incomes remaining the same or in many cases diminished. We are in the stagflation state and have been for a few months now.

This week while traveling with work in Missouri, Tennessee and Kentucky, invariably the conversation came to the economy. Not once did one person think the stimulus was good. Not once did one think we needed to pass a failed budget to keep the government "open." Not once did I hear anyone feel that raising the debt ceiling was a good thing.

Obama and most of those that support his policies are blind to what is really happening in America. For most, we have passed that monetary and fiscal tipping point. Unfortunately, the world I work in across the southeastern USA believes that things will continue to get worse before they get better, if at all.

Meanwhile, while the President says it has been a waste of time to address his birth issue, he is off to an Oprah taping. I dislike this man and everything he stands for more than anyone at anytime in my life. He is the new dictionary definitions of phony, failure, con artist, and anti-American. Why anyone swoons over him and his useless wife is beyond me.

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