Obama’s Problems Are Intellectual & Political

How is anyone to make sense of the failed economic model that is the Obama Administration?

I’d like to try to provide some clarity.

The current U.S. recession led Obama by 13 months, yet every authority on this matter agrees that 18 months is about normal to both recognize and defeat any recession.  We’re way past that now!

Let’s face it, STIMULUS I FAILED.

STIMULUS II FAILED, BUT IT WAS SOLD ALONG TRADITIONAL KEYNESIAN THINKING OF A MULTIPLIER EFFECT!  STILL, IT FAILED.

So where are we now?  We have 14.9 MILLION UNEMPLOYED!

HOW DOES THIS HAPPEN?

Its simple:  the Congressional Budget Office essentially develops plug-and-play economic models that MULTIPLY THE AMOUNT OF DOLLARS SPENT BY THE ASSUMED IMPACT ON JOBS BASED ON PREVIOUS STUDIES!  Can you say Wizard Of OZ!

Where did Obama fail?  he nurtured his own Presidency on unwanted social policy that only added more economic uncertainty.  He ignored the advice of Vockler and others to nurture the recovery through reduction in marginal tax rates.  This along with massive liberal legislation that was unprecedented since LBJ’s 1965 Great Society Program (they failed too!)

THE REAL ROOTS OF THE OBAMA ADMINISTRATION ARE INTELLECTUAL AND POLITICAL!  THEY FAVORED KEYNESIAN SPENDING, THEY BELIEVED IN THE MULTIPLIER EVEN THOUGH HAYEK DEMONSTRATED IT WRONG, MORE IMPORTANTLY THE ENTIRE OBAMA ADMINISTRATION USED THE RECESSION AS A POLITICAL OPENING TO REDISTRIBUTE INCOME, REVERSE THE FREE MARKET,  AND PUT GOVERNMENT AT THE COMMANDING HEIGHTS OF ALL ECONOMIC DECISION MAKING.

This administration not only stimulated itself to spend like drunks, but they stimulated a highly informed, motivated opposition!


About William Holland

Systematic Theologian/International Relations
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