“The only way to fully restore America’s economic strength is to make long-term investments that will lead to new jobs, new industries, and a renewed ability to compete with the rest of the world,” said President Barack Obama in his Address to the Joint Session of Congress on Tuesday, February 24, 2009.
This remark by President Obama sounds like something a concerned American citizen who is struggling to keep his financial head above water might say. A “hurray” moment? Maybe not.
ITEM: The New York Times reported on January 28, 2009:
The stimulus bill ... is not just a package of spending increases and tax cuts intended to jolt the nation out of recession. For Democrats, it is also a tool for rewriting the social contract with the poor, the uninsured and the unemployed, in ways they have long yearned to do. With little notice and no public hearings, House Democrats would create a temporary new entitlement allowing workers getting unemployment checks to qualify for Medicaid....
For the fourth time in six months, the federal government is giving billions of taxpayer dollars to AIG, following the latter’s announcement of a $61.7 billion fourth quarter loss — this despite the massive bailout shoveled AIG’s way by the Bush administration last September. By the terms of this latest lifeline (“life support” would be a more apt metaphor, since the patient has been clinically dead for many months), the federal government is extending an additional $30 billion in loans to the former insurance giant and allowing more lax repayment terms on an additional $38 billion credit line from the Federal Reserve.
The U.S. economy shrank at an annualized rate of 6.2 percent in the final quarter of 2008, almost double the 3.8 percent contraction in Gross Domestic Product (GDP) estimated by the Commerce Department last month. GDP is the sum of everything of economic value created in the country during a year.
Figuring prominently in President Barack Obama’s newly released budget proposal for fiscal 2010 is another massive bank bailout. The Bush administration’s gargantuan $700 billion bank boondoggle was bad enough, but President Obama, not to be outdone, is proposing a positively pantagruelian $750 billion in additional relief for America’s beleaguered money-center banks.